Zytronic, a London-listed manufacturer of touch screen technology, will wind down after being unable to secure an attractive sale of its trading subsidiary.
The Newcastle-based company, which employs around 50 staff, has been seeking a buyer since late 2024.
According to Zytronic, the company’s performance has never recovered to pre-Covid levels, and despite a 22% revenue increase in its most recent financial results, it remained unable to continue as is. Pre-tax losses for 2024 were £600,000.
It was concluded in November, following a strategic review, that a sale would be the only chance to make a return to shareholders.
Though a handful of suitors were found, none were able to provide a good enough offer to justify a deal.
The board announced on Wednesday that it will commence the orderly wind-down of the company’s assets.
Shares in Zytronic tumbled by as much as 27% at the opening of trading.
“At this stage, there can be no guarantee as to the level of returns, that may be available to shareholders,” the board said.
The wind-down process will be handled by FRP Advisory.
Zytronic’s net cash position is around £3m, not including wind-down costs.
The company was listed on the London Stock Exchange in 2000 at a share price of 116.5p. The group’s shares peaked in 2017, reaching 607.5p before tanking by more than 90%.
Zytronic designs composite component touch technologies that have been used by Coca-Cola in its touch screen-operated machines. The group has also provided touch tech to Bosch, Siemens, the Natural History Museum and Microsoft.