Today’s trading statement from ZOO highlights a ramp-up in demand following the end to the industry-wide strikes of last year. ZOO struck a note of caution in its January update regarding the timing of orders. However new productions are starting to translate into a healthy order pipeline, with a good recovery in revenue anticipated in H1 FY25. The update guides to revenue of at least $40m for the year to March 2024, ahead of our estimate at $36.8m. We have improved our adjusted EBITDA loss marginally to $13.4m. ZOO has also announced a significant new contract with a major studio, operating as preferred partner for subtitling and primary vendor for dubbing. This demonstrates ZOO’s quality as a services vendor and provides evidence that ZOO is emerging post supplier rationalisation as one of the few trusted end-to-end (E2E) suppliers.