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Operator: Good afternoon, and welcome to the ZOO Digital Group plc Final Results Investor Presentation. [Operator Instructions] Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO, Stuart Green. Good afternoon to you.
Stuart Green: Thank you very much, and welcome, everyone. Thanks for joining us for this presentation of ZOO Digital Group's FY '26 Full Year Results. I'm Stuart Green, CEO, and...
Robert Pursell: I'm Rob Pursell, CFO.
Stuart Green: So we'll kick off. Here's an important slide. I'm sure we can all speed read that because we haven't got a lot of time. We'll quickly move on to summarize who we are and what we do. I imagine there are lots of folks on this call who knows pretty well. But for the benefit of those who don't. So in a nutshell, we work in the media entertainment industry. Our customers are big streaming companies and content producers. What we do for them is take their original programming and also some back-catalog programming and do what's necessary to get that on to many different streaming services in lots of different languages. The different language treatment is through subtitling and dubbing various other things that we do as well. All of that we do using proprietary technology that we've created over 15-plus years that gives us a competitive advantage in the market. It makes us very efficient and scalable in what we do, and we'll cover that in a lot more detail later in the presentation. Before we get into the guts of it, we'd just like to kick off with our investment thesis, particularly in light of the fact that -- those who follow the story will know over the last 3 years has been somewhat hellish in our sector because of lots of disruption that's taken place as big traditional media companies have transitioned into the streaming world. But we're now seeing lots of indications that they're through the other side of that. That's great news for us because we're now experiencing a return of levels of business that haven't been there for a few years. And I think it's appropriate for us to just kind of refresh, remind and also refine this investment proposition. So Rob?
Robert Pursell: Thank you. Yes. So it's really like why we like to have a look at and what we're doing. So first of all, we now have a business model that is generating profits and generating cash. It hasn't always been the case in the last few years, but that's certainly where we are now. Also, we're operating in a market, and we'll talk a bit more about this later, that is now growing after a 3-year hiatus when there's a lot of disruption and a lot of decisions having to be made. But not only is that market growing, we think we now have the opportunity to take market share, and that's due to the new services that we're offering and we'll speak more about. We like to think we've already started to prove this. So we've announced recently that we've been very successful in a number of RFP proposals, people asking us about new business, new contracts, new customers, and we're already delivering revenue from them. We'll come on to see that this year has been a really important year for ZOO and there's been a lot of changes, a lot of reorganization. But throughout that, we have been able to maintain our product strategy and make sure that we're still able to compete for that business and doing that very successfully. Now within that, we are a tech-first business. And over 15 years, we have been building IP and technology platforms that allow us now to really feel that we are at the forefront of this market. And it's that investment that we feel is and will carry on differentiating us from competitors. Part of that, obviously, AI. We've now integrated that into the majority of our workflows. Stuart, again, will take us through that. It's not everything, but it's certainly a big part of what we've been doing. And beyond all of that, what we've always done throughout all the disruption, throughout all the changes that we've made is we've always delivered top quality to our customers. And in fact, in FY '26, our quality scores improved. And again, we'll show you that later. And without that, this is the primary goal that we have to hit with quality is never negotiable. So having to go through these changes and maintain that quality has been a great success. And finally, we already have and have had for many years, relationships with all the major buyers in the market. And we can show that some of those relationships are now really going from strength to strength.
Stuart Green: Great. Thanks a lot, Rob. So for those who haven't got a huge amount of time, we'll just give you a really quick thumbnail of what we're going to be speaking about in this presentation and the key themes that will come across based on what we've accomplished in the course of the last year. Firstly, we've resized and reshaped the business to deliver profitable trading and cash generation. That's involved us restructuring our cost base, and it's also involved us embracing AI and implementing it throughout our workflows, and that is now delivering higher margins. Our FY '26 results, as Rob has mentioned there, were in line with market expectations. So that's obviously an important starting point. Our market has evolved. We've seen lots of change over the course of the 3 years. What hasn't changed is the need of our customers to have extremely high quality and authenticity in the work that we do, and that's particularly applicable to localization, of course, where those localized versions of programs have got to be as good. The experience has got to be just as good in other countries where people speak different languages as it is in the original country of where the program was made. So quality and authenticity are absolutely key. And what that means is that you've got to be really careful about how you go about doing this. And right now, whilst AI helps, and we'll talk about that in a moment, we do need humans to make sure that it's getting the answers right. What is changing though is that our customers require these results in a much shorter time period than ever before. We're seeing a growing demand for content formats that are brand new to streaming, the kinds of things that we've seen on network television in the past. But now they're coming to streaming and they are time sensitive and they require a very fast turnaround and therefore, a need for a much faster delivery. What we're finding from our customers is that through -- over the last 3 years, obviously, AI has emerged and they recognize that this should be -- have helped to them in some way. So they very much want to be working with partners that are tech-savvy that understand the tech that are enabled with technology and that can deliver these faster turnarounds perhaps through the use of AI because that's clearly a key driver for where they're heading. So actually, our customers are favoring companies like ZOO that have those credentials. And again, that sets us apart from many others who don't come from those origins. So whilst the market has evolved, we have evolved too. As we said, we've restructured the business. We've launched what we call a fast track service and a 7-day dub service. These are all to address these very fast turnaround requirements for our customers. We've implemented a follow-the-sun model, which effectively gives us a 24/7 service to our customers, which is, again, has become an emerging requirement in the market. So as we look ahead, we can -- we are expecting to take a greater share of a market, which is continuing to -- return to growth. We've reported an encouraging outlook for the year. So we had a strong first quarter of FY '27, and that gives us a lot of optimism to return to revenue growth and further profit progression during our FY '27. So with that, we'll head over now to the financial review, and Rob will take it from here.
Robert Pursell: Fantastic. Thank you. Yes. So going to start just with some quick highlights. To reiterate what Stuart said, we've hit market expectations in the year. Now what you can see there, so revenue has fallen. So it's fallen by 15% down to $42 million. That was expected. The reason it was expected, FY '25 benefited from a backlog of work that came from FY '24 because of the writers and actors strike in Hollywood. So we knew that was coming, but there's also been a subdued demand for dubbing in the year. And that really reflects a less original content being created by our customers, but it was expected. So we knew we were going to see declining revenues, but we also knew we had to get the business back on the right foot again. And that's really what you can see in the following graph. So despite that lower revenue, our EBITDA has increased from $1.1 million to $4 million. Our cash EBITDA, which I've got the details of what that is done there, but it really reflects the underlying cash generation of the business. And that's moved from a loss of $2.7 million in FY '25 to positive $400,000. So it's not a huge amount, but certainly back in that position where we are now generating cash. And as we've said, we expect that to increase as we go forward because we've got the rightsized base. We finished all the reorganization. We finished rightsizing the business. That was completed in the year. And also gross cash for those who've been following ZOO for a while, there's certainly some concerns about cash flow over the last couple of years. But as you can see there, cash balance is still looking healthy. So bottom line is we've rightsized the business. We're generating profits. We're turning those profits into cash. And we feel that's now created a platform, not only financially but operationally that is allowing us to get on the front foot for FY '27. Okay. So looking at things in a little more detail. So this is a summary of our P&L. So yes, revenue is down, I've discussed that as to why that would be there. Looking at customer concentration, so historically, we've always had a very large customer. And in FY '25, that was 61% of the revenue. In FY '26, it's come down to 44%. Now 44% is still quite large for customer concentration, and we expect that percentage to carry on declining. Excluding that largest customer, the rest of our accounts have grown by 22%. So within that revenue number, there really is an underlying generator of growth that reflects the fact we are being able to diversify our customer base through the services that we've been developing. And within there, you can see we've got our cost of sales line, and we've got our operational costs. Now we've managed both of those down to a level that is allowing us to certainly deliver EBITDA profit. And within our cost of sales, we have a mix of third-party freelancers do all the translation work, and we have ZOO employees. And we try and keep that mix at about 50-50, and we've been able to do that in the year. And that means we have a good balance between knowledge, experience, relationships with customers from our employees, but also the flexibility of a freelancer base that we can work with. So we've brought those costs down, and we've been able to do that. And that's been what certainly has helped significantly reduce that operating loss, but as I say, generate some positive EBITDA numbers and most importantly, that positive cash EBITDA figure. So we always like to do this. So there's really 2 parts to the business and they're linked, and I'll come on to explain that. But we classify them as localization and media services. Localization is more creative part of what we do. It's dubbing, it's upcycling, translation, scripting. Media services is when we get some content and we have to get it ready for broadcast on a streaming platform. And there can be various amounts of work that has to go on to do that. So that's more of a technical service, whereas localization is more of a creative professional sort of service. And so localization has fallen, but not by the amount that dubbing has fallen. And that's because we've got a very exciting new revenue stream in there, generated around $2.5 million in FY '26 that we call Fast Track. And Stuart will explain more about this later, but it is incredibly accelerated levels of delivery for these projects. And it's really helpful with live content with time-sensitive content. And we have no revenues for that in FY '25, $2.5 million in FY '26. And currently, it's around 10% of our run rate existing revenue. So that's been a huge success story for us. Within Media Services, we had a slight decline there. Often, when you see that drop in localization, you just associate a drop in media services because quite often, if we're doing the localization work, we'll end up doing some media services as well. But we've been working hard and we've been able to support those revenues through a lot of actually licensing deals that have gone on in the industry where customers are buying content from other customers. So they don't really need as much localization, but they do need that technical service. Looking at the gross profits, Localization margin has dropped a couple of points. That's primarily because dubbing has reduced. Now we have reduced the cost base of Dubbing, but we haven't done it as much as the revenues would imply. And that's because we want to maintain the capabilities of the organization within Dubbing because we are confident that this is going to return. And also a lot of the wins we had, a lot of the contract wins have been for companies that can provide all services. So strategically, commercially, it's important that we maintain that. And we've done that, and we expect that to recover in FY '27. With Media Services, we've actually been able to improve the margin there. A lot of that has been able to utilize the operations that we've got out in India, which are now fully integrated, up and running with the same work that we're doing in the U.S. and the U.K. and that's been able to allow us to provide the same service, the same quality with a slightly lower cost base. And so all in all, those changes plus the change in mix has increased our gross profit percent from 36% to just under 42%. Now here, we've got a brief summary of our balance sheet. And I joined ZOO a year ago. And that was after ZOO had come through a couple of difficult years, as many of our competitors had with all the disruption in the market. And there's a real question about sort of cash, were we going to have to raise money. There was a real question around how do we stretch creditors and too far in protecting that cash. So that's really where we started. And I think not only in terms of the business model, the profitability, the product development that we've been able to do, we've really been able to show some improvements here. So as we showed on the first slide, cash is up. But probably the main number there was we've reduced the trade and other payables number from $18 million down to just under $13 million. So that's a substantial reduction. Now we've done that in 3 ways. We've used some of our invoice financing facilities. So you can see we've used $1.4 million of that. We've got around $8 million in total we could use. So it's a small portion of the total. So that's helped. There's the cash we generated in the business has helped as well. But also if you look at the trade and other receivables line, you see we've made a significant reduction there. So that's really reflecting the fact that we've been able to increase the speed at which we bill for the services and the work that we're doing. And also, we've been able to increase the time or reduce the time it takes to get paid. So all of those 3 things together, using sensible financing options, generating cash as a business, doing a better job, billing and collecting cash has meant that we've been able to rebalance the balance sheet quite nicely and certainly in a better position than we were at the end of FY '25. Final one here, a quick look at the cash flow, and this is really repeating what we've said before, that we're able to take those profits and generate cash from them and make sure that that's coming through into the business. Probably one point to pick up here is the investing activities line. So the main bulk of that is the investment we make in our platform. So it's a capitalization of R&D salaries and work that's going on there. And that's really important for us because this is the platform on which we're able to do these -- these improvements. So we've capitalized about $1.7 million, that's up from last year, so $1.5 million. So despite paying down those creditors, we've been able to increase that level of investment. And it's probably not a surprise to know that the biggest project within the biggest spend is actually the integration of AI into our various works and what that's been able to do for us. So yes, hopefully, that's all clear. Will stop all of the main financial statements and the results and now up online if you want to look through in more detail.
Stuart Green: Thank you very much, Rob. Yes. So I'll pick up now and cover off the developments that have taken place within the market and how we've responded to those changes. So obviously, as I said, we've had 3 years of disruption in our industry, and there's been lots of change that has come with it. I think the way to think about streaming now is that it is replacing TV. And if you think about TV for a moment, traditionally and historically, TV has been a local market service. So think BBC, ITV serving a U.K. audience, Canal+ serving France and so on. So what's happening is that because the revenue potential from licensing for big studios through network television and generating ads there is diminishing. And obviously, the whole world is moving over to streaming, the same kinds of content that previously we would have enjoyed through network television and indeed still do, will be moving across to big global streaming platforms. That's already happening and more of that is happening going forward. So think of streaming, think of global streaming services now as becoming the television of the future, but delivered on a global -- to a global audience rather than a local audience. So that's kind of a key change that has sort of emerged over this period of time. And one of the things that has come with that then, of course, is that streamers are looking at types of content that would have been common that are common on conventional local network television, commissioning similar types of content to go on streaming. So you're seeing sports, live sports coming to streaming, of course. You're seeing some news. You're seeing sort of daytime TV type content. Lots of different kinds of material, often which is very time sensitive, sometimes which is delivered live. And therefore, if you're now a global TV provider, you need to be sure that you can deliver that content to your global audience in a timely fashion. So what that is doing, obviously, is creating a demand within our industry for the kind of services that we provide, but on dramatically shorter time scale than has ever been the case before. So what we're finding from our customers is they're looking for service providers that firstly, have got the credentials and the capability to deliver that first-rate service is, as I mentioned, is absolutely crucial, but also that are progressive and are able to embrace technology to be able to utilize it to their benefit, whether that's to save costs or more significantly, we're seeing to accelerate time to market, then they want partners who have that capability and clearly, that is playing to our strengths. So if we look at how we have evolved the business over these 3 years to respond to that need that we have seen and anticipated over that time. Firstly, as we said, we've restructured the business. We've rightsized. We're now optimized to deliver profitability and generate cash. We've got a much leaner and efficient model and one that is scalable. We've continued to be progressive and innovative in our development of technology and also our adoption of robust technologies, including, of course, AI. So one of the things we've been very busy with over this period has been selecting AI solutions and incorporating them within our workflows where they make sense and where we can use them to the benefit of our customers. And what they are doing is enabling us to deliver a more efficient service, but also improving the outcomes for our customers. We'll cover this more in a second, but I just want to emphasize here that because of the nature of the outputs that are required by our customers, the -- we absolutely have to have a human supervision on the use of AI to ensure that there are no glitches, issues, mistakes that could be very damaging for our customers and then as a consequence for us as well. And so we've delivered on this requirement. We've been successfully and routinely now on a monthly basis, serving customers with these accelerated services. We've demonstrated that we can do it consistently at scale. We are -- as far as we know from our customers, we are able to offer at the moment the fastest turnaround speeds that are available in the market. We've been delivering our Fast Track solution for some live events and near live events. And we are continuing to innovate to do more of that and to do things even faster. So the outcome of those -- of that progression over the period has been, as you've seen, return to profitability and delivering a second year of positive EBITDA following this big industry disruption. We've deployed Fast Track for both subtitling and dubbing and media services to deliver really accelerated turnarounds. I'll expand on that in a second. We've got new dubbing propositions, again, that significantly reduce the time it takes to produce dubbed soundtracks, but without necessarily incurring additional costs of our customers. And all this has enabled us to strengthen the relationships that we have with our studio clients who recognize that we are in a very strong position to be able to service them with these emerging requirements. So on Fast Track then. So what -- essentially, this is something that is enabled through a combination of 2 key things. The first is our progressive technology, the fact that we have automation and have been building for 15-plus years automation throughout these workflows and more recently have embraced and implemented AI to take that even further. So that -- those technology platforms differentiate us. We're the only company in the industry with this kind of capability. And that gives us a competitive advantage. But it's combined with a second crucial component, which is our ability to fulfill the services using those platforms with talented people delivering across 80-plus different languages. And part of that, particularly delivering results at the speed that's now required, we need to have this always-on capability. We need to operate 24/7. We have a way to do that, which is really efficient. And we call it our follow-the-sun model. Essentially, we have multiple facilities around the world, and we have staff within those facilities who can conduct the work, the required work during their working day. And then towards the end of the day, they can hand over to colleagues who are in a different location that's typically west of where they live. That means that they can then continue to do the work in their working day. And in this way by continuing to hand over projects over the course of 24 hours, we have basically an always-on service. So that's absolutely crucial to the fulfillment of these services at these kinds of speeds. So we see -- looking ahead, we see 3 important areas where growth can -- where we can see growth coming for the business. The first is as a result of these new content strategies that our customers have developed. And a big part of that is to do with this new emerging requirement, this addressable market expansion that's coming about because our customers now want these new kinds of content to be localized and delivered really quickly. And that's obviously calling on our Fast Track service and is creating incremental revenue stream. It already accounts for about 10% of our revenue. We think that will grow going forward. And it comes in sort of to the use of these accelerated services comes in sort of 2 areas, where the service needs to be super accelerated, really fast turnaround, then as in most areas, you can charge effectively what amount to rush fees for those things. You can charge a premium because, of course, you would incur additional costs in fulfilling at that pace. But what we can also use this new capability for is to deliver the services at the same standard prices that we have -- that our competitors in the market, but on much shorter time frames than is typically possible through competing organizations. So we can -- so it's enabling us to have a significant competitive advantage over others in our sector. The second area of profitable growth opportunities lies in the fact that what we recognize our customers understand that these new technologies that are appearing AI and others represent opportunities for them. So they recognize then that they need to be working with partners who are prepared to embrace those technologies and to understand them and can incorporate them and capitalize on them and share the benefits with them. So again, this is an opportunity for us to take market share because we are more like the kind of partner that our customers want to work with going forward than perhaps they have traditionally worked with in the past. And then the third area is the point that we've always made about our business, namely that as more consumers watch content through streaming services, there is an imperative on the part of those global providers to identify content that will appeal to audiences in lots of different countries because, of course, that obviously extends the value of their investment in creating that original content. What that means, of course, is that, that content needs to be localized into more languages, so it's more accessible on a global basis. So it's -- we're seeing ongoing growth in streaming coming from international markets that is in turn driving growth for localization. So we talk at around 5 strategic pillars. And so we'll -- in a second, I'll provide you an update on those -- on our progress against those pillars in the year. I want to start actually just to talk about our quality KPI. This is something that we introduced a year or so ago to indicate the caliber of the services that we provide. As we said, the customers that we serve, they need the highest quality of provision. And so some of our customers measure the performance of their vendors. They basically produce a rate card. They benchmark their suppliers. They measure their performance and they report back that performance to the individual vendors. So the numbers you see on this chart actually are not based on some subjective opinion of ZOO and our staff, they're actually measures that are derived from stats that are supplied to us by some of our major customers. Anything -- this is showing -- this number -- the headline number here is an indication of the quality of the service we provide. And 98% and above is sort of world-leading. So as you can see, we're doing somewhat better than that. I think a really important point to recognize here is that we have gone through 3 years of industry disruption, and that has led to significant disruption in the ZOO business. And Rob has already explained it in the last year alone, our headcount was reduced by 17%. When you do that, you expect things to break. And in our case, had things broken, you would have seen that evidenced in these quality scores. So what's really quite remarkable is throughout this period of disruption, we have maintained industry-leading quality KPIs. And that's because we are -- because of the way in which we go about doing the work we do, but also because of the meticulous and careful way that we planned for making that for going about that restructure to ensure that we -- at no point, we were at risk of disappointing our customers of impacting our quality scores that could in turn have been detrimental to our ability to continue to do work for those customers. As I mentioned, AI is now implemented all the way through our workflows. I won't spend a lot of time on this chart other than to kind of just point out that it's indicating where we've already implemented it, where we're already working on further development, where we've got plans in the future. We first used it at the interim results. So if you look back to that date, you can compare and see the progress we've made. So the bother, we've made a lot of progress even in the last 6 months and all driven by these emerging requirements that we see from our customers. I mentioned Follow-the-sun is a slide just to sort of highlight. These are the locations of the business. And so a project might begin in Los Angeles if it's been some content has just been produced in that time zone. Our staff there will work on it until the end of their day. They'll hand over most probably to their colleagues in our office in South Korea, who will pick up and continue with it and so on. It will pass around the world until that work is fulfilled. So that gives us that 24/7 capability. And it's possible because we have -- in the period, we've ensured that we now have project managers with the right skill sets, the right service-specific knowledge in each of the key locations so that we have, and we are able to offer that continuity. And then these are the 5 pillars that we report against in each set of results. These are kind of what drives us. Innovation is at the heart of everything that we do. As we said, we've introduced Fast Track and a 7-day dub service. Those are major innovations that are now driving lots of new opportunity in our industry. For our customer pillar, we have -- we've seen good diversification and expect to see more of that in the year ahead. On collaboration, our follow-the-sun model is now fully implemented, and we're using that on a daily basis to fulfill fast turnaround projects for our customers. On talent, we have -- we are increasingly leaning on our offices based in India. So when there are vacancies for additional staff, we'll always look first now to India and say, is this a position that could work efficiently out of one of our Indian locations? And if so, we'll progress in that way. And then on scalability, the fact that we have moved more of our costs to be variable and we have this global ecosystem means that we have an inherently scalable operation now and perhaps more so than we ever had before. So in summary then, I'll just wrap up just by saying that we've seen a stabilization in the market after 3 years of disruption. Finally, and thankfully, we now see the market stabilizing, and we're now seeing much more customer activity that, as we mentioned, has given us a strong Q1 and optimism for the year. So customer demand is resuming after this protracted fallow period. We've reshaped the business. We now can be more profitable, and we can generate cash even at a lower revenue. We have restructured the cost base, and we have implemented AI to enable us to deliver higher margins. And again, that's been evidenced in the year, and you'll see, I believe, more of that in the years to come. We have been able to capitalize on this opportunity for the new content formats that are coming to streaming that have the effect of expanding our addressable market. So that's incremental opportunity. But right now, we are incredibly well positioned to take advantage of. As a result of these things, we expect going forward, we should take -- be able to take a greater share of a growing market. We mentioned the first quarter trading of FY '27. It was -- we've had a strong first quarter. That's very encouraging for FY '27. So we remain optimistic, and we believe we're on track to return to revenue growth this year and progressing the profit in the course of the year. Thank you very much. I'll now hand back.
Operator: [Operator Instructions] While the company takes a few moments to review the questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q&A can be accessed via investor dashboard. Stuart and Rob, as you can see, we have received a number of questions. And if I may now hand back to you and kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you both at the end.
Stuart Green: Okay. Thanks very much. All right. I'm going to start with one that comes from Gary. The question is, the Board has mentioned that FY '27 has started strongly. Without requesting specific guidance, what operational indicators are you currently observing that suggest a return to revenue growth? Is that one you want to say, Rob?
Robert Pursell: Yes. I mean, obviously, the operational indicator is revenue. So what we've seen in Q1 is a really good response from the RFP wins, the conversations we've been having with customers. And Stuart was saying this, there's almost this people have got more comfortable with what their content strategies are. The reason why they issued those -- all those RFPs was because they were really starting to get the idea as to where they wanted to go in this new world. And we've really started to see that come through. So whether it's actually projects we're working on or even the projects we're talking about for Q2. It's been a really strong quarter. So we can't say much more than that. But as Stuart said, I'm sure some of you won't see the analyst may ask about that, but we are saying that we expect to return to revenue growth, and we expect profit progression. And what we've seen in Q1 supports that statement. I think that's probably the best answer I can give for that right now.
Stuart Green: Great. Thanks, Rob. So here's a follow-on question from Gary. Fast Track has contributed approximately 10% to group revenue in its first year. Can you expand on whether this revenue is new business? Or is it replacing traditional localization revenue? That's a great question. It actually falls in 2 categories. So there is a brand-new business that's coming about through this market expansion feature that I touched upon, where new types of content are coming to streaming because those -- because that content is time sensitive, it means that localization has got to be done much more quickly. And so consequently, there is a new demand that has emerged in the course of the last year. But right now, we are very well positioned to be able to fulfill. And obviously, we're getting on doing that, and we're doing that on a monthly basis. So that's kind of one category. Another category is just the general requirement that we're seeing across most of our major clients to have the results of our work delivered back to them more quickly than before. So one of the features that we're seeing at the moment in the market is that there's quite a lot of licensing activity going on between the big companies. So a big traditional some studio, for example, might license -- might do a licensing deal for a whole catalog of TV series that might go off on a different streaming service. So that will be a deal that has been negotiated. Once it gets closed, operationally, what needs to happen then is that, that content owner has got to deliver all those materials to the streaming service in the right form so that they can be uploaded onto that platform and then obviously become consumable by the audience. And to do that requires at the very least some media services, but it may also require some localization if that streaming service wants to go into other countries. Obviously, if they don't already exist subtitles for a particular language there, then they need to be created. But even if the subtitles already exist, there's almost always some work that's got to be done to effectively conform the term, pre-existing subtitles so that those subtitles are compliant with the particular requirements of that end of the platform. So all that actually is great margin work. It's stuff that we can do internally through our internal staff. And so it is a feature of those kinds of deals that as soon as that material can be delivered to the licensee, the sooner the licensor will get the cash. So they want to do that faster than before. So they're looking to work with partners who can do things more quickly. And we think that we are kind of winning market share as all of that. So a traditional provider they have used in the past is maybe saying, yes, I can do that for you, it will take us 4 weeks. "We're coming along and saying, We can do it in a week." And if there's a significant price differential, then we can win that business. And so we're seeing some of that as well. Okay. I'm going to jump around a little bit here just to mix things up a bit. So this is a question from Christopher who asked for those of us who haven't been able to see in the analyst forecast issued today, given the strong first quarter of '27 in the report, have the forecast for the year been upgraded?
Robert Pursell: No. So they haven't been upgraded. I think they only released fairly recently. And as we said, it's a quarter. So we've had a strong quarter. We are expecting year-on-year growth. We're expecting profit progression. So yes, it's a strong quarter, which is definitely encouraging for a year, but certainly not at the point where I would imagine the analyst and there's a question of them would be wanting to change the forecast.
Stuart Green: So another question from Gary, which has got 2 parts, so I'll take those in turn. The first is with the rapid development of AI, how do you anticipate it will change the localization industry over the next 3 to 5 years? Thanks for asking. And it actually gives me an opportunity to touch on a point that is an important point to make, particularly for those who haven't followed the ZOO story and are new to it, who may think of ZOO as a localization company like many other localization companies in the world that have obviously seen AI in many cases, eroding their business. So a key feature of the localization work that ZOO does is that it relates to media, and it's -- the vast majority of it is entertainment content. So it's essentially dialogue between people who are usually acting and playing parts. And that's -- so what we're dealing with is the localization of the spoken word. And that's a very different requirement from translating a written document like an annual report, a user manual, a patent or whatever it may be. So I think that's an important point for everyone to recognize that localization that we do is not about translating text in a literal way. It's about dealing with a spoken word. And when you think about the spoken word, the spoken word is very nuanced. It's idiomatic. It's rich with cultural reference and all sorts of things, which means that when you are -- when we are localizing some content for a particular language. We have to think about the context of that, the country, the environment within which that will be consumed, the cultural dimension to that, what people will readily understand. So for example, there may be a reference to someone who is very famous in the U.K. and the content, but it is virtually unknown in France. So you've got to think about that, okay? So it's important in this -- the way this is conveyed that the audience understands the significance that whatever reference to [indiscernible] is a former Prime Minister of the U.K. So that may not be appreciated elsewhere. So you've got to think about ways in which you could convey the information so that the audience has an understanding and it's in a contextual way. So essentially, it's highly contextual. And what that means is that it's just putting it through an AI system at the moment, certainly, doesn't give you anything like that you want. It will tend to treat things as being literal. So for example, figures of speech tend to get translated literally. So as a result of that, if you're using AI for the kind of work that we do, then you have to curate very carefully kind of what's done. And of course, there is always a danger, and this isn't specific to us. This is in any application of AI. There is always the danger that if you trust it too much, errors will appear in your output because you're not scrutinizing. And if you're using it to do a bit of research, and it gives you some information that plausibly looks okay, but it is factually completely wrong. You wouldn't know that unless you went off and validated that. So the same is very much true of localization. And in our world, as we are using AI, which we're now doing to help us with the first part of some of the translations, we need to be sure that we are curating that output and ensuring that it is of the highest quality. And so we can't -- so the people who quality control that who are overseeing that can't be complacent. They've got to almost assume that it's got it wrong and look to verify that it's actually got it right. So it requires a kind of different mindset and kind of an understanding about the way AI works and about what's important to our customers. So in terms of how will that change the localization industry, I think the broader localization industry, I think it will have enormous impact on. I think its use in our sector is much more nuanced basically. So the second part of Gary's question is then what gives you confidence that will emerge as a long-term player in this evolving landscape? So -- and the obvious question is, of course, well, AI is getting better every day. At some point, surely, it's able to eat your lunch and you'll be toasted at that point. We think that, that -- we're not sure that, that will ever happen, certainly for the kinds of content that we're dealing with for our customers because for them, they want to be absolutely certain it's done to the highest standard. And therefore, I think you're always going to need a human in the loop to curate it, to check it to make sure it's accurate that there are no issues that it will be properly understood. It has the same meaning or it will convey the same emotion because we're talking about entertainment content here as the original in its original language. So we think that, that's always going to be necessary. And what that means in practice, of course, is that it's something that's difficult then to in-source unless you've got experts, language experts who can oversee that every language that you want to produce. So consequently, we think that we are confident that ZOO will emerge as a long-term player in this evolving landscape because we are very cognizant of the capabilities and limitations of AI. We're a tech-first business. We have integrated within our workloads. We are using it to our benefit and to the benefit of our clients, and we expect to continue to do that. And of course, it will continue to evolve, but we will evolve with it. Next question from Matt. How strong is the pipeline compared with this time last year?
Robert Pursell: It's strong. It's good. I think we're in a better place than we were at this time last year for the reasons that we've given really, whether that's the new RFP wins and new business coming through. We've had a very encouraging start to the year, and we're feeling confident for FY '27.
Stuart Green: Great. Next question comes from Andrew. You referenced being invited to RFPs since interims last November. Are the 2 RFP successes you've notified to the market the only successful ones are other invitations still ongoing. So we have not failed with any RFPs. Some of them are ongoing. Some of them haven't concluded, but nonetheless, we've been assigned work to do for those customers. So I would say that out of that RFP activity that we saw a bit of a flurry of towards the end of last calendar year, we have been -- the [ access ] for us has been very favorable. And we really do feel that we are very much on the radar of big buyers when they're looking at vendors to drive these kinds of services, and we're increasingly confident that we will be successful as these processes conclude. Question from -- another one from Christopher. Rob mentioned you expect the percentage of the revenue from the largest company to fall as a percentage of group revenue. Do you expect it to fall in absolute value? Or is that decrease purely because of the increase from other customers?
Robert Pursell: I would say it would be mainly from the increase in other customers. So -- and I have to be very careful because obviously, we talk about our largest customer and it's about their content and what they're doing. So I would say that the relationship is still very strong, as strong as it's ever been with them. But what we have seen is really we've seen that diversification of the customer base, and we're seeing a lot more business from a wider range of customers. So that is the main driver of that. Yes. And I think that's probably the most I can say on that.
Stuart Green: Okay. Great. Here's a good one from Glenn. It says a question for Stuart on share price. I've been an investor for more than a decade, and like yourself, seen the major ups and downs. Whilst you can't dictate the market value ZOO share price, are you happy with it being 90% down on highs? What are your ambitions or goal to see the company growth reflected in the marketplace on the share price? Okay. Well, of course, I'm not happy with the way that the company is valued at the moment. I think it's -- was it [ 0.3 ] of sales or something like that.
Robert Pursell: Yes, [ 0.3 ] Sales.
Stuart Green: Yes. So I mean, by any measure, that's a terrible valuation. But it's very much, I believe, a reflection of what has happened over the last 3 years of the disruptions COVID in the market. Of our lack of visibility through that period on what we might expect from our customers. And therefore, as a consequence of that, in our trading updates, we've had to downgrade expectations as a result of that. So there's some -- obviously, some recent history there that's all tied into that disruption within the market and the -- how incredibly difficult it has been for us to predict how things will play out and at what pace. I don't think anyone in the industry really expected this disruption would last for as long as it has for 3 years. So I think that's sort of that perceived risk and uncertainty is very much priced into the shares at the moment. So yes, of course, I can't dictate the market price, and I can't really speculate on how the share price will progress from here. That wouldn't be right for me to do that. But I think one could reasonably expect that as we see stability in our market and an increasing predictability in the business that we receive and the way in which we guide the market on the assumption that we see a return to growth, which is very much what we're expecting and that growth is profitable and cash generative, then you would expect in normal circumstances, you would expect a well-performing market to reflect that and the share price to adjust in line with it. I believe Rob said in the '25 interim results presentation, Fast Track was around 10% of run rate turnover. He then mentioned -- he mentioned the same in today's presentation of the current run rate, which is 8 months later. That doesn't feel like growth or am I missing something?
Robert Pursell: Yes. So when we talk about that 10%, really, that's been around that level in H2. So when we did the interims, it's probably more talking about the current situation. The fact is still -- and we're saying around, so some months it's now a bit higher. And the fact is still 10% of revenue, but actually that's based on the absolute amount of revenue that we're generating. And if you look at our results for last year, H1 had higher revenues than H2. So H2 is a real sort of low point, and we're predicting overall growth for the year in FY '27. So there is growth. There is growth in Fast Track, but there's also growth in the underlying business. So hopefully, that clears that up.
Stuart Green: So next one comes from Andrew. You mentioned in last year's interims, November presentation that you anticipated originals content production to be increasing over the next calendar year. Have you seen any tangible progress on this front? So I would say the most tangible signs that we have seen at the moment to support our belief that originals are returning is related to the level of dubbing orders that we're seeing currently. So dubbing -- in this period of the last 3 years, the we've seen a much lower volume of new original content coming through. And the work we've done has been much more skewed to older content, the catalog content. And one of the consequences of that is that if it's capital content, then there's usually very little dubbing because what's happening is that someone has got some content is licensed it to a streamer, say, that streamer may then commission it to be localized for different markets. But because it's typically on a kind of limited time frame, it's maybe a 2-year licensing deal, they won't invest in dubbing it because dubbing is an expensive thing to do. They will instead just pay for the subtitle to be created in the new languages. So what it means is that when you're dealing with new original content, you see a fair amount of dubbing orders. If you're dealing predominantly with catalog content, then you see very little dubbing content, dubbing orders. So over the last -- turning over FY '26, we've seen a significant reduction in dubbing compared with prior periods, and that's a function of what I've just described. So in our order book at the moment, we're seeing much more content that requires dubbing services. And therefore, that for us is a clear indicator that there is a return of original content coming that has been absent for some time. Okay. We got a few left. So here's one from Glenn. It's a question on Fast Track and the 7-day dub service or same-day subtitles. So even the second tier would be industry-leading if you can deliver the same quality and the same capability. So the question is, why would you not set this as your baseline, i.e., we can deliver 5x faster than our peers at a baseline level and 10-plus times on the uber Fast Track capability. So I think, Glenn, what you're asking there is pretty much what we are doing. So we are hearing from customers that they want things more quickly. So our offer is -- so we don't -- so generally, we're not going to pitching up and saying, yes, we can do it, it will take us 5 weeks. We're pitching up and giving them an honest indication of how long it would take to do that. And if they're prepared to work with us in the way in which we operate, then it will be possible for us to fill that work more quickly. So we are, in effect, if you like, our sort of de facto offering is one that has much shorter time lines associated with it than others are offering. What tends to happen is that customers come to you and they say, we've got this content. We need these services and we need to deliver by this date. Can you do it? So that's sort of the way in which most conversations play out with customers. And then essentially the vendor, you have to say whether you can do it or not. And because we have Fast Track, this capability now, we are much, much more likely to be able to say yes when those questions come along than perhaps we would have been able to do previously and much more likely than we think our competitors will be able to say yes. So thanks for that question, Glenn. So I think we just got a few last ones here. Are you winning market share due to your technology focus? The answer is yes, we believe we are. We believe we are because our customers want to work with technologically capable partners. And again, that's something that has changed over the 3 years. 3-plus years ago, customers weren't really asking about your technology. For them, it was really all about the front of the services. They want to know, can you deliver to the quality that we need in the time frame that we need it and at this price. And how we went about doing it was less of a concern to them. But what we increasingly see, and I'm sure this is all capitalized by AI and everyone is seeing it and trying it and appreciating it and realizing the impact it's having in lots of different industries, that our customers kind of want to know that if AI can be used to fulfill all these services, then they're working with someone who's prepared to use it in order to benefit them as a customer. So the benefits of that adoption will play out into benefits of the customers, whether that's a lower prices or faster turnaround or whatever may be important to them. So yes, the short answer is that we do believe we're winning market share because of that technology focus that we have. Why are you able to deliver much faster turnaround time than peers? Hopefully, we've covered that now through the presentation. It's a combination of those 2 things. It's the tech and part of the tech is the use of AI, but it's also the operating model, the follow-the-sun model that means we've got a 24/7 offering. So if someone comes -- if a customer comes along and says, I've got this project now, and I need it turnaround in X, can you do it? Then there'll be someone -- there will be staff at ZOO who are working whatever time of day that arrives that we can take on board, begin it. And although it may get fulfilled in other locations, there's nothing to delay the onset of that work. So that enables -- that combination of those 2 things enables us to deliver much faster turnaround times. And the follow-on question, can anyone else do what you can do? We are -- so -- so obviously, our customers, given that this is an emerging requirement for them, don't -- obviously don't want to feel that we're the only game in town that we're the only company that can do this. So they are eager to try other vendors with these services. So we know that our customers are putting some of this work to other vendors. But equally, we also know that the feedback from that is that right now, we're knocking the ball out of the park on this relative to what others are able to do. And it's not just being able to do a project to a challenging deadline. It's about consistently and scalably on week-to-week basis, be able to fulfill this kind of work across our whole pipeline of projects. So as far as we know, we're the only company that is doing that consistently and we're getting regular business as a result of this. I think this is the last question. What is the -- what are the main drivers behind the higher levels of RFP activity? Okay. So that's a good question. So in our industry, these big buyers periodically will go to the market to make sure that they're working with the best vendors and they're getting the best prices. So it's a procurement type process that typically they'll go through every 3 or 4 years. As you know, we work for big content producers and streaming companies. They're obviously not that many of them. So in the course of a typical year, we would see, I don't know, 2, 3, maybe 4 in an unusual active year of these RFPs coming through. But what happened towards the end of last calendar year was we suddenly got a flood of them. Lots of customers who have come forward with RFPs. That's really unusual. That doesn't -- they don't bunch together in that way. That's not typical. And we believe it's a symptom of the fact that there's been 3 years of disruption. Customers are coming out the other side of that. So one, time has elapsed since they last did this, they need to do it now because they're now getting ready to be able to get back into the more regular work, and they want to be sure they're working with the best partners. But also it's due to the fact that they recognize that their requirements have changed. So they do want to work with now more technologically capable companies. In a way that they didn't really care in the past. They do want companies who can offer more aggressive turnaround times than they've had before. So I think it's just an opportunity for them to say, okay, we're going to be off to the races shortly. Let's be sure we're working with the best partners, and we kind of saw lots of this activity. And as we said, we've been fortunate to be selected as a result of a number of them, which is great.
Operator: That's great, Stuart. Robert, if I may just jump back in there, and thank you for addressing all those questions from investors today. But Stuart, before I redirect investors to provide you with their feedback, which is particularly important to yourself and the company, could I please just ask you for a few closing comments?
Stuart Green: Yes, sure. I think for those who've been followed us for a long time and are still following us, thank you. I appreciate your patience and resilience. If you are new to the story, then I hope what we've said today is interesting to you and looks to be an interesting company to get more involved with. We are really excited about what the future holds. In our FY '23, we reached revenues of $90 million and EBITDA of $15 million. We've had 3 years of turmoil. We now see the road ahead whilst visibility is limited, and we don't have a crystal ball. We feel like all the pieces of the jigsaw are kind of fully into place now and that we have the right platform and the right opportunity and the market has moved in our favor and that we can see, look to growth and profitable business ahead.
Operator: Fantastic. Stuart, Robert, thank you once again for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you all.