Zytronic Share Discussion Threads

[chrisdgb] 13/1/2025 09:35

Should have clarified, in the short term the FRP report...?

[chrisdgb] 13/1/2025 08:31

Any gut feel on timings here........?

[latehouse] 19/12/2024 17:04

I guess the entry of Henry Spain to the board is to safeguard their interests (and by extension the interests of the other shareholders) - which is a positive.
As time progresses, IMO the sale of the business as a going concern becomes less likely and I really can't see NEXTEQ being interested other than perhaps in some of the patents applicable to Gaming or their Densitron subsidiary - certainly not the plant/equipment much of which is quite specific to Zytronic's wire 'printing' method of touchscreen production. Maybe another touchscreen controller/chip manufacturer could conceivably be interested in relevant patents? A couple of the big, well known ones are Synaptics and Microchip. Unfortunately, with the November strategic review announcement, as noted, the competitors will have been immediately approaching ZYT's remaining customer base, and distribution channels, and strategic purchasing decisions will have been made or are being made, which exclude ZYT. As a consequence, I would expect ZYT to be issuing Last Time Buy notices to bulk up their order book short term. I also note that looking at the 'Meet the Team' website page, they have removed their Asian sales staff suggesting these have been let go, and I would expect the US will be next. It all stacks up with the business being a 'dead man walking'. Hindsight is a wonderful thing, but if only the millions used on the conservative share buyback to satisfy the bigger institutional investors had been spent productively and with more foresight and vision on an acquisition...it's a very sad end for the un/semi skilled workforce, with the BoD likely to walk away with chunky contractual payoffs.

[cliffpeat] 18/12/2024 18:49

@ALS. In the RNS of 14 November it refers to the sale of the Zytronic trading company being sold as part of the realisation of assets - leading to the liquidation.

I've thought about the possibility of a reverse takeover by a sizeable and prosperous private or PE owned company operating in the same market sector.

The likelihood of there being such a company wanting this route to a listing is low and I suspect that shareholders now only want "cash".

Like you, I've wondered whether Nexteq might be interested. I believe that Glen Arnold is quite aware of a number of businesses in the ZYT and related sectors, here and abroad - but don't know if any have been directly solicited.

A competitive fight between 3 or 4 "real" suitors is the dream scenario - but even at this time of year it's unrealistic to believe in dreams.

GLA

[arthur_lame_stocks] 18/12/2024 18:22

I notice they're also now talking about a solvent liquidation and not a sale.

Could knock the ultimate value somewhat.

[cliffpeat] 18/12/2024 14:18

I see Glen Arnold's appointment as a positive.

As an investment fund manager he will be highly motivated to identify value in ZYT and best strategy to realise it.

He might also oversee "fair play" when the interest of shareholders and board member might not align.

I just hope that in his position as "non-executive" he has more influence on the senior management than did Jon Walter.

See candid interview at
Start at 30mins 48sec

[velocytongo] 18/12/2024 07:50

I was hoping to read about the departure of the great value destroyer Mark Cambridge. Sadly not.

[chrisdgb] 18/12/2024 07:05

Interesting RNS.......

[chrisdgb] 12/12/2024 14:36

someone seems to be nibbling the stock every day.......

[chrisdgb] 11/12/2024 08:59

Would it be useful for Nexteq........??

[latehouse] 28/11/2024 19:40

As noted, the ‘cat is out of the bag’ now with partners and customers making future procurement choices - some bizarrely like this, but mostly quietly.

hxxps://www.linkedin.com/posts/cohda-design_electroglaz-cohda-cohdadesign-activity-7267538958295646211-HVhe?utm_source=share&utm_medium=member_desktop

Hopefully, unbiased ZYT board leaders and decision driving major shareholders move this to a rapid conclusion for maximum return and minimal dithering

[latehouse] 26/11/2024 20:25

Yes, very interesting Desert Island Investor post and thanks for creating and sharing @MarkAtkinson. I hope the Chairman, NEDs and larger investors are pushing for sale quickly now. The ‘cat is out of the bag’ and opportunistic competitors will be sowing seeds of doubt in ZYT customers minds. No observant client in their right mind will now be committing to long term design-in projects, which will expose their supply chain and product development plans. ZYT have never operated in markets/sectors where purchase decisions are made quickly. However, The longer a sale drags on now, the true value that a prospective buyer sees in the business will diminish as customers busily work to design ZYT out of their current and future products

[cerrito] 24/11/2024 13:57

Thanks for that link and a very thought provoking description of the consequences of a lack of a good Board.

[cliffpeat] 23/11/2024 12:05

@MarkAtkinson

Thank you for the link to the candid interview with John Walter (5% holder).

It confirms many of the views expressed on this investors' board and JW concludes that

1. a sale would probably be the best option for shareholders
2. That they have some good tech people
3. That there is probably not any or much upside in the property value beyond the balance sheet figure (as confirmed by the company in RNS)
4. In his view the CEO/Exec Chair had no strategic growth vision, didn't like "oversight" from JW as a NED, didn't invest appropriately in R&D when they had the money and that the share buy-backs went on too long.

I hope that JW, MA and Henry Spain are all using their contacts and resources to let as many prospective buyers know of the "For Sale" sign

and are analysing the positive potential value and cost savings/profit contribution that a buyer might be attracted to.

I watched at x1.5 speed and skipped some of the interesting background on JW - which I will watch later.

Is it a buy now? Well - Have a listen and make up your own minds :)

[markatkinson] 23/11/2024 03:21

On this latest Episode of the Desert Island Investor, we are joined by my good friend John Walter who holds 5% of Zytronic and served on the Board as a non exec Director.

[kiwihope] 14/11/2024 08:20

Uncertainty. Don't know what cash will be returned. Plus it will take a long time. Maybe a year or more. All the while the cash will be slowly leaking away. Hopefully they will now convert running the business to cash conservation, reducing staff to only essential. It's not a nice thing, eventually everyone made redundant.
Don't see much chance of selling business as a going concern but you never know. Most likely is selling as many assets as possible. Maybe the IP is worth something.

[zangdook] 14/11/2024 08:18

thanks, VV

[value viper] 14/11/2024 08:16

think done now ZANG

I find there is huge delay in the mornings for RNS's to be visible on ADVFN even when news is out at 7am - anyone else ?

[chrisdgb] 14/11/2024 08:13

I thought this is what we wanted, why so negative..?

[zangdook] 14/11/2024 07:29

Value Viper - any chance of putting the news feed into the header?

[cliffpeat] 12/11/2024 17:08

The HS add today 6.3% may be taking the Peter Gyllenhammar out. Very similar number of shares.

HS now hold nearly 19%.

If they want to guarantee stopping the shareholder approval of the "Fantasy Start-up Plan" they need 25+%

That's assuming that a company sale or liquidation is their objective.

If the former NED - Mr J Walter agrees perhaps he will pledge or sell his 5.045%?

Just conjecture - DYOR

[chrisdgb] 12/11/2024 15:47

The 'fox of market harborough'...........

[chrisdgb] 12/11/2024 15:46

The Spanish are going for it......!

[bisiboy] 09/11/2024 10:17

Are Henry Spain buying for their clients not clear from RNS or for themselves

[cliffpeat] 30/10/2024 10:06

Two things:

1.Another Scandinavian connection?

Evli plc - a Finnish wealth management company - notified holding of 1.23% on Monday

Peter Gyllenhammar AB - Swedish - 6.29% as of 22/10/24

2. ZYT will be more attractive to a buyer if it has substantial cash balance. The "Transformation Fantasy" RNS did not AFAIK give any specific details of the current financial position other than cash £3.7m. To maintain the cash and minimise losses to make the company attractive for a sale, it might make sense to start stripping costs NOW.

Henry Spain added again. Is this a "buy" for us too?

Just thoughts - DYOR

Just opinion. DYOR