LONDON (Alliance News) - Zytronic PLC saw its shares rise early Wednesday after it said it expects its pretax profit in the current financial year to be significantly above market expectations.
In a statement, the maker of touch technology products said the increased sales of larger touch products and the significant improvement in margins that it had reported when it released its interim results in May had continued into the second half of the year. It said revenue is currently about 8% above the corresponding period of its last financial year.
The company's financial year ends on September 30 and it expects to publish its results in December.
Arden Partners is currently forecasting that Zytronic will post pretax profit of GBP2.8 million in the current year, while N+1 Singer is forecasting GBP2.7 million, according to data on Morningstar.
The company's pretax profit fell by over half to GBP1.9 million in its previous financial year as revenue dropped to GBP17.3 million, from GBP20.4 million, and margins dropped. Its previous year had been bolstered by large one-off orders and projects. However, margins started picking up and its order book started increasing in the second half of last year.
Zytronic shares were up 10.3% at 245.50 pence early Wednesday, one of the biggest rises on the AIM All-Share index.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Zytronic (ZYT)