Zytronic PLC AGM Trading Update and Planned Board Changes (3783P)
09 Febrero 2023 - 01:00AM
UK Regulatory
TIDMZYT
RNS Number : 3783P
Zytronic PLC
09 February 2023
Zytronic plc
("Zytronic" or the "Company", and
together with its subsidiary, the "Group")
AGM Trading Update and Planned Board Changes
Zytronic, a leading specialist manufacturer of touch sensors,
provides the following trading update and commentary regarding
planned Board changes, ahead of the AGM being held at the Company's
offices at 1.00 p.m. today.
AGM Trading Statement
Trading conditions for the first two months of FY23 were
commented upon in the Company's FY22 Final Results announcement
released 13 December 2022 ("FY22 Final Results") and remained
relatively unchanged at the end of January 2023. As described more
fully below and consistent with the trend outlined in the Final
Results release, business development and the opportunities
pipeline continue to progress positively.
Performance during the first four months of the current
financial year has continued to be affected by the ongoing global
supply chain considerations as described in the FY22 Final Results
announcement and the average monthly order intake is also at levels
similar to those of the second half of FY22. As the shortage of
certain electronic component items persists the Group continues, by
necessity, to purchase certain items either on the grey market (at
higher pricing) or to cannibalise existing finished stock, due to
the lack of availability and levels of allocations from original
manufacturers.
More pleasingly the opportunities pipeline, which was covered in
some depth in the FY22 Final Results announcement, has increased to
505 'Open' opportunities, with an increase in the customer
projected lifetime value ("CPLV") to GBP61m (30 September 2022: 484
Open opportunities and CPLV of GBP59m). This continues the net
positive trends in these two metrics observed since July 2021
which, while remaining subject to monthly variability, are further
evidence of the improving medium-term prospects for the
business.
With regards to wages and salaries, the Group's operational
management has now entered the period of wage negotiations with
employee representatives for a 1 April 2023 effective date. The
Company is mindful of general cost of living issues and of the
significant changes to, and implications from, the proposed
increases to the National Minimum and National Living Wage rates
applicable from that date. These, alongside inflation
considerations, have the potential to negatively impact costs over
the second half of the fiscal year ahead of previous budgeting.
The Company's balance sheet remains strong with net cash of
GBP6.8m as at 31 January 2023 (30 September 2022: GBP6.4m).
Outlook
As a result of the combined effects of the continuing supply
chain issues and the increasingly robust opportunities pipeline,
the Board anticipates a stronger second-half weighting of revenue
than that observed for the last financial year. A further update
will be provided at the time of the Group's interim results (for
the six months ending 31 March 2023), which are expected to be
released in May 2023.
Planned Board Changes
As previously noted, the Board is progressing the appointment of
further new Independent Non-executive Directors ("INEDs") in order
to improve the balance of Board independence in recognition of QCA
Corporate Governance Code (the "QCA Code") guidelines, after the
departure of the previous non-Executive Chair at the start of the
FY23 fiscal year due to ill health. The Board continues to review
strategies for future growth and improved shareholder value and
expects to appoint recruitment agents to support its INED search in
support of these goals once these are further defined and the
optimal skill sets to support their delivery are identified.
Notwithstanding this on-going process, the Board has agreed that
it is in the best interests of the Group that Mark Cambridge is
able to solely concentrate on its operational requirements. To
facilitate this, he will step down as Acting Executive Chair at the
conclusion of the AGM and resume his prior role of CEO, with Mark
Butcher (INED) being appointed to the position of Interim
Non-executive Chair. The Company will update its Corporate
Governance Statement on its website shortly, to reflect this
change, while Mark Butcher's appointment as Chair means he would
not ordinarily be expected to chair the audit and remuneration
committees, this is a current practical necessity and will be
resolved on the appointment of a further suitable INED or
INEDs.
In addition to this, the Board has agreed to the recent request
of John Walter, the largest individual shareholder in the Company,
to temporarily join the Board from 10 February 2023, as a
Non-executive Director. John's appointment will be for a fixed-term
period, concluding no later than the day prior to the posting of
the notice to shareholders of the 2024 AGM. John is a former
investment banker and wealth manager with over 25 years' investment
experience in the public markets. Further regulatory disclosures in
relation to the appointment of John Walter will be made in the
Results of AGM announcement to be issued later today.
Although the Board recognises that John is not independent by
virtue of his shareholding interest, it considers that his
temporary appointment will afford it with a better balance of
Non-executive impartiality in the interim and provides reasonable
shareholder input into the process of seeking and concluding the
appointments of new INEDs.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018).
Enquiries:
Zytronic plc
Mark Cambridge, Acting Executive Chair
Claire Smith, Group Finance Director 0191 414 5511
Singer Capital Markets
(Nominated Adviser and Broker)
Aubrey Powell, Alex Bond, Alex Emslie 020 7496 3000
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.
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