Regulatory Story
Go to market news section View chart   Print
RNS
Zytronic PLC  -  ZYT   

Interim Results for six months ended 31 March 2018

Released 07:00 15-May-2018

RNS Number : 0354O
Zytronic PLC
15 May 2018
 


15 May 2018

 

 

Zytronic plc

("Zytronic" or the "Group")

Interim Results for the six months ended 31 March 2018

Zytronic plc, a leading specialist manufacturer of touch sensors, announces its consolidated interim results for the six months ended 31 March 2018.

Overview

·    Group revenue of £10.6m (H1 2017: £11.3m)

·    Gaming revenues increased by 17%, offset by a decline in Financial revenues of 29%

·    Profit before tax of £2.2m (H1 2017: £2.5m)

·    Interim dividend increased by 100% to 7.60p per share (H1 2017: 3.80p)

·    Basic earnings per share ("EPS") of 11.7p (H1 2017: 13.8p)

·    Net cash of £13.7m (30 September 2017: £14.1m) following an increase to dividend payments

 

Commenting on the results, Chairman, Tudor Davies said:

"The second half of the year has started with some improvement in demand from the ATM market and an increased number of projects in the growing Gaming sector. This is consistent with the improvement in trading normally experienced in the second half, and whilst growth may be suppressed compared with recent years, we expect to make good progress in developing our unique, award-winning products, particularly in the USA and Asia." 

 

Enquiries:

Zytronic plc

Mark Cambridge, Chief Executive

Claire Smith, Group Finance Director

 

0191 414 5511

N+1 Singer (Nominated Adviser and Broker)

Aubrey Powell, Liz Yong

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 80,000ft2 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

The Board is pleased to report a doubling of the interim dividend to 7.6p (H1 2017: 3.8p) in line with our progressive dividend policy, and the continued development of our business into new markets, which in the first half has counteracted some deferral in business from the Financial sector.

Results

Revenues for the first half to 31 March 2018 were £10.6m (H1 2017: £11.3m), with profit before taxation of £2.2m (H1 2017: £2.5m).

There has been a considerable variation in demand across the various sectors, resulting in a reduction in revenues. The most positive has been Gaming which has increased by 17%, whereas in the Financial sector, where we supply product for ATM manufacture, demand has been unpredictable with projects being deferred and sales lower than at this time last year. However, in recent weeks we have seen some improvement in demand from the ATM market, and the good progress in Gaming is continuing with an increasing number of projects in the pipeline, and we expect further opportunities to result from the change to direct sales representation in USA and Asia.   

Cash generation

Cash generation from operating activities improved to £2.4m (H1 2017: £2.1m), of which £0.3m was invested into capital expenditure, and with the 2017 final dividend payment of £2.4m, some £0.7m higher than the 2016 final dividend payment, resulted in cash balances of £13.7m (30 September 2017: £14.1m).

Dividend

The Directors have declared a 100% increase to the interim dividend to 7.60p per share (H1 2017: 3.80p) payable on 20 July 2018 to shareholders on the Register on 6 July 2018, to facilitate a move towards an improved balance between the interim and final dividends for a fiscal year, whilst maintaining the Company's progressive dividend policy.

Outlook

The second half of the year has started with some improvement in demand from the ATM market and an increased number of projects in the growing Gaming sector. This is consistent with the improvement in trading normally experienced in the second half, and whilst growth may be suppressed compared with recent years, we expect to make good progress in developing our unique, award-winning products, particularly in the USA and Asia. 

 

 

 

Tudor Davies

Chairman

15 May 2018

 



Consolidated statement of comprehensive income

Unaudited results for the six months to 31 March 2018



Six months to

Six months to

Year to



31 March

31 March

30 September



2018

2017

2017



Unaudited

Unaudited

Audited


Notes

£'000

£'000

£'000

Group revenue


10,605

11,281

22,892

Cost of sales


(6,408)

(6,414)

(13,481)

Gross profit


4,197

4,867

9,411

Distribution costs


(213)

(229)

(393)

Administration expenses


(1,806)

(2,117)

(3,591)

Group trading profit


2,178

2,521

5,427

Finance costs


(3)

(9)

(24)

Finance revenue


27

5

10

Profit before tax


2,202

2,517

5,413

Tax expenses

3

(330)

(366)

(825)

Profit for the period


1,872

2,151

4,588

Earnings per share





Basic

4

11.7p

13.8p

29.0p

Diluted

4

11.7p

13.6p

28.8p

All profits are from continuing operations.

 

 

Consolidated statement of changes in equity

Unaudited results for the six months to 31 March 2018

 


Called up





share

Share

Retained



capital

premium

earnings

Total


£'000

£'000

£'000

£'000

At 1 October 2017

160

8,994

17,622

26,776

Profit for the period

-

-

1,872

1,872

Dividends

-

-

(2,439)

(2,439)

At 31 March 2018 (unaudited)

160

8,994

17,055

26,209

 

 

 

 

 

 

 

 

 



 

Consolidated balance sheet

Unaudited results at 31 March 2018



At

At

At



31 March

31 March

30 September



2018

2017

2017



Unaudited

Unaudited

Audited



£'000

£'000

£'000

Assets





Non-current assets





Intangible assets


1,660

1,585

1,633

Property, plant and equipment


6,790

7,228

7,030



8,450

8,813

8,663

Current assets




Inventories


2,969

3,479

2,996

Trade and other receivables


3,562

3,563

3,506

Derivative financial assets


28

-

54

Cash and short term deposits


13,730

13,520

14,099



20,289

20,562

20,655

Total assets


28,739

29,375

29,318

Liabilities




Current liabilities




Trade and other payables


1,030

1,494

1,042

Financial liabilities


-

1,049

-

Derivative financial liabilities


-

442

-

Accruals


700

1,021

862

Tax liabilities


175

405

3



1,905

4,411

1,907

Non-current liabilities




Government grants


17

17

25

Deferred tax liabilities (net)


608

260

610



625

277

635

Total liabilities


2,530

4,688

2,542

Net assets


26,209

24,687

26,776

Equity




Equity share capital


160

159

160

Share premium


8,994

8,805

8,994

Revenue reserve


17,055

15,723

17,622

Total equity


26,209

24,687

26,776

 



 

Consolidated cashflow statement

Unaudited results for the six months to 31 March 2018



Six months to

Six months to

Year to



31 March

31 March

30 September



2018

2017

2017



Unaudited

Unaudited

Audited


Notes

£'000

£'000

£'000

Operating activities





Profit before tax


2,202

2,517

5,413

Net finance (revenue)/costs


(24)

4

14

Depreciation and impairment of property, plant and

equipment


 

369

 

387

749

Amortisation and impairment of intangible assets


175

178

424

Loss on disposal of intangible assets


-

28

-

Amortisation of government grant


(8)

(31)

(42)

Fair value movement on foreign exchange forward contracts


26

(517)

(1,013)

Working capital adjustments




Decrease/(increase) in inventories


27

(719)

(236)

(Increase)/decrease in trade and other receivables


(56)

316

239

(Decrease)/increase in trade and other payables and provisions


(165)

27

(356)

Cash generated from operations


2,546

2,190

5,192

Tax paid


(195)

(83)

(521)

Net cashflow from operating activities


2,351

2,107

4,671

Investing activities




Interest received


27

5

10

Receipt of government grant


-

-

19

Payments to acquire property, plant and equipment


(103)

(214)

(472)

Payments to acquire intangible assets


(202)

(333)

(600)

Net cashflow from investing activities


(278)

(542)

(1,043)

Financing activities




Interest paid


(3)

(8)

(24)

Dividends paid to equity shareholders of the Parent


(2,439)

(1,744)

(2,354)

Proceeds from share issues relating to options


-

1,044

1,234

Repayment of borrowings


-

(100)

(1,148)

Net cashflow from financing activities


(2,442)

(808)

(2,292)

(Decrease)/increase in cash and cash equivalents


(369)

757

1,336

Cash and cash equivalents at the beginning of the period


14,099

12,763

12,763

Cash and cash equivalents at the end of the period

6

13,730

13,520

14,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the interim report

Unaudited results for the six months to 31 March 2018

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 2018 are not reviewed by Ernst & Young 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 2017 annual report and financial statements.

The financial information for the six months to 31 March 2018 and the comparative financial information for the six months to 31 March 2017 have not been audited. The comparative financial information for the year ended 30 September 2017 has been extracted from the 2017 annual report and financial statements.

The annual report and financial statements for the year ended 30 September 2017, which were approved by the Board of Directors on 11 December 2017, received an unqualified audit report, did not contain a statement under Section 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 2018.

3. Tax charge on profit on ordinary activities

The estimated tax rate for the year of 15% has been applied to the half year's profit before tax, in accordance with the Auditing Standard Board's statement on interim reports.

4. Earnings per share

Basic EPS is calculated by dividing the 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 EPS arising from total operations and EPS arising from continuing operations.

For the six months to 31 March 2018 and 2017



Weighted



Weighted




average



average




number



number



Earnings

of shares

EPS

Earnings

of shares

EPS


31 March

31 March

31 March

31 March

31 March

31 March


2018

2018

2018

2017

2017

2017


£'000

Thousands

Pence

£'000

Thousands

Pence

Profit on ordinary activities after tax

1,872

16,044

11.7

2,151

15,626

13.8

Basic EPS

1,872

16,044

11.7

2,151

15,626

13.8

 

 

 

 

 

The weighted average number of shares for diluted EPS is calculated by including the weighted average number of shares under option.



Weighted



Weighted




average



average




number



number



Earnings

of shares

EPS

Earnings

of shares

EPS


31 March

31 March

31 March

31 March

31 March

31 March


2018

2018

2018

2017

2017

2017


£'000

Thousands

Pence

£'000

Thousands

Pence

Profit on ordinary activities after tax

1,872

16,044

11.7

2,151

15,626

13.8

Weighted average number of shares under option

-

-

-

-

168

(0.2)

Diluted EPS

1,872

16,044

11.7

2,151

15,794

13.6

 

For the year to 30 September 2017



Weighted




average




number



Earnings

of shares

EPS


30 September

30 September

30 September


2017

2017

2017


£'000

Thousands

Pence

Profit on ordinary activities after tax

4,588

15,819

29.0

Basic EPS

4,588

15,819

29.0

 

The weighted average number of shares for diluted EPS is calculated by including the weighted average number of shares under option.



Weighted




average




number



Earnings

of shares

EPS


30 September

30 September

30 September


2017

2017

2017


£'000

Thousands

Pence

Profit on ordinary activities after tax

4,588

15,819

29.0

Weighted average number of shares under option

-

131

(0.2)

Diluted EPS

4,588

15,950

28.8

 

5. Dividends

The Directors propose the payment of an interim dividend of 7.60p per share (H1 2017: 3.80p), payable on 20 July 2018 to shareholders on the Register on 6 July 2018. This dividend has not been accrued in these interim accounts. The dividend payment will be approximately £1.2m.






Six months to 31 March

Six months to 31 March

Year to 30 September


2018

2017

2017


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Ordinary dividends on equity shares




Final dividend of 10.96p per ordinary share paid on
3 March 2017

-

1,744

1,744

Interim dividend of 3.80p per ordinary share paid on
21 July 2017

-

-

610

Final dividend of 15.20p per ordinary share paid on
9 March 2018

2,439

-

-


2,439

1,744

2,354

 

6. Cash and cash equivalents






Six months to 31 March

Six months to 31 March

Year to 30 September


2018

2017

2017


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Cash at bank and in hand

13,730

13,520

14,099

For the purpose of the consolidated cashflow statement, cash and cash equivalents comprise the following:






 Six months to 31 March

 Six months to 31 March

 Year to 30 September


2018

2017

2017


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Cash at bank and in hand

11,382

10,709

11,679

Short term deposits

3,030

3,671

3,089

Bank overdraft

(682)

(860)

(669)


13,730

13,520

14,099

 

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 2018 the Group had available a net £1.0m (cash less overdrawn accounts) overdraft facility from Barclays Bank plc which will fall for review in November 2018.

The fair value of cash and cash equivalents is £13.7m (H1 2017: £13.5m).

7. Availability of the interim report

A copy of the interim report is available on the Company's website, www.zytronicplc.com, and can be obtained from the Company's registered office: Whiteley Road, Blaydon-on-Tyne, Tyne and Wear NE21 5NJ. Copies will be sent to shareholders shortly.  A copy of the presentation made to institutional investors is also available on the Company's website.


 

Corporate information

 

Websites:

www.zytronicplc.com

www.zytronic.co.uk

www.zytronic-inc.com

www.zytronic.cn

www.zytronic.jp

Secretary

Claire Smith
Email: claire.smith@zytronic.co.uk

Registered office

Whiteley Road
Blaydon-on-Tyne
Tyne and Wear
NE21 5NJ

Tel:   0191 414 5511
Fax:   0191 414 0545

Registration number

3881244

Nominated Adviser and Broker

N+1 Singer

One Bartholomew Lane
London
EC2N 2AX

Registrars

Computershare Investor Services PLC

The Pavilions
Bridgwater Road
Bristol
BS13 8AE

Auditors

Ernst & Young LLP

Citygate
St James' Boulevard
Newcastle-upon-Tyne
NE1 4JD


 

 

 

Bankers

Barclays Bank plc

71 Grey Street
Newcastle-upon-Tyne
NE99 1JP

Handelsbanken

8 Keel Row
The watermark
Gateshead
NE11 9SZ

Santander Corporate Banking

Baltic Place
South Shore Road
Gateshead
NE8 3AE

Yorkshire Bank

131-135 Northumberland Street
Newcastle-upon-Tyne
NE1 7AG

Regions Bank

2653 Marietta Hwy
Canton, GA
30114
USA

Solicitors

Ward Hadaway

Sandgate House
102 Quayside
Newcastle-upon-Tyne
NE1 3DX

Muckle LLP

Time Central
32 Gallowgate
Newcastle-upon-Tyne
NE1 4BF

 

 

 

 

 

 

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR FKQDKOBKDFPD
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Interim Results for six months ended 31 March 2018 - RNS