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

Interim Results for six months ended 31 March 2019

Released 07:00 14-May-2019

RNS Number : 8880Y
Zytronic PLC
14 May 2019
 

 

14 May 2019

 

 

Zytronic plc

("Zytronic" or the "Company" and, together with its subsidiaries, "Group")

Interim Results for the six months ended 31 March 2019 (unaudited)

Zytronic plc, a leading specialist manufacturer of touch sensors, announces its consolidated interim results for the six months ended 31 March 2019.  Comparative data is given for the six months ended 31 March 2018, except where indicated.

Overview

·    Group revenue of £9.5m (2018: £10.6m), impacted by decrease in Gaming revenue

  (partially offset by stronger revenues in other sectors)

·    Profit before tax of £1.4m (2018: £2.2m)

·    Interim dividend maintained at 7.6p per share (2018: 7.6p)

·    Basic earnings per share ("EPS") of 7.4p (2018: 11.7p)

·    Net cash of £12.1m (30 September 2018: £14.6m)

 

 

Commenting on the results, Tudor Davies, Chairman said:

"As stated in our recent trading update, whilst historically trading in the second half has shown an improvement over the first half, and there are several projects that should improve performance as they come to fruition, at this stage the Board is taking a cautious and conservative view on an increase in activity levels from the Gaming sector in the second half."

 

Enquiries:

Zytronic plc

Mark Cambridge, Chief Executive

Claire Smith, Group Finance Director

 

0191 414 5511

N+1 Singer (Nominated Adviser and Broker)

Aubrey Powell, Alex Bond (Corporate Finance)

Rachel Hayes (Corporate Broking)

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

As announced in the trading update on 2 May 2019, we have experienced lower than expected revenues and profitability in the first half of this year, principally due to considerably slower sales of our touchscreen products into the previously buoyant Gaming sector.

Results

Revenues for the first half to 31 March 2019 were £9.5m (2018: £10.6m), with profit before tax of £1.4m (2018: £2.2m).

The reduction in revenues was due to the decline in sales into the Gaming market to £3.1m (2018: £4.2m) with sales to sectors such as Financial, Vending and Signage showing an increase to £5.1m (2018: £4.6m), and other sales including Industrial of £1.3m (2018: £1.8m).

The Gaming revenues were affected by a slower conversion of opportunities to orders of new design projects not replacing the anticipated reduction in volumes from several longer running projects, which had consisted of higher margin larger format products. In volume terms the numbers of touchscreens sold remained at similar levels to last year, but the number of larger panels dropped by 35% and this change in mix contributed toward a decline in gross margin to 34.7% (2018: 39.6%) and had a knock-on effect on profitability.     

Cash generation

Net cash generation from operating activities was £0.2m (2018: £2.4m) as a result of a £1.7m increase in working capital.  Along with further investment made into capital expenditure during the first half of £0.4m and with the payment of the 2018 final dividend of £2.4m, this resulted in closing cash balances of £12.1m (30 September 2018: £14.6m).

Dividend

The Directors have maintained the interim dividend at 7.6p per share (2018: 7.6p), payable on 19 July 2019 to shareholders on the Register on 5 July 2019.

Outlook

As stated in our recent trading update, whilst historically trading in the second half has shown an improvement over the first half, and there are several projects that should improve performance as they come to fruition, at this stage the Board is taking a cautious and conservative view on an increase in activity levels from the Gaming sector in the second half.

 

Tudor Davies

Chairman

14 May 2019

 

 

Consolidated statement of comprehensive income

Unaudited results for the six months to 31 March 2019

 

 

Six months to

Six months to

Year to

 

 

31 March

31 March

30 September

 

 

2019

2018

2018

 

 

Unaudited

Unaudited

Audited

 

Notes

£'000

£'000

£'000

Group revenue

 

9,463

10,605

22,288

Cost of sales

 

(6,178)

(6,408)

(14,047)

Gross profit

 

3,285

4,197

8,241

Distribution costs

 

(182)

(213)

(461)

Administration expenses

 

(1,755)

(1,806)

(3,639)

Group trading profit

 

1,348

2,178

4,141

Finance costs

 

-

(3)

(21)

Finance revenue

 

35

27

68

Profit before tax

 

1,383

2,202

4,188

Tax expense

3

(193)

(330)

(541)

Profit for the period

 

1,190

1,872

3,647

Earnings per share

 

 

 

 

Basic

4

7.4p

11.7p

22.7p

Diluted

4

7.4p

11.7p

22.7p

 

 

Consolidated statement of changes in equity

Unaudited results for the six months to 31 March 2019

 

 

Called up

 

 

 

 

share

Share

Retained

 

 

capital

premium

earnings

Total

 

£'000

£'000

£'000

£'000

At 1 October 2018

160

8,994

17,611

26,765

Profit for the period

-

-

1,190

1,190

Dividends

-

-

(2,439)

(2,439)

At 31 March 2019 (unaudited)

160

8,994

16,362

25,516

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of financial position

 

 

At

At

At

 

 

31 March

31 March

30 September

 

 

2019

2018

2018

 

 

Unaudited

Unaudited

Audited

 

 

£'000

£'000

£'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

 

1,460

1,660

1,585

Property, plant and equipment

 

6,566

6,790

6,605

 

 

8,026

8,450

8,190

Current assets

 

 

 

 

Inventories

 

3,948

2,969

3,021

Trade and other receivables

 

3,856

3,562

3,738

Derivative financial assets

 

-

28

-

Cash and short term deposits

 

12,060

13,730

14,626

 

 

19,864

20,289

21,385

Total assets

 

27,890

28,739

29,575

Equity and liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

978

1,030

1,446

Derivative financial liabilities

 

3

-

7

Accruals

 

591

700

767

Tax liabilities

 

227

175

13

 

 

1,799

1,905

2,233

Non-current liabilities

 

 

 

 

Government grants

 

13

17

15

Deferred tax liabilities (net)

 

562

608

562

 

 

575

625

577

Total liabilities

 

2,374

2,530

2,810

Net assets

 

25,516

26,209

26,765

Equity

 

 

 

 

Equity share capital

 

160

160

160

Share premium

 

8,994

8,994

8,994

Revenue reserve

 

16,362

17,055

17,611

Total equity

 

25,516

26,209

26,765

 

 

 

Consolidated cashflow statement

Unaudited results for the six months to 31 March 2019

 

 

Six months to

Six months to

Year to

 

 

31 March

31 March

30 September

 

 

2019

2018

2018

 

 

Unaudited

Unaudited

Audited

 

Notes

£'000

£'000

£'000

Operating activities

 

 

 

 

Profit before tax

 

1,383

2,202

4,188

Net finance income

 

(35)

(24)

(47)

Depreciation and impairment of property, plant and

equipment

 

 

361

 

369

709

Amortisation, impairment and write-off of intangible assets

 

205

175

438

Amortisation of government grant

 

(3)

(8)

(10)

Fair value movement on foreign exchange forward contracts

 

(4)

26

61

Working capital adjustments

 

 

 

 

(Increase)/decrease in inventories

 

(927)

27

(25)

Increase in trade and other receivables

 

(118)

(56)

(232)

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

 

(648)

(165)

295

Cash generated from operations

 

214

2,546

5,377

Tax received/(paid)

 

25

(195)

(573)

Net cashflow from operating activities

 

239

2,351

4,804

Investing activities

 

 

 

 

Interest received

 

30

27

65

Payments to acquire property, plant and equipment

 

(322)

(103)

(273)

Payments to acquire intangible assets

 

(74)

(202)

(390)

Net cashflow used in investing activities

 

(366)

(278)

(598)

Financing activities

 

 

 

 

Interest paid

 

-

(3)

(21)

Dividends paid to equity shareholders of the Parent

 

(2,439)

(2,439)

(3,658)

Net cashflow used in financing activities

 

(2,439)

(2,442)

(3,679)

(Decrease)/increase in cash and cash equivalents

 

(2,566)

(369)

527

Cash and cash equivalents at the beginning of the period

 

14,626

14,099

14,099

Cash and cash equivalents at the end of the period

6

12,060

13,730

14,626

 

 

 

 

 

 

 

 

Notes to the interim report

Unaudited results for the six months to 31 March 2019

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 2019 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 2018 annual report and financial statements.

The financial information for the six months to 31 March 2019 and the comparative financial information for the six months to 31 March 2018 have not been audited. The comparative financial information for the year ended 30 September 2018 has been extracted from the 2018 annual report and financial statements.

The annual report and financial statements for the year ended 30 September 2018, which were approved by the Board of Directors on 10 December 2018, 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 2019.

3. Tax charge on profit on ordinary activities

The estimated tax rate for the year of 14% 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 2019 and 2018

 

 

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

 

2019

2019

2019

2018

2018

2018

 

£'000

Thousands

Pence

£'000

Thousands

Pence

Profit on ordinary activities after tax

1,190

16,044

7.4

1,872

16,044

11.7

Basic EPS

1,190

16,044

7.4

1,872

16,044

11.7

 

 

 

 

 

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

 

2019

2019

2019

2018

2018

2018

 

£'000

Thousands

Pence

£'000

Thousands

Pence

Profit on ordinary activities after tax

1,190

16,044

7.4

1,872

16,044

11.7

Weighted average number of shares under option

-

-

-

-

-

-

Diluted EPS

1,190

16,044

7.4

1,872

16,044

11.7

 

For the year to 30 September 2018

 

 

Weighted

 

 

 

average

 

 

 

number

 

 

Earnings

of shares

EPS

 

30 September

30 September

30 September

 

2018

2018

2018

 

£'000

Thousands

Pence

Profit on ordinary activities after tax

3,647

16,044

22.7

Basic EPS

3,647

16,044

22.7

 

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

 

2018

2018

2018

 

£'000

Thousands

Pence

Profit on ordinary activities after tax

3,647

16,044

22.7

Weighted average number of shares under option

-

-

-

Diluted EPS

3,647

16,044

22.7

 

5. Dividends

The Directors propose the payment of an interim dividend of 7.6p per share (2018: 7.6p), payable on 19 July 2019 to shareholders on the Register on 5 July 2019. 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

 

2019

2018

2018

 

Unaudited

Unaudited

Audited

 

£'000

£'000

£'000

Ordinary dividends on equity shares

 

 

 

Final dividend of 15.2p per ordinary share paid on
9 March 2018

-

2,439

2,439

Interim dividend of 7.6p per ordinary share paid on
20 July 2018

-

-

1,219

Final dividend of 15.2p per ordinary share paid on
22 February 2019

2,439

-

-

 

2,439

2,439

3,658

 

6. Cash and cash equivalents

 

 

 

 

 

Six months to 31 March

Six months to 31 March

Year to 30 September

 

2019

2018

2018

 

Unaudited

Unaudited

Audited

 

£'000

£'000

£'000

Cash at bank and in hand

12,060

13,730

14,626

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

 

2019

2018

2018

 

Unaudited

Unaudited

Audited

 

£'000

£'000

£'000

Cash at bank and in hand

5,991

11,382

8,580

Short term deposits

6,069

3,030

6,046

Bank overdraft

-

(682)

-

 

12,060

13,730

14,626

 

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 2019 the Group had available a net £1.0m (cash less overdrawn accounts) overdraft facility from Barclays Bank plc, which will fall for review in September 2019.

The fair value of cash and cash equivalents is £12.1m (2018: £13.7m).

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 made available 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

Stockbroker and Nominated Adviser

N+1 Singer

One Bartholomew Lane
London
EC2N 2AX

Registrars

Computershare Investor Services PLC

The Pavilions
Bridgwater Road
Bristol
BS13 8AE

Auditor

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 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.
 
END
 
 
IR CKNDDFBKDOPD
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 2019 - RNS