(Alliance News) - Zytronic PLC on Friday hailed a "considerable turnaround" with the sensors manufacturer now expecting to post annual profit despite supply issues.
Shares in the company were 12% higher at 185.25 pence each in London on Friday morning.
The Tyne & Wear-based company said its improvement in the second half ended September 30 was "significant". It said sales rose 44% to GBP6.9 million in the second half, from GBP4.8 million in the first half. Gross margins improved by six percentage points to 33.2%.
"Although the business continues to see Covid-19 related effects, both nationally and internationally, and particularly related to electronic component supply issues across our full range of touch controllers, we are pleased to announce a considerable turnaround and a return to profitability since the half year ended 31 March 2021," Zytronic said.
Second half earnings before interest, tax, depreciation and amortisation are expected to be around GBP1.3 million, with operating profit at GBP800,000. It had made a first half operating loss of GBP300,000.
Zytronic expects an annual Ebitda of GBP.1.5 million, which would be sharply higher than GBP200,000 in the previous financial year.
By Eric Cunha; ericcunha@alliancenews.com
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Zytronic (ZYT)