We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Zytronic Plc | LSE:ZYT | London | Ordinary Share | GB0006971013 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 55.00 | 50.00 | 60.00 | 55.00 | 55.00 | 55.00 | 15,835 | 08:00:29 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Magnetc,optic Recordng Media | 8.61M | -1.56M | -0.1539 | -3.57 | 5.59M |
From Apr 2023 to Apr 2024
TIDMZYT
RNS Number : 4914Z
Zytronic PLC
16 May 2023
16 May 2023
Zytronic plc
("Zytronic" or the "Company" and, together
with its subsidiaries, the "Group")
Interim Results for the six months ended 31 March 2023 (unaudited)
Zytronic plc, a leading specialist manufacturer of touch sensors, announces its consolidated interim results for the six months ended 31 March 2023. Comparative data is given for the six months ended 31 March 2022, except where indicated.
Overview
-- Group revenue of GBP4.7m (2022: GBP5.9m) -- Loss before tax of GBP0.9m (2022: profit of GBP0.4m) -- Basic loss per share of 7.5p (2022: earnings per share of 3.0p) -- Cash used in operations GBP0.4m (2022: generated from operations GBP0.1m) -- Net cash of GBP5.4m (30 September 2022: GBP6.4m)
Commenting on the results, Mark Butcher, Interim Chair said:
"Having been confident in December 2022 that the Group was positioned for progress, it is disappointing to report these results for the 6 months to 31 March 2023. As recently announced on 4 May 2023, we have downgraded our expectations for the full year even though there remain encouraging signs reflected by the increase in the number of open opportunities in our pipeline. As a Board we are working on a number of initiatives to address the headwinds the Group is currently facing so that the Group may return to revenue growth and profitability as soon as practicably possible."
Enquiries:
Zytronic plc Mark Cambridge, Chief Executive 0191 414 Claire Smith, Group Finance Director 5511 Singer Capital Markets (Nominated Adviser and Broker) Aubrey Powell, Alex Bond, Alex Emslie (Investment 020 7496 Banking) 3000
Notes to Editors
Zytronic is the developer and manufacturer of a unique range of internationally award-winning and patented touch sensor products, operating from three modern factories totaling 80,000ft(2) near Newcastle-upon-Tyne in the United Kingdom.
Zytronic touch products employ an embedded sensing solution and are readily configurable to enable multi-user and multi-touch touch sensing sizes from five inches to ultra-large 85", making them an ideal solution for system designers' specific requirements, offering significant durability, environmental stability and optical enhancement benefits to touch interactivity for industrial, self-service and public access equipment.
Chair statement
Introduction
As commented on in the trading updates issued at the time of the AGM on 9 February 2023 and latterly on 4 May 2023, the Group has observed a lower level of performance over the first half period of the year than was expected. Sales in H1 were GBP4.7m (2022: GBP5.9m), with some of this change related to degrees of overstocking by customers in Gaming and Vending during FY2022, as a result of the supply chain uncertainties that were prevailing in the electronic components markets. However, these issues became further compounded in Gaming towards the end of the period, with customers whose end market customer is Aruze Gaming America, Inc. ("AGA"), who filed a voluntary petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the State of Nevada.
Results
Group revenue for the half year ended 31 March 2023 was GBP4.7m (2022: GBP5.9m). The resultant gross margin was 23.5% (2022: 31.7%), adversely impacted by 4.5% due to the impairment of GBP0.2m of stock associated with the status of end customer AGA, as noted above. This gave rise to an EBITDA loss of GBP0.6m (2022: EBITDA of GBP0.8m) and a loss before tax of GBP0.9m (2022: profit of GBP0.4m), both of which were impacted by the GBP0.3m impairment of trade receivables also associated with products supplied for ultimate sale by AGA. Basic loss per share was 7.5p (2022: earnings per share of 3.0p).
As well as the now expected low levels of sales in the Financial market, sales in the period have generally been impacted across most markets, with the most sizeable impacts being in our top two market sectors of Gaming and Vending. Gaming, for reasons noted above, is approximately GBP0.6m lower than the same period last year, with reported sales of GBP1.5m (2022: GBP2.1m). Vending is GBP0.4m lower, with sales of GBP1.5m (2022: GBP1.9m), impacted in the main by the GBP0.5m reduction in comparable revenues for touch sensors supplied for a US-based end customer's brand-independent OEM drinks fountain (2022: GBP0.7m) due to FY2022 product overstocking. In both instances of overstocking we are expecting to see associated product supply delays, possibly into the start of FY2024.
Activities
Although the results are somewhat reflective of the effects on the business of the periods of global business development inactivity caused by the pandemic across a near two-year period from the start of the second half of FY2020, and the well-reported historical two-year average bespoke project maturation timeframe, the increasing business development activity levels over this first half period are encouraging.
This has continued to be demonstrated by the steady progress as measured by our CRM system which records the number of open opportunities. With the inevitable dynamic movement of opportunities closing for reasons previously detailed, the period ended with 491 open opportunities with a customer projected lifetime value ("CPLV") of GBP62m (30 September 2022: 484 and GBP59m respectively).
This activity has all been underpinned by the positive return of the international and regional, application-based trade expos and the business development activities that ensue around them, and our research and development ("R&D") department no longer having to spend excessive manpower on supporting supply chain issues. Our R&D function has therefore been able to allocate more time to supporting the critical business development process with customers and establishing new product development programmes.
As part of this process, R&D is continuing with work associated with utilising our technologies, capabilities and processes in the development of potential end-use products, such as bespoke interactive tables, rather than solely the touch components used in them.
Cash
Cash has inevitably been impacted over the period and closed at GBP5.4m (30 September 2022: GBP6.4m). Cash used in operations was GBP0.4m despite working capital decreasing by GBP0.2m over the first half of the year. GBP0.3m was due for collection at the half year end, relating to our customers in the AGA supply chain, and has subsequently been impaired. As the Group continues its recovery it has been more active in investing activities with GBP0.5m being incurred over tangible and intangible purchases. GBP0.2m was also paid over to shareholders for the final dividend from the prior year. More positively, the Group has been able to earn reasonable interest over the period from its cash balances.
Dividends
On the basis of the interim results detailed above, and the Board's stated policy to only pay covered interim or full year dividends, the Board is not proposing the payment of a 2023 interim dividend (2022: Nil).
Recruitment
Over the course of the period, we unfortunately saw the early retirement due to ill health of our Chair, David Buffham. Mark Cambridge was then temporarily appointed as Acting Executive Chair, to provide continuity through to the issuing and acceptance of the annual report for FY2022 at the AGM on 9 February 2023. At the conclusion of the AGM, I was appointed as Interim Chair whilst John Walter joined the Board as a temporary Non-executive Director on 10 February 2023.
John has subsequently been appointed as Chair of the nominations committee and is overseeing the present recruitment process to source a permanent Chair of the Board, which, it is hoped, will have concluded in the coming few months.
Outlook
The headwinds caused by the noted effects of the overstocking and Chapter 11 event are expected to remain to the end of the financial year. The positive resumption of business development activities and the Group's Board restructuring with the future Chair appointment, together with other initiatives being pursued, are expected to help position the Group more favourably for a future return to growth.
Mark Butcher
Interim Chair
16 May 2023
Consolidated statement of comprehensive income
Unaudited results for the six months to 31 March 2023
Hot Features
Premium
Six months Six months Year to
to to
31 March 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
---------------------------------------------- ------ ----------- ----------- -------------
Group revenue 4,728 5,910 12,340
---------------------------------------------- ------ ----------- ----------- -------------
Cost of sales excluding impairment (3,403) (4,034) (8,577)
Impairment 3a (214) - -
---------------------------------------------- ------ ----------- ----------- -------------
Total cost of sales (3,617) (4,034) (8,577)
---------------------------------------------- ------ ----------- ----------- -------------
Gross profit 1,111 1,876 3,763
Distribution costs (107) (132) (258)
---------------------------------------------- ------ ----------- ----------- ------------- Administration expenses excluding impairment (1,638) (1,345) (2,810) Impairment 3b (342) - - ---------------------------------------------- ------ ----------- ----------- ------------- Total administration expenses (1,980) (1,345) (2,810) ---------------------------------------------- ------ ----------- ----------- ------------- Group operating (loss)/profit (976) 399 695 Finance revenue 79 - 10 (Loss)/profit before tax (897) 399 705 Tax credit/(expense) 4 134 (56) (94) ---------------------------------------------- ------ ----------- ----------- ------------- (Loss)/profit for the period (763) 343 611 ---------------------------------------------- ------ ----------- ----------- ------------- Other comprehensive income - - - ---------------------------------------------- ------ ----------- ----------- ------------- Total comprehensive (loss)/income (763) 343 611 ---------------------------------------------- ------ ----------- ----------- ------------- (Loss)/earnings per share Basic 5 (7.5p) 3.0p 5.6p ---------------------------------------------- ------ ----------- ----------- -------------
All activities are from continuing operations.
Consolidated statement of changes in equity
Unaudited results for the six months to 31 March 2023
Called Capital
up
share Share redemption Retained
capital premium reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ -------- -------- ----------- --------- --------
At 1 October 2022 102 8,994 58 6,033 15,187
Profit for the period - - - (763) (763)
Dividends - - - (224) (224)
At 31 March 2023 (unaudited) 102 8,994 58 5,046 14,200
------------------------------ -------- -------- ----------- --------- --------
Consolidated statement of financial position
Unaudited results at 31 March 2023
At At At
31 March 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
---------------------------------- ------ ---------- ---------- -------------
Assets
Non-current assets
Intangible assets 872 635 711
Property, plant and equipment 5,154 5,310 5,107
---------------------------------- ------ ---------- ---------- -------------
6,026 5,945 5,818
---------------------------------- ------ ---------- ---------- -------------
Current assets
Inventories 2,292 2,093 2,184
Trade and other receivables 1,834 2,078 2,957
Cash and short term deposits 7 5,385 7,538 6,403
---------------------------------- ------ ---------- ---------- -------------
9,511 11,709 11,544
---------------------------------- ------ ---------- ---------- -------------
Total assets 15,537 17,654 17,362
---------------------------------- ------ ---------- ---------- -------------
Equity and liabilities
Current liabilities
Trade and other payables 326 881 1,055
Derivative financial liabilities - 18 92
Accruals 543 580 560
Tax liabilities - 53 -
---------------------------------- ------ ---------- ---------- -------------
869 1,532 1,707
---------------------------------- ------ ---------- ---------- -------------
Non-current liabilities
Deferred tax liabilities (net) 468 336 468
---------------------------------- ------ ---------- ---------- -------------
468 336 468
---------------------------------- ------ ---------- ---------- -------------
Total liabilities 1,337 1,868 2,175
---------------------------------- ------ ---------- ---------- -------------
Net assets 14,200 15,786 15,187
---------------------------------- ------ ---------- ---------- -------------
Capital and reserves
Equity share capital 102 106 102
Share premium 8,994 8,994 8,994
Capital redemption reserve 58 54 58
Retained earnings 5,046 6,632 6,033
---------------------------------- ------ ---------- ---------- -------------
Total equity 14,200 15,786 15,187
---------------------------------- ------ ---------- ---------- -------------
Consolidated cashflow statement
Unaudited results for the six months to 31 March 2023
Six months Six months Year to
to to
31 March 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
-------------------------------------------- ------ ----------- ----------- -------------
Operating activities
(Loss)/profit before tax (897) 399 705
Finance income 79 - 10
Depreciation and impairment of property,
plant and
equipment 233 279 543
Amortisation, impairment and write-off
of intangible assets 102 121 223
Amortisation of government grant - (26) (26)
Fair value movement on foreign exchange
forward contracts (92) 2 76
Loss on disposal of asset - - 2
Working capital adjustments
Increase in inventories (108) (658) (749)
Decrease/(increase) in trade and other
receivables 1,123 122 (757)
(Decrease)/increase in trade and other
payables and provisions (838) (169) 106
-------------------------------------------- ------ ----------- ----------- -------------
Cash (used in)/generated from operations (398) 70 133
Tax received/(paid) 77 (125) (224)
-------------------------------------------- ------ ----------- ----------- -------------
Net cashflow used in operating activities (321) (55) (91)
-------------------------------------------- ------ ----------- ----------- -------------
Investing activities
Interest received 70 - 7
Payments to acquire property, plant and
equipment (280) (219) (280)
Payments to acquire intangible assets (263) (23) (201)
-------------------------------------------- ------ ----------- ----------- -------------
Net cashflow used in investing activities (473) (242) (474)
-------------------------------------------- ------ ----------- ----------- -------------
Financing activities
Dividends paid to equity shareholders
of the Parent (224) (170) (170)
Repurchase and cancellation of shares - (1,152) (2,019)
Net cashflow used in financing activities (224) (1,322) (2,189)
-------------------------------------------- ------ ----------- ----------- -------------
Decrease in cash and cash equivalents (1,018) (1,619) (2,754) -------------------------------------------- ------ ----------- ----------- ------------- Cash and cash equivalents at the beginning of the period 6,403 9,157 9,157 -------------------------------------------- ------ ----------- ----------- ------------- Cash and cash equivalents at the end of the period 7 5,385 7,538 6,403 -------------------------------------------- ------ ----------- ----------- -------------
Notes to the interim report
Unaudited results for the six months to 31 March 2023
1. Basis of preparation
The financial information in these interim statements is prepared under the historical cost convention and in accordance with international accounting standards. It does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006 and does not reflect all the information contained in the Group's annual report and financial statements.
The tax charge is calculated by applying the Directors' best estimate of the annual tax rate to the profit for the period. Other expenses are accrued in accordance with the same principles used in the preparation of the annual report and financial statements.
The interim results for the six months to 31 March 2023 are not reviewed by Crowe U.K. LLP and accordingly no opinion has been given.
The interim financial statements have been prepared using the same accounting policies and methods of computation used to prepare the 2022 annual report and financial statements.
The financial information for the six months to 31 March 2023 and the comparative financial information for the six months to 31 March 2022 have not been audited. The comparative financial information for the year ended 30 September 2022 has been extracted from the 2022 annual report and financial statements.
The annual report and financial statements for the year ended 30 September 2022, which were approved by the Board of Directors on 12 December 2022, received an unqualified audit report, did not contain a statement under Sections 498(2) or (3) of the Companies Act 2006 and have been filed with the Registrar of Companies.
The Group has one reportable business segment comprising the development and manufacture of customised optical products to enhance electronic display performance. Products in this reportable business segment include touch sensors, filters and other laminated products. All revenue, profits or losses before tax and net assets are attributable to this reportable business segment.
2. Basis of consolidation
The Group results consolidate the accounts of Zytronic plc and all its subsidiary undertakings drawn up to 31 March 2023.
3. Impairment
(a) Cost of sales
Six months Six months Year to
to 31 March to 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------------- ------------- ------------- --------------
Write-down of stock associated with doubtful 214 - -
debt
--------------------------------------------- ------------- ------------- --------------
Total impairment 214 - -
--------------------------------------------- ------------- ------------- --------------
The consolidated statement of profit and loss includes a charge amounting to GBP0.2m relating to the impairment of stock associated with AGA and its Chapter 11 filing as described in the Chair statement. The Group does not have a direct relationship with AGA but as AGA has delayed its payments to its suppliers then the Group is consequently impacted and has prudently impaired any associated stock for its customers.
(b) Administration expenses
Six months Six months Year to
to 31 March to 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------------- ------------- ------------- --------------
Write-down of stock associated with doubtful 342 - -
debt
--------------------------------------------- ------------- ------------- --------------
Total impairment 342 - -
--------------------------------------------- ------------- ------------- --------------
The consolidated statement of profit and loss includes a charge amounting to GBP0.3m relating to the impairment of debt associated with AGA and its Chapter 11 filing as described in the Chair statement. The Group is actively seeking to recover this debt.
4. Tax charge on (loss)/profit on ordinary activities
The estimated tax rate for the year of 15% has been applied to the half year's loss before tax, in accordance with the Auditing Standards Board's statement on interim reports.
5. (Loss)/earnings per share ("LPS" / "EPS")
Basic LPS/EPS is calculated by dividing the (loss)/profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the period. All activities are continuing operations and therefore there is no difference between LPS/EPS arising from total operations and LPS/EPS arising from continuing operations.
For the six months to 31 March 2023 and 2022
Weighted Weighted
average average
number number
Loss of shares LPS Profit of shares EPS
31 March 31 March 31 March 31 March 31 March 31 March
2023 2023 2023 2022 2022 2022
GBP'000 Thousands Pence GBP'000 Thousands Pence
--------------------------- --------- ---------- --------- --------- ---------- ---------
(Loss)/profit on ordinary
activities after tax (763) 10,162 (7.5) 343 11,357 3.0
--------------------------- --------- ---------- --------- --------- ---------- ---------
Basic LPS/EPS (763) 10,162 (7.5) 343 11,357 3.0
--------------------------- --------- ---------- --------- --------- ---------- ---------
For the year to 30 September 2022
Weighted
average
number
Profit of shares EPS
30 September 30 September 30 September
2022 2022 2022
GBP'000 Thousands Pence
----------------------------------------- ------------- ------------- -------------
Profit on ordinary activities after tax 611 10,836 5.6
----------------------------------------- ------------- ------------- -------------
Basic EPS 611 10,836 5.6
----------------------------------------- ------------- ------------- -------------
6. Dividends
As the Group has not made a profit for the period, the Directors considered it prudent not to pay an interim dividend. Accordingly, no interim dividend is proposed for the period (2022: Nil). The table below reflects historical dividend payments.
Six months Six months Year to
to 31 March to 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------------------ ------------- ------------- --------------
Ordinary dividends on equity shares
Final dividend of 1.5p per ordinary share paid
on 18 March 2022 - 170 170
Final dividend of 2.2p per ordinary share paid 224 - -
on 24 February 2023
------------------------------------------------ ------------- ------------- --------------
224 170 170
------------------------------------------------ ------------- ------------- --------------
7. Cash and cash equivalents
Six months Six months Year to
to 31 March to 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------- ------------- ------------- --------------
Cash at bank and in hand 5,385 7,538 6,403
-------------------------- ------------- ------------- --------------
For the purpose of the consolidated cashflow statement, cash and cash equivalents comprise the following:
Six months Six months Year
to 31 March to 31 March to 30
September
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------- -------------- -------------- ------------
Cash at bank and in hand 850 7,267 6,132
Short term deposits 4,535 271 271
5,385 7,538 6,403
-------------------------- -------------- -------------- ------------
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short term deposits are made for variable lengths, being overnight, three months or one year (with break conditions), depending on the immediate cash requirements of the Group, and earn interest at variable rates.
At 31 March 2023 the Group had available a net GBP1.0m (cash less overdrawn accounts) overdraft facility from Barclays Bank plc, which will fall for review in October 2023.
The fair value of cash and cash equivalents is GBP5.4 (2022: GBP7.5m).
8. Availability of the interim report
The interim report and interim results presentation are available online at the Company's corporate website, www.zytronicplc.com. Copies can be requested from the Company's registered office: Whiteley Road, Blaydon-on-Tyne, Tyne and Wear NE21 5NJ.
Corporate information
Websites:
www.zytronicplc.com
www.zytronic.co.uk
www.zytronic-inc.com
www.zytronic.cn
www.zytronic.jp
Secretary
Claire Smith
Email: claire.smith@zytronic.co.uk
Registered office
Whiteley Road
Blaydon-on-Tyne
Tyne and Wear
NE21 5NJ
Tel: 0191 414 5511 Fax: 0191 414 0545
Registration number
3881244
Stockbroker and Nominated Adviser
Singer Capital Markets
1 Bartholomew Lane
London
EC2N 2AX
Registrars
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS13 8AE
Auditor
Crowe U.K. LLP
Black Country House
Rounds Green Road
Oldbury
B69 2DJ
Bankers
Barclays Bank plc
71 Grey Street
Newcastle-upon-Tyne
NE99 1JP
Handelsbanken
8 Keel Row
The watermark
Gateshead
NE11 9SZ
Santander Corporate Banking
Baltic Place
South Shore Road
Gateshead
NE8 3AE
Yorkshire Bank
131-135 Northumberland Street
Newcastle-upon-Tyne
NE1 7AG
Regions Bank
2653 Marietta Hwy
Canton, GA
30114
USA
Solicitors
Ward Hadaway
Sandgate House
102 Quayside
Newcastle-upon-Tyne
NE1 3DX
Muckle LLP
Time Central
32 Gallowgate
Newcastle-upon-Tyne
NE1 4BF
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
IR GPUWGAUPWPGA
(END) Dow Jones Newswires
May 16, 2023 02:00 ET (06:00 GMT)
1 Year Zytronic Chart |
1 Month Zytronic Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
