|Zytronic & Future Sign Global Distribution Agreement.
|Thanks for the responses. Prepared to stand corrected!!
For the avoidance of any doubt I am still holding and looking to add on future positive news flow.
|PJ 1, he probably sold to pay for the total exercise costs, which is a common practice and is why he kept 42k and consequently nearly doubled his holding.|
|PJ 1, a bit harsh. Mark Cambridge is modestly paid for a CEO, I would rather this and then he tops up with the occasional share sale than taking a huge base salary instead.|
Exercise of options similar to last year
"On 13 January 2016, Mark Cambridge, CEO, exercised options over 21,750 new Ordinary Shares and subsequently, also on 13 January 2016, sold 21,750 Ordinary Shares at a price of 382 pence per Ordinary Share. As a result, Mr Cambridge's holding remains at 50,791 Ordinary Shares in the Company (representing 0.33 per cent. of the total voting rights).
On 13 January 2016, Claire Smith, Finance Director, exercised options over 15,000 new Ordinary Shares and subsequently, also on 13 January 2016, sold 15,000 Ordinary Shares at a price of 382 pence per Ordinary Share. As a result, Mrs Smith's holding remains at 714 Ordinary Shares in the Company (representing 0.005 per cent. of the total voting rights)."
At least this year he held onto 42k shares ;-)
Singers released a positive update on the back of results last month with ZYT beating most of their forecasts.
Key highlights: -
"...Fully diluted EPS was 26.1p, which is 7% ahead of FY15 and 13% ahead of forecast, despite the non-cash currency hedging charge mentioned (above) this was due to a much lower tax charge than anticipated.
Net cash increased from £8.5m at the start of the year to £11.6m at the end of the year. The full year dividend was increased by 20% to 14.41p (final dividend of 10.96p), ahead of our expectations of 13.2p.
The mix continued to move towards Touch with revenue up by £0.9m (5%) from £17.3m to £18.2m. Again, the trend was also towards the larger end of the sensor size spectrum, with the >30” sector increasing in importance with units sold growing strongly from 9k last year to 14k this year. Many of these large format units also incorporated the value added growth areas targeted by the Group, including 11,000 units with MPCT multi touch; and of these 11,000, 9,000 were large radius curved designs. Non touch product sales were £1.1m lower at £2.9m, as anticipated, and as flagged in previous periods. The main impact came from ATM revenues which fell £0.7m to £1.6m.
Driven by the strength of underlying trading we have increased our FY17 PBT forecast today from £4.9m to £5.4m and EPS from 26.3p to 28.6p.
|£330k CEO share sale after exercise of options. Not exactly a vote of confidence, with no reason for the sale given.
EDIT.Stand corrected please see post 112 below|
|I agree Bestace, I thought it was clear that the acquisition possibility was not related to yesterday's announcement - poorly written on my part. And good point about the share buyback kalkanite, that might be relevant to distributable reserves, although I'm no accountant.|
|It's quite possible that the funds could be used to buy back shares. The company currently stands on a PE of 14 yet has an Enterprise Value PE of circa 11.2. The cash position is masking what is essentially a very cheap company.|
|I don't think the capital reduction affects the funds available for an acquisition - if they could identify a suitable acquisition, they could go ahead and use their existing cash pile now without the distributable reserves being affected. In accounting speak, such a transaction would only affect the top half of the balance sheet.
The key point with the capital adjustment is that it affects distributable reserves, i.e. the bottom half of the balance sheet. To me, this implies additional returns to shareholders in the form of dividends, at some point in the future.
To be honest, I hadn't appreciated until yesterday (despite being a shareholder) that £8.9m, nearly 60% of their retained earnings, were not distributable.|
|I agree this seems most likely but also, that it is appropriate for the company to keep their powder dry until full year results are known. I guess they might want to use the funds for an acquisition rather than a distribution to shareholders (although that is irrelevant to yesterday's RNS). Either way, I am quite happy to sit on my hands and do nothing with my overweight holding, knowing that even the normal divi is a healthy 4.29% (forecast).|
|Despite the caveat it would appear that there is some intention to return excess cash to shareholders.|
|Somebody was keen today, they purchased 309.38k worth.|
|Thanks for the explanation guys......|
|I was at the AGM last February when this was discussed in some detail. Mattleplonk's summary is essentially correct. The £8.9m in non-distributable reserves is a legacy from the past. Moving to distributable reserves will give the company more flexibility. This would allow them, for example, to return cash to shareholders. Presumably to avoid speculation on this point, the company has wisely ruled it out for the time being.|
|It appears to be a legal process that a lot of companies undertake after shareholder approval to do as cookerhoop states covert non-distributable reserves into being distributable. So it would sem in the past that ZYT have not been able to distribute much more than they have been undertaking with thier progressive dividends even though they have a good increasing cash balance, as £8.9m of the cash has been basically non-distributable. Seems like a good positive move for any future considerations.|
|The capital reduction will move the £8.9m mentioned below from non-distributable to distributable reserves.
From note 11(Parent Company) of AR
'Included in the Company’s opening and closing profit and loss account reserves is an amount of £8,919,000, which was a dividend received from
a subsidiary company in a prior year. This is not included in Group reserves and does not form part of the Company’s distributable reserves.'|
|No me either. Confused, number of shares remain the same?|
|I have to confess that I don't understand the implications of the statement but the phrase "however there is no immediate plan to return capital to shareholders" seems clear.|
|Interesting statement, which seems to imply that Zytronic are considering a special dividend at some point in the near future.|
|All sounds very positive to me gents.
Zytronic is demonstrating its force sensing technology for large format interactive touch screens for the first time at ISE. Zytronic is seeing significant growth and interest in interactive video walls and large touch tables
|RTC, I agree that touch is a massive market which I guess is why we and others invest in and follow ZYT, but I guess I am a little bit more pragmatic about where they appear to be operable and the growth and returns achievable based on that.|
|mattle, certainly the stats I saw were for the whole market, but it was across all areas of the market including touchscreens above 10 inches (which obviously excludes phones). IMHO touchscreens are a massive market even if ZYT are higher end niche products.|
|RCT, is your info based on all devices, or the markets that ZYT claim that their solutions are used? From what I can see from their website, results presentations and trade PR (which igoe covers well on this forum) they do appear to be quiet clear that they are niche industrial and not selling solutions into high volume consumer applications.|