Zytronic Share Discussion Threads

[she-ra] 06/2/2022 19:39

Cerrito - A p/e of 20x is less revealing than the EV/EBITDA which is much lower number when you discount the the £9.2 million in cash.

Also the reason for the lack of institutional investors is that they exited taking advantage of the tender offer for a quite an illiquid stock. The return of capital to shareholders was announced February 2021 so no wonder the institutions exited whilst Covid was at its worst (presumably putting it to better use) and Zytronic was not operating in a sector that was doing very well. But it has come out at the other end well returning to profit with increased cash.

[dozey3] 06/2/2022 18:34

Since the buy back this is now a very small cap, which explains the lack of II’s. Component shortages are hopefully short term, and also the lack of international sales exhibitions, which apparently are where many leads come from. They continue to develop new products and have increased margins, and I look for a doubling of the current eps in the next FY. Surely remarkable value for some hi-tech engineer looking to branch out.
Anyway ZYT are one of the least successful members of my IHT relief portfolio, but I’m not giving up on them yet.

[cerrito] 06/2/2022 18:03

Been having a look to see if should add at these depressed prices.
I see that Singer’s forecast eps for this current FY is 7p so even at these depressed prices we have a pe of 20x, although of course COVID will continue to affect the current FY…not to mention component shortages. Singer have a buy and a TP of 250..
Saw in the last para of the CEO’s report the very encouraging figures for October and November.
I was interested to read in the shareholder engagement section of the AR they waxed lyrical about how they meet investors at the AGM. This year will be closed; fair enough but why not have it hybrid?
I have never made it to an AGM. The 930 start is a turn off as is the lack of a factory tour. Have any of you ever made it?
Too bad there are no IMC type events. I see a conspicuous lack of Institutional Investors on their shareholder register so not clear why they are so adverse to engaging with private shareholders
No surprise that since the tender offer and the current shareholder register that the last change of holdings RNS we had was last May when the holdings of a client of II went to 3.02%.
I note that over the last month reported daily trading volumes have been in the 5k to 20k range which seems about right. Last Tuesday we had a flurry of activity with 96k trades though to balance that there was one day with just 756 trades.
Had a look at the Risk Section. The only area where the risk had increased was no surprise increasing costs of raw material supplies; I note that the CEO picked up on this in his report referencing issues given their small size and need to use the grey market, Interested that their customers were generally sticky…and they highlighted that the flip side is a long lead time between an initial meeting with a prospect and placing an order.
.

[bones] 04/2/2022 11:51

A lot of retail investors have been sliced in half in recent months. There are babies now being slung out with the bath water!

[c1d] 04/2/2022 11:38

Agreed Elsa & Bones.
I find it curiously strange that some holders are selling now at around the 145p buyback price announced almost exactly a year ago. Especially when every announcement since has referenced improving trends in orders & sales, they still have a large cash balance and own the factories too.
Everyone makes their own decisions but I find it hard to believe people have found something better to switch their investment into?

[bones] 04/2/2022 08:38

Elsa, I noted that sneaky comment too. It appears they are reiterating their confidence in resuming the dividend and that nothing major has changed in their outlook from December when the results and dividend were first announced.

[elsa7878] 04/2/2022 08:17

.....the resumption of the payment of a dividend reflects the Group's return to profitability and improved second half and subsequent trading.

[bones] 02/2/2022 12:31

No. Trading was much improved. Most stocks have been hit by the inflation and supply chain narrative lately. The only specific for Zytronic is that their trade shows in the US were postponed until May and June which was a nuisance as they have some great new tech to showcase. Assuming all else is recovering well, this should just be a blip in the share performance.

[trident5] 02/2/2022 11:56

Trading much improved - has there been a secret update?

[bones] 02/2/2022 11:22

Unlike the share price!

Weakness maybe related to supply chain and inflation and that their intended trade shows in the US were postponed until May/June from February. I know they like to use those to display their wares to the industry.

Apart from that, happy to sit for the hoped for recovery in business.

[elsa7878] 02/2/2022 08:22

Trading much improved.

[gleach23] 01/2/2022 09:07

Looks like underlying share price is firming this morning and online buy quotes are only offering 200-odd shares at a full 155p. That said, I've had a limit order filled which isn't showing yet as a trading top up to my investment. Also managed to build a modest spread bet position.

Hopefully we'll get a Trading Update at the AGM on 3rd March. GLA

Edit - the trade just reported of 15k @ 153.78p might have something to do with it. Reporting of it delayed by an hour.

Edit2 - followed by another 10k @ 155.18p, also just gone through and delayed by an hour

[she-ra] 27/1/2022 14:35

£8.8 million enterprise value. Yeah that make sense for a profitable debt free company operating in a growth market.

[bones] 27/1/2022 13:40

Thanks illiswilgig. Clickable link here:

[richie32] 27/1/2022 13:29

Thanks illiswilgig

[illiswilgig] 27/1/2022 13:26

bones - it was there when I checked this morning and I have downloaded it.

There seems to be a glitch and 2022 results don't show up the first time I accessed the website - after a few tries I got there. Here's the direct link

hxxps://www.zytronicplc.com/wp-content/uploads/sites/5/2022/01/Zytronic-Annual-Report-and-Financial-Statements-2021.pdf

[richie32] 27/1/2022 12:34

Oh, thanks for info bones.

[bones] 27/1/2022 12:32

Had a quick response. Apparently a technical issue with the upload which the web IT bods are working on!

[bones] 27/1/2022 12:18

I don’t see the annual report there. Just the preliminary results report which has been there since December. I will email them.

[richie32] 27/1/2022 08:54

AR looks healthy. I'm very pleased with that

[cerrito] 17/1/2022 22:44

AR not on the website

[the squire at oakley hall] 17/1/2022 18:45

Is it just me, or have the annual report and accounts not been issued yet?
Normally receive mine just after Christmas

[tanneg] 13/1/2022 20:08

Quixant ahead of market expectations today, hopefully a read across to Zytronic,

"Since Q2 2020 the gaming market has generally remained resilient to lockdown restrictions, and customers have demonstrated increasing demand"

[cerrito] 15/12/2021 20:39

Mentioned in yesterday's Questor column in the DT with a hold.

[bones] 14/12/2021 19:43

I agree Mr 5k.