(Alliance News) - Zytronic PLC on Tuesday suspended shareholder payouts due to a 67% drop in interim profit and the extremely uncertain prospects for the remainder of the year as a result of the Covid-19 pandemic.
The touch sensors maker also warned that the virus outbreak has started affecting supplies and deliveries and causing the deferral of customer orders. It noted that it is too early to assess the virus impact on its financial performance.
For the six months to March 31, the Tyne and Wear-based company's pretax profit fell 67% to GBP458,000 from GBP1.4 million a year ago.
Revenue slumped 22% to GBP7.4 million from GBP9.5 million, hurt by decreases in Gaming, Financial and Vending revenue.
"We shall keep shareholders informed of any material developments, but in common with all businesses, we are facing difficult and unprecedented circumstances with anything except very short-term forecasts challenging. Management will continue to respond accordingly to ensure operations are maintained in a safe manner and will utilise any government assistance to safeguard the employment of our workforce," said Chair Tudor Davies.
At March-end, Zytronic had net cash of GBP12.4 million, down from GBP13.1 million at September 30, 2019, following payment of final dividend of GBP2.4 million in respect of financial 2019.
Shares were up 3.1% at 103.10 pence each in London on Tuesday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Zytronic (ZYT)