Touch tech maker Zytronic says it continues to feel the impact of global supply chain issues that are creating a shortage of certain components.
In a short update to investors ahead of its annual general meeting, the Tyneside-based firm said its average monthly order intake was at levels similar to in the second half of its 2022 financial year. The shortage of components was forcing it to buy materials on the "grey market" at a higher price or cannibalise existing finished stock.
The manufacturer has previously said its research and development work has focussed on adapting to global semiconductor chip shortages. Despite the headwinds, Zytronic said its pipeline of opportunities had increased to 505 with a "customer projected lifetime value" of £61m - evidence, the firm said, of improving medium term prospects.
Read more: Dynamo boss sets out new strategy to grow tech network and its influence
Zytronic told the London Stock Exchange it expects a stronger second half revenue weighting than last financial year, as interim results are expected to be published in May.
A number of board changes were also announced, including coming appointments of new independent non-executive directors following the departure of the previous non-executive chair at the start of the 2023 financial year. And Mark Cambridge, who had been acting executive chair, will step down to resume its position as CEO while independent non-executive director Mark Butcher will be appointed as interim non-executive chair.
Zytronic's largest individual shareholder, John Walter, will also temporarily join the board from February 10 as a non-executive director. The fixed-term appointment will conclude no later than a day prior to the posting of the notice to shareholders of the 2024 annual general meeting.
The firm said Mr Walter is a former investment banker and wealth manager with more than 25 years' experience in public markets. Zytronic said: "Although the board recognises that John is not independent by virtue of his shareholding interest, it considers that his temporary appointment will afford it with a better balance of non-executive impartiality in the interim and provides reasonable shareholder input into the process of seeking and concluding the appointments of new INEDs."
Go HERE to sign up for North East business newsletters and get all the latest news direct to your inbox
READ NEXT:
North East names feature among list of country's top small and medium sized businesses
- Filtronic revenues rise 5% amid growth in global aerospace and defence markets
Leathers LLP is snapped up by London wealth managers Evelyn Partners
Tombola makes significant loss following £74m charity donation, accounts show
- Read more tech business news
