Zytronic struggles to see a return to profits in current trading year

Touch sensors manufacturer Zytonic said on Friday that the downturn in sales seen during the second half of 2020 had now levelled out but warned it was still "difficult to foresee" a return to profits in 2021.

Zytronic, which had previously adjusted its operations to take into account lower levels of demand resulting from the ongoing Covid-19 pandemic and related restrictions, said the downturn had now levelled out at approximately £2.0m for the three months ended 30 September and the first quarter of its current financial year.

The AIM-listed group said reorganisation and cost reduction measures undertaken last year enabled it to maintain positive underlying earnings and also noted that it had seen "a slight increase" in orders so far in the new trading year.

However, with constraints imposed by the Covid-19 pandemic, weighing on major overseas markets, Zytronic said it was "difficult to foresee" a return to profits in the current trading year and added that a recovery to historic levels would depend on "how quickly there is an effective vaccination programme".

As of 0850 GMT, Zytronic shares had tumbled 16.33% to 125.50p.