Zytronic PLC Trading Update (4083E)
18 October 2018 - 5:01PM
UK Regulatory
TIDMZYT
RNS Number : 4083E
Zytronic PLC
18 October 2018
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Prior to
publication, certain information contained within this
Announcement
was deemed to constitute inside information for the purposes of
Article 7 of MAR.
Zytronic plc
("Zytronic" or the "Group")
Trading Update
The Board of Zytronic makes the following pre-close statement
ahead of the release of its preliminary results for the financial
year ended 30 September 2018, which is expected to occur in
December 2018.
Trading in the second half of the year showed a 10% improvement
in revenues over the first half, totalling GBP11.7m, resulting in
total revenues for the year of GBP22.3m which is in-line with
market expectations.
However, the increase in business required the introduction of
some new designs and production techniques which have resulted in
lower than expected margins, particularly in the final two months
of the financial year. In addition, a spurious patent claim was
settled for GBP72k, plus the Group's own cost of GBP240k. Lower
margins coupled with litigation costs have resulted in full year
profits before tax of approximately GBP4.2m or GBP4.5m before the
litigation costs, being behind market expectations.
The Group continues to be cash generative and is in a robust
financial position with cash of GBP14.6m as at 30 September 2018
(30 September 2017: GBP14.1m). Furthermore, it continues as is
normal, to address the new product designs and production
techniques to bring through improvements to the margins and has
several opportunities in its pipeline with the potential to improve
future performance materially.
Enquiries:
Zytronic plc 0191 414 5511
Mark Cambridge, Chief Executive
Claire Smith, Group Finance Director
N+1 Singer 020 7496 3000
Aubrey Powell/ Alex Bond, Corporate Finance
Rachel Hayes, Corporate Broking
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 totalling 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.
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.
END
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