REG - Zytronic PLC - AGM Trading Update and Planned Board Changes

ZytronicAnnouncement

09/02/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230209:nRSI3783Pa&default-theme=true

RNS Number : 3783P  Zytronic PLC  09 February 2023

Zytronic plc
("Zytronic" or the "Company", and

together with its subsidiary, the "Group")

AGM Trading Update and Planned Board Changes

 

Zytronic, a leading specialist manufacturer of touch sensors, provides the
following trading update and commentary regarding planned Board changes, ahead
of the AGM being held at the Company's offices at 1.00 p.m. today.

 

AGM Trading Statement

Trading conditions for the first two months of FY23 were commented upon in the
Company's FY22 Final Results announcement released 13 December 2022 ("FY22
Final Results") and remained relatively unchanged at the end of January
2023.  As described more fully below and consistent with the trend outlined
in the Final Results release, business development and the opportunities
pipeline continue to progress positively.

 

Performance during the first four months of the current financial year has
continued to be affected by the ongoing global supply chain considerations as
described in the FY22 Final Results announcement and the average monthly order
intake is also at levels similar to those of the second half of FY22.  As the
shortage of certain electronic component items persists the Group continues,
by necessity, to purchase certain items either on the grey market (at higher
pricing) or to cannibalise existing finished stock, due to the lack of
availability and levels of allocations from original manufacturers.

 

More pleasingly the opportunities pipeline, which was covered in some depth in
the FY22 Final Results announcement, has increased to 505 'Open'
opportunities, with an increase in the customer projected lifetime value
("CPLV") to £61m (30 September 2022: 484 Open opportunities and CPLV of
£59m).  This continues the net positive trends in these two metrics observed
since July 2021 which, while remaining subject to monthly variability, are
further evidence of the improving medium-term prospects for the business.

 

With regards to wages and salaries, the Group's operational management has now
entered the period of wage negotiations with employee representatives for a 1
April 2023 effective date. The Company is mindful of general cost of living
issues and of the significant changes to, and implications from, the proposed
increases to the National Minimum and National Living Wage rates applicable
from that date.  These, alongside inflation considerations, have the
potential to negatively impact costs over the second half of the fiscal year
ahead of previous budgeting.

 

The Company's balance sheet remains strong with net cash of £6.8m as at 31
January 2023 (30 September 2022: £6.4m).

 

Outlook

As a result of the combined effects of the continuing supply chain issues and
the increasingly robust opportunities pipeline, the Board anticipates a
stronger second-half weighting of revenue than that observed for the last
financial year. A further update will be provided at the time of the Group's
interim results (for the six months ending 31 March 2023), which are expected
to be released in May 2023.

 

 

Planned Board Changes

As previously noted, the Board is progressing the appointment of further new
Independent Non-executive Directors ("INEDs") in order to improve the balance
of Board independence in recognition of QCA Corporate Governance Code (the
"QCA Code") guidelines, after the departure of the previous non-Executive
Chair at the start of the FY23 fiscal year due to ill health. The Board
continues to review strategies for future growth and improved shareholder
value and expects to appoint recruitment agents to support its INED search in
support of these goals once these are further defined and the optimal skill
sets to support their delivery are identified.

 

Notwithstanding this on-going process, the Board has agreed that it is in the
best interests of the Group that Mark Cambridge is able to solely concentrate
on its operational requirements. To facilitate this, he will step down as
Acting Executive Chair at the conclusion of the AGM and resume his prior role
of CEO, with Mark Butcher (INED) being appointed to the position of Interim
Non-executive Chair. The Company will update its Corporate Governance
Statement on its website shortly, to reflect this change, while Mark Butcher's
appointment as Chair means he would not ordinarily be expected to chair the
audit and remuneration committees, this is a current practical necessity and
will be resolved on the appointment of a further suitable INED or INEDs.

 

In addition to this, the Board has agreed to the recent request of John
Walter, the largest individual shareholder in the Company, to temporarily join
the Board from 10 February 2023, as a Non-executive Director. John's
appointment will be for a fixed-term period, concluding no later than the day
prior to the posting of the notice to shareholders of the 2024 AGM.  John is
a former investment banker and wealth manager with over 25 years' investment
experience in the public markets. Further regulatory disclosures in relation
to the appointment of John Walter will be made in the Results of AGM
announcement to be issued later today.

 

Although the Board recognises that John is not independent by virtue of his
shareholding interest, it considers that his temporary appointment will afford
it with a better balance of Non-executive impartiality in the interim and
provides reasonable shareholder input into the process of seeking and
concluding the appointments of new INEDs.

 

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                             0191 414 5511

 Mark Cambridge, Acting Executive Chair

 Claire Smith, Group Finance Director

 Singer Capital Markets                   020 7496 3000

 (Nominated Adviser and Broker)

 Aubrey Powell, Alex Bond, Alex Emslie

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 system designers specific
 requirements.

 Zytronic has continually developed process and technological know-how and IP
 since the late 1990's around two sensing methodologies; the first being single
 touch self-capacitive which Zytronic markets as PCT™ ("Projected Capacitive
 Technology") and the second being multi-touch, multi-user mutual-capacitive
 which Zytronic markets as MPCT™ ("Mutual Projected Capacitive Technology"),
 in which Zytronic holds five granted patents.

 Zytronic operates from a single site near Newcastle-upon-Tyne in the United
 Kingdom. Zytronic is relatively unique in the touch eco-system as it offers a
 complete one-stop solution from processing internally the form and factor of
 the glass substrates, assembles their touch overlay products to customers
 specific requirements, in environmentally controlled cleanrooms and develops
 the bespoke firmware, software and electronic hardware to link the interactive
 overlays to customer's integrated systems and products.

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 system designers specific
requirements.

Zytronic has continually developed process and technological know-how and IP
since the late 1990's around two sensing methodologies; the first being single
touch self-capacitive which Zytronic markets as PCT™ ("Projected Capacitive
Technology") and the second being multi-touch, multi-user mutual-capacitive
which Zytronic markets as MPCT™ ("Mutual Projected Capacitive Technology"),
in which Zytronic holds five granted patents.

Zytronic operates from a single site near Newcastle-upon-Tyne in the United
Kingdom. Zytronic is relatively unique in the touch eco-system as it offers a
complete one-stop solution from processing internally the form and factor of
the glass substrates, assembles their touch overlay products to customers
specific requirements, in environmentally controlled cleanrooms and develops
the bespoke firmware, software and electronic hardware to link the interactive
overlays to customer's integrated systems and products.

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCDDGDDRGGDGXI