Member Article

Newcastle touch sensor developer reports 11% jump in pretax profit

Zytronic plc, a developer and manufacturer of internationally patented touch sensor products, which operates from three factories near Newcastle, has released a healthy set of financials this morning.

Announcing its consolidated interim results for the six months ended 31 March 2016, the firm increased its pretax profit by 11% to £1.5m (2015: £1.3m) principally as a result of an improved gross margin of 42.3% (2015: 39.9%).

Zytronic touch products employ an embedded sensing solution and are readily configurable to enable multi-user and multi-touch touch sensing.

Whilst revenues were slightly lower by 1% at £9.9m, this was to some extent expected and reportedly consistent ‎with the strategy of moving away from the business’ traditional glass displays and growing its technologically advanced touch product business.

Sales of touch products accounted for 84% of the business (2015: 79%), as sales of touch products increased by £0.4m to £8.3m (2015: £7.9m), and sales of glass displays and filter products reduced by £0.5m to £1.6m (2015: £2.1m).

The Group has continued to see growth and opportunities in areas that require larger size touch sensors, in particular, demand in its large format curved products developed for the gaming industry.

The strategy continues to be to expand its global sales reach by concentrating on the applicable markets where the combination of expertise and capabilities in rugged glass solutions, larger format touch technology and developing product functionality provides a competitive advantage.

Tudor Davies, Chairman, said: “The second half has so far experienced a similar trend with touch product revenues continuing to increase relative to the traditional products.”