(Alliance News) - Zytronic PLC on Thursday said its performance in the first four months of financial 2023 has been hurt by supply chain issues, despite positive movement in its opportunities pipeline.
Zytronic shares were down 20%, trading at 120.00 pence per share on Thursday morning in London.
The Tyne & Wear, England-based touch sensors manufacturer said trading conditions remained relatively unchanged from the end of financial 2022, which saw global supply chain problems compounded by the average monthly order intake dropping compared with a year prior.
The company added that it has been forced to purchase components on the grey market at a higher cost, and to cannibalise existing finished stock, due to a shortage in electronic components.
Zytronic said its opportunities pipeline has increased to 505 "open" opportunities from 484 at September 30, the year-end of financial 2022, with an increase in the customer projected lifetime value to GBP61 million, up 3.4% from GBP59 million.
The company said it expects a stronger second-half revenue weighting than it experienced in financial 2022, due to the combination of a robust pipeline and continued supply chain issues.
Zytronic noted that net cash was GBP6.8 million a January 31, an increase of 6.3% from GBP6.4 million at September 30.
Acting Executive Chair Mark Cambridge is set to step down after Thursday's annual general meeting, the company said, with Cambridge resuming his former role as chief executive officer, in order to focus on operational requirements. Non-Executive Director Mark Butcher has been appointed as interim non-executive chair.
The firm also noted that its largest individual shareholder John Walters - who owns 512,000 shares in the company, a 5.0% stake - will temporarily join the board from Friday as a non-executive director.
By Harvey Dorset, Alliance News reporter
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Zytronic (ZYT)