Zytronic Regulatory News (ZYT)

26 May 2005 07:00

Zytronic PLC26 May 2005 For Immediate Release 26 May 2005 ZYTRONIC PLC Interim Results for the Six Months to 31 March 2005 Zytronic Plc, a leading specialist manufacturer of touchscreens and opticalfilters for electronic displays, announces its interim results for the sixmonths to 31 March 2005. Highlights • Turnover increased 33% to £5.11m (2004: £3.85m); • Profit before tax increased to £437,000 (2004: loss £71,000); • Basic earnings per share increased to 2.1p (2004: loss 0.3p); • Interim dividend declared of 0.5p per share (2004: Nil); • Growth in all areas of the business, in particular ZYTOUCH(R) touchscreens where sales increased by more than 40%; • ZYTOUCH(R) sales are providing new opportunities for the sale of optical filter products, which increased by more than 25%; • ZYPOS(R) successfully launched in Shanghai and Boston, with new enquiries being generated in both the gaming and point-of-sale markets; • On outlook, Chairman John Kennair said: "The Group's solid return to profitability, the resumption of dividend payments,the continued growth in optical filters, strong growth in sales of ZYTOUCH(R),and the introduction of ZYPOS(R) into the product range, provide a healthy andexciting future for the Group." Enquiries: Zytronic Plc (Today: 020 7466 5000; thereafter 0191 414 5511)John Kennair, Chief ExecutiveDenis Mullan, Finance Director Buchanan Communications 020 7466 5000Richard Darby, Isabel Podda Notes to Editors Zytronic is an industry leader in the development and manufacture of customisedoptical filters to enhance electronic display performance. It is also aninnovator in the production of specialised and transparent laminates for nichemarkets. Based on this lamination expertise, Zytronic has developed a unique range oftouchscreen products employing projected capacitive technology which enables thepointing device to sense through an anti-vandal screen in front of the display.This system offers significant benefits to electronic display manufacturers. Operating from two modern factories near Newcastle-upon-Tyne in England,Zytronic assembles touchscreens and filters, utilising special glass and plasticmaterials, in environmentally controlled clean rooms. Chairman's Statement In the six months to 31 March 2005, growth in all aspects of the Group'sbusiness has led to a significant improvement in trading results over thecorresponding period last year. Results Sales at £5.11m (2004: £3.85m) grew by 33% producing pre-tax profits of £437,000(2004: loss £71,000). Trading Sales in the Group's two primary product groupings, optical filters and displays("optical filters") and touchscreens, have shown substantial improvement.Whilst sales of the Group's optical filters grew by more than 25%, strong growthin ZYTOUCH(R) touchscreens pushed sales ahead by more than 40%. We continue toopen new accounts for the sale of ZYTOUCH(R), which in turn provide newopportunities for the sale of the Group's optical filter products. The sales network in North America has now been put in place. This significantlystrengthened presence, combined with our continuing successful exhibiting atmajor US trade shows over the last three years, leads the Directors toanticipate a steady increase in activity from this important economic region. ZYPOS(R) Following the installation of the pilot production plant in November 2004, theresolution of initial teething problems and successful completion of theenvironmental testing in January 2005, the product launches took place inShanghai in March at the "ElectronicaChina 2005" Trade Show and this month inBoston at the "Society for Information Display" Trade Show. The product hasbeen well received in both regions and, as a consequence, a number of newenquiries have been generated in both the gaming and point-of-sale markets,prototype samples for which are currently being delivered. ZYPOS(R) is expectedto make a significant contribution to growth in future years. Dividend The Directors have declared an interim dividend of 0.5p per share (2004: Nil)payable on 29 June 2005 to shareholders on the Register at 1 June 2005. Outlook The Group's solid return to profitability, the resumption of dividend payments,the continued growth in optical filters, strong growth in sales of ZYTOUCH(R),and the introduction of ZYPOS(R) into the product range, provide a healthy andexciting future for the Group. J M Kennair MBEChairman26 May 2005 Group profit and loss accountunaudited results for the six months to 31 March 2005 Six months to Six months to Year to 31 March 31 March 30 September 2005 2004 2004 Unaudited Unaudited Audited Notes £'000 £'000 £'000Turnover 5,112 3,853 8,756Cost of sales 3,465 2,783 6,187Gross profit 1,647 1,070 2,569Distribution costs 62 54 121Administrative expenses 1,141 1,078 2,078 1,203 1,132 2,199Operating profit/(loss) 444 (62) 370Interest payable (18) (13) (26)Interest receivable 11 4 6Profit/(loss) on ordinary activities before 437 (71) 350taxationTax (charge on profit)/credit on loss on ordinary 3 (140) 28 (114)activitiesProfit/(loss) on ordinary activities after taxation 297 (43) 236Ordinary dividend on equity shares 4 (71) - -Retained profit/(loss) for the period 226 (43) 236Earnings/(loss) per share - basic 5 2.1p (0.3)p 1.7p - diluted 5 2.0p (0.3)p 1.6p There were no recognised gains or losses as defined in Financial ReportingStandard No. 3 other than those stated above. Group balance sheetunaudited results for the six months to 31 March 2005 31 March 31 March 30 September 2005 2004 2004 Unaudited Unaudited Audited £'000 £'000 £'000Fixed assetsIntangible assets 2,122 2,194 2,172Tangible assets 2,420 2,158 2,155 4,542 4,352 4,327Current assetsShort term property investment - 75 75Stocks 1,188 1,352 1,084Debtors: amounts falling due within one year 2,098 1,725 1,873Cash at bank and in hand 919 308 1,171 4,205 3,460 4,203Creditors: amounts falling due within one year 1,653 1,308 1,569Net current assets 2,552 2,152 2,634Total assets less current liabilities 7,094 6,504 6,961Creditors: amounts falling due after more than one year 278 298 394Provisions for liabilities and charges 195 90 172 6,621 6,116 6,395 Capital and reservesCalled up share capital 143 143 143Share premium 6,212 6,212 6,212Profit and loss account 266 (239) 40Equity shareholders' funds 6,621 6,116 6,395 Group statement of cash flowsunaudited results for the six months to 31 March 2005 Six months Six Year to months to to 31 March 31 March 30 September 2005 2004 2004 Unaudited Unaudited Audited Notes £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities 6a 319 (425) 520 Returns on investments and servicing of financeInterest received 11 4 6Interest paid (6) - -Interest element of finance lease rental payments (12) (13) (26)Net outflow from returns on investments and servicing of (7) (9) (20)finance TaxationCorporation tax repayment 11 - - Capital expenditure and financial investmentPayments to acquire intangible fixed assets (53) (20) (164)Payments to acquire tangible fixed assets (486) (127) (237)Receipt from sale of short term property investment 75 - -Net outflow from capital expenditure and financial (464) (147) (401)investment Net cash (outflow)/inflow before financing (141) (581) 99 FinancingReceipt from new bank loan - - 250Repayments of bank loan (42) - -Repayments of capital element of finance lease (69) (65) (132)Net (outflow)/inflow from financing (111) (65) 118(Decrease)/increase in cash (252) (646) 217 Reconciliation of net cash flow to movement in net (debt)/funds(Decrease)/increase in cash (252) (646) 217Receipt from new bank loan - - (250)Repayments of bank loan 42 - -Repayments of capital element of finance lease 69 65 132Movement in net funds (141) (581) 99Net funds at beginning of period 554 455 455Net funds/(debt) at end of period 6b 413 (126) 554 NOTES unaudited results for the six months to 31 March 2005 1. Basis of preparation The financial information in this interim statement is prepared under thehistorical cost convention and in accordance with applicable accountingstandards. It does not constitute statutory accounts as defined in Section 240of the Companies Act 1985. The financial information for the full preceding yearis based on the statutory accounts for the year to 30 September 2004. Thoseaccounts, upon which the auditors issued an unqualified opinion, have beendelivered to the Registrar of Companies. The interim financial information has been prepared on the basis of theaccounting policies set out in the Group's statutory accounts for the year ended30 September 2004. The taxation (charge)/credit is calculated by applying theDirectors' best estimate of the annual tax rate to the profit/(loss) for theperiod. Other expenses are accrued in accordance with the same principles usedin the preparation of the annual accounts. 2. Basis of consolidation The Group results consolidate the accounts of Zytronic Plc and all itssubsidiary undertakings drawn up to 31 March 2005. 3. Tax charge on profit on ordinary activities The estimated tax rate for the year of 32% has been applied to the half year'sprofit before tax, in accordance with ASB's statement on interim reports. 4. Dividends The Directors have declared an interim dividend of 0.5p per share (2004: Nil),payable on 29 June 2005 to shareholders on the Register at 1 June 2005. 5. Earnings/(loss) per share The calculations of earnings/(loss) per share are based on a profit aftertaxation of £297,000 (2004: loss £43,000) and a basic and diluted weightedaverage of 14,291,539 and 14,528,351 shares respectively in issue (2004: basicand diluted 14,291,539). The calculations of earnings per share for the fullyear to 30 September 2004 are based on a profit after taxation of £236,000 and abasic and diluted weighted average of 14,291,539 and 14,338,685 shares in issuerespectively. 6. Notes to the Group statement of cash flows a) Reconciliation of operating profit/(loss) to net cash inflow/(outflow) fromoperating activities: Six months to Six months to Year to 31 March 31 March 30 September 2005 2004 2004 Unaudited Unaudited Audited £'000 £'000 £'000 Operating profit/(loss) 444 (62) 370Depreciation 204 241 402Amortisation 124 110 229Gross cash inflows 772 289 1,001(Increase) in debtors (225) (563) (747)(Increase)/decrease in stocks (104) (266) 2(Decrease)/increase in creditors (124) 115 264Net cash inflow/(outflow) from operating activities 319 (425) 520 b) Analysis of net funds/(debt): 31 March 31 March 30 September 2005 2004 2004 Unaudited Unaudited Audited £'000 £'000 £'000 Cash at bank and in hand 919 308 1,171Bank loan (208) - (250)Finance lease (298) (434) (367) 413 (126) 554 This information is provided by RNS The company news service from the London Stock Exchange