Supplier News
UK – Zytronic slips to loss after Aruze’s Chapter 11
By Lewis - 1 June 2023
A mid-May filing by UK-based listed touchscreen manufacturer, Zytronic, shows the company slipping to a loss in half-year results due to market pressures, chief among which is the Chapter 11 bankruptcy of its client, Aruze Gaming America. The Chapter 11 filing has impacted the recovery of £300,000 in aggregate of trade receivables from two sources, originally due in February and March 2023. The bankruptcy has caused difficulties for Zytronic, which is trying to recover goods from two customers, Aruze Philippines Manufacturing Inc (APMI) and a South Korean display system integrator used by APMI to purchase touch products.
In its interim results for the six months ended 31 March 2023, the Blaydon On Tyne-headquartered business reported group revenue of £4.7m, which fell from £5.9m for the same period in 2022. A statement from Zytronic Interim Chairman, Mark Butcher, added: “The Group has observed a lower level of performance over the first half period of the year than was expected. Sales in H1 were £4.7m (2022: £5.9m), with some of this change related to degrees of overstocking by customers in Gaming and Vending, during FY2022, as a result of the supply chain uncertainties that were prevailing in the electronic components markets. The headwinds caused by the noted effects of the overstocking and Chapter 11 event are expected to remain to the end of the financial year.”
