Zytronic 'cautious' of second half trading as gaming sector sales slip
Touch sensor manufacturer Zytronic warned investors that both revenues and profits from its first trading half looked set to have fallen year-on-year as a result of declining sales to the gaming sector.
Zytronic expects to report revenues of £9.5m and pre-tax profits of £1.4m for the six months ended 31 March, down from the respective year-earlier figures of £10.6m and £1.4m.
The AIM-listed outfit attributed the reduction in revenues and profits to lower sales of products into the gaming sector, which was only partially offset by a stronger performance in other sectors.
Despite an "encouraging pipeline of opportunities in gaming", Zytronic said the pace of conversion to orders was "much slower than the board had anticipated".
While Zytronic expects trading in the second half of the financial year to be stronger than the first half, the group remained cautious on the level and timing of gaming sales recovery and, therefore, the expected performance for the second half as a whole.
As of 1100 BST, Zytronic shares had tumbled 21.29% to 273.50p.