The CEO of Newcastle tech company Zerolight expects to see rising revenues and profits after completing a “pivotal” restructure which led to operating losses widening to £3m.
The visual software specialist, based on Newcastle’s Quayside, has traditionally focused on the automotive sector, working with motor manufacturers to provide 3D interactive technology to help launch new cars, while also helping people to digitally customise new vehicles.
Last year, however, the company announced a strategic switch in focus, while also expanding its reach into new sectors with a new product called Omnistream. The new product can be used by anyone that needs to stream a 3D application to a wider audience.
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The pivot in strategy led to a restructure which was concluded this January, and has seen employee numbers drop from 73 to 65 in the financial year ended March 25, having employed around 111 two years ago. Turnover was £4.1m, down from £5.8m, while the operating loss was £3.1m, up from £2.4m a year earlier.
CEO and founder Darren Jobling said the drop in sales and profits was expected as some revenue streams came to an end, but that the new strategy is now bearing fruit with expected rises in revenue and profits to come. In his report, he said the costs of the transition, alongside the funding of the operating loss during the pivotal year, were supported by a new £1.25m investment round.
During the year, the group invested £2.96m in research and development activities. At the year end, net current assets stood at £440,162, down from £1.277m, as a direct result of the strategic restructuring “designed to create a more efficient and agile business”.
In the accounts, Mr Jobling said: “Our core business is the development and licensing of a world-leading, multi-platform visualisation technology. We generate revenue primarily through software licensing fees for our products, support and maintenance contracts, and project-based development for bespoke client implementations.
“Historically, the group has focused predominantly on the automotive sector. However, the 2025 financial year marked a pivotal moment in our strategic direction. In response to the maturation of our core technology platform, which now allows for greater self-service by clients and their agencies, we have initiated a strategic pivot.
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“This involves shifting our focus from a hybrid software-and-services model to a more scalable, product-led approach. Our new streaming product, Omnistream, released in FY 2025, has already secured customers in architecture, coatings, defence and planning infrastructure.
“This strategic repositioning required a significant restructuring of our operations during the year to right-size the business for future profitability and align our resources with our product-focused strategy.
“The group continues to be the world leader in automotive configurators, signing an additional three major motor manufacturers within the year. The directors are confident that the group is now structured appropriately to execute its strategy and has the necessary resources to fund its future operations.”
Following publication of the accounts, Mr Jobling told Business Live: “We embarked on a process to re-structure the business in FY24, concentrating on SaaS rather than services, allowing us to reduce overheads. As we were phasing out of services work, we were expecting a reduction in turnover and some rise in one off costs, which has come to fruition. However, the revised structure has allowed us to concentrate on our core products, resulting in the signature of an additional three automotive customers in FY25, as well as an additional 10 customers in new verticals, outside of the car industry.
“Going into 2026, the company as at the forefront in the implementation of Artificial Intelligence at an enterprise scale, as highlighted by our presentation at CES 2025, and the development of joint products with some of the world’s largest agencies. This, plus other activities, will result in a rise in revenues and profit in FY2026.”