Trading Update

12 Oct 2006 07:00

Zytronic PLC12 October 2006 For Immediate Release 12 October 2006 Zytronic Plc Trading Update Zytronic Plc wishes to update shareholders on trading ahead of the Company'spreliminary results announcement expected to be reported on 13 December 2006. The second half has seen an increase of 21% in turnover over the correspondingperiod last year and 17% over the first half reflecting the significant growthinternationally in our order book as reported at the time of the interimresults. The overall increase in sales year on year of 16% was marginally behind ourexpectations. However the substantial sales growth coupled with an improvementin gross margins have resulted in a significant growth in profitability comparedwith last year. Although operating profits will be below expected levels thegrowth in profitability combined with a reduced corporation tax charge, shouldresult in Earnings per Share for the year in line with our Broker'sexpectations. The order book has continued to improve in the second half and the uptake of ournew product ZYPOS(R) by the marketplace is very encouraging for next year. Withstrong demand for ZYPOS(R), the investment in new facilities in the adjoiningproperties is progressing in the current quarter as indicated previously. Weexpect the new facility to come on stream next summer to meet increasing demand. The Board looks forward to updating shareholders further at the preliminaryresults. Enquiries: Zytronic Plc 0191 414 5511John Kennair, Chief ExecutiveDenis Mullan, Finance Director Buchanan Communications 020 7466 5000Richard Darby, Isabel Podda This information is provided by RNS The company news service from the London Stock Exchange