TZ Limited bounces back from 12-month low

TZ Limited bounces back from 12-month low

Shares in security technology company TZ Limited (ASX:TZL) have recovered from last month's 12-month low of $0.275 per share, but are well below the lofty heights seen in April.

The intelligent fastening technology developer, which in May had acknowledged nearly collapsing under its debt obligations in June 2009, is today trading at $0.500.

This compares to a 12-month high of $0.970 per share in April. After a decline in late April and May, the company's share price has yet to see those heights again.

Announcements in June that the company is expecting a sales boom over the rest of the year, and that it has did little to stave off the decline.

The problem was exacerbated in July - just one month after the sales boom announcement - when TZ Limited issued a profit warning for its major subsidiary Telezygology

But with TZ in the middle of forming a joint venture – Intanova - with Interco and Yatabi Australia, investor confidence has improved.

The company's share price ended August over $0.10 higher than at the start of the month, and was trading at $0.545 on Friday.

TZ Limited has recorded a profit only twice in the past 10 years – in 2005 and 2006

But the company has wiped out the $24 million worth of long term debt it held in FY08, and has in general been improving its revenue and profit margins over the decade.

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