Zytronic PLC Trading Update (3364Y)
04 Mai 2023 - 8:00AM
UK Regulatory
TIDMZYT
RNS Number : 3364Y
Zytronic PLC
04 May 2023
Zytronic plc
("Zytronic" or the "Company", together with Zytronic Displays
Ltd "the Group")
Trading Update
Zytronic, a leading specialist manufacturer of touch sensors,
provides the following trading update ahead of the planned release
of its Interim Results on 16 May 2023.
Trading conditions to the end of April 2023 continue to be
impacted by the numerous headwinds previously reported on, most
recently on 9 February 2023 at the time of the AGM. As well as the
continuing decline in the contribution from the Group's Financial
segment, Zytronic is now experiencing unpredicted significant
turmoil in its Gaming market.
The sources of volatility in Gaming have been two-fold. First,
one customer has recognised an over-stocking position of Zytronic
curved touch sensors, supplied during the year to 30 September 2022
("FY22"), resulting in first half revenues of the current financial
year ("FY23") not being recognised at the level that management
expected. Any other associated orders for this customer are now
expected to be delayed, possibly into the start of financial year
2024 ("FY24"). Second, the position has been more significantly
exacerbated by other customers whose end market customer is Aruze
Gaming America Inc ("AGA"), which in February 2023 filed a
voluntary petition under Chapter 11 of the Bankruptcy Code in the
United States Bankruptcy Court for the State of Nevada.
This Chapter 11 filing has affected the recovery of
approximately GBP0.3m in aggregate of trade receivables from two
sources, originally due in February and March 2023, one being a
direct AGA affiliate, Aruze Philippines Manufacturing Inc. ("APMI")
and the second being a South Korean display system integrator, used
by APMI to purchase Zytronic touch products and supply them as an
integrated touch monitor solution to APMI.
Although Zytronic has been closely monitoring the situation with
weekly updates from APMI, the Board believes it should now take a
prudent and conservative position and recognise these amounts as
doubtful debts, as well as fully writing down goods manufactured
and in progress for existing purchase orders that were due for
delivery to these parties, being GBP0.2m of stock value. The Group
is currently seeking to recover all of these amounts.
Zytronic had until recently expected further order placements
for products for AGA as an end customer over the second half
period, for delivery before the year end, from two of its display
integrator customers in South Korea. Management now considers that
these orders will not materialise. Overall, the Zytronic Board does
not anticipate that Gaming segment revenues will recover in terms
of performance before the end of the current financial year.
The above factors have therefore not only had a significant
impact on management's expectations for the first half performance,
but also the predicted improvement that management had expected
would occur in the second half.
As a result, Zytronic now expects to report first half FY23
revenue of approximately GBP4.7m, and top line performance for the
year as a whole of approximately GBP8.0m - GBP8.8m.
The Company's balance sheet remains strong with net cash as at
30 April 2023 of GBP5.4m (30 September 2022: GBP6.4m).
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018).
Enquiries:
Zytronic plc
Mark Cambridge, Chief Executive Officer
Claire Smith, Group Finance Director 0191 414 5511
Singer Capital Markets
Nominated Adviser and Broker
Aubrey Powell, Alex Bond, Alex Emslie 020 7496 3000
About Zytronic
Zytronic is a world-renowned developer and manufacturer of a
unique range of internationally award-winning, optically
transparent, interactive touch sensor overlay products for use with
electronic displays in industrial, self-service and public access
equipment.
Zytronic's products employ a sensing solution that is readily
configurable and embedded in a laminate core that offers
significant durability, environmental stability and optical
enhancement benefits to meet systems-specific design
requirements.
Zytronic has continually developed process and technological
know-how and IP since the late 1990s around two sensing
methodologies: the first being single touch self-capacitive, which
Zytronic markets as PCT(TM) ("Projected Capacitive Technology"),
and the second being multi-touch, multi-user mutual-capacitive
which Zytronic markets as MPCT(TM) ("Mutual Projected Capacitive
Technology"), in which Zytronic holds 12 internationally granted
patents.
Zytronic operates from a single site near Newcastle-upon-Tyne in
the United Kingdom, providing its manufactured products globally
through a number of sales channel partners. Zytronic is relatively
unique in the touch eco-system as it offers a complete one-stop
solution including the processing internally of the form and factor
of the glass and film substrates, the assembly of the associated
touch overlay products in environmentally controlled cleanrooms to
customers' specific requirements, and the development of the
bespoke firmware, software and electronic hardware which links the
manufactured touch interactive overlays to a customer's integrated
system and product.
For more information about the Group's technologies and
products, please see www.zytronic.co.uk and for information about
the Group, please see www.zytronicplc.com .
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END
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