Interim Results
Zytronic PLC
26 May 2005
For Immediate Release 26 May 2005
ZYTRONIC PLC
Interim Results for the Six Months to 31 March 2005
Zytronic Plc, a leading specialist manufacturer of touchscreens and optical
filters for electronic displays, announces its interim results for the six
months to 31 March 2005.
Highlights
• Turnover increased 33% to £5.11m (2004: £3.85m);
• Profit before tax increased to £437,000 (2004: loss £71,000);
• Basic earnings per share increased to 2.1p (2004: loss 0.3p);
• Interim dividend declared of 0.5p per share (2004: Nil);
• Growth in all areas of the business, in particular ZYTOUCH(R) touchscreens
where sales increased by more than 40%;
• ZYTOUCH(R) sales are providing new opportunities for the sale of optical
filter products, which increased by more than 25%;
• ZYPOS(R) successfully launched in Shanghai and Boston, with new enquiries
being generated in both the gaming and point-of-sale markets;
• On outlook, Chairman John Kennair said:
'The Group's solid return to profitability, the resumption of dividend payments,
the continued growth in optical filters, strong growth in sales of ZYTOUCH(R),
and the introduction of ZYPOS(R) into the product range, provide a healthy and
exciting future for the Group.'
Enquiries:
Zytronic Plc (Today: 020 7466 5000; thereafter 0191 414 5511)
John Kennair, Chief Executive
Denis Mullan, Finance Director
Buchanan Communications 020 7466 5000
Richard Darby, Isabel Podda
Notes to Editors
Zytronic is an industry leader in the development and manufacture of customised
optical filters to enhance electronic display performance. It is also an
innovator in the production of specialised and transparent laminates for niche
markets.
Based on this lamination expertise, Zytronic has developed a unique range of
touchscreen products employing projected capacitive technology which enables the
pointing device to sense through an anti-vandal screen in front of the display.
This system offers significant benefits to electronic display manufacturers.
Operating from two modern factories near Newcastle-upon-Tyne in England,
Zytronic assembles touchscreens and filters, utilising special glass and plastic
materials, in environmentally controlled clean rooms.
Chairman's Statement
In the six months to 31 March 2005, growth in all aspects of the Group's
business has led to a significant improvement in trading results over the
corresponding period last year.
Results
Sales at £5.11m (2004: £3.85m) grew by 33% producing pre-tax profits of £437,000
(2004: loss £71,000).
Trading
Sales in the Group's two primary product groupings, optical filters and displays
('optical filters') and touchscreens, have shown substantial improvement.
Whilst sales of the Group's optical filters grew by more than 25%, strong growth
in ZYTOUCH(R) touchscreens pushed sales ahead by more than 40%. We continue to
open new accounts for the sale of ZYTOUCH(R), which in turn provide new
opportunities for the sale of the Group's optical filter products.
The sales network in North America has now been put in place. This significantly
strengthened presence, combined with our continuing successful exhibiting at
major US trade shows over the last three years, leads the Directors to
anticipate a steady increase in activity from this important economic region.
ZYPOS(R)
Following the installation of the pilot production plant in November 2004, the
resolution of initial teething problems and successful completion of the
environmental testing in January 2005, the product launches took place in
Shanghai in March at the 'ElectronicaChina 2005' Trade Show and this month in
Boston at the 'Society for Information Display' Trade Show. The product has
been well received in both regions and, as a consequence, a number of new
enquiries have been generated in both the gaming and point-of-sale markets,
prototype samples for which are currently being delivered. ZYPOS(R) is expected
to make a significant contribution to growth in future years.
Dividend
The Directors have declared an interim dividend of 0.5p per share (2004: Nil)
payable on 29 June 2005 to shareholders on the Register at 1 June 2005.
Outlook
The Group's solid return to profitability, the resumption of dividend payments,
the continued growth in optical filters, strong growth in sales of ZYTOUCH(R),
and the introduction of ZYPOS(R) into the product range, provide a healthy and
exciting future for the Group.
J M Kennair MBE
Chairman
26 May 2005
Group profit and loss account
unaudited results for the six months to 31 March 2005
Six months to Six months to Year
to
31 March 31 March 30 September
2005 2004 2004
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Turnover 5,112 3,853 8,756
Cost of sales 3,465 2,783 6,187
Gross profit 1,647 1,070 2,569
Distribution costs 62 54 121
Administrative expenses 1,141 1,078 2,078
1,203 1,132 2,199
Operating profit/(loss) 444 (62) 370
Interest payable (18) (13) (26)
Interest receivable 11 4 6
Profit/(loss) on ordinary activities before 437 (71) 350
taxation
Tax (charge on profit)/credit on loss on ordinary 3 (140) 28 (114)
activities
Profit/(loss) on ordinary activities after taxation 297 (43) 236
Ordinary dividend on equity shares 4 (71) - -
Retained profit/(loss) for the period 226 (43) 236
Earnings/(loss) per share - basic 5 2.1p (0.3)p 1.7p
- diluted 5 2.0p (0.3)p 1.6p
There were no recognised gains or losses as defined in Financial Reporting
Standard No. 3 other than those stated above.
Group balance sheet
unaudited results for the six months to 31 March 2005
31 March 31 March 30 September
2005 2004 2004
Unaudited Unaudited Audited
£'000 £'000 £'000
Fixed assets
Intangible assets 2,122 2,194 2,172
Tangible assets 2,420 2,158 2,155
4,542 4,352 4,327
Current assets
Short term property investment - 75 75
Stocks 1,188 1,352 1,084
Debtors: amounts falling due within one year 2,098 1,725 1,873
Cash at bank and in hand 919 308 1,171
4,205 3,460 4,203
Creditors: amounts falling due within one year 1,653 1,308 1,569
Net current assets 2,552 2,152 2,634
Total assets less current liabilities 7,094 6,504 6,961
Creditors: amounts falling due after more than one year 278 298 394
Provisions for liabilities and charges 195 90 172
6,621 6,116 6,395
Capital and reserves
Called up share capital 143 143 143
Share premium 6,212 6,212 6,212
Profit and loss account 266 (239) 40
Equity shareholders' funds 6,621 6,116 6,395
Group statement of cash flows
unaudited results for the six months to 31 March 2005
Six months Six Year
to months to to
31 March 31 March 30 September
2005 2004 2004
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Net cash inflow/(outflow) from operating activities 6a 319 (425) 520
Returns on investments and servicing of finance
Interest received 11 4 6
Interest paid (6) - -
Interest element of finance lease rental payments (12) (13) (26)
Net outflow from returns on investments and servicing of (7) (9) (20)
finance
Taxation
Corporation tax repayment 11 - -
Capital expenditure and financial investment
Payments to acquire intangible fixed assets (53) (20) (164)
Payments to acquire tangible fixed assets (486) (127) (237)
Receipt from sale of short term property investment 75 - -
Net outflow from capital expenditure and financial (464) (147) (401)
investment
Net cash (outflow)/inflow before financing (141) (581) 99
Financing
Receipt from new bank loan - - 250
Repayments of bank loan (42) - -
Repayments of capital element of finance lease (69) (65) (132)
Net (outflow)/inflow from financing (111) (65) 118
(Decrease)/increase in cash (252) (646) 217
Reconciliation of net cash flow to movement in net (debt)
/funds
(Decrease)/increase in cash (252) (646) 217
Receipt from new bank loan - - (250)
Repayments of bank loan 42 - -
Repayments of capital element of finance lease 69 65 132
Movement in net funds (141) (581) 99
Net funds at beginning of period 554 455 455
Net funds/(debt) at end of period 6b 413 (126) 554
NOTES
unaudited results for the six months to 31 March 2005
1. Basis of preparation
The financial information in this interim statement is prepared under the
historical cost convention and in accordance with applicable accounting
standards. It does not constitute statutory accounts as defined in Section 240
of the Companies Act 1985. The financial information for the full preceding year
is based on the statutory accounts for the year to 30 September 2004. Those
accounts, upon which the auditors issued an unqualified opinion, have been
delivered to the Registrar of Companies.
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year ended
30 September 2004. The taxation (charge)/credit is calculated by applying the
Directors' best estimate of the annual tax rate to the profit/(loss) for the
period. Other expenses are accrued in accordance with the same principles used
in the preparation of the annual accounts.
2. Basis of consolidation
The Group results consolidate the accounts of Zytronic Plc and all its
subsidiary undertakings drawn up to 31 March 2005.
3. Tax charge on profit on ordinary activities
The estimated tax rate for the year of 32% has been applied to the half year's
profit before tax, in accordance with ASB's statement on interim reports.
4. Dividends
The Directors have declared an interim dividend of 0.5p per share (2004: Nil),
payable on 29 June 2005 to shareholders on the Register at 1 June 2005.
5. Earnings/(loss) per share
The calculations of earnings/(loss) per share are based on a profit after
taxation of £297,000 (2004: loss £43,000) and a basic and diluted weighted
average of 14,291,539 and 14,528,351 shares respectively in issue (2004: basic
and diluted 14,291,539). The calculations of earnings per share for the full
year to 30 September 2004 are based on a profit after taxation of £236,000 and a
basic and diluted weighted average of 14,291,539 and 14,338,685 shares in issue
respectively.
6. Notes to the Group statement of cash flows
a) Reconciliation of operating profit/(loss) to net cash inflow/(outflow) from
operating activities:
Six months to Six months to Year
to
31 March 31 March 30 September
2005 2004 2004
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating profit/(loss) 444 (62) 370
Depreciation 204 241 402
Amortisation 124 110 229
Gross cash inflows 772 289 1,001
(Increase) in debtors (225) (563) (747)
(Increase)/decrease in stocks (104) (266) 2
(Decrease)/increase in creditors (124) 115 264
Net cash inflow/(outflow) from operating activities 319 (425) 520
b) Analysis of net funds/(debt):
31 March 31 March 30 September
2005 2004 2004
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash at bank and in hand 919 308 1,171
Bank loan (208) - (250)
Finance lease (298) (434) (367)
413 (126) 554
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