Zytronic grows pre-tax profits on the back of touchscreen demand in ATM and vending markets

The Gateshead-based manufacturer saw pre-tax profits rise 15% to £1.6m in the first half of 2015, as gross margins increased

Zytronic
Zytronic

Touchscreen specialist Zytronic has grown pre-tax profits thanks to demand for its technology in the ATM and vending machine market.

The Gateshead-based firm saw pre-tax profits rise 15% to £1.6m in the first half of 2015, driven by increased market penetration.

A note to shareholders outlined a 13% rise in revenues to £10m on the same period last year.

Zytronic said production efficiencies, investment projects from last year, increased revenues and focus on products incorporating its proprietary technology raised gross margins to 40%, up from 34% in 2014.

These gains were offset by increased administration overheads, including £0.4m from the strengthening dollar.

Chairman, Tudor Davies said: “We are continuing to benefit from an improvement in current trading and on this basis expect to make further progress for the remainder of this year.”

He added: “We have continued to see increased market penetration and growth in our largest market sectors of financial, ATM machines, and vending, as well as exploit the potential for our newer multi-touch and larger format touchscreens in other niche markets which require rugged, toughened glass solutions.

“In particular, our showcase of the new touchscreens incorporated into table and gaming machines for the leisure markets at the most recent gaming expos in the USA and UK have resulted in considerable interest.”

Zytronic’s directors proposed a 10% increase in the dividend of 3.14p per share, up from 2.85p, which will be paid in July to shareholders on the register on July 10.

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