Zytronic Share Discussion Threads

[stockhunters] 22/1/2021 08:02

buywell people are now getting vaccinated

buying op here

[stockhunters] 22/1/2021 07:58

recovery play

[buywell3] 22/1/2021 07:57

About as buywell expected

2M a quarter turnover is what is says

So 8M for a full 12 months and Covid-19 is getting worse

[scepticalinvestor] 22/1/2021 07:55

OuchPoor s/hNeed to pay a spec divi imo

[stockhunters] 22/1/2021 07:45

slow and steady no pumping required

hopefully a return to 200-300p soon enough

[jw330] 22/1/2021 07:43

Yeah was hoping they provided a bit more in terms of direction of business. Not worried about drop in revenue because that is expected. I feel like management need to start steering the business into more profitable areas. Having IP means nothing unless you can monitise it

[gdjs100] 22/1/2021 07:42

Yes I picked up on that also. This is the first time they have acknowledged a potential recovery to historic levels. Patience!

[stockhunters] 22/1/2021 07:41

good regarding ebitda

nothing wrong with being cautious with covid19

it will pass soon enough

[garth] 22/1/2021 07:39

Bookbroker,

Yes, that makes more sense than my initial interpretation! So at current rate looking at a possible £8m revenue outcome for the year - unless we see a pick up. With any luck margin getting closer to 30%.

Thanks,

G.

[bookbroker] 22/1/2021 07:36

Revenue rate £4mln for last six months, this is essentially being placed in a state of care and maintenance until visibility returns. They need to try and drag the dependency of the core away from gaming to be truthful.

[garth] 22/1/2021 07:29

"The downturn in sales experienced in the second half of last year has now levelled out at approximately GBP2.0m for the quarter to 30 September 2020 and the first quarter of this financial year to 31 December 2020."

So, do we read that as £2.0m downturn over the half year? Or £2.0 downturn attributable to each quarter, ie £4.0m for 6 months?

They did £12.7m last year, £29m the year before.

Any thoughts?

G.

Edit: I assume it is the latter.

From Finals:

"Current trading

Sales are still running at similar levels to the last quarter of last year, but even at these low levels, the actions we took to reduce staff levels have enabled us to improve gross margins to close to historic levels, and with reduced overheads produce a positive EBITDA."

Also of note as a follow on from that:
"Gross margin reduced to 20.1% (2019: 33.7%),"

So presumably the recovered margin level applies to Qtr 1.

[bookbroker] 22/1/2021 07:28

Factored in, better to be realistic, then there is always the possibility of an upward revision!

[jw330] 22/1/2021 07:27

a drab update this morning. Hopefully the markets don't hammer this too hard.

[football] 20/1/2021 00:01

Zytronic Corporate Video
19 Jan 2021

[dangersimpson2] 19/1/2021 22:48

Yes, a tender offer is a good alternative but has to be priced right. If they made it too close to the current price very few people would take up the offer and they are back to square one. make it too high and they guarantee participation but don't reduce the share count by much.

The right price would be one where most people take up the offer but the strongest of the large holders would not tender due to their belief in the long term future of the company and illiquidity means they would be unable to add to their position.

It is an art rather than a science but maybe just over £2 may be the right balance?

[dozey3] 19/1/2021 18:20

Another possibility is that they tender for a fixed percentage of the shares at just above mkt price pro rata from all shareholders. Complicated, but treats shareholders equally. Another even more revolutionary is to give it back to shareholders as a special divi.

[dangersimpson2] 19/1/2021 17:44

Basically, they are limited to 25% of the average volume of the last 90 days or 50% if they inform the FCA of their intention to do so. This isn't some spivvy stock so I don't see why the FCA would object to the 50% rule.

Realistically you are probably looking at 20k shares per day, not paying more than the last independent trade may be more of a problem to get the volume. If they did 20k shares a day at £1.60 they could do £8m in a year, as long as they had agreements in place with their broker for close periods. Would make a good dent in the cash pile, but realistically some combination of a buyback and tender offer may be more practical.

[gdjs100] 19/1/2021 17:42

I can't find a link to the regulation but the rules are referred to in this RNS from Zegona:https://www.investegate.co.uk/zegona-comm-plc--zeg-/rns/zegona-announces-new-share-buyback-programme/202006240700068599Q/Basically - max 25% of the average trading volume over the previous 20 trading days, and a price no higher than 5% above the average mid price for the prior 5 days.So, tomorrow for example ZYT could buy back up to 8,429 shares at a no higher than 156.45p.

[pugugly] 19/1/2021 16:59

gdgs100 - Interesting - I must be behind the times - Where can I find the %age rule in your post 963? Thanks in advance -

[gleach23] 19/1/2021 16:10

Thanks ds - that would be useful

I was hoping we might drift higher towards £2 ahead of AGM on 25th Feb which is obviously still over a month away. That 10k buy just reported @ 159p might help, so long as it's not cancelled due to a fat finger issue!

[dangersimpson2] 19/1/2021 15:52

Probably need to wait for the company to start buying back shares at the end of February, after the AGM gives them the mandate, to really shift any stale holders and start the next leg up.

The company should go into a close period around middle March if previous years are any guide so I would hope they would provide binding instructions with their broker to purchase shares on the market during the close period as well.

[gleach23] 19/1/2021 15:28

With market quote @ 145-155, just 100 shares available to buy online. About time we broke through this 150 area.