ZOO Digital has provided an encouraging FY24 trading update which demonstrates a quarter-on-quarter improvement in trading and would appear to suggest that H2’24 is the nadir. January 2024 was the highest invoicing month since April 2023 and ZOO expects to beat revised FY24 market guidance with revenues c.$2.0m ahead of SCMe and Net Cash at least c.$1.5m higher. Following engagement with its customers, ZOO has secured improved visibility of work (with some extending until September 2024) with the Q1’25 orderbook up 30% on Q4’24. We have reintroduced FY25 forecasts and moved our recommendation from Under Review to Buy with a new 50p target price (75p before moving to under review).
