Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of specialist manufacturer Zytronic PLC (LON: ZYT) are falling on Friday after the company said the constraints imposed by the coronavirus pandemic have taken a toll on its profitability.
The group revealed its operations have taken into account lower levels of demand due to the pandemic with the downturn in sales experienced in the second half of last year now levelling out at approximately £2 million for the quarter ending September 30th 2020, and the first quarter of this financial year to December 31st 2020.
The UK-based company underwent reorganisation and cost reduction measures last year, which has enabled it to maintain a positive EBITDA and see a slight increase in new orders.
However, they are continuing to encounter difficulties in major overseas markets such as gaming, and the business does not see profitability returning in the current financial year with a recovery to historic levels depending on the current vaccination programme.
Zytronic’s stock price fell as low as 121p per share following the news. It is currently trading at 130p down 13.20%.
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