Interim Results

Zytronic PLC
13 May 2004


For Immediate Release                                                13 May 2004


                              ZYTRONIC PLC
          Interim Results for the Six Months to 31 March 2004


Zytronic plc, a leading specialist manufacturer of touchscreens and optical
filters for electronic displays, announces its interim results for the six
months to 31 March 2004.

Highlights

  • Turnover increased 54% to £3.9m (2003: £2.5m);

  • Loss before tax substantially reduced to £71,000 (2003: £451,000 loss);

  • Increased acceptance of Zytouch in the market place has led to continued
    improvement in orders and sales;

  • First significant sales of Zytouch in the gaming sector as well as first
    orders from petrol pump market;

  • Zytronic now specified as sole supplier of touchscreens to world leading
    ATM manufacturer;

  • Order book continues to strengthen; and

  • On outlook, Chairman John Kennair said:

'Internally, work is being focused towards improving the profitability of the
business. Although such work will take time to have an impact, I hope to be able
to report real progress in my next Chairman's statement.'


Enquiries:

Zytronic plc                                (Today: 020 7466 5000; thereafter 0191 414 5511)
Ian Lawson, Chief Executive

Denis Mullan, Finance Director

Buchanan Communications                     020 7466 5000
Richard Darby, Isabel Petre


Notes to Editors

Zytronic Plc is a world leader in the development and manufacture of customised
optical filters to enhance electronic display performance. It is also an
innovator in the production of specialised safety related glass and transparent
laminates for niche markets.

Through Zytronic's lamination expertise, the Company has developed a unique
range of touchscreen products which are sensitive to a pointing device through
an anti-vandal screen in front of the display. This system offers significant
benefits to electronic display manufacturers.


Chairman's Statement

In my statement to shareholders of 6 February 2004 which accompanied last year's
Annual Report, I stated that increased acceptance of Zytouch in the market place
had led to an improvement in orders and sales in the second half of last year.
This trend has continued into the first half of the current financial year
resulting in a substantial improvement, but it is disappointing that, despite
some currency hedging, adverse foreign exchange movements have had an impact on
the profitability of the business.

The management are continuing with steps to mitigate the impact of any future
adverse currency movements.  I will also be taking a greater executive role in
the business to assist management in ensuring that the current growth in sales
is reflected in a more substantial improvement in profitability.


Results

Whilst sales at £3.9m (£2.5m - 2003) were over 54% higher than in the
corresponding period last year, the pre-tax loss was a disappointing £71,000
(£451,000 - 2003) as a result of the significant fall in the value of the US
Dollar.

The reduction in cash over the period is due to increased working capital
associated with the higher turnover.


Trading

Zytouch, the Group's touchscreen product, has continued to improve its market
penetration, including the first significant sales in the gaming sector.

Following three years of development, we have received the first orders for the
petrol pump market which are to be delivered in the summer of this year.  Also,
one of the world's leading ATM manufacturers of automatic cash dispensers
(ATMs), who previously used Zytouch for external applications only, has now
specified Zytouch for all its ATM touchscreen range.


Outlook

The order book continues to strengthen.

Internally, work is being focused towards improving the profitability of the
business.  Although such work will take time to have an impact, I hope to be
able to report real progress in my next Chairman's statement.

                                                                 J M Kennair MBE
                                                                        Chairman

                                                                     13 May 2004

ZYTRONIC PLC
Group Profit and Loss Account
Unaudited Results for the six months to 31 March 2004

                                            Notes         Six months      Six months            Year to
                                                         to 31 March     to 31 March       30 September
                                                                2004            2003               2003
                                                           Unaudited       Unaudited            Audited

                                                               £'000           £'000              £'000

Turnover                                                       3,853           2,497              5,690

Cost of sales                                                  2,783           1,880              4,075

Gross profit                                                   1,070             617              1,615


Distribution costs                                                54              35                 80
Administrative expenses - ordinary                             1,078             946              1,801
activities
               - exceptional costs            3                    -              82                 87
     
                                                               1,078           1,028              1,888

                                                               1,132           1,063              1,968


Operating loss                                                  (62)           (446)              (353)


Interest payable                                                (13)            (19)               (35)
Interest receivable                                                4              14                 22

Loss on ordinary activities before                              (71)           (451)              (366)
taxation


Tax credit on loss on ordinary activities     4                   28              88                 59

Loss on ordinary activities after                               (43)           (363)              (307)
taxation

Ordinary dividend on equity shares            5                    -               -                  -

Retained loss for the period                                    (43)           (363)              (307)

Loss per share                -   basic       6               (0.3)p          (2.5)p             (2.1)p
                              -   diluted     6               (0.3)p          (2.5)p             (2.1)p


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


ZYTRONIC PLC
Group Balance Sheet
Unaudited Results for the six months to 31 March 2004

                                                                31 March      31 March       30 September
                                                                    2004          2003               2003
                                                               Unaudited     Unaudited            Audited

                                                                   £'000         £'000              £'000
Fixed assets
Intangible assets                                                  2,194         2,304              2,235
Tangible assets                                                    2,158         2,497              2,258

                                                                   4,352         4,801              4,493

Current assets
Short term property investment                                        75             -                 75
Stocks                                                             1,352           938              1,086
Debtors: Amounts falling due within one year                       1,725           841              1,134
Cash at bank and in hand                                             308           950                954

                                                                   3,460         2,729              3,249

Creditors: amounts falling due within one year                     1,308           933              1,126

Net current assets                                                 2,152         1,796              2,123

Total assets less current liabilities                              6,504         6,597              6,616

Creditors: amounts falling due after more than one year              298           434                367

Provisions for liabilities and charges                                90            60                 90


                                                                   6,116         6,103              6,159

Capital and reserves
Called up share capital                                              143           143                143
Share premium                                                      6,212         6,212              6,212
Merger reserve                                                         -          (31)                  -
Profit and loss account                                            (239)         (221)              (196)

Equity shareholders' funds                                         6,116         6,103              6,159


ZYTRONIC PLC
Group Statement of Cashflows
Unaudited Results for the six months to 31 March 2004

                                                Notes      Six months    Six months               Year
                                                          to 31 March   to 31 March    to 30 September
                                                                 2004          2003               2003
                                                                                               Audited
                                                            Unaudited     Unaudited
                                                                £'000         £'000              £'000

Net cash (outflow)/inflow from operating
activities                                        7a            (425)           159                365

Returns on investments and servicing of finance
Interest received                                                   4            14                 22
Interest paid                                                       -          (12)               (11)
Interest element of finance lease rental                         (13)          (17)               (34)
payments

                                                                  (9)          (15)               (23)

Taxation
Corporation tax (paid)                                              -          (86)               (86)

Capital expenditure and financial investment
Payments to acquire intangible fixed assets                      (20)          (41)               (80)
Payments to acquire tangible fixed assets                       (127)         (182)              (198)
Payments to acquire short term property investment                  -             -               (75)

                                                                (147)         (223)              (353)


Net cash outflow before financing                               (581)         (165)               (97)

Financing
Repayment of capital element of finance leases                   (65)          (61)              (125)

Decrease in cash                                                (646)         (226)              (222)


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

Decrease in cash                                                  (646)            (226)            (222)
Net repayments of capital element of finance
leases                                                               65               61              125

Movement in net funds                                             (581)            (165)             (97)
Net funds at beginning of period                                    455              552              552

Net (debt) / funds at end of period                 7b            (126)              387              455


ZYTRONIC PLC
Notes
Unaudited Results for the six months to 31 March 2004

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 2003.
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 2003.  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 2004.


3.  Exceptional costs

The exceptional costs in 2003 are reorganisation costs, principally redundancy
and associated costs.


4.   Tax Credit on loss on ordinary activities

The estimated tax rate for the year of 40% has been applied to the half year's
loss before tax, in accordance with the ASB's statement on interim reports.


5.  Dividends

There is no interim dividend (2003:  NIL).


6.  Loss per share

The calculations of loss per share are based on a loss after taxation of £43,000
(2003: £363,000) and a basic and diluted weighted average of 14,291,539 shares
in issue (2003: 14,291,539). The calculations of loss per share for the full
year to 30 September 2003 are based on a loss after taxation of £307,000 and a
basic and diluted weighted average of 14,291,539 shares in issue.


7.  Notes to the Group statement of cash flows

a)   Reconciliation of operating loss to net cash (outflow)/inflow from
     operating activities:
                                                Six months       Six months           Year to
                                               to 31 March      to 31 March      30 September
                                                      2004             2003              2003
                                                 Unaudited        Unaudited           Audited

                                                     £'000            £'000             £'000

Operating loss                                        (62)            (446)             (353)
Depreciation                                           241              253               498
Amortisation                                           110               95               202
                                                       289             (98)               347

(Increase)/Decrease in debtors                       (563)              424               130
Increase in stocks                                   (266)             (43)             (191)
Increase/(Decrease) in creditors                       115            (124)                79


Net cash (outflow)/inflow from operating
  activities                                         (425)              159               365


b)   Analysis of net (debt) / funds:
                                                  31 March         31 March    30 September
                                                      2004             2003            2003
                                                 Unaudited        Unaudited         Audited

                                                     £'000            £'000           £'000

Cash at bank and in hand                               308              950             954
Finance leases                                       (434)            (563)           (499)

                                                     (126)              387             455




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