TIDMZYT
RNS Number : 1503Y
Zytronic PLC
11 May 2021
11 May 2021
Zytronic plc
("Zytronic" or the "Company" and, together
with its subsidiaries, the "Group")
Interim Results for the six months ended 31 March 2021
(unaudited)
Zytronic plc, a leading specialist manufacturer of touch
sensors, announces its consolidated interim results for the six
months ended 31 March 2021. Comparative data is given for the six
months ended 31 March 2020, except where indicated.
Overview
-- Group revenue of GBP4.8m (2020: GBP7.4m), impacted by the Coronavirus pandemic
-- EBITDA of GBP0.2m (2020: GBP1.0m)
-- Loss before tax of GBP0.3m (2020: profit of GBP0.5m)
-- Basic (loss)/earnings per share of (1.2)p (2020: 2.5p)
-- Positive operating cashflow of GBP0.4m (2020: GBP1.9m)
-- Net cash of GBP7.8m (30 September 2020: GBP14.0m), after
payment of GBP6.7m in respect of the return of capital
Commenting on the results, Tudor Davies, Chairman said:
"Whilst we are starting from a very low base compared with our
historic sales levels, the recent improvement in orders and sales
are an encouraging sign of the prospects for the second half and
for a return to profitability as more normal global trading resumes
post COVID-19."
Enquiries:
Zytronic plc
Mark Cambridge, Chief Executive
Claire Smith, Group Finance Director 0191 414 5511
N+1 Singer (Nominated Adviser
and Broker)
Aubrey Powell, Rachel Hayes, Amanda
Gray (Investment Banking) 020 7496 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.
Chairman's statement
Introduction
In the January trading update, we explained that sales continued
to be badly affected by the Coronavirus pandemic, but the prior
year's reorganisation and cost reduction measures were enabling us
to maintain a positive EBITDA, and there were some signs of an
improvement in the order intake.
We are pleased to report a continuation of the improvement in
order intake and sales during the remainder of the first half to 31
March 2021, and now expect a gradual return to profitability as
long as the Coronavirus pandemic continues to be controlled in our
major markets of Europe, Asia and the Americas.
Trading
Revenues for the half year ended 31 March 2021 were GBP4.8m
(2020: GBP7.4m), with gross margin of 27.0% (2020: 30.3%), EBITDA
of GBP0.2m (2020: GBP1.0m) and after depreciation and amortisation
the loss before tax was GBP0.3m (2020: profit of GBP0.5m).
Whilst the drop in revenues of 35% is significant when compared
with the same period last year, the comparison with a pre-COVID-19
period only provides an indicator of more normal historic trading
levels. A better indicator of progress at this stage is the order
intake, and from April last year we had continued to experience a
consistently low order intake level. However, from January onwards
we have seen an improving monthly average order intake, and it is
particularly pleasing that the Gaming and Financial sectors have
made a major contribution to the improvement.
Cash position
The Board decided that the GBP14.0m cash balances as at 30
September 2020, arising from the Company's 16-year record of
unbroken profitability prior to the pandemic, and despite a 15-year
unbroken dividend, should provide the opportunity for shareholders
to either participate in a return of surplus cash, or to maintain
their shareholdings.
Following the conclusion of the Tender Offer on 25 February
2021, the number of shares in issue reduced by 28.8% to 11,419,152
as 4,624,889 shares were purchased at a price of 145p and a cost of
GBP6.7m.
We continue to be in a strong financial position with cash
balances of GBP7.8m (30 September 2020: GBP14.0m) and are pleased
that despite the considerable downturn we have generated
GBP0.4m.
Outlook
Whilst we are starting from a very low base compared with our
historic sales levels, the recent improvement in orders and sales
are an encouraging sign of the prospects for the second half and
for a return to profitability as more normal global trading resumes
post-COVID-19.
Tudor Davies
Chairman
11 May 2021
Consolidated statement of comprehensive income
Unaudited results for the six months to 31 March 2021
Six months Six months Year to
to to
31 March 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
----------------------------------------------- ------ ----------- ----------- -------------
Group revenue 4,784 7,378 12,680
Cost of sales (3,490) (5,146) (10,130)
----------------------------------------------- ------ ----------- ----------- -------------
Cost of sales excluding exceptional
items (3,490) (5,146) (9,015)
Exceptional items 3a - - (1,115)
----------------------------------------------- ------ ----------- ----------- -------------
Gross profit 1,294 2,232 2,550
Distribution costs (66) (135) (196)
Administration expenses (1,542) (1,679) (3,318)
----------------------------------------------- ------ ----------- ----------- -------------
Administration expenses excluding exceptional
items (1,542) (1,679) (3,060)
Exceptional items 3b - - (258)
----------------------------------------------- ------ ----------- ----------- -------------
Group trading (loss)/profit (314) 418 (964)
Exceptional other income 4 - - 500
----------------------------------------------- ------ ----------- ----------- -------------
Group operating (loss)/profit (314) 418 (464)
Finance revenue - 40 41
----------------------------------------------- ------ ----------- ----------- -------------
(Loss)/profit before tax (314) 458 (423)
Tax credit/(expense) 5 130 (64) 129
----------------------------------------------- ------ ----------- ----------- -------------
(Loss)/profit for the period (184) 394 (294)
----------------------------------------------- ------ ----------- ----------- -------------
(Loss)/earnings per share
Basic 6 (1.2)p 2.5p (1.8)p
Diluted 6 (1.2)p 2.5p (1.8)p
----------------------------------------------- ------ ----------- ----------- -------------
All activities are from continuing operations.
Consolidated statement of changes in equity
Unaudited results for the six months to 31 March 2021
Called
up
share Share Retained
capital premium earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- -------- -------- --------- --------
At 1 October 2020 160 8,994 13,911 23,065
Loss for the period - - (184) (184)
Repurchase and cancellation of shares (46) - (6,660) (6,706)
--------------------------------------- -------- -------- --------- --------
At 31 March 2020 (unaudited) 114 8,994 7,067 16,175
--------------------------------------- -------- -------- --------- --------
Consolidated statement of financial position
Unaudited results at 31 March 2021
At At At
31 March 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
---------------------------------- ------ ---------- ---------- -------------
Assets
Non-current assets
Intangible assets 875 1,208 1,043
Property, plant and equipment 5,490 6,126 5,820
---------------------------------- ------ ---------- ---------- -------------
6,365 7,334 6,863
---------------------------------- ------ ---------- ---------- -------------
Current assets
Inventories 1,621 2,713 2,332
Trade and other receivables 1,912 3,357 1,888
Derivative financial assets 8 - -
Cash and short term deposits 8 7,752 12,369 14,038
---------------------------------- ------ ---------- ---------- -------------
11,293 18,439 18,258
---------------------------------- ------ ---------- ---------- -------------
Total assets 17,658 25,773 25,121
---------------------------------- ------ ---------- ---------- -------------
Equity and liabilities
Current liabilities
Trade and other payables 489 650 591
Derivative financial liabilities - 93 -
Provisions - - 582
Accruals 489 636 376
Government grants 25 - 27
Tax liabilities - 125 -
---------------------------------- ------ ---------- ---------- -------------
1,003 1,504 1,576
---------------------------------- ------ ---------- ---------- -------------
Non-current liabilities
Deferred tax liabilities (net) 480 516 480
---------------------------------- ------ ---------- ---------- -------------
480 516 480
---------------------------------- ------ ---------- ---------- -------------
Total liabilities 1,483 2,020 2,056
---------------------------------- ------ ---------- ---------- -------------
Net assets 16,175 23,753 23,065
---------------------------------- ------ ---------- ---------- -------------
Capital and reserves 9
Equity share capital 114 160 160
Share premium 8,994 8,994 8,994
Retained earnings 7,067 14,599 13,911
---------------------------------- ------ ---------- ---------- -------------
Total equity 16,175 23,753 23,065
---------------------------------- ------ ---------- ---------- -------------
Consolidated cashflow statement
Unaudited results for the six months to 31 March 2021
Six months Six months Year to
to to
31 March 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
-------------------------------------------------- ------ ----------- ----------- -------------
Operating activities
(Loss)/profit before tax (314) 458 (423)
Finance income - (40) (41)
Depreciation and impairment of property,
plant and
equipment 333 365 718
Amortisation, impairment and write-off
of intangible assets 188 213 457
Amortisation of government grant (2) - (442)
Fair value movement on foreign exchange
forward contracts 8 72 (21)
Working capital adjustments
Decrease in inventories 711 321 702
Decrease in trade and other receivables 47 770 2,360
(Decrease)/increase in trade and other
payables and provisions (589) (170) 88
-------------------------------------------------- ------ ----------- ----------- -------------
Cash generated from operations 382 1,989 3,398
Tax received/(paid) 61 (127) (220)
-------------------------------------------------- ------ ----------- ----------- -------------
Net cashflow from operating activities 443 1,862 3,178
-------------------------------------------------- ------ ----------- ----------- -------------
Investing activities
Interest received - 31 41
Payments to acquire property, plant and
equipment (3) (106) (153)
Payments to acquire intangible assets (20) (122) (201)
-------------------------------------------------- ------ ----------- ----------- -------------
Net cashflow used in investing activities (23) (197) (313)
-------------------------------------------------- ------ ----------- ----------- -------------
Financing activities
Dividends paid to equity shareholders
of the Parent - (2,439) (2,439)
Receipt of government grants - - 469
Repurchase and cancellation of shares (6,706) - -
Net cashflow used in financing activities (6,706) (2,439) (1,970)
-------------------------------------------------- ------ ----------- ----------- -------------
(Decrease)/increase in cash and cash equivalents (6,286) (774) 895
-------------------------------------------------- ------ ----------- ----------- -------------
Cash and cash equivalents at the beginning
of the period 14,038 13,143 13,143
-------------------------------------------------- ------ ----------- ----------- -------------
Cash and cash equivalents at the end of
the period 8 7,752 12,369 14,038
-------------------------------------------------- ------ ----------- ----------- -------------
Notes to the interim report
Unaudited results for the six months to 31 March 2021
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 2021 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 2020 annual report and financial statements.
The financial information for the six months to 31 March 2021
and the comparative financial information for the six months to 31
March 2020 have not been audited. The comparative financial
information for the year ended 30 September 2020 has been extracted
from the 2020 annual report and financial statements.
The annual report and financial statements for the year ended 30
September 2020, which were approved by the Board of Directors on 7
December 2020, 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 2021.
3. Exceptional costs
(a) Cost of sales
Six months Six months Year to
to 31 March to 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------- -------------- -------------- --------------
Costs of restructuring - - 652
Costs of Furlough - - 463
------------------------- -------------- -------------- --------------
Total exceptional costs - - 1,115
------------------------- -------------- -------------- --------------
These charges have arisen as a direct result of the COVID-19
impact on the Group whereby restructuring was necessary to align
headcount with operations.
(b) Administration expenses
Six months Six months Year to
to 31 March to 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------- -------------- -------------- --------------
Costs of restructuring - - 144
Costs of Furlough - - 114
------------------------- -------------- -------------- --------------
Total exceptional costs - - 258
------------------------- -------------- -------------- --------------
These charges have arisen as a direct result of the COVID-19
impact on the Group whereby restructuring was necessary to align
headcount with operations.
4. Exceptional other income
Six months Six months Year to
to 31 March to 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------- -------------- -------------- --------------
Grant monies received - - 500
----------------------------- -------------- -------------- --------------
Total grant monies received - - 500
----------------------------- -------------- -------------- --------------
The income received and accrued as above is as a result of
claims made under the CJRS for when personnel were on Furlough
leave.
5. Tax charge on (loss)/profit on ordinary activities
The estimated tax rate for the year of 41% has been applied to
the half year's loss before tax, in accordance with the Auditing
Standards Board's statement on interim reports.
6. (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 2021 and 2020
Weighted Weighted
average average
number number
Loss of shares LPS Earnings of shares EPS
31 March 31 March 31 March 31 March 31 March 31 March
2021 2021 2021 2020 2020 2020
GBP'000 Thousands Pence GBP'000 Thousands Pence
--------------------------- --------- ---------- --------- --------- ---------- ---------
(Loss)/profit on ordinary
activities after tax (184) 15,273 (1.2) 394 16,044 2.5
--------------------------- --------- ---------- --------- --------- ---------- ---------
Basic LPS/EPS (184) 15,273 (1.2) 394 16,044 2.5
--------------------------- --------- ---------- --------- --------- ---------- ---------
The weighted average number of shares for diluted LPS/EPS is
calculated by including the weighted average number of shares under
option.
Weighted Weighted
average average
number number
Loss of shares LPS Earnings of shares EPS
31 March 31 March 31 March 31 March 31 March 31 March
2021 2021 2021 2020 2020 2020
GBP'000 Thousands Pence GBP'000 Thousands Pence
--------------------------- --------- ---------- --------- --------- ---------- ---------
(Loss)/profit on ordinary
activities after tax (184) 15,273 (1.2) 394 16,044 2.5
Weighted average number - - - - - -
of shares under option
--------------------------- --------- ---------- --------- --------- ---------- ---------
Diluted LPS/EPS (184) 15,273 (1.2) 394 16,044 2.5
--------------------------- --------- ---------- --------- --------- ---------- ---------
For the year to 30 September 2020
Weighted
average
number
Loss of shares LPS
30 September 30 September 30 September
2020 2020 2020
GBP'000 Thousands Pence
--------------------------------------- ------------- ------------- -------------
Loss on ordinary activities after tax (294) 16,044 (1.8)
--------------------------------------- ------------- ------------- -------------
Basic LPS (294) 16,044 (1.8)
--------------------------------------- ------------- ------------- -------------
The weighted average number of shares for diluted LPS is
calculated by including the weighted average number of shares under
option.
Weighted
average
number
Loss of shares LPS
30 September 30 September 30 September
2020 2020 2020
GBP'000 Thousands Pence
------------------------------------------------ ------------- ------------- -------------
Loss on ordinary activities after tax (294) 16,044 (1.8)
Weighted average number of shares under option - - -
------------------------------------------------ ------------- ------------- -------------
Diluted LPS (294) 16,044 (1.8)
------------------------------------------------ ------------- ------------- -------------
7. Dividends
Under the present circumstances, the Directors consider that it
is appropriate to defer returns to shareholders until there is
clear evidence of a return towards normality. Accordingly, no
interim dividend is proposed for the period (2020: Nil). The table
below reflects historic dividend payments.
Six months Six months Year to
to 31 March to 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------------------- -------------- ------------- --------------
Ordinary dividends on equity shares
Final dividend of 15.2p per ordinary share
paid on
7 February 2020 - 2,439 2,439
-------------------------------------------- -------------- ------------- --------------
- 2,439 2,439
----------------------------------------------------------- ------------- --------------
8. Cash and cash equivalents
Six months Six months Year to
to 31 March to 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------- ------------- ------------- --------------
Cash at bank and in hand 7,752 12,369 14,038
-------------------------- ------------- ------------- --------------
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
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------- -------------- -------------- ------------
Cash at bank and in hand 7,752 9,839 11,503
Short term deposits - 2,530 2,535
7,752 12,369 14,038
-------------------------- -------------- -------------- ------------
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 2021 the Group had available a net GBP1.0m (cash
less overdrawn accounts) overdraft facility from Barclays Bank plc,
which will fall for review in July 2021.
The fair value of cash and cash equivalents is GBP7.8m (2020:
GBP12.4m).
9. Capital and reserves
On 1 February 2021 the Company announced a proposed return of up
to GBP10.0m of capital by way of a Tender Offer which was accepted
by shareholders on 25 February 2021. As a result, 4,624,889 shares
were purchased and subsequently cancelled by the Company at a price
of 145p per share, returning GBP6.7m of the Company's cash.
10. Availability of the interim report
A copy of the interim report and interim results presentation is
available on 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.
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 GPUPAAUPGPUU
(END) Dow Jones Newswires
May 11, 2021 02:00 ET (06:00 GMT)
Zytronic (LSE:ZYT)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Zytronic (LSE:ZYT)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
