LONDON (Alliance News) - Shares in Zytronic PLC plunged Thursday after the touch screen developer said it expects its revenue and profit to decrease in the first half and offered caution on its second half.
Zytronic shares were 24% lower in midday trading at 266.00 pence each.
The company expects to report pretax profit of GBP1.4 million for the six months ended March 31, 36% lower than the GBP2.2 million reported the year before.
Zytronic's revenue is expected 10% lower in the first half at GBP9.5 million compared to GBP10.6 million.
"The reduction in revenues and profits are due to the decline of the sales of products into the Gaming sector, which has only been partially offset by a stronger performance in other sectors. Despite there still being an encouraging pipeline of opportunities in Gaming, the pace of conversion to orders in the year to date has been much slower than the board had anticipated," the company said.
Zytronic noted that its second half us "usually stronger" than its first half, it is "cautious" on the level and timing of recovery sales in its Gaming sector, therefore, its own second half.
The company said its continues to be cash generative, with net cash of GBP12.1 million. As a result, Zytronic expects to maintain its dividend at a similar level to last year.
The company paid an interim dividend of 7.60p and a final dividend of 15.20p in financial 2018.
"Zytronic remains in a position of having several opportunities with the potential to materially improve future performance," the company added.
Zytronic (ZYT)