16th Oct 2024 15:32
(Alliance News) - Zytronic PLC said on Wednesday that a failure to recover its business performance has prompted the launch of a strategic review.
The specialist manufacturer of touch sensors said that it had experienced "disappointing volumes" in the year ended 30 September, with management contending that the required improvement would be unlikely without a "strategic catalyst".
The AIM-listed firm's trading update detailed full-year revenue slipping 16% to GBP7.1 million from GBP8.6 million the year prior.
Despite indications that revenue will be second-half weighted this year, with Zytronic anticipating a 22% increase to GBP3.9 million from GBP3.3 million, its board "does not anticipate a material recovery in volumes over the short to medium term".
Shares in Zytronic were trading down 11% at 47.80 pence in afternoon trading in London on Wednesday.
The strategic review will assess the merits of five key options for Zytronic, including both a liquidation of its assets and a sale of the business. Regarding the latter, Zytronic stated that it has not yet entered into any discussions with any potential offerer.
The review will be undertaken in collaboration with shareholders, with Zytronic intending to engage in discussions regarding their investment priorities.
Whilst no specific timeline has been outlined, the market can expect "further announcements in due course" pertaining to the progress of the review.
By Christopher Ward, Alliance News reporter
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