Strong cash-machine sales to emerging markets helped Zytronic deliver an unexpectedly strong performance. The company is better known for its hard-wearing touch-screen technology, but it also sells display filters for use in cheaper push-button ATMs. Volumes there grew 36 per cent over the year, thanks to infrastructure improvements in emerging markets and a one-off restocking boost from a customer who introduced a new inventory management system.
Zytronic’s touch-screen business only grew turnover 2.5 per cent, but that was better than expected after the 6 per cent decline announced at the half-year stage. The ongoing recession in the gaming arena, traditionally one of Zytronic's main markets, was a drag on growth. So too was the weakness of the cash-machine market in the US and Europe, where banks are now reluctant to upgrade to touch-screen technology.
Yet that was more than offset by growth in new applications, such as vending machines and public information portals. The group is responsible for the touch sensors on a new Coca-Cola drinks dispenser, for example, and made its first sales in the final quarter.
Following 18 per cent upgrades, Brewin Dolphin expects adjusted pre-tax profits of £3.2m for 2011 and EPS of 16p (2010: £2.9m/14.8p).
ZYTRONIC (ZYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 193p | MARKET VALUE: | £28m | |
| TOUCH: | 189-197p | 12-MONTH HIGH: | 241p | LOW: 153p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 78p | NET DEBT: | 10% | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 12.3 | 1.27 | 7.8 | 3.0 |
| 2007 | 11.4 | 0.64 | 3.7 | 3.0 |
| 2008 | 14.7 | 1.74 | 7.3 | 4.0 |
| 2009 | 15.9 | 2.30 | 11.6 | 5.0 |
| 2010 | 18.5 | 2.92 | 14.9 | 7.0 |
| % change | +16 | +27 | +28 | +40 |
Ex-div: 9 Feb Payment: 25 Feb | ||||
