UK: touch-screen maker Zytronic warns of poor results

Zytronic, the north east England-based hi-tech manufacturer of touch screens for cash machines and phone kiosks, has warned that trading results will be below market expectations.
The company“s annu…

Zytronic, the north east England-based hi-tech manufacturer of touch screens for cash machines and phone kiosks, has warned that trading results will be below market expectations. The company“s annual general meeting heard that the slow market in which customers have been reluctant to place orders is to blame. Zytronic chairman John Kennair had warned that progress in the business would not increase revenues until late 2003 because of a weak electronics market and the time taken to bring in sales of new products. Kennair said: “Since my statement, the electronics sector has shown no signs of picking up and it remains the case that potential customers are slow to place orders. “Despite the sluggishness in the market, year to date sales are ahead of the same period last year. “The directors also expect to see an improvement in trading in the traditionally stronger second half, but it is unlikely that our results will meet current market expectations.” Zytronic halted dividend payments to shareholders in December 2002. Mr Kennair said that while the cash position was strong, the company had been unable to build up significant distributable reserves.