Zytronic Share Discussion Threads

[trident5] 18/8/2022 11:59

The accounts and the update will tell you.

[estienne] 18/8/2022 11:34

Not such a bad Trading Update. What debt do they hold?

[illiswilgig] 18/8/2022 10:55

According to the recent IMC presentation the company has on average 4 - 6 wks of order visibility from placement to delivery.

The OEM reductions in orders can be reversed equally swiftly once they decide or are able to increase production. Though admittedly under current circumstances I have no idea when that might happen.

Marketing and sales is increasing the opportunity pipeline of future business with new products being launched.

Without the share buy-backs and inventory increases - it will become cash generative again even at low levels of eps - continuing to build the NTAV.

Annoying though it is I don't see anything in this to change my view of the longterm opportunity,

cheers

[rivaldo] 18/8/2022 08:31

Agreed.

With that £6m cash pile against the now £13m m/cap, plus a likely reported £0.5m or so PBT, plus the property at 2006 values, I can't see too much downside from here but can see drift for some time to come. I'm therefore unlikely to be adding to my small holding here for a while, but consider that once supply challenges ease there's still a good company here waiting to get out....

[cerrito] 18/8/2022 08:13

Revenues this FY will be in the region of £12.3 m, H1 revenues were £5.9m which means H2 revenues will be £6.4 down from the £6.7 in H2 20/21.
I see that Pretax profit is expected to be above last year’s £0.4m but as this was the profit they made in H1, H2 profit will be little more than breakeven. I see that they will have a cash outflow of £1.5m in H2.
Do not see myself buying or selling

[capercaillie] 18/8/2022 08:11

Profit ‘expected̵7; to be ahead of 2021. Even if profit is only level EPS should be up around 12% due to share buyback.

[boonkoh] 18/8/2022 08:01

Definitely poor trading, with a profit warning to market expectations.But still underpinned by 145p NTAV which has land at 2006 values on the books. And still profitable and cash flow positive. Just poor trading, poor new product revenue growth.

[dozey3] 14/8/2022 10:21

SI, if you have no insight or information then please desist from time wasting useless posts. People like you keep waking me up and wasting time. Thank you.

[scepticalinvestor] 14/8/2022 09:47

Can this go any lower? Bargepole, avoid

[asagi] 09/8/2022 10:57

I think that might be correct.

JAC Walter is the beneficial owner of the shares and has to report BUT Interactive Investor is the name on the share register and thus the true 'shareholder'.

These forms are a right mess but that's not JAC Walter, Interactive Investor or Zytronic's fault.

Old days were much better when investors didn't have to fill out TR1s on AIM and could just explain the situation in plain English but I think that TR1s are compulsory now.

Asagi (long ZYT)

[gdjs100] 04/8/2022 17:32

I actually think JAC Walter has filled the form out incorrectly and didn't need to disclose II held their shares. According to the ZYT IR website there are over 1.8m shares held with II, not just the 400,000 or so here.

[cerrito] 04/8/2022 17:17

I read it that he was the person at II who is responsible for filing the report but appreciate I may have misunderstood

[boonkoh] 04/8/2022 16:57

Who is Jac Walter? :p

[leecarter23] 12/7/2022 10:19

Why all the 1, 2 and 3 trades?

[illiswilgig] 11/7/2022 16:58

I'm not aware of anything. I expected a fall like this after the buyback completed a few weeks ago. Until now I've been surprised by how well the share price has stayed up. Normal service now resumed.

It's totally illiquid with an average of 7k shares traded a day. My simplistic view is that there are no buyers in the current bear market. Market makers don't want to hold the shares overnight and get caught with a loss in the morning so will move the price downwards until they are certain that they can shift any shares that they buy at a profit rather than a loss. As I say - that's just a simplistic view.

I'm a potential buyer - but like the rest I'm waiting to see if it goes much lower before adding more.

MPAC profit warning was grim (I don't hold but have watched it for some time). Looks like the supply disruption and cost increases have squeezed margins and lengthened delivery timescales - and now customers are delaying orders in the face of the anticipated recession. There is a read across from this to a lot of companies. Although MPAC is likely ahead in feeling the pinch as it supplies automated production equipment - and production capex is likely the first thing to be paused in the face of an oncoming recession?

Zytronic discussed the difficulties with order visibilities in their recent webcast (the Q&A ia well worth a listen in my view). The long-lead orders they booked in H1 are helpful in this context (the reverse of the MPAC situation if I understand it right) but visibility of orders in H2 is still limited - they are right to be conservative.

cheers

[cerrito] 11/7/2022 16:00

Anyone have an idea of what is happening here?
Very little volume last week and biggest trade reported today was for 5.4k shares.
Did think of ZYT first thing this morning when I read about lockdowns in Macau casinos but doubt it is that.
Perhaps the MPAC TU today with supply chain issues..possible but unlikely.

[cliffpeat] 17/6/2022 10:29

ZYT exhibiting at Digital Signage Japan 2022 15-17 June.

Total signage income in YE Sep 21 was £0.7m

[cerrito] 27/5/2022 20:46

Catching up at the end of the week.
I screwed up in my calculation of number of shares that could be bought in my 1641 post as I took the AGM to have been in May instead of March.
Still rather baffled why they did not get an authorization to buy a bigger amount in the March AGM given that in the IMC presentation the FD said they had not returned the full £10m and had £1.5m to go.
I intend to monitor my holding here in a low key way knowing that the price may well drift down as were are unlikely to get any news till a September/October Trading update, noting as explained to us in the IMC meet that the nature of their business is that they do not get big contract wins.

[illiswilgig] 26/5/2022 11:49

gdjs100 - I agree. I pay little attention to broker figures except as a useful cross-check. But they do have an effect upon the market for the shares which I have to take into account.

I have my own forecasts and have revised them based upon the information in the recent presentation,

cheers

[gdjs100] 26/5/2022 11:20

Broker forecasts don't even take into account the fewer shares in issue from the buy back. I find it's better to make my own forecasts.

[illiswilgig] 26/5/2022 10:58

I am not aware of any analysts following Zytronic. At the current market cap its just too small and too illiquid for institutions to bother?

There a couple of numnbers from the house broker for the current year - 13.8m revenue and 7.4p eps. These will be management expectations passed on by the broker. They are cautious. Management tends to be, in current circumstances thats understandable. Short term orderflow is likely to be affected by their OEM customer sales and component shortages - which will make it less predictable at the moment.

There is also a dividend figure of 2.5p - up from the 1.5p paid recently in March.

The good news is that the lack of coverage gives me the opportunity to buy the shares while significanrly undervalued. The bad news is that the shares can remain undervalued for a long time with no coverage.

I expect that only news and results, consistent growth in revenue, margins and profits will re-rate the shares.

In the meantime I expec the shares to fall without the support from the buyback. I'm slightly suprised that they've not fallen faster already.

cheers

[florenceorbis] 26/5/2022 10:06

About Zytronic

Zytronic is a world-renowned developer and manufacturer of a
unique range of internationally award winning optically transparent
interactive touch sensor overlay products for use with electronic
displays in industrial, self-service and public access equipment.


Zytronic's products employ a sensing solution that is readily
configurable and embedded in a laminate core that offers significant
durability, environmental stability and optical enhancement
benefits to system designers specific requirements.


Zytronic has continually developed process and technological
know-how and IP since the late 1990's around two sensing methodologies;
the first being single touch self-capacitive which Zytronic
markets as PCT(TM) ("Projected Capacitive Technology") and the
second being multi-touch, multi-user mutual-capacitive which
Zytronic markets as MPCT(TM) ("Mutual Projected Capacitive Technology"),
in which Zytronic holds five granted patents.


Zytronic operates from a single site near Newcastle-upon-Tyne
in the United Kingdom.


Zytronic is relatively unique in the touch eco-system as it offers a complete one-stop solution from processing internally the form and factor of the glass substrates, assembles their touch overlay products to customers specific
requirements, in environmentally controlled cleanrooms and develops
the bespoke firmware, software and electronic hardware to link
the interactive overlays to customer's integrated systems and
products.

[waldron] 26/5/2022 08:54

Consensus



Mean consensus BUY

Number of Analysts 1

Last Close Price 160,00 GBX

Average target price 250,00 GBX

Surely there be more than 1 analyst following