Zytronic Share Discussion Threads

[richie32] 26/10/2021 16:35

People latching on to this

[bones] 25/10/2021 12:47

31.5k purchase at 182.5p late Friday just been printed. Possibly swayed by the in-depth research….

[trident5] 22/10/2021 16:23

It's just a rehash of the RNS. And they call it research.

[bones] 22/10/2021 16:05

Singer out with a note. The main document is locked but Research Tree allows a summary to non-members, which says:

”Zytronic’s pre-close update confirms a considerable turnaround in performance in H2. Whilst partially flagged in the September update, the full year outturn is better than expected, driven by a significant improvement in sales (+44% H2 versus H1) and careful cost control. Operating profit of £0.5m is comfortably ahead of our break-even forecast and net cash of £9.2m is £1m ahead. Although mindful of industry supply chain issues, we consider the recent run rate a sensible guide for FY22 and introduce forecasts for the new year this morning. An EV/EBITDA rating of 4.0x is attractive with substantial recovery potential, we believe, beyond the current year (£1m PBT forecast for FY22 versus >£3m in the last full year pre-pandemic).”

[varies] 22/10/2021 14:53

jw330
For most of us a purchase of 50,000 ZYT would be more than enough for any one day.
When I last bought shares a year ago, the standard lot was 5,000 and one could deal in this size easily.

[jw330] 22/10/2021 13:41

The only downside to this stock its really illiquid. can anyone buy more than 50k atm?

[bones] 22/10/2021 13:15

Zip, I thought you meant £0.5m for the second half (“after the reversal”). Sorry if I misunderstood.

[zipstuck] 22/10/2021 12:43

Bones - I see u are violently agreeing with me.

[bones] 22/10/2021 11:43

More good news, this time on the new products:

[bones] 22/10/2021 11:32

Zipstuck, they made £0.8M in the second half.

Loss (0.3M) first half
Profit 0.8M second half

Profit £0.5M for whole year

”EBITDA(1) for the second half is expected to be around GBP1.3m and operating profit around GBP0.8m, enabling the elimination of the reported first half operating loss of GBP0.3m. For the year to 30 September 2021, we expect to report EBITDA of around GBP1.5m with an operating profit around GBP0.5m.”

[bones] 22/10/2021 11:30

Cash is possibly £10M today so that’s half the market cap.

If growth is continuing from the half year, the post tax profit rate could give £2M p.a. for y/e 30/9/22. On an ex cash basis the enterprise value would be £10M giving a PER of 5 on that very ballpark calculation.

[zipstuck] 22/10/2021 11:29

The september statement indicated reversal of the first half loss. So they made an additional £0.5 m after the reversal

[bones] 22/10/2021 11:23

Yes, I mentioned the cash of £9.2M. The PER was back of envelope based on 2 x 2nd half PBT = £1.6M less 20% tax = £1.28M with market cap of £18M ( pre-open)

[asagi] 22/10/2021 10:53

sorry to be lazy but does your P/E account for the change in shares in issue?

Also from today:
the net cash position which has increased by £1.4m since that date to £9.2m at 30 September 2021

can't help shake the feeling that I should be buying more???

Asagi (long ZYT)

[bones] 22/10/2021 07:52

For the second half alone, PBT of £0.8M, cash generation of £1.4M, revenue up 44%.

Market cap of £18.8M.

Assuming tax of 20%, that’s a PER of circa 15 assuming no further growth rate. But I think we have to assume the growth will continue unless the supply issues deteriorate. We are not told what’s happened since 30/9 though.

[gdjs100] 22/10/2021 07:23

Given the pace of the recovery, the illiquidity, and the scarcity of shares post buy back, this could be interesting.

[jw330] 22/10/2021 07:17

Upadate looks as positive as it can be. Let's see the market response

[boadicea] 19/10/2021 17:15

I had this pencilled in for a possible update tomorrow (based on the equivalent day last year.) If not then, soon.

[bones] 18/10/2021 13:43

Thank you for that gleach23. They hinted at this at the end of their September update so good to get an inkling of it still happening.

I think the September one was significant being unusually issued prior to the period end. Must assume the NOMAD was told of clear improvement on prior market expectations (scant though they are!) and were compelled to advise the market.

My feeling is that the improvement will have continued but will there be any supply chain issues (semiconductor chips etc) going forward? Hopefully, they will be on top of those operational matters.

[gleach23] 18/10/2021 12:12

Since ZYT usually provide a year end trading update in October I was wondering if they would do so this year given the update in September so I wrote and asked. Not a definitive reply but for info -

"Thank you for your email and enquiry as to a trading update.

I can confirm that the Board are meeting shortly and will be giving consideration to providing a trading update at this point."

[bones] 12/10/2021 12:04

Useful business with LB Foster Europe in today’s Twitter feed at Zytronic:



(Edit, crossed with your post, dangersimpson2!)

Note also this retweet on LB Foster’s timeline:



In particular: ”Next stop: the entire rail network.” Potentially, if Zytronic were involved on the Euston Station project, they could be involved in the rollout?

[dangersimpson2] 12/10/2021 11:58

Zytronic are hiring again:

Plus a contract win:

things definitely looking up here.

[c1d] 06/10/2021 09:14

Thanks for posting bones.
Given that they said in the interims results presentation: "short-time working employed across whole business through Q1 period" recruiting additional staff is maybe a signal of a significant improvement which is expected to be sustained?

[bones] 05/10/2021 15:47

After the great 2020 redundancy programme, do we have the great 2021 recruitment drive?



Signs of recovery continue.

[bones] 24/9/2021 16:04

For a stock that often doesn’t trade in a day, 55 trades since lunchtime speaks of an influential tipster or knowledge of an event of interest becoming known at that time.