smilingmickey1
15 Mar 2017
Capital reduction Having read the small print, it would be my understanding that following the "Capital Reduction" announced today, Zytronics has authority (but as yet no plan) to distribute an extra nearly £9 million to shareholders if the Board so wishes. If true this amounts to around 60p per share.Anyone else read the small print and come to the same or a different conclusion?SM
PIE-EATER
14 Dec 2016
Re: Not bad results but Got the impression they were not hedging currency as much or as far forward.....may have been (incorrectly) influenced by recent fall in £ during this last year (surely now would be a good time to lock in weaker £ for exchange rates for sales abroad?)Also think switch to higher margin units a good ploy, especially as these are the more sought after items.....and EPS hit 26.6p, which I know some were concerned might be missed at the half way stage.The general tone of the report makes me think this was (to a certain extent) a consolidation year ready for another push following capital expenditure on new kit/space.Happy to hold, and top up on weakness, as I believe a good AIM company with access to many skilled engineers / technicians in the NE and products that are wanted and technology that can be adapted to different applications.GLAPE.
smilingmickey1
13 Dec 2016
Re: Not bad results but Maybe the stock market does not like Companies that increase their profit margins at the expense of growing sales revenues and volumes, so profit is merely maintained or grows slowly.ZYT seems to have made some clever moves to reduce it's taxation. This has to be a one off situation. Cash generation is strong and the divi is significantly increased but unless profit grow more quickly divi increases going forward will become more modest.I'm not sure what to make of the large non cash item which has adjusted the profits downward. Does this mean the Company has hedged forward, fixing selling prices in sterling next year at exchange rates which are not as advantageous as those currently in effect?
PIE-EATER
13 Dec 2016
Not bad results but market doesn't seem to like.....down about 5%, despiteproduct mix moving to higher margin productsdivi up significantly (20% for year)worldwide representation increasedAh well, can't have everything all at once, am sure price will follow divi at some pointGLAPE
Rhigos
17 Jun 2016
Appeared in screening for yield Using SharePad to look for good yield shares this appeared as one of 13 from LSE listed.Criteria were yield of 3.5% or more but less than 8%, forecast >4%.Total return > 5% over last 12 monthsDividend cover >=1.3 XROE > 10%Gearing <100%Looking at summary of fundamentals it looks solid. Good progressive dividends.Business seems to me like a bit of niche market which could be a good thing. Market conditions could be difficult at the moment but SP has fallen 27% since high at the end of last year.My assessment is a strong buy though I would like to see SP trend go positive for a while. AIM share with Market cap of £49.3M. Any comments?
psyche100
27 May 2016
Re: Sold a load this morning In 2015 they made an operating profit of £4.55m on revenue of £21.3m, so a very healthy 21% margin. With a ROC of 20%, a 12 month forecast rolling PE of 14 and yielding nearly 4%, I'm still holding.
smilingmickey1
27 May 2016
Re: Sold a load this morning Hi gretel,If you look at zyt historical eps you will see that H1 eps is always significantly below second half figure. My assumption is that they are probably understated. So I would not worry too much about that. The business they are losing is low margin. Not sure if this is a deliberate ploy or they have competition taking this from them. Big question at what rate they can expand their higher margin big screen business where I assume there is much less competition. They certainly seem to be promoting their large screen business.SM
gretel
26 May 2016
Re: Sold a load this morning Should have pressed the Sell button for my opinion rather than the Buy!!
gretel
26 May 2016
Re: Sold a load this morning My problem with ZYT's current valuation is nervousness about them meeting expectations this year.ZYT made 9.6p EPS in this H1, so that leaves them having to make 16.3p EPS in H2 just to meet the 25.9p EPS forecast.They made 16p EPS in last year's H2, so it's certainly possible.But this year's H1 was characterised by a big decline in the traditional business sales of glass displays and filter products. So ZYT had to run fast just to stand still. Since touch product sales only increased 5% over last year this meant group profits improved overall given the higher touch margins, but not enough to make a big difference.The outlook suggest a continuation in H2, with traditional business again slipping and being outweighed by touch.This year's forecast/expectations have perhaps been overinflated by last year's exceptional H2.It's a long time until the next trading update in October, so I'll probably stay out until confirmation at that point that H2 has - or hasn't - been able to achieve a similar improvement in H2 to last year.
pharmaspecialist
17 May 2016
Re: Sold a load this morning For me, the results do not suggest any fundamental change in the quality of the business so I will continue to hold for the long term and am willing to accept the ups and downs along the way. I sometimes think I must be in a tiny minority of investors with this philosophy which I guess should be encouraging.
smilingmickey1
17 May 2016
Re: Sold a load this morning Hi Gretel,I like you was disappointed with the results when I first read them.However their strategy seems to be to exit from lower margin business which is why the revenue line has suffered. The overall margin increase and improved cash position has enabled a good % increase in the well covered divi. The forward yield looks like it will be in excess of 3.5%.It's a hold for me.
gretel
17 May 2016
Sold a load this morning I sold quite a few on the bell at 417p etc.A very good company, but today's interim figures don't really justify the rating at 420p or so. And ZYT is quite illiquid, so I could see the share price dropping a fair bit given reasonable but rather unexciting numbers.
II Editor
12 May 2016
NEW ARTICLE: 10 top shares for dividend safety "When it comes to weighing up the reliability of a company's dividend payout there are all sorts of checks that investors can make. The safest yields are generally found in strong, stable, cash-rich stocks. But another key indicator - and one ..."[link]
gretel
04 May 2016
More news from ZYT News re ZYT's installations in industrial applications - medical, O&G, food processing etc. Worth reading:[link] – Pushing Touch technology to the Extreme in Industrial applications 03 May 2016Traditionally, industrial and medical equipment designers have relied on mechanical switches and dials for system control, and for a long time this has suited the industry well enough. However the appeal of touchscreen enabled tablet PC’s and smartphones has led designers of industrial equipment to reconsider how users interact with complex machines and systems in the workplace. However, implementing touchscreen technology in often challenging environments is not straightforward. There may be many obstacles to consider and overcome, and some touch technologies may not be capable of operating in extreme conditions. But Zytronic are acknowledged leaders in the manufacture of durable touch sensors, and our technology is proven in the most demanding applications and environments. The combination of an intuitive interface, and our rugged projected capacitive touch technology continues to change how people interact with machines and computers in the workplace. etc..."
smilingmickey1
28 Apr 2016
Re: News, and share price rise Thanks for that Gretel.These new large touch screen applications should be great for ZYT. Looking forward to the results.
