REG - Zytronic PLC - Conclusion of Strategic Review

ZytronicAnnouncement

14/11/2024 07:00

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RNS Number : 1658M  Zytronic PLC  14 November 2024

This announcement contains inside information for the purposes of the retained
UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

 

14 November 2024

 

Zytronic plc

 

("Zytronic" or the "Company" and its subsidiaries)

 

Conclusion of Strategic Review

 

The Board of Zytronic plc, a leading specialist manufacturer of touch sensors,
provides the following update pursuant to its announcement of 16 October 2024
titled 'Pre-Close Trading Update & Strategic Review' ("Strategic Review
Announcement").

 

Having thoroughly evaluated the options set out in the Strategic Review
Announcement in consultation with its shareholders, the Board of Zytronic will
now seek a sale and / or wind down of the group assets (the "Process") to make
a return to shareholders through a solvent liquidation of the Company. The
appropriateness of this decision has been reinforced by continuing weakness in
trading conditions with no material uplift in order intake.

 

The Board has agreed to appoint FRP Advisory Trading Limited ("FRP Advisory")
part of FRP Advisory Group Plc to run the Process with a view to maximising
returns to shareholders which may or may not include a sale of the Company's
trading entity, Zytronic Displays Ltd ("ZDL") as a continuing business or a
sale of the underlying trade, intellectual property and assets of ZDL.

 

As at 13 November 2024 the Company had a net cash balance of approximately
£3.3m.

 

In coming weeks, FRP Advisory will, as part of the Process, prepare an outcome
report providing an estimate of realisable value available to shareholders. As
highlighted in the Strategic Review Announcement, there can be no guarantee as
to returns that may be available at this stage. A further announcement will be
made in due course.

 

Accordingly, the Company is no longer in an "offer period" as defined in the
Takeover Code.

 

Christopher Potts, Chair of Zytronic said:

 

"This decision has not been taken lightly. Whilst the Board had confidence in
the opportunity presented by the Transformation Plan, we collectively felt
duty bound to present it alongside the different options available to
shareholders at this important juncture for the Company. Our focus will now be
on ensuring a suitable buyer is found for ZDL to protect jobs in this
important business based in the North of England and interested parties should
contact FRP Advisory."

 

Unless otherwise stated, definitions within this announcement have the meaning
given to them in the Strategic Review Announcement.

 

Enquiries:

 Zytronic plc                                                0191 414 5511

 Mark Cambridge, Chief Executive

 Claire Smith, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)       020 7496 3000

 Alex Bond, Sandy Fraser, Sam Butcher (Investment Banking)

 FRP Advisory Trading Limited                                0191 249 1736

 Phil Williams, Lucy Elliott (Corporate Finance)

 Allan Kelly, Andrew Dyson (Advisory)

 

Notes to Editors

The Company's trading entity ZDL is an established 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.

 

ZDL has continually developed process and technological know-how and
intellectual property since the late 1990's around two PCAP sensing
methodologies; trademarked by it as PCT™ ("Projected Capacitive Technology")
and MPCT™ ("Mutual Projected Capacitive Technology"), in respect of which 15
internationally granted patents are held. As part of this the Company has
invested in and developed an advanced controller, the ZXY500, which
incorporates a specialist Application Specific Integrated Circuit ("ASIC")
specified and owned by Zytronic, and bespoke firmware on the controller
processor.

 

ZDL's products employ a copper wire-based sensing solution that is readily
configurable and is embedded in a laminate core which offers significant
durability, environmental stability, and optical enhancement benefits to meet
system-specific design requirements.

 

The Company is headquartered at Blaydon-upon-Tyne in the United Kingdom. ZDL
operates from this site, providing its manufactured products globally through
a number of sales channel partners. ZDL differentiates itself from others in
the touch eco-system as it offers a complete one-stop solution including
processing internally of the form and factor of glass and film substrates, the
assembly of the associated touch overlay products, in environmentally
controlled cleanrooms to customer's specific requirements and the development
of the bespoke firmware, software and electronic hardware which comprise the
controller that links the manufactured touch interactive overlays to a
customer's integrated systems and product.

 

For more information about ZDL's technologies and products, and the Company
please see www.zytronic.co.uk (https://www.zytronic.co.uk/)

 

 

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