Zytronic : Interim Report for the first six months to 31 March 2021

ZYTRONIC PLC

INTERIM REPORT FOR THE SIX MONTHS TO 31 MARCH 2021

Pioneering the touchscreen revolution

for 21 years

Zytronic's vision is to make its unique touch sensor technology pre-eminent in markets that require medium to large sized touch interactive systems.

HIGHLIGHTS

• Group revenue of £4.8m (2020: £7.4m), impacted by the Coronavirus pandemic
• EBITDA of £0.2m (2020: £1.0m)
• Loss before tax of £0.3m (2020: profit of £0.5m)
• Basic (loss)/earnings per share of (1.2)p (2020: 2.5p)
• Positive operating cashflow of £0.4m (2020: £1.9m)
• Net cash of £7.8m (30 September 2020: £14.0m), after payment of £6.7m in respect of the return of capital

FINANCIAL OVERVIEW

Group revenue (£m)	Gross profit margin (%)
£4.8m	27.0%
17			11.3	17			43.1
18			10.6		18			39.6
19			9.5				19			34.7
			7.4
20							20			30.3
21			4.8							21			27.0
(Loss)/profit before tax (£m)	Basic (loss)/earnings per share (p)
£(0.3m)	(1.2)p
						13.8
17						2.5	17
18			2.2		18			11.7
19			1.4					19			7.4
							0.5
20							20			2.5
21					(0.3)							21					(1.2)

Interim dividend (p)

0p

173.80

18	7.60
19	7.60

1. 0
2. 0

CONTENTS

REVIEW OF THE PERIOD

Highlights	1
Chairman's statement	2

FINANCIAL STATEMENTS

Consolidated statement	3
of comprehensive income
Consolidated statement	3
of changes in equity
Consolidated statement	4
of financial position
Consolidated cashflow statement	5		REVIEW
Notes to the interim report	6
Corporate information	IBC		PERIOD THE OF

INTERIM REPORT FOR THE SIX MONTHS TO 31 MARCH 2021

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CHAIRMAN'S STATEMENT

The recent improvement in orders and sales are an encouraging sign of the prospects for the second half and for a return to profitability as more normal global trading resumes post-COVID-19.

Introduction

In the January trading update, we explained that sales continued to be badly affected by the Coronavirus pandemic, but the prior year's reorganisation and cost reduction measures were enabling us to maintain a positive EBITDA, and there were some signs of an improvement in the order intake.

We are pleased to report a continuation of the improvement in order intake and sales during the remainder of the first half to 31 March 2021, and now expect a gradual return to profitability as long as the Coronavirus pandemic continues to be controlled in our major markets of Europe, Asia and the Americas.

Trading

Revenues for the half year ended

31 March 2021 were £4.8m (2020: £7.4m),

with gross margin of 27.0% (2020: 30.3%),

EBITDA of £0.2m (2020: £1.0m) and after depreciation and amortisation the loss before tax was £0.3m (2020: profit of £0.5m).

Whilst the drop in revenues of 35% is significant when compared with the same period last year, the comparison with a pre-COVID-19 period only provides an indicator of more normal historic

trading levels. A better indicator of progress at this stage is the order intake, and from April last year we had continued to experience a consistently low order intake level. However, from January onwards we have seen an improving monthly average order intake, and it is particularly pleasing that the Gaming and Financial sectors have made a major contribution to the improvement.

Cash position

The Board decided that the £14.0m cash balances as at 30 September 2020, arising from the Company's 16-year record of unbroken profitability prior to the pandemic, and despite a 15-year unbroken dividend, should provide the opportunity for shareholders to either participate in a return of surplus cash, or to maintain their shareholdings.

Following the conclusion of the Tender Offer on 25 February 2021, the number of shares in issue reduced by 28.8% to 11,419,152 as 4,624,889 shares were purchased at

a price of 145p and a cost of £6.7m.

We continue to be in a strong financial position with cash balances of £7.8m

(30 September 2020: £14.0m) and are pleased that despite the considerable downturn we have generated £0.4m.

Outlook

Whilst we are starting from a very low base compared with our historic sales levels, the recent improvement in orders and sales are an encouraging sign of the prospects for the second half and for a return to profitability as more normal global trading resumes post-COVID-19.

Tudor Davies

Chairman

11 May 2021

2 ZYTRONIC PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

UNAUDITED RESULTS FOR THE SIX MONTHS TO 31 MARCH 2021

			Six months to	Six months to	Year to
			31 March	31 March	30 September
			2021	2020	2020
			Unaudited	Unaudited	Audited
		Notes	£'000	£'000	£'000
	Group revenue		4,784	7,378	12,680
	Cost of sales		(3,490)	(5,146)	(10,130)
	Cost of sales excluding exceptional items		(3,490)	(5,146)	(9,015)
	Exceptional items	3a	-	-	(1,115)
	Gross profit		1,294	2,232	2,550
	Distribution costs		(66)	(135)	(196)
	Administration expenses		(1,542)	(1,679)	(3,318)
	Administration expenses excluding exceptional items		(1,542)	(1,679)	(3,060)
	Exceptional items	3b	-	-	(258)
	Group trading (loss)/profit		(314)	418	(964)
	Exceptional other income	4	-	-	500
	Group operating (loss)/profit		(314)	418	(464)
	Finance revenue		-	40	41
	(Loss)/profit before tax		(314)	458	(423)
	Tax credit/(expense)	5	130	(64)	129
	(Loss)/profit for the period		(184)	394	(294)
	(Loss)/earnings per share
	Basic	6	(1.2)p	2.5p	(1.8)p
	Diluted	6	(1.2)p	2.5p	(1.8)p
All activities are from continuing operations.

STATEMENTS FINANCIAL

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

UNAUDITED RESULTS FOR THE SIX MONTHS TO 31 MARCH 2021

	Called up
	share	Share	Retained
	capital	premium	earnings	Total
	£'000	£'000	£'000	£'000
At 1 October 2020	160	8,994	13,911	23,065
Loss for the period	-	-	(184)	(184)
Repurchase and cancellation of shares	(46)	-	(6,660)	(6,706)
At 31 March 2021 (unaudited)	114	8,994	7,067	16,175

INTERIM REPORT FOR THE SIX MONTHS TO 31 MARCH 2021

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