Trading update
The Company provides the following trading update ahead of its interim results for the first half, which are due to be announced on 14 May 2019 and are expected to show revenues of £9.5m (2018 H1: £10.6m) and profit before tax of £1.4m (2018 H1: £2.2m).
The reduction in revenues and profits are due to the decline of the sales of products into the Gaming sector, which has only been partially offset by a stronger performance in other sectors. Despite there still being an encouraging pipeline of opportunities in Gaming, the pace of conversion to orders in the year to date has been much slower than the Board had anticipated.
Although trading in the second half of the financial year is usually stronger than the first half, Zytronic is cautious on the level and timing of recovery of sales in the Gaming sector and therefore on the expected performance for the second half.
The Company continues to be cash generative and is in a strong financial position, with net cash of £12.1m as at 31 March 2019. The Board anticipates maintaining the interim dividend at a similar level to that paid in the previous year. Zytronic remains in a position of having several opportunities with the potential to materially improve future performance.