Interim Results

Zytronic PLC
29 May 2003



ZYTRONIC PLC

Unaudited results for the six months to 31 March 2003

Zytronic plc, a specialist manufacturer of touchscreens and optical filters for
electronic displays, announces its interim results for the six months to 31
March 2003.



ENQUIRIES

Zytronic plc                                          Tel: [phone]
John Kennair MBE, Chairman
Ian Lawson, Chief Executive

College Hill                                          Tel: [phone]
Nicholas Nelson/Clare Warren

29 May 2003



Chairman's Statement

In my statement to shareholders accompanying last year's accounts, I indicated
that the Directors did not expect the progress in the business to be reflected
in trading until the second half of this financial year. I am pleased to report
that we have experienced recovery in the order book towards the end of the first
half and this has continued into the second half.

Results

Despite difficult market conditions, sales, at £2.497m, were 20% higher than the
same period last year. This included an increased contribution from Zytouch, the
Group's unique touchscreen product. After reorganisation costs of £82,000 (2002:
£Nil), which arose from actions taken to reduce the cost base of the business,
there was a pre-tax loss of £451,000 (2002: £475,000).

Dividends

The cash position remains strong. However, in view of the deficit on
distributable reserves, there is no interim dividend.

Trading

In the six months to 31st March 2003, Zytronic has made good progress in all
major areas of its business.

Further specification approvals for Zytouch have been secured in the
entertainment, financial services and interactive kiosk markets to add to
previous successes in telecommunications and banking, where we supply
touchscreens to the two largest cash dispensing machine manufacturers in the
world. Trials of Zytouch for petrol pump applications are also in progress.

We have recently entered into an agreement with Elo TouchSystems Inc., a global
leader in touch technology, for the worldwide distribution of Zytouch under the
Elo brand name. Zytouch is complementary to Elo's existing touch technologies
and will expand their product range, leading ultimately, the Directors believe,
to an acceleration in the development of the Zytouch business. This agreement
replaces the agreement with 3M, which was terminated by mutual consent.

In optical filters, Zytronic has been specified, after three years' development,
for the supply of specialised filters for in-car navigation displays. The
Directors anticipate that this will impact positively on sales towards the end
of the second half.

Outlook

The progress made in the six months to 31 March 2003 and the recent recovery in
the order book leads the Directors to anticipate an improvement in trading in
the second half of the year.


J M Kennair MBE
Chairman
29 May 2003



Group Profit and Loss Account
Unaudited Results for the six months to 31 March 2003
                                                                        Six months to 31 March          Year to
                                                       Notes                                       30 September
                                                                       2003               2002             2002
                                                                  Unaudited          Unaudited          Audited
                                                                      £'000              £'000            £'000

Turnover                                                              2,497              2,070            5,066
Cost of sales                                                         1,880              1,620            3,678

Gross profit                                                            617                450            1,388
Distribution costs                                                       35                 26               66
Administrative expenses                                                 
- ordinary activities                                                   946                906            1,716
- exceptional costs                                        3             82                  -                -
                                                                      1,028                906            1,716
                                                                      1,063                932            1,782

Operating loss                                                        (446)              (482)            (394)
Interest payable                                                       (19)                (4)             (33)
Interest receivable                                                      14                 11               21

Loss on ordinary activities before taxation                           (451)              (475)            (406)
Tax credit on loss on ordinary activities                                88                123               85

Loss on ordinary activities after taxation                            (363)              (352)            (321)
Ordinary dividend on equity shares                         4              -               (71)             (71)

Retained loss for the period                                          (363)              (423)            (392)
Loss per share                   - basic                   5         (2.5)p             (2.5)p           (2.2)p
                                 - diluted                 5         (2.5)p             (2.5)p           (2.2)p



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





Group Balance Sheet
Unaudited Results for the six months to 31 March 2003
                                                                                 31 March          30 September
                                                                  2003               2002                  2002
                                                             Unaudited          Unaudited               Audited
                                                                 £'000              £'000                 £'000
Fixed assets
Intangible assets                                                2,304              2,305                 2,357
Tangible assets                                                  2,497              2,746                 2,630

                                                                 4,801              5,051                 4,987

Current assets
Stocks                                                             938                936                   895
Debtors: Amounts falling due within one year                       841              1,183                 1,259
Cash at bank and in hand                                           950                314                 1,176

                                                                 2,729              2,433                 3,330

Creditors: amounts falling due within one year                     933                865                 1,203

Net current assets                                               1,796              1,568                 2,127

Total assets less current liabilities                            6,597              6,619                 7,114

Creditors: amounts falling due after more than one                 434                  -                   499
year

Provisions for liabilities and charges                              60                184                   149

                                                                 6,103              6,435                 6,466

Capital and reserves
Called up share capital                                            143                143                   143
Share premium                                                    6,212              6,212                 6,212
Merger reserve                                                    (31)               (31)                  (31)
Profit and loss account                                          (221)                111                   142

Equity shareholders' funds                                       6,103              6,435                 6,466






Group Statement of Cashflows
Unaudited Results for the six months to 31 March 2003
                                                                          Six months to 31 March             Year to
                                                       Notes                                            30 September
                                                                        2003                2002                2002
                                                                   Unaudited           Unaudited             Audited
                                                                       £'000               £'000               £'000

Net cash inflow/(outflow) from operating                  6a             159                (11)                 635
activities

Returns on investments and servicing of finance
Interest received                                                         14                  11                  21
Interest paid                                                           (12)                 (3)                 (2)
Interest element of finance lease rental                                (17)                 (1)                (21)
payments
                                                                        (15)                   7                 (2)

Taxation
Corporation tax (paid)/repaid                                           (86)                  14                  13

Capital expenditure and financial investment
Payments to acquire intangible fixed assets                             (41)                (33)               (264)
Payments to acquire tangible fixed assets                              (182)               (676)               (756)

                                                                       (223)               (709)             (1,020)


Equity dividends paid                                                      -               (108)               (179)

Net cash outflow before financing                                      (165)               (807)               (553)

Financing
Repayment of long term loans                                               -                 (6)                (10)
Receipts from new finance leases                                           -                   -                 684
Repayment of capital element of finance leases                          (61)                (29)               (101)
and hire purchase contracts
                                                                        (61)                (35)                 573

(Decrease)/Increase in cash                                            (226)               (842)                  20

Reconciliation of net cashflow to movement in net funds
(Decrease)/Increase in cash                                            (226)                (842)                 20
Repayment of long term loans                                               -                    6                 10
Receipts from new finance leases                                           -                    -              (684)
Net repayments of capital element of finance                              61                   29                101
leases and hire purchase contracts

Movement in net funds                                                  (165)                (807)              (553)
Net funds at beginning of period                                         552                1,105              1,105

Net funds at end of period                         6b                    387                  298                552




Notes

Unaudited Results for the six months to 31 March 2003

1. Basis of preparation

The financial information in this interim statement is prepared under the
historical cost convention and in accordance with applicable accounting
standards. It does not constitute statutory accounts as defined in Section 240
of the Companies Act 1985. The financial information for the full preceding year
is based on the statutory accounts for the year to 30 September 2002. Those
accounts, upon which the auditors issued an unqualified opinion, have been
delivered to the Registrar of Companies.

The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year ended
30 September 2002. The taxation credit is calculated by applying the Directors'
best estimate of the annual tax rate to the loss for the period. Other expenses
are accrued in accordance with the same principles used in the preparation of
the annual accounts.

2. Basis of consolidation

The Group results consolidate the accounts of Zytronic Plc and all its
subsidiary undertakings drawn up to 31 March 2003.

3. Exceptional costs

The exceptional costs are reorganisation costs, principally redundancy and
associated costs.

4. Dividends

There is no interim dividend (2002: 0.5p per share).

5. Loss per share

The calculations of loss per share are based on a loss after taxation of
£363,000 (2002: £352,000) and a basic and diluted weighted average of 14,291,539
shares in issue (2002: 14,291,539). The calculations of loss per share for the
full year to 30 September 2002 are based on a loss after taxation of £321,000
and a basic and diluted weighted average of 14,291,539 shares in issue.

6. Notes to the Group statement of cash flows

 a. Reconciliation of operating loss to net cash inflow/(outflow) from operating
    activities:
                                                                                                    Year to
                                                                Six months to 31 March         30 September
                                                           2003               2002                     2002
                                                      Unaudited          Unaudited                  Audited
                                                          £'000              £'000                    £'000

Operating loss                                            (446)              (482)                    (394)
Depreciation                                                253                207                      458
Amortisation                                                 95                 79                      155
Profit on sale of fixed assets                                -                  -                        3
                                                           (98)              (196)                      222

Decrease in debtors                                         424                238                       87
(Increase)/Decrease in stocks                              (43)                 46                      164
(Decrease)/Increase in creditors                          (124)               (99)                      162


Net cash inflow/(outflow) from operating                    159               (11)                      635
activities


b) Analysis of net funds:
                                                                          31 March             30 September
                                                           2003               2002                     2002
                                                      Unaudited          Unaudited                  Audited
                                                          £'000              £'000                    £'000

Cash at bank and in hand                                    950                314                    1,176
External loans                                                -                (4)                        -
Finance leases                                            (563)               (12)                    (624)

                                                            387                298                      552



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