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Zytronic shares fall to 20-year low after swing to loss

Published 09/01/2024, 09:46
Updated 09/01/2024, 10:10
Zytronic shares fall to 20-year low after swing to loss

Proactive Investors - Zytronic (LON:ZYT) shares tumbled to almost a two-decade low after it withdrew its dividend after a swing to losses last year.

It insisted there are "grounds for cautious optimism over the medium term" but warned that trends seen in the second half of last year have continued into the first quarter.

The touch-screen manufacturer reported a 30% decline in revenues to £8.6 million as 43,500 touch sensor units were supplied in the year to end-September compared to 60,000 units the previous year.

Sales in the gaming sector down £2.3 million and in vending by around £1 million.

With gross margin falling due to a lower proportion of large and curved screens, a loss before tax of £2.0 million was the result, compared to a £0.7 million profit in 2022.

A final dividend will not be paid as a result, as while there is sufficient cash and reserves to do so, the company policy is to only pay dividends from profits generated in that year.

Executive chair Chris Potts said the 2023 trends had continued in the three months to December so revenues in the current year to date are lower than the same period last year.

"Nevertheless, the group benefits from a strong balance sheet and has good visibility over its cost base over the next twelve-month period. With reinvigoration of the group's business development function and differentiated technology and products, there are grounds for cautious optimism over the medium term," he said.

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