Zytronic profits growing at the touch of a screen
Dec 4 2008 by Chris Knox, The Journal
TOUCHSCREEN maker Zytronic believes it can continue to grow despite the economic downturn after its annual profits shot up by 155%.
The Gateshead company saw its turnover grow by 29% to £14.7m over the 12 months to September 30 2008 after seeing its patented ZYPOS touchscreen technology become more popular among gaming companies in the Far East.
The firm, which saw its profits grow from £680,000 to £1.74m, is also in advanced talks with a number of US supermarket chains to have its devices fixed to trolleys, which would help customers navigate stores and provide firms with information on shopping habits.
It now believes it can continue to grow into 2009 and meet predictions by its broker Brewin Dolphin that it will hit sales of £17m by next year, with a profit of £2.3m.
The firm, which operates from three factories in Blaydon, believes it has benefited from the downturn, with more people using gaming machines in pubs, clubs and betting shops as they look for extra cash to help them through the credit crunch.
Finance director Denis Mullan said: “We are not so arrogant as to say that the downturn will not affect us in the future, but it’s certainly the case that we are not seeing any impact at the moment.
“Our product has a number of different uses and we are always talking to companies across the globe about how it can be developed within a wide variety of markets. I believe this will help ensure that we maintain our strong position.”
The results mark a turnaround for the business after its sales were hit last year by a slowdown in the US ATM sector.
However, the firm said conditions had improved and its US banking customers had built up a stronger relationship to prevent a similar thing happening again.
It is now planning to invest £1m in the business next year to continue developing its technology. It is also looking to add to its 205-strong workforce.
A Brewin Dolphin analyst said: “Despite the economic woes, Zytronic’s outlook is positive with a strengthening order book and a high number of enquiries.”
RESULTS
Group turnover up 29% to £14.7m
Pre-tax profits up 155% to £1.74m
Basic earnings per share increased to 7.3p
Total dividend for year of 4p (2007: 3p)
Sales of ZYPOS touch sensors up by 83%
