Member Article

Pretax profits increase by 68% to £3.3 million for Blaydon’s Zytronic plc

Blaydon-based Zytronic plc, specialist manufacturer of touch sensors, has announced a 68% rise in pretax profits to £3.3 million, for the year ending 30 September.

Operating from three modern factories near Newcastle-upon-Tyne in the United Kingdom, Zytronic designs and assembles touch sensors using special glass and plastic materials.

The 2014 fiscal year has shown a significant improvement in trading over the previous year for Zytronic and has continued the trend of second half trading being better in both revenue and profitability than the first.

Total 2014 revenues of £18.9 million were stronger than that of 2013 by 9% (2013: £17.3 million).

Touch product revenues at £14.9 million accounted for 79% of total revenues and were £2.3 million (18%) higher than the prior year (2013: £12.6 million).

Non-touch product revenues of £4 million showed an expected decline from the £4.7 million reported for 2013.

The higher proportion and better mix of touch product sales reported in the second half of 2013 were maintained over the first half of 2014 as reported by management at the interim results and improved further over the second half of the year.

This, together with management actions to maintain and where possible improve cost control and production efficiencies, resulted in a significantly higher gross margin of 36.6% (2013: 28.4%) and aforementioned resultant 68% increase in profit before tax to £3.3 million (2013: £1.9 million).

Chairman, Tudor Davies said: “Whilst we are only a couple of months into the new financial year the sales and order book are ahead of last year and our focus is on continuing to increase value for shareholders now and into the future.”