Zytronic witnesses 'considerable turnaround' since interim results

(Sharecast News) - Touch technology products manufacturer Zytronic said on Friday that it had seen a "considerable turnaround" and a return to profitability since the halfway point of the trading year.
While Zytronic stated it continued to see Covid-19 related effects, both nationally and internationally, and particularly related to electronic component supply issues, the firm also stated there had been an improvement in sales and gross margins, and strong cash generation since 31 March.

The AIM-listed group said the improvement in trading was "significant", with sales increasing 44% to £6.9m from £4.8m and gross margins increasing six percentage points to 33.2%.

Second half underlying earnings were now expected to be around £1.3m and operating profit roughly £800,000, negating the group's first-half operating loss of £300,000 and leading to expect full-year EBITDA of around £1.5m and an operating profit of approximately £500,000.

Zytronic added that the improvement in trading shad also contributed positively to its net cash position, which increased by £1.4m since the end of March to £9.2m on 30 September.

As of 0935 BST, Zytronic shares had shot up 13.70% to 187.60p.