Zytronic increases sales and profits

May 30 2008 by Chris Knox, The Journal

TOUCHSCREEN maker Zytronic is on the road to recovering from a major dent in sales after expanding its production line and venturing into new markets.

The Gateshead company saw its profits rocket by 50% to £736,000 during the six months to March after opening its third factory in Blaydon to roll out its more affordable ZYPOS touch sensors.

The firm, which also saw turnover increase 17% to almost £7m during the period, launched the new single glass sensors last year to be used on everyday products such as fridges and cash registers, and has seen orders soar by 44% as a result.

The new sensors have attracted interest from markets including the gaming sector for use in pub quiz machines and supermarkets, which are looking at ways of using guidance technology on shopping trollies.

It has also seen business in the ATM market pick up after a decline in orders from one of its key US customers saw its annual profits slashed 50% to £640,000m in 2007.

The firm, which sells its original multi-glass screens to banks and the military, is now looking to grow its annual turnover from £12m to just under £15m and add another 60 jobs to its 190-strong workforce to help run the new factory.

Chief executive Mark Cambridge, said: “With a more favourable ATM market, we are now in a position to push ahead with our growth plans.”

The firm was set up in 1943 and initially provided lenses for gas masks during the war before moving onto gauge lenses for military vehicles. It ventured into the touchscreen market in 2000 when its also launched on the stock market.

Mr Cambridge now plans to increase Zytronic’s export activities, which already make up 70% of its sales, and sees Mexico and Turkey as potential new markets.

Jon Lienard, technology analyst at investment manager Brewin Dolphin, said: “The outlook for the group remains very promising. We see strong growth potential in a number of Zytronic’s markets but particularly in gaming.

“Our forecasts and price target are unchanged, for now, but if current momentum continues, we see the potential for outperformance.”