Zytronic Regulatory News (ZYT)

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Prior to publication, certain information contained within this Announcement

was deemed to constitute inside information for the purposes of Article 7 of MAR.

Zytronic plc

("Zytronic" or the "Group")

Trading Update

The Board of Zytronic makes the following pre-close statement ahead of the release of its preliminary results for the financial year ended 30 September 2018, which is expected to occur in December 2018.

Trading in the second half of the year showed a 10% improvement in revenues over the first half, totalling £11.7m, resulting in total revenues for the year of £22.3m which is in-line with market expectations.

However, the increase in business required the introduction of some new designs and production techniques which have resulted in lower than expected margins, particularly in the final two months of the financial year. In addition, a spurious patent claim was settled for £72k, plus the Group's own cost of £240k. Lower margins coupled with litigation costs have resulted in full year profits before tax of approximately £4.2m or £4.5m before the litigation costs, being behind market expectations.

The Group continues to be cash generative and is in a robust financial position with cash of £14.6m as at 30 September 2018 (30 September 2017: £14.1m). Furthermore, it continues as is normal, to address the new product designs and production techniques to bring through improvements to the margins and has several opportunities in its pipeline with the potential to improve future performance materially.

Enquiries:

Zytronic plc 0191 414 5511

Mark Cambridge, Chief Executive

Claire Smith, Group Finance Director

N+1 Singer 020 7496 3000

Aubrey Powell/ Alex Bond, Corporate Finance

Rachel Hayes, Corporate Broking

Notes to Editors

Zytronic is the developer and manufacturer of a unique range of internationally award-winning and patented touch sensor products, operating from three modern factories totalling 80,000ft2 near Newcastle-upon-Tyne in the United Kingdom.

Zytronic touch products employ an embedded sensing solution and are readily configurable to enable multi-user and multi-touch touch sensing sizes from five inches to ultra-large 85", making them an ideal solution for system designers' specific requirements, offering significant durability, environmental stability and optical enhancement benefits to touch interactivity for industrial, self-service and public access equipment.