Final Results

Zytronic PLC
3 December 2001


                                 ZYTRONIC PLC


            Preliminary Results for the Year to 30 September 2001


                              New CEO Appointed


Zytronic Plc, a specialist manufacturer of touch screens and optical filters
for electronic displays, announces its preliminary results for the year to 30
September 2001.



Highlights



-      Turnover increased 29% to £5.78 million (2000: £4.5m)


-      Pre-tax Profit up 50% to £763,000 (2000: £510,000)


-      Adjusted EPS 3.8p (2000: 2.5p)


-      Manufacturing facilities expanded


-      Touch Screen programme 'Zytouch' secures initial contracts


-      Development & marketing contract agreed with Synaptics


-      Ian Lawson appointed Chief Executive



John Kennair, Chairman commented:


'The year to 30 September 2001 has seen continuing growth in sales with
profits improving by 50% and good progress in the development of Zytouch.  We
have been successful in securing contracts with major international companies
in the areas of telecommunications, banking and interactive kiosks.  These
contracts will benefit the second half of the current financial year.

The additional investments in development, management and marketing will lead
to a substantial reduction in profitability in the six months to 31 March 2002
against the corresponding period last year.  It is, however anticipated that
the inclusion of the Zytouch business in the second half will result in an
improving performance.



'The very positive response that Zytouch has received in the market place and,
most importantly, the substantial contracts that have already been secured
give the directors continued optimism about the future growth prospects of the
group.'


                                                               3 December 2001
ENQUIRIES:

Zytronic Plc                    Tel: [phone]
John Kennair, MBE               Today only:  020 7457 2020
Chairman

College Hill                    Tel: [phone]
Michael Padley
Nicholas Nelson




Chairman's Statement

The year to 30 September 2001 has seen continuing growth in sales with profits
improving by 50%, good progress in the development of Zytouch, substantial
completion of the capital expenditure programme to support Zytouch expansion,
and the strengthening of the management of the group.



Trading Results

In the year to 30 September 2001 sales grew by 29% to £5.78 million  (£4.48
million - 2000) whilst net profit before tax moved ahead by 50% to £763,000 
(£510,000 - 2000).  Cash generated from trading in the course of the year
(operating profit before depreciation and amortisation) grew to a healthy £1.16 
million (£870,000 - 2000).  The growth of sales stems primarily from the
development of the company's traditional business of optical filters for
electronic displays and Radio Frequency Interference shielding.



Zytouch

I mentioned in my interim statement of 8 May that field trials of Zytouch were
being conducted in a number of sectors.  The results were all satisfactory and
I am pleased to report that Zytronic has been successful in securing contracts
with major international companies in the areas of telecommunications, banking
and interactive kiosks.  These contracts secured in the last quarter of the
year and with production commencing in January and February 2002, will benefit
the second half of the current financial year.

On the 1 October 2001 we signed a development and marketing contract with
Synaptics Inc of San Jose, California, a leading multinational provider of
electronic hardware and software solutions, under which Synaptics will further
develop the electronic controller for Zytouch.  The partnership allows each
company to focus on its own area of technical expertise but the primary
advantage to Zytronic is the joint marketing of the product range to major
electronics companies in the USA, the Far East and Europe where Synaptics is
already well established and highly regarded, particularly in the field of
touch pads.  The new controllers are due to be delivered to Zytronic by the
end of December 2001 and the joint sales and marketing programme will commence
in January 2002.

The total capital expenditure at £1.56 million has made very substantial
advances to the overall manufacturing capabilities of the business.  Having
increased the capacity of the manufacturing facilities at Blaydon it is
anticipated that the capital expenditure going forward will return to lower
levels.



Management

Ian Lawson joined the group at the beginning of October and was appointed to
the Board of Zytronic Plc as Chief Executive Officer on 30 November 2001.  Ian
has substantial plc experience at managing director and operations director
level, most recently at Gartland, Whalley and Barker plc.  In addition David
Huntley, who has a wealth of experience in the sales and marketing of
technical products to large international companies, was appointed on 1
November 2001 to head up the sales and marketing of Zytouch.

These two new appointments will add great strength to the overall management
of the business and the development of the new markets for Zytouch.

Peter Jones, who has been Managing Director since July 1995 is proposing to
retire from the group in April 2002.  Peter has made a valuable contribution
to the development of the business over the years and the directors wish him
well in his retirement.



Current Trading

The contracts secured for Zytouch commence production in January-March quarter
of 2002.  Whilst the Zytouch business that has been secured is substantial, it
has been awarded three to four months behind directors' original expectations.
Without the first half benefits of these contracts to counteract the
additional investment in development, management and marketing costs which are
necessary to support the growth in the Zytouch business there will be a
substantial reduction in profitability in the six months to the 31 March 2002
against the corresponding period last year.  The benefits that will flow from
this investment, combined with the increased sales of Zytouch will result in a
significant improvement in the second half.



Dividend

The directors recommend a final dividend of 0.75p per share for the financial
year to 30 September 2001 making a total payment for the year of 1.25p per
share, a 25% increase on last year.  The final dividend will be paid on 22
February 2002 to shareholders on the register at 8 February 2002.



Outlook

The very positive response that Zytouch has received in the market place,
together with the development and marketing contract we have completed with
Synaptics and, most importantly, the substantial contracts that have already
been secured give the directors continued optimism about the future growth
prospects of the group.  This increase in Zytouch business combined with the
substantial resources that we have already committed and a constant flow of
new enquiries provides a sound base for continued growth in the second half
and beyond.



John M Kennair

3 December 2001




Group profit and loss account

                                                 Unaudited              Audited
                                                      2001                 2000
                                                     £'000                £'000

Group turnover                                      5,785                4,485

Cost of sales                                       3,610                2,909

Gross profit                                        2,175                1,576

Distribution costs                                     54                   54
Administrative expenses                             1,415                  996

                                                    1,469                1,050


Group operating profit                                706                  526

Interest payable                                      (17)                 (36)
Interest receivable                                    74                   20

Profit on ordinary activities before taxation          763                 510
Tax on profit on ordinary activities                   225                 162

Profit on ordinary activities after taxation           538                 348

Ordinary dividends on equity shares (note 3)           179                 143

Retained profit for the year                           359                 205

Earnings per share
(note 4)             - basic                          3.8p                 3.6p
                     - diluted                        3.7p                 3.6p
                     - adjusted                       3.8p                 2.5p





There were no recognised gains or losses as defined in Financial Reporting
Standard No.3 other than those stated above.




Group balance sheet






                                                          Unaudited     Audited
                                                               2001        2000
                                                              £'000       £'000
Fixed assets
Intangible assets                                            2,248       2,388
Tangible assets                                              2,632       1,378

                                                             4,880       3,766

Current assets
Stocks                                                         982         837
Debtors: amounts falling due within one year                 1,421       1,263
Cash at bank and in hand                                     1,156       2,158

                                                             3,559       4,258

Creditors: amounts falling due within one year               1,397       1,369

Net current assets                                           2,162       2,889

Total assets less current liabilities                        7,042       6,655

Creditors: amounts falling due after more than one year          -          51

Provisions for liabilities and charges                           -          75
Deferred tax                                                   154           -

                                                             6,888       6,529

Capital and reserves
Called up share capital                                        143         143
Share premium                                                6,212       6,212
Merger Reserve                                                 (31)        (31)
Profit and loss account                                        564         205

Equity shareholders' funds                                   6,888       6,529



Group statement of cashflows


                                                            Unaudited   Audited
                                                                 2001      2000
                                                                £'000     £'000

Net cash inflow from operating activities (note 5a)              679     3,379

Return on investments and servicing of finance
Interest received                                                 76        20
Interest paid                                                     (6)      (11)
Interest element of finance lease rental payments                (11)      (28)

Net inflow/(outflow) from returns on investments and
servicing of finance                                              59       (19)

Taxation
Corporation tax paid                                            (116)        -

Capital expenditure and financial investment
Payments to acquire intangible fixed assets                      (86)   (1,900)
Payments to acquire tangible fixed assets                     (1,189)     (140)
Receipts from sales of intangible fixed assets                     -       262
Receipts from sales of tangible fixed assets                       5       806

Net outflow from capital expenditure and financial
investment                                                    (1,270)     (972)

Acquisition and disposals
Purchase of subsidiary undertaking                                 -      (100)

Equity dividends paid                                           (214)   (1,869)

Net cash (outflow)/inflow before financing                      (862)      419

Financing
Issue of ordinary share capital                                    -     6,007
Repayment of loan to former parent                                 -    (2,500)
Repayment of long term loans                                     (10)       (9)
Net repayment of capital element of finance leases and hire
purchase contracts                                              (129)     (329)

Net (outflow)/inflow from financing                             (139)    3,169

(Decrease)/increase in cash                                   (1,001)    3,588



Reconciliation of net cashflow to movement in net funds/(debt)


                                                            Unaudited   Audited
                                                                 2001      2000
                                                                £'000     £'000

(Decrease)/increase in cash                                   (1,001)    3,588
Repayment of loan to former parent                                 -     2,500
Repayment of long term loans                                      10         9
Net repayment of capital element of finance leases and hire
purchase contracts                                               129       329

Movement in net funds/(debt)                                    (862)    6,426
Net funds/(debt) at beginning of year                          1,967    (4,459)

Net funds at end of year (note 5b)                             1,105     1,967



Notes

1.  Basis of preparation

The preliminary results have been prepared under the historical cost
convention and in accordance with applicable accounting standards.  The
preliminary results have been prepared on the basis of the accounting policies
set out in the group's statutory accounts for the year ended 30 September
2000.



2.  Basis of consolidation

The group results consolidate the accounts of Zytronic Plc and all its
subsidiary undertakings drawn up to 30 September 2001.



3.  Dividends

An interim dividend of 0.5p per share (2000: Nil) was paid to shareholders on
22 June 2001.  The recommended final dividend of 0.75p per share (2000: first
and final dividend of 1p per share) is payable on 22 February 2002 to
shareholders on the register on 8 February 2002.



4.  Earnings per share

The calculations of earnings per share are based on a profit after taxation of
£538,000 (2000: £348,000), a basic weighted average of 14,291,539 shares in
issue (2000: 9,585,727 shares) and a diluted weighted average of 14,497,079
shares in issue (2000: 9,721,179 shares).



No adjustment is required to earnings per share for this year.  However, in
order to provide a more meaningful comparison an adjusted earnings per share
statistic has been presented for last year to reflect the fact that, in the
opinion of the directors, 6,036,363 shares issued on flotation were an
integral part of the arrangement to demerge a subsidiary company from the
Romag Group and as such may be viewed as having been in issue for the whole
year under merger accounting principles.



5.  Notes to the group statement of cash flows

(a) Reconciliation of operating profit to net cash inflow from operating
activities:


                                                        2001               2000
                                                       £'000              £'000

Operating profit                                        706                526
Depreciation                                            306                295
Amortisation                                            150                 49
Profit on sale of fixed assets                           (5)                 -

                                                      1,157                870

(Increase)/decrease in debtors                         (146)             1,319
(Increase)/decrease in stocks                          (163)             2,817
Decrease in creditors                                  (169)            (1,627)

Net cash inflow from operating activities               679              3,379





 (b) Analysis of net funds


                              2000             Cash Flows                  2001
                             £'000                  £'000                 £'000

Cash at bank and in hand    2,158                 (1,002)                1,156
Bank overdrafts                (1)                     1                     -

                             2,157                (1,001)                1,156


External loans                (20)                    10                   (10)
Finance leases               (170)                   129                   (41)

                             1,967                  (862)                1,105



6.  Report and accounts

The above results do not represent the statutory accounts.  The audit report
is yet to be signed.  The audited accounts will be mailed to shareholders
shortly and will be available from the registered office at Patterson Street,
Blaydon, Tyne & Wear, NE21 5SG.

The results for the year to 30 September 2000 have been extracted from the
2000 accounts of Zytronic Plc, which have been filed with the Registrar of
Companies, received an unqualified audit report and did not contain a
statement under Section 237(2) or (3) of the Companies Act 1985.