Touch sensor maker Zytronic has returned to profit as customer confidence returns to some of its key markets following pandemic restrictions.
The Blaydon-based manufacturer, which operates three factories totalling 80,000 sq ft, said group operating profit for the six months to March 31 was £399,000, up from a loss of £314,000 in the same period of 2021.
In an update to investors the firm said sales had improved among its gaming and vending customers in its Asia Pacific and Americas territories, and that it had been granted a new patent and applied for another.
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Zytronic warned that while its recovery from the pandemic period was encouraging, there were signs of continuing "considerable disruption" in its supply chains - particularly across electronic components.
During the period under review, international travel restrictions had hampered sales and marketing activity with the cancellation of several key tradeshows. However, the firm said it was beginning to see new opportunities attached to commercial electric vehicle charging stations.
A share buyback programme announced in February had so far purchased 750,000 shares, returning £1.2m of cash.
Final dividend payments of £200,000 and capital expenditure of £200,000, alongside cash returned under the buyback programme, had offset cash generated from operations - contributing to a net reduction in cash during the half year from £6.3m to £1.6m. Zytronic's board has recommended no interim dividend.
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David Buffham, chair of Zytronic, said: "While the previously noted post-pandemic issues look likely to present a headwind for the remainder of the financial year, the group remains well positioned to progress in its recovery, particularly now as global sales and marketing activities resume and provide the basis for the generation of new future opportunities."
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