Zytronic Faces Potential Rescue Amid Strategic Changes
Deal News | Feb 03, 2025 | Business Cloud
Zytronic, a Gateshead-based tech firm known for manufacturing touch overlay sensors for interactive displays, is exploring avenues for rescue after receiving multiple offers for its subsidiary and assets. The firm, publicly listed, witnessed longtime Managing Director Mark Cambridge step down, a move planned in its ongoing transformation strategy. Sales figures have significantly dropped from £20 million in 2019 to an expected £7.2 million for the fiscal year ending September 2024, with impacts from the bankruptcy of key customer Aruze Gaming America in North America and supply chain challenges exacerbating the firm's troubles. The potential paths for Zytronic include implementing a new business plan, solvent liquidation, selling its assets, or transforming into a private entity. FRP Advisory is working closely with the Zytronic board, which is reviewing preliminary offers from interested parties. Whether Zytronic will opt for a liquidation, sale, or another strategic route remains uncertain as they continue to evaluate these preliminary expressions of interest.
Sectors
- Technology
- Manufacturing
- Corporate Restructuring
Geography
- United Kingdom – Zytronic is a UK-based company listed on the London Stock Exchange and has its factories in Blaydon, Gateshead.
- North America – Zytronic's customer base in North America, affected by the bankruptcy of Aruze Gaming America, has impacted its financial health.
Industry
- Technology – The article deals with Zytronic, which manufactures touch sensors used in various tech applications, highlighting the technology sector.
- Manufacturing – Zytronic's operations involve the production of touch overlay sensors, placing the company in the manufacturing sector.
- Corporate Restructuring – Due to potential solvent liquidation and strategic reviews, the article revolves around corporate restructuring themes.
Financials
- 7.2 million – Expected unaudited revenues for the financial year ending September 2024.
- 8.6 million – Revenue reported in 2023.
- 20 million – Sales generated by Zytronic in 2019.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Zytronic | Target Company | Company | A manufacturer of touch overlay sensors, undergoing a strategic review due to declining sales. |
| Zytronic Displays Limited | Subsidiary | Company | A trading subsidiary of Zytronic, for which preliminary offers have been received. |
| FRP Advisory | Corporate Finance | Company | Firm facilitating the restructuring efforts and advising on Zytronic's potential rescue. |
| Mark Cambridge | Former Managing Director | Person | Served Zytronic for 25 years, stepping down as part of the strategic restructuring. |
| Aruze Gaming America | Customer | Company | A significant customer whose bankruptcy impacted Zytronic's sales in North America. |