Zytronic Regulatory News (ZYT)

18 August 2022

Zytronic plc

("Zytronic" or the "Company")

Trading Update

Zytronic, a leading specialist manufacturer of touch sensors, provides the following trading update ahead of its 2022 fiscal year end on 30 September 2022 ("FY22").

As anticipated in the interim results statement issued on 17 May 2022, due to continued global economic disruptions, the availability and cost of both raw materials and electronic components have proven to be persistent challenges as the second half of FY22 has progressed. This has had a knock-on effect on the Group's customers and has resulted in a lower than anticipated level of order intake being observed over the second half to date.

As a result of the above and with clearer visibility at this time on revenue generation for the remainder of the fiscal year, management currently considers that reported revenues for FY22 are likely to be in the region of 5% higher than the £11.7m reported for 2021.

Although still a fluid consideration, profitability for the year is currently expected to be ahead of that reported at the pre-tax level for the year to 30 September 2021.

Whilst global and national economic uncertainties appear likely to continue beyond the year end, sales and marketing activities are resuming after a near two-year hiatus. Working capital expansion is expected to continue in parallel with this resumption of activity and in response to the current operating environment. The Group anticipates maintaining a healthy cash balance at the year-end of approximately £6.0m.

With an improving log of opportunities and the ability to commit further resources to business development and project progression activities, management remains confident in the positioning, ongoing recovery, and longer-term growth prospects for the Group.

This announcement contains inside information and is disclosed in accordance with Article 7 of the UK Market Abuse Regulation.