Touchscreen technology maker Zytronic is to close entirely having failed to find a buyer amid a long running rescue effort.
About 70 jobs are impacted at the Blaydon manufacturer which traces its roots back to 1943 when it originally made gas mask lenses. Since late 2024, the firm has sought a buyer following recent years of lacklustre trading and turnaround efforts that had not delivered results.
Restructuring experts FRP Advisory were appointed to the firm in recent months and will now begin a winding down of Zytronic after bosses said they had called off the sale process for its trading subsidiary, Zytronic Displays Limited and its underlying assets. They said that despite talks with multiple potential suitors, they had been unable to agree on an attractive enough deal.
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Zytronic added: "As a result, the board, in consultation with FRP Advisory Trading Limited will commence the orderly wind-down of the group's assets. At this stage, there can be no guarantee as to the level of returns that may be available to shareholders."
Unaudited half year results for the firm, covering the six months to the end of March 2024, show pre-tax losses of £600,000 from revenue of £3.3m, which was down from £4.7m in the same period of 2023. Despite the losses, Zytronic said it had been been continuing research and development work, showcasing products at major international trade shows and that it was "cautiously encouraged" by an increase in group order intake.
A key challenge for the firm had been the Chapter 11 bankruptcy of one of its major customers - Aruze Gaming America - which made gaming machines for the casino market. It had also faced component shortages and issues caused by resignation of key staff.
Production had been scaled back in 2023 and a furlough scheme brought in to try and retain skills in the business in case demand recovered. But the scheme ran longer than expected and led to permanent downsizing with 14 redundancies.
In an update to shareholders on the London Stock Exchange, Zytronic said: "As at January 31, 2025 the group's net cash position was broadly unchanged from the figure provided at November 14, 2024, but excludes wind-down costs. FRP Advisory is in late stages of finalising its outcome statement which will provide shareholders with an indicative range of returns available in an orderly wind-down. Further announcements will be made in coming days, as required."
Zytronic dates back to the 1940s, initially specialising in laminated glass products that were used to protect cathode ray tubes and optical filters. Its technology was used in early ATMs while its expertise in glass bending and lamination was utilised in visors for bomb disposal and specialised police helmets.