Shareholders in touchscreen technology maker Zytronic can expect between 46p-60p per share as the historic company is wound up.
Last week bosses of the Newcastle-based firm said efforts to find a rescue buyer had been unsuccessful and the 82 year-old business would be closed and its assets wound down. The anticipated return for shareholders is below where Zytronic shares were trading a year ago - at 74.5p - but above the 40.2p price at the close of trading on Tuesday.
FRP Advisory is handling the wind down of the company, which has impacted 71 jobs. They say the estimated range of returns for investors is highly conditional and based on several major assumptions including a sale of Zytronic's properties for a value within 10% of valuations, that the wind down happens within nine months and that there are no unforeseen creditors.
Zytronic's decision has come after a period of lacklustre trading and failed turnaround efforts. The Chapter 11 bankruptcy of major US customer Aruze Gaming America had been a catalyst for the problems, which were also compounded by component shortages as a result of Covid.
In its latest update to shareholders, Zytronic said there is no realistic prospect of its accounts for the year to the end of September being published by the March 31 deadline according to AIM rules. But bosses said the group generated unaudited turnover of £7.2m and an unaudited pre-tax loss of £1.5m during the year, but not assuming any asset write downs that would further impact that pre-tax loss. Those results compare to group revenue of £8.6m and a pre-tax loss of £2m in 2023.
Zytronic now says it intends to de-list from AIM and will put a resolution to shareholders which proposes it converts from a public limited company to a private limited company.
In a statement, the firm said: "To reduce costs and maximise returns for shareholders, the board has decided to pursue the cancellation of the company's admission to trading on AIM. The de-listing will be subject to approval by shareholders through the passing of a Special Resolution. Should the de-listing complete, it is the board's intention to explore the introduction of a secondary market trading facility to facilitate the buying and selling of shares by shareholders (and new investors) by matching buyers and sellers through periodic auditions.
"The board will be writing to shareholders to convene a general meeting, strongly recommending that they vote in favour of the de-listing resolution to optimise the return of proceeds to shareholders. If the resolution is not approved, the company will remain listed (and be subject to ongoing AIM Rule 41 obligations should suspension in the trading of the company's shares occur), continuing to incur associated costs and further reducing potential returns for shareholders and stakeholders."
