Zytronic Regulatory News (ZYT)

13 Dec 2006 07:01

Zytronic PLC13 December 2006 For Immediate Release 13 December 2006 ZYTRONIC PLC Preliminary Results for the year ended 30 September 2006 Zytronic Plc, a leading specialist manufacturer of touch sensors and opticalfilters for electronic displays, announces its preliminary results for the yearended 30 September 2006. Highlights • Turnover increased 16% to £12.3m (2005: £10.6m); • Profit before tax increased by 33% to £1.31m (2005: £0.98m); • Earnings per share increased by 70% to 8.0p (2005: 4.7p); • Final dividend proposed of 2.0p per share to give total dividend for the year of 3.0p per share (2005: 2.0p), an increase of 50%; • Strong growth of 33% in orders received partly resulting from the expansion and improved effectiveness of the sales network; • New ZYPOS(R) product specified for a wide variety of applications including fast food retailing, ticketing, petrol pumps, parking meters and taxi cabs; and • Capital investment programme commenced to convert properties acquired in December 2005 into new ZYPOS(R) production facility. On outlook, Chairman John Kennair said:"The strength of the touch sensor market, the increase in the level of newbusiness written in 2006 and, more importantly, the very successful introductionof ZYPOS(R) touch sensors into the marketplace, give the Directors continuedconfidence in the Group's operations going forward." 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 oftouch sensor products employing projected capacitive technology (PCTTM) whichenables the pointing device, a finger, to sense through an anti-vandal screen infront of the display. This system offers significant benefits to electronicdisplay manufacturers. Operating from modern factories near Newcastle-upon-Tyne in England, Zytronicassembles touch sensor and filters, utilising special glass and plasticmaterials, in environmentally controlled clean rooms. Chairman's Statement -------------------- With the continuing strong growth in sales, the financial results to 30September 2006 demonstrate the ongoing improvement in the performance of thebusiness. Results Turnover for the year under review increased by 16% to £12.3m (2005 £10.6m)resulting in a 33% increase in pre-tax profits to £1.31m (2005 £0.98m). Growthin basic earnings per share of 70% to 8.0p (2005 4.7p) has been helped by areduced tax charge. Trading Growth in sales of 16% includes £310,000 of sales of our new ZYPOS(R) touchsensor product. The balance of sales growth in the year has been evenly spreadbetween the Group's traditional products and ZYTOUCH(R) touch sensors. The expansion of the sales network in Europe and the Far East and, moreimportantly, the effectiveness of the network established in the United Stateslast year, has led to a strong growth in new orders received of 33%, giving theGroup a stronger order book as we move into the new financial year. The new ZYPOS(R) product has played an important part in this growth and has nowbeen specified into a number of high profile projects in the United States andthe Far East, particularly in the fields of fast food retailing, ticketing andpetrol pumps, and through to parking meters and taxi cabs. This growth in new orders received, together with the diversity of applicationsfor which these products may be used, provides an exciting future for the Group. Investment In the year ended 30 September 2006 the total investment in fixed assets was£1.926m and working capital increased by £526,000 as a result of the growth insales. These have been funded from the Group's cash resources and by way of a£750,000 medium term loan. Cash balances at the year end were £0.5m and net debtwas £0.4m. With the strong and growing demand for ZYPOS(R) touch sensors, the Directorshave commenced the capital investment programme to convert the propertiesacquired in December 2005 into a new ZYPOS(R) production facility. Approximately£1.5m will be invested in new clean rooms and other plant and equipment. Theexisting production facilities will be adequate to meet demand until the newfactory comes on stream in the Summer of 2007. It is anticipated that these newfacilities will improve production capacity in ZYPOS(R) touch sensors which isexpected to increase profitability in the 2008 financial year. Dividend The Directors recommend a final dividend of 2.0p per share payable on 16 March2007 to shareholders on the Register of Members on 2 March 2007 which, followinga dividend of 1.0p per share paid in June 2006, will bring the total dividendfor the year to 3.0p per share (2005 2.0p per share). Outlook The strength of the touch sensor market, the increase in the level of newbusiness written in 2006 and, more importantly, the very successful introductionof ZYPOS(R) touch sensors into the marketplace, give the Directors continuedconfidence in the Group's operations going forward. JOHN M. KENNAIR M.B.E.Chairman 13 December 2006 Group profit and loss accountfor the year ended 30 September 2006 2006 2005 Unaudited Audited Notes £'000 £'000--------------------------------------------------------------------------------Group turnover 12,301 10,590Cost of sales 8,449 7,312--------------------------------------------------------------------------------Gross profit 3,852 3,278--------------------------------------------------------------------------------Distribution costs 170 140Administration expenses 2,317 2,137-------------------------------------------------------------------------------- 2,487 2,277--------------------------------------------------------------------------------Group operating profit 1,365 1,001Interest payable (59) (33)Interest receivable 6 16--------------------------------------------------------------------------------Profit on ordinary activities before taxation 1,312 984Tax charge on profit on ordinary activities 3 (158) (310)--------------------------------------------------------------------------------Profit on ordinary activities after taxation 1,154 674-------------------------------------------------------------------------------- Earnings per shareEarnings per share - basic 5 8.0p 4.7pEarnings per share - diluted 5 7.9p 4.6p-------------------------------------------------------------------------------- There were no recognised gains or losses as defined in Financial ReportingStandard 3 other than those stated above. In addition, the effect ofimplementing Financial Reporting Standard 21 - events after the balance sheetdate - is that an amount of £215,000 for the year to 30 September 2005,previously included within creditors, has been added back to the profit and lossaccount reserve. Group balance sheetat 30 September 2006 2006 2005 Unaudited Audited (restated) £'000 £'000--------------------------------------------------------------------------------Fixed assetsIntangible assets 2,026 2,133Tangible assets 3,831 2,494-------------------------------------------------------------------------------- 5,857 4,627--------------------------------------------------------------------------------Current assetsStocks 1,706 1,201Debtors: Amounts falling due within one year 2,852 2,641Cash at bank and in hand 493 810-------------------------------------------------------------------------------- 5,051 4,652Creditors: amounts falling due within one year 1,837 1,878--------------------------------------------------------------------------------Net current assets 3,214 2,774-------------------------------------------------------------------------------- Total assets less current liabilities 9,071 7,401Creditors: amounts falling due after more than one year 658 161Provisions for liabilities and chargesDeferred tax 380 239-------------------------------------------------------------------------------- 8,033 7,001--------------------------------------------------------------------------------Capital and reservesCalled up share capital 146 143Share premium 6,450 6,215Profit and loss account 1,437 643--------------------------------------------------------------------------------Shareholders' funds 8,033 7,001-------------------------------------------------------------------------------- Group statement of cashflowsfor the year ended 30 September 2006 2006 2005 Unaudited Audited Notes £'000 £'000--------------------------------------------------------------------------------Net cash inflow from operating activities 6a 1,529 939 Return on investments and servicing of finance--------------------------------------------------------------------------------Interest received 6 16Interest paid (48) (12)Interest element of finance lease rental payments (11) (21)--------------------------------------------------------------------------------Net outflow from returns on investments and servicing of finance (53) (17) TaxationCorporation tax paid (230) (28) Capital expenditure and financial investment--------------------------------------------------------------------------------Payments to acquire intangible fixed assets (159) (209)Payments to acquire tangible fixed assets (1,767) (830)Receipt from sale of assets 6 75--------------------------------------------------------------------------------Net outflow from capital expenditure and financial investment (1,920) (964) Equity dividends paid (360) (71)-------------------------------------------------------------------------------- Net cash outflow before financing (1,034) (141) Financing--------------------------------------------------------------------------------Receipt from new bank loan 750 -Issue of ordinary share capital 238 3Repayment of bank loans (122) (83)Repayments of capital element of finance lease (149) (140)--------------------------------------------------------------------------------Net inflow/(outflow) from financing 717 (220)--------------------------------------------------------------------------------Decrease in cash (317) (361)-------------------------------------------------------------------------------- Reconciliation of net cashflow to movement in net (debt) /fundsDecrease in cash (317) (361)Receipt from new bank loan (750) -Repayment of bank loans 122 83Repayments of capital element of finance lease 149 140--------------------------------------------------------------------------------Movement in net (debt)/funds (796) (138)Net funds at beginning of year 416 554--------------------------------------------------------------------------------Net (debt)/funds at end of year 6b (380) 416-------------------------------------------------------------------------------- Notes 1. Basis of preparation The preliminary results have been prepared under the historical cost conventionand in accordance with applicable accounting standards. The preliminary resultshave been prepared on the basis of the accounting policies set out in theGroup's statutory accounts for the year ended 30 September 2005 with theexception of accounting for proposed dividends. In accordance with FinancialReporting Standard 21 dividends are now included in the profit and loss accountreserve in the accounting period in which the dividend is approved for payment.The accounts for the year ended 30 September 2005 have been restated, via aprior year adjustment, to reflect this change in accounting policy. This hasresulted in the removal from creditors of proposed dividends of £215,000 as at30 September 2005 and an increase of £215,000 in the profit and loss accountreserve at the same date. 2. Basis of consolidation The Group results consolidate the accounts of Zytronic plc and all of itssubsidiary undertakings drawn up to 30 September 2006. 3. Tax charge on profit on ordinary activities 2006 2005 Unaudited Audited £'000 £'000--------------------------------------------------------------------------------Current tax:UK corporation tax (27) (251)Corporation tax over-provided in prior years 10 8--------------------------------------------------------------------------------Total current tax (17) (243)--------------------------------------------------------------------------------Deferred tax:Origination and reversal of timing differences (141) (67)--------------------------------------------------------------------------------Group deferred tax (141) (67)--------------------------------------------------------------------------------Tax charge on profit on ordinary activities (158) (310)-------------------------------------------------------------------------------- Factors affecting current tax charge:--------------------------------------------------------------------------------Profit on ordinary activities multiplied by standard rate of UK corporation tax of 30% (2005: 30%) (394) (295)Expenses not deductible for tax purposes (includes amortisation of goodwill and licences) (42) (86)Deferred revenue expenses and tax credits 110 47Accelerated capital allowances 81 67Effects of small company/marginal rates of UK corporation tax 16 16"Gain" on exercise of share options allowable for taxation purposes but not reflected in the profit and loss account 202 -Adjustments in respect of prior years 10 8--------------------------------------------------------------------------------Total current tax (17) (243)-------------------------------------------------------------------------------- 4. Dividends The Directors propose the payment of a final dividend of 2.0p per share (2005:1.5p per share), payable on 16 March 2007 to shareholders on the Register ofMembers on 2 March 2007. 5. Earnings per share Basic earnings per share (EPS) is calculated by dividing the profit attributableto ordinary equity holders of the Company by the weighted average number ofordinary shares in issue during the year. All activities are continuingoperations and therefore there is no difference between EPS arising from totaloperations and EPS arising from continuing operations. Weighted Weighted average Earnings average Earnings number of per number of per Earnings shares share Earnings Shares Share 30.9.2006 30.9.2006 30.9.2006 30.9.2005 30.9.2005 30.9.2005 £'000 pence £'000 thousands pence Unaudited thousands Unaudited Audited Audited Audited Unaudited-------------------------------------------------------------------------------------------------Profit onordinaryactivitiesaftertaxationattributableto ordinary equity holders 1,154 14,414 8.0 674 14,292 4.7------------------------------------------------------------------------------------------------- Basic EPS 1,154 14,414 8.0 674 14,292 4.7------------------------------------------------------------------------------------------------- The weighted average number of shares for diluted EPS is calculated by includingthe weighted average number of shares under option. Weighted Weighted average Earnings average Earnings number of per number of per Earnings shares Share Earnings share shares 30.9.2006 30.9.2006 30.9.2006 30.9.2006 30.9.2005 30.9.2005 £'000 thousands pence £'000 thousands pence Unaudited Unaudited Unaudited Audited Audited Audited-------------------------------------------------------------------------------------------------Profit onordinaryactivitiesaftertaxationattributableto ordinary equityholders 1,154 14,414 8.0 674 14,292 4.7 Weightedaveragenumberof shares under option - 220 (0.1) - 302 (0.1)-------------------------------------------------------------------------------------------------Diluted EPS 1,154 14,634 7.9 674 14,594 4.6------------------------------------------------------------------------------------------------- 6. Notes to the group statement of cashflows (a) Reconciliation of operating profit to net cash inflow from operatingactivities: 2006 2005 Unaudited Audited £'000 £'000--------------------------------------------------------------------------------Operating profit 1,365 1,001Depreciation 429 427Amortisation 266 246Profit on sale of fixed assets (5) ---------------------------------------------------------------------------------Gross cash inflows 2,055 1,674Increase in stocks (505) (117)Increase in debtors (216) (767)Increase in creditors 195 149--------------------------------------------------------------------------------Net cash inflow from operating activities 1,529 939-------------------------------------------------------------------------------- (b) Analysis of net funds/(debt): 2005 Cashflows 2006 Audited Unaudited Unaudited £'000 £'000 £'000--------------------------------------------------------------------------------Cash at bank and in hand 810 (317) 493Bank loan (167) 84 (83)Bank loan - (712) (712)Finance lease (227) 149 (78)--------------------------------------------------------------------------------Net funds/(debt) 416 (796) (380)-------------------------------------------------------------------------------- 7. Report and accounts The above unaudited results do not represent statutory accounts. The auditreport is yet to be signed. The audited accounts will be mailed to shareholdersshortly and will be available from the registered office at Patterson Street,Blaydon, Tyne & Wear, NE21 5SG. The results for the year ended 30 September 2005 have been extracted from the2005 accounts of Zytronic plc. The 2005 accounts, which have been filed with theRegistrar of Companies, received an unqualified audit report and did not containa statement under Section 237(2) or (3) of the Companies Act 1985. 8. AGM date It is intended that the AGM will take place at the Company's offices atPatterson Street, Blaydon on Tyne, Tyne & Wear, NE21 5SG on Tuesday 27 February2007 at 2.00pm. Notice of the AGM will be sent to shareholders with thefinancial statements. This information is provided by RNS The company news service from the London Stock Exchange