Zytronic Plc - Preliminary Results

Overview

 

§ Significant improvement in Group trading profits to £5.4m (2016: £4.3m)

§ Strong cash generation from operating activities of £4.7m (2016: £5.6m)

§ Final dividend increased by 39% to 15.2p (2016: 10.96p), bringing total dividends for the year to 19.0p (2016: 14.41p), up 32% year-on-year and the fourth successive year of double-digit dividend growth

§ Touch sensor units sold increased to 138,000 units (2016: 130,000 units) with large sensors > 30" increasing to 18,000 units (2016: 14,000)

§ Basic earnings per share increased to 29.0p (2016: 26.6p)

Chairman's statement

We are pleased to announce the results for the year ended 30 September 2017, which show continuing growth in revenues, profits and cash generation and a 39% increase (2016: 24%) in the final dividend, resulting in an overall dividend increase of 32% (2016: 20%) for the year.

Results

Revenues for the year ended 30 September 2017 increased 9% to £22.9m (2016: £21.1m), profit before tax increased 27% to £5.4m (2016: £4.3m), with profit after tax increasing to £4.6m (2016: £4.1m) and basic earnings per share increasing to 29.0p (2016: 26.6p).

The growth in revenues during the year has primarily arisen from an increase in further projects for the gaming market, with the growth driven by large format touch sensors. A fuller explanation of the strategic sales and marketing initiatives and opportunities are covered in the CEO's Operational review later in this report. 

Cash generation from operating activities for the year ended 30 September 2017 is £4.7m (2016: £5.6m), from which we invested £1.1m (2016: £0.8m) in research and development and capital expenditure. The Group also received £1.2m (2016: £0.2m) from the proceeds of share options and made a final payment of £1.1m (2016: £0.2m) on its property loan before the dividend payments of £2.4m (2016: £1.9m), resulting in a net increase in year-end cash balances of £1.3m to £14.1m (2016: £2.9m to £12.8m).

Dividend

The Directors are pleased to propose a final dividend of 15.2p (2016: 10.96p), payable on 9 March 2018 to shareholders on the register on 23 February 2018, which increases the total dividend for the year by 32% to 19.0p (2016: 14.41p) and brings the dividend increase over the last five years to 124%.

Outlook

The current year has started with orders, revenues and trading along similar levels to that of the prior year, which, together with our strong balance sheet and cash generation, provides a sound base for further growth in dividends and shareholder value. The focus on growth this year will be from expansion in local sales representation in the USA and the Far East, and we shall keep shareholders updated on the progress, and any material developments, over the course of the year.

Tudor Davies

Chairman

11 December 2017

"The current year has started with orders, revenues and trading along similar levels to that of the prior year which together with our strong balance sheet and cash generation provides a sound base for further growth in dividends and shareholder value."

 

It is intended that the AGM will take place at the Company's offices at Whiteley Road, Blaydon-on-Tyne, Tyne and Wear, NE21 5NJ on Thursday 22 February 2018 at 9.30am.  Notice of the AGM will be sent to shareholders with the annual report and accounts in due course.