Interim Results
The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
9 September 2026
Nexteq plc
("Nexteq" or the "Group")
Interim Results
H1 strategic progress despite market headwinds; FY outlook reiterated
Nexteq (AIM: NXQ), a leading technology solutions provider to customers in selected industrial markets, is pleased to announce its unaudited interim results for the six months ended 30 June 2026.
The Group delivered a resilient performance, in line with Board expectations, notwithstanding challenging market conditions and amidst the Board's ongoing organisational refocus to deliver on the Group's three-year objectives. The Group reports increased order intake, continued revenue diversification across products and customers, strong pipeline progression and operational enhancements, providing increased confidence in the Group's future growth.
FINANCIAL HIGHLIGHTS
Six months to 30 June 2026
Six months to 30 June 2025
Change
Group revenue
$26.7m
$40.7m
(34%)
Quixant revenue
$12.8m
$26.9m
(53%)
Densitron revenue
$13.9m
$13.8m
1%
Group gross margin
30.3%
33.1%
(280bps)
Adjusted EBITDA1
$(2.8)m
$1.9m
(253%)
Adjusted Group (loss)/profit before tax1
$(4.0)m
$0.9m
(555%)
Group (loss)/profit before tax
$(4.7)m
$0.8m
(706%)
Adjusted diluted earnings per share1
(7.60)c
1.17c
(751%)
Diluted earnings per share
(8.73)c
1.04c
(942%)
Net cash from operating activities
$(0.8)m
$4.1m
(119%)
Net cash1
$(1.4)m
$25.0m2
1For details on adjusted measures refer to note 1 and note 4 of the condensed consolidated financial statements.
2Balance as at 31 December 2025.
·
Group revenue reflects challenging macro conditions, customer mix and the Group's usual H1 seasonality
-
As previously flagged, Quixant revenue impacted by volume reductions across major Gaming customers. Excluding the loss of Everi due to its acquisition by Apollo Funds, customer retention remained 100%.
- Densitron revenue in line with expectations, and at record margin performance.
·
Group gross margin impacted by the annualisation of Everi consolidation and significant increases in component pricing, partially offset by strong margin performance in Densitron.
·
Additional restructuring and cost saving measures in H1 2026 have led to meaningful overhead savings of $1.3m per annum.
·
Net cash position reflects strategic investment in critical components to optimise cost and lead times, the return of $8.5m to shareholders in H1 via dividends and share buybacks, and a short-term position on a $12m mortgage in Taiwan, which is expected to be reversed in H2 bringing a $15m increase in net cash.
OPERATIONAL SUMMARY
·
Customer retention and satisfaction remain at excellent levels, with trading volumes directly reflecting external market pressures affecting demand for our customers' end products.
·
Component management remained a key operational focus, with critical component availability, pricing and customer sourcing decisions impacting revenue and margin mix.
·
H1 commercial progress demonstrates delivery against the Group's strategy to grow more diversified, IP-led revenues, including wins secured across Launchpad, IDS and Broadcast.
·
Our Product roadmap for H2 2026 and FY2027 provides a clear framework for execution across new product development and customer onboarding.
·
Continued focus on delivering the optimal structure for delivery of the three-year plan, with focus on driving efficiency to deliver overhead savings.
CURRENT TRADING AND OUTLOOK
·
FY 2026 trading guidance remains in line with Management's expectations as detailed in the trading statement of 21 May 2026. Order coverage of 83% at end August supporting this belief in the full year forecast with Densitron customer forecasted demand on a short lead time, and remaining Quixant forecast supported by having stock on hand. Two significant orders are required in the Gaming business to secure the year end position.
·
Challenging market conditions in land-based Gaming are expected to persist through 2026 and 2027 as the impact of tariffs and continually increasing component costs hit customer confidence.
·
Pipeline development and major new wins will be onboarded through H2 2026 and 2027, with material P&L impact expected from 2028.
·
Profit expectations remain in line with the May and July trading statements, supported by strong margin performance in Densitron, while component cost pressures continue to impact Quixant margins.
·
Post period end, the Board has decided not to proceed with the planned Taiwan office move and has agreed to sell the property in October, reflecting the current trading position and the Group's focus on a more flexible, partner-led operating model. The Taiwan property sale is expected to realise a small profit.
·
The Board expects the cash balance to improve in H2, supported by the Group's normal second-half revenue weighting, and the unwind of strategic inventory positions and the c.$12m Taiwan mortgage position.
Duncan Faithfull, Chief Executive Officer of Nexteq, commented:
"H1 2026 was a challenging period for Nexteq, with the headwinds facing our end markets intensifying during the period. However, we continued to make progress against the areas that will build a stronger, more diversified business. As we enter our seasonally stronger second half, and with encouraging commercial progress against our strategy, our focus is on executing well: supporting our customers, converting our pipeline, developing the right products and ensuring we have the right operating model to deliver efficiently."
Investor Presentation
Nexteq is hosting an online presentation open to all investors on 9 September 2026, at 10.00am BST. Anyone wishing to connect should register here: https://www.investormeetcompany.com/nexteq-plc/register-investor.
1 The current consensus forecasts for the year ended 31 December 2026 are $73.0m revenue, $2.8m adjusted EBITDA and $0.0m adjusted profit before tax.
Nexteq plc
Carol Thompson, Non-Executive Chair
Duncan Faithfull, Chief Executive Officer
Matt Staight, Chief Financial Officer
Tel: +44 (0)20 3597 6800
Nominated Adviser and Broker:
Cavendish Capital Markets Ltd
Matt Goode / Teddy Whiley (Corporate Finance)
Harriet Ward (Corporate Broking)
Tel: +44 (0)20 7220 0500
Financial PR:
Alma Strategic Communications
Hilary Buchanan / Emma Thompson
Tel: +44 (0)20 3405 0205
About Nexteq
Nexteq (AIM: NXQ) is a strategic technology solutions provider to customers in selected industrial markets. Its innovative technology enables the manufacturers of global electronic equipment to outsource the design, development and supply of non-core aspects of their product offering. By outsourcing elements of their technology stack to Nexteq, customers can focus their product development effort on the most critical drivers of their business' success.
Our solutions are delivered through a global sales team and leverage the Group's electronic hardware, software, display and mechanical engineering expertise. Our Taiwan operation is at the heart of Asian supply networks and facilitates cost effective manufacturing and strategic supply chain management.
The Group operates in six countries and services over 500 customers across 47 countries.
Nexteq operates two distinct brands: Quixant, a specialised computer platforms provider, and Densitron, leaders in human machine interface technology, each with dedicated sales, account management and product innovation teams. Founded in 2005, and later floating on the London Stock Exchange's AIM stock market as Quixant plc, the Group rebranded to Nexteq in 2023.
Further information on Nexteq and its brands can be found at www.nexteqplc.com.
Group overview
Despite significant market headwinds, we continued to make progress against the plan we have set for Nexteq. The market dynamics facing our two trading brands were as previously communicated, with lower volume in land-based Gaming weighing materially on Group performance, while Densitron delivered a resilient performance, in line with expectations.
The impact was more pronounced in Quixant, our land-based Gaming business. The volume of Gaming cabinets being sold by our customers has been significantly impacted by the c.30% increase in cost of their own products. This was driven by the combination of tariffs and higher critical component pricing, including the impact of AI-related demand on critical component markets. In addition, revenue and gross margin were affected by some Gaming customers purchasing memory directly, reducing the level of pass-through component revenue.
Despite these challenges, our ability to manage the component markets effectively has meant that customer service has remained strong and customer retention remains excellent. The Board believes that, as market conditions normalise, volumes with these customers will return.
While we continue to focus on delivering core products for our Gaming customers, we are also investing in the new product development that will support the future growth of the Group. Launchpad is making excellent progress, despite the official US launch not yet having taken place. Alongside Launchpad, we are creating new computer solutions designed to offer greater flexibility to customers, with new formats and graphics solutions targeting new markets. In Densitron, our focus on new HMI solutions and patented IP is supporting opportunities in advanced display solutions, where we continue to see significant growth potential.
This progress is already translating into tangible commercial activity. Highlights during H1 include:
o
Three reported Broadcast wins have moved to mass production and will generate revenues through H2 2026.
o
Three new Launchpad customers integrated in H1 2026, moving to regulatory approval in H2 2026, securing new Gaming computer (hardware) wins alongside the recurring license-based Launchpad software.
o
Two new IDS control software solution agreements won, with mass production rolling through H2 2026.
The product roadmap for H2 2026 and 2027 is now in place, giving the Group a clear framework for execution across new product development, customer onboarding and operational efficiency. As we move through H2 2026, the Board expects to announce further major wins, which will drive our diversification strategy.
The progress we are making across Nexteq is underpinned by the talent, commitment and expertise of our people, who continue to deliver great innovation and service for our customers. I remain proud of the resilience and focus shown across the Group in challenging conditions, and excited by what we can achieve as we deliver the next phase of our plan.
Strategy
Our strategy is focused on building a stronger and more diversified Nexteq. We are doing this by continuing to support and retain our core Gaming customers, while developing new products and solutions that open up growth opportunities across both Quixant and in other sector verticals in Densitron. This includes broadening our product roadmap in Gaming, increasing our focus on software and IP-led revenue through Launchpad and IDS, and accelerating the growth opportunity in advanced display solutions.
At the same time, we are continuing to review the Group's operating model to ensure we have the right structure, cost base and capabilities to deliver the plan efficiently and support sustainable, profitable growth over the medium term.
Current Trading and Outlook
As previously communicated, trading in North American land-based gaming remains challenging, with customer demand continuing to be affected by tariff-related cost pressures and elevated component pricing. Against this backdrop, the Group continues to trade in line with revised expectations, with H2 revenue expected to significantly exceed H1, underpinned by the Group's usual second-half weighting, secured order coverage of 83% and the conversion of new customer wins into revenue. Cash generation is also expected to improve during H2 as the Taiwan mortgage position and strategic stock purchases unwind. The Board therefore reiterates the anticipated FY2026 outcome previously communicated.
Looking beyond FY2026, recent commercial activity is increasingly aligned with the Group's strategic objectives. New customer wins secured in H1 are expected to move through onboarding, regulatory approval and mass production during H2 2026 and 2027, supported by a product roadmap focused on advanced display solutions, core gaming computer platforms, Launchpad and IDS control software. While the material revenue benefit from these wins is expected to build over time, this activity supports confidence in a return to growth in FY2027 as Nexteq continues to build a more diversified and higher-quality revenue base.
Nexteq has faced prolonged challenging conditions, however, our relentless focus on delivering new product solutions will drive us to our objectives laid out in the three-year plan. Management remains focused on the areas within its control: rigorous cost management to mitigate the impact of market and component pricing pressures, the swift onboarding of new customer wins, and the development and execution of new products that support the Group's objective of delivering sustainable, profitable growth.
Group Financial Performance
Group revenues were 34% lower year on year at $26.7m (H1 2025: $40.7m), with Quixant revenue declining 53% to $12.8m (H1 2025: $26.9m) and Densitron increasing 1% to $13.9m (H1 2025: $13.8m). This reflects pressures on the Quixant Gaming business customers in North America impacting demand. Quixant board sales (volume) reduced to 9.7k in H1 2026, down 56% from the 21.9k shipped in H1 2025, with significant impact on High-end and Mid-range products sold to key customers.
Gross margin in H1 2026 was 30.3%, 280bps down from the 33.1% achieved in H1 2025. The decrease results from the DDR4 component pricing pressure and changes in Quixant customer mix. Densitron gross margin remained at the record level 38% delivered in 2025.
Adjusted operating expenses decreased by $0.8m to $12.2m (H1 2025: $13.0m), reflecting management's focus on cost control mitigating inflationary price increases.
Adjusted Group operating result in the first half was a loss of $4.1m, compared to the $0.5m profit reported in H1 2025. Statutory operating loss was $4.8m (H1 2025: $0.4m profit), reflecting the reduced revenue and gross margin in H1 2026.
Adjusted Loss before tax in the first half was $4.0m, compared to the $0.9m profit reported in H1 2025. Statutory loss before tax was $4.7m (H1 2025: $0.8m profit).
The adjustments to statutory loss before tax and statutory operating loss of $0.2m (H1 2025: $0.1m) comprised a share-based payments expense of $0.2m (H1 2025: $0.5m), restructuring costs of $0.5m (H1 2025: $nil), amortisation of acquired intangibles of $nil (H1 2025: $0.1m) and a revaluation gain on disposal of investment property of $nil (H1 2025: $0.2m).
The tax charge on adjusted loss before tax was $0.2m (H1 2025: $0.1m), an effective tax rate of 4.0% (H1 2025: 16.0%), driven by the mix of results across our regions in the first half. The tax charge on reported loss was $0.2m (H1 2025: $0.1m).
Adjusted diluted earnings per share was -7.60c, a reduction of 751% on H1 2025 (1.17c per share). Diluted earnings per share was -8.73c, a reduction of 942% on H1 2025 (1.04c per share).
Cash flow
Adjusted operating cash flow, which excludes tax payments, was -$0.4m (H1 2025: $3.9m), which resulted in adjusted operating cash conversion of 9% (H1 2025: 445%), reflecting the reduction in trading experienced in H1 2026.
The Group capitalised $1.4m of development costs (H1 2025: $0.9m), reflecting increased efforts on Launchpad, IQON-3 and Tactila in the build up to full launch of these new products.
Gross cash was $10.7m on 30 June 2026, compared with $25.3m on 31 December 2025. Net cash was -$1.4m on 30 June 2026, compared with $25.0m on 31 December 2025, reflecting the $12.0m mortgage on Taiwan property. The Taiwan property sale is expected to increase cash by over $3m and net cash by over $15m.
Share buyback
On 2 September 2025, the Group announced its intention to commence a further share buyback programme that was authorised by shareholders at a General Meeting on 18 September 2025. This buyback programme provided authority to purchase up to 10% of the Group's issued share capital, equating to 5,988,515 shares, principally with the intention of providing some short-term liquidity for the Group's shares. The buyback scheme returned $5.7m to shareholders in H1 2026.
The Board remains committed to allocating capital towards diversification of the Group's revenues into new market sectors, consistent with its growth strategy.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2026 AND 30 JUNE 2025
Note
Unaudited 30 June 2026
Unaudited 30 June 2025
$000
$000
Revenue
3
26,678
40,705
Cost of sales
(18,582)
(27,224)
Gross profit
8,096
13,481
Operating expenses
(12,859)
(13,111)
Operating (loss)/profit
(4,763)
370
Finance income
233
497
Finance expense
(136)
(97)
(Loss)/Profit before tax
1
(4,666)
770
Taxation
(207)
(138)
(Loss)/Profit for the period
(4,873)
632
Other comprehensive (expense)/income for the period
Foreign currency translation differences
(605)
2,756
Total comprehensive (expense)/income for the period
(5,478)
3,388
Basic earnings per share
4
($0.0873)
$0.0105
Diluted earnings per share
4
($0.0873)
$0.0104
The above condensed consolidated statement of profit and loss and other comprehensive income should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2026 AND AT 31 DECEMBER 2025
Unaudited 30 June 2026
31 December 2025
$000
$000
Non-current assets
Property, plant and equipment
19,855
4,643
Intangible assets
12,087
11,342
Right-of-use assets
1,726
2,025
Deferred tax assets
2,351
2,425
Trade and other receivables
-
61
36,019
20,496
Current assets
Inventories
23,972
16,456
Trade and other receivables
14,859
25,647
Cash and cash equivalents
10,670
25,306
Assets held for sale
1,045
1,066
50,546
68,475
Total assets
86,565
88,971
Current liabilities
Loans and borrowings
(590)
(93)
Trade and other payables
(15,289)
(15,456)
Lease liabilities
(312)
(448)
(16,191)
(15,997)
Non-current liabilities
Loans and borrowings
(11,516)
(191)
Provisions
(543)
(530)
Lease liabilities
(1,564)
(1,752)
(13,623)
(2,473)
Total liabilities
(29,814)
(18,470)
Net assets
56,751
70,501
Equity attributable to equity holders of the parent
Share capital
106
106
Share premium
6,747
6,747
Treasury shares
(13,284)
(7,612)
Share based payments reserve
1,206
1,068
Retained earnings
63,744
71,355
Translation reserve
(1,768)
(1,163)
Total equity
56,751
70,501
The above condensed consolidated balance sheet should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2026, 31 DECEMBER 2025 AND 30 JUNE 2025
Share
Treasury
Share
Translation
Share based
Retained
Total
capital
shares
premium
reserve
payments
earnings
equity
$000
$000
$000
$000
$000
$000
$000
Balance at 1 January 2025
106
(6,996)
6,747
(2,259)
888
72,134
70,620
Total comprehensive income for the period
Profit for the period
-
-
-
-
-
632
632
Other comprehensive income
-
-
-
2,756
-
-
2,756
Total comprehensive income for the period
-
-
-
2,756
-
632
3,388
Transactions with owners, recorded directly in equity
Treasury shares purchased
-
(643)
-
-
-
-
(643)
Share based payments
-
-
-
-
(11)
231
220
Dividend paid
-
-
-
-
-
(2,973)
(2,973)
Total contributions by and distributions to owners
-
(643)
-
-
(11)
(2,742)
(3,396)
Unaudited balance at 30 June 2025
106
(7,639)
6,747
497
877
70,024
70,612
Unaudited balance at 1 July 2025
106
(7,639)
6,747
497
877
70,024
70,612
Total comprehensive expense for the period
Profit for the period
-
-
-
-
-
1,293
1,293
Other comprehensive expense
-
-
-
(1,660)
-
-
(1,660)
Total comprehensive expense for the period
-
-
-
(1,660)
-
1,293
(367)
Transactions with owners, recorded directly in equity
Treasury shares purchased
-
1
-
-
-
-
1
Share-based payments
-
-
-
-
244
16
260
Deferred tax on share-based payments
-
-
-
-
(9)
-
(9)
Exercise of share options
-
26
-
-
(44)
22
4
Total contributions by and distributions to owners
-
27
-
-
191
38
256
Balance at 31 December 2025
106
(7,612)
6,747
(1,163)
1,068
71,355
70,501
Balance at 1 January 2026
106
(7,612)
6,747
(1,163)
1,068
71,355
70,501
Total comprehensive income for the period
Loss for the period
-
-
-
-
-
(4,873)
(4,873)
Other comprehensive expense
-
-
-
(605)
-
-
(605)
Total comprehensive expense for the period
-
-
-
(605)
-
(4,873)
(5,478)
Transactions with owners, recorded directly in equity
Share buy backs
-
(5,672)
-
-
-
-
(5,672)
Share based payments
-
-
-
-
138
97
235
Dividend paid
-
-
-
-
-
(2,835)
(2,835)
Total contributions by and distributions to owners
-
(5,672)
-
-
138
(2,738)
(8,272)
Unaudited balance at 30 June 2026
106
(13,284)
6,747
(1,768)
1,206
63,744
56,751
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2026 AND 30 JUNE 2025
Unaudited
Unaudited
30 June
30 June
2026
2025
$000
$000
Cash flows from operating activities
Profit for the year
(4,873)
632
Adjustments for:
Depreciation and amortisation
948
1,115
Loss on disposal of property, plant and equipment
21
10
Depreciation of leased assets
283
353
Provision for doubtful debts
11
252
Movement in provisions
27
30
R&D tax credit
(3)
(82)
Taxation charge
207
139
Finance income
(233)
(497)
Finance expense
136
4
Exchange rate gains
(41)
(120)
Share-based payment expenses
218
220
1,574
2,056
(Increase)/Decrease in trade and other receivables
10,920
(6,856)
(Increase)/Decrease in inventories
(7,695)
(373)
Increase/(Decrease) in trade and other payables
(287)
9,016
(361)
3,843
Interest paid
(1)
(1)
Tax received/(paid)
(411)
128
Net cash from operating activities
(773)
3,970
Cash flows from investing activities
Capitalised development expenditure
(1,375)
(912)
Acquisition of property, plant and equipment
(15,519)
(315)
Acquisition of intangible assets
(59)
(12)
Interest received
233
497
Net cash from investing activities
(16,720)
(742)
Cash flows from financing activities
Reduction/repayment of borrowings
(170)
(44)
Proceeds from loans
11,969
-
Mortgage interest paid
(70)
(3)
Lease liability interest paid
(61)
92
Payment of lease liabilities
(338)
(306)
Share buy-back
(5,672)
(642)
Dividends paid
(2,835)
(2,974)
Net cash from financing activities
2,823
(3,877)
Net decrease in cash and cash equivalents
(14,670)
(649)
Cash and cash equivalents at 1 January
25,306
29,469
Foreign exchange rate movements
34
(324)
Cash and cash equivalents at period end
10,670
28,496
The above condensed consolidated cash flow statement should be read in conjunction with the accompanying notes.
1. Basis of preparation and accounting policies
As is permitted by the AIM rules for Companies, the Directors have not adopted the requirements of IAS34 'Interim Financial Reporting' in preparing the interim financial statements. The financial information shown for the year ended 31 December 2025 in the interim financial information does not constitute full statutory financial statements as defined in Section 434 of the Companies Act 2006 and has been extracted from the Company's annual report and accounts. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2025 and any public announcements made by Nexteq Plc during the interim reporting period. The annual financial statements of the Group were prepared in accordance with UK adopted international accounting standards. Statutory accounts for the year ended 31 December 2025 have been filed with the Registrar of Companies and the auditor's report was unqualified, did not contain any statement under Section 498(2) or 498(3) of the Companies Act 2006 and did not contain any matters to which the auditors drew attention without qualifying their report.
The accounting policies applied by the Group in this condensed consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2025. The reporting currency adopted by the Group is the US Dollar as this is the trading currency of the Group.
The condensed consolidated interim financial information is neither audited nor reviewed and the results of operations for the six months ended 30 June 2026 are not necessarily indicative of the operating results for future operating periods.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the condensed consolidated interim financial report.
This condensed consolidated interim financial report was approved by the Board of Directors on 9 September 2026.
Reconciliation of adjusted measures
The Group uses certain alternative performance measures to evaluate performance and as a method to provide Shareholders with clear and consistent reporting. The Directors consider that these represent a more consistent measure of performance by removing items of income or expense which are considered significant by virtue of their size, nature or incidence or which have a distortive effect on current period earnings and are relevant to an understanding of the Group's financial performance. These measures include Adjusted Profit before tax, Adjusted Profit after tax, Adjusted Operating expenses, Adjusted Operating cash flow and Net cash. The Group's definition of adjusted measures may not be comparable to other similarly titled measures reported by other companies. See below for analysis of the adjusting items in reaching adjusted performance measures.
Adjusted (Loss)/Profit before tax
Six months ended 30 June 2026
$000
Six months ended 30 June 2025
$000
(Loss)/Profit before tax
(4,666)
770
Adjustments:
Amortisation of customer relationships, technology and order backlog1
-
91
Gain on disposal of investment property2
-
(206)
Share-based payments expense3
218
220
Restructuring costs4
469
-
Adjusted (Loss)/Profit before tax
(3,979)
875
1 The amortisation of customer relationships, technology and order backlog has been excluded as it is not a cash expense to the Group.
2 Gain on disposal of investment property has been excluded as it is an exceptional, non-recurring item.
3 Share-based payments expense has been excluded as it is not a cash-based expense.
4 Restructuring costs have been excluded as it is an exceptional, non-recurring item.
Adjusted (Loss)/Profit after tax
(Loss)/Profit after tax
(4,873)
632
Adjustments:
Amortisation of customer relationships, technology and order backlog
-
91
Gain on disposal of investment property
-
(206)
Share-based payments expense
218
220
Restructuring costs
469
-
Non-recurring tax benefits1
(54)
(26)
Adjusted (Loss)/Profit after tax
(4,240)
711
1 Tax on adjusted items relating to amortisation of customer relationships, technology and order backlog of $nil (H1 2025: $0.1m), revaluation gain on disposal of property of $nil (H1 2025: $0.2m), share-based payments expense of $0.2m (H1 2025: $0.2m) and restructuring costs of $0.5m (H1 2025: $nil).
Adjusted Operating (loss)/profit
Operating (loss)/profit
(4,763)
370
Adjustments:
Amortisation of customer relationships, technology and order backlog
-
91
Gain on disposal of investment property
-
(206)
Share-based payments expense
218
220
Restructuring costs
469
-
Adjusted Operating (loss)/profit
(4,076)
475
Adjusted Operating expenses
Operating expenses
(12,859)
(13,111)
Adjustments:
Amortisation of customer relationships, technology and order backlog
-
91
Gain on disposal of investment property
-
(206)
Share-based payments expense
218
220
Restructuring costs
469
-
Adjusted Operating expenses
(12,172)
(13,006)
Adjusted EBITDA
Six months ended 30 June 2026
$000
Six months ended 30 June 2025
$000
(Loss)/Profit before tax
(4,666)
770
Depreciation and amortisation
1,253
1,467
Finance Income
(233)
(497)
Finance expense
136
97
EBITDA
(3,510)
1,837
Adjustments:
Gain on disposal of investment property2
-
(206)
Share-based payments expense3
218
220
Restructuring costs4
469
-
Adjusted EBITDA
(2,823)
1,851
Adjusted Operating cash flow
Six months ended 30 June 2026
$000
Six months ended 30 June 2025
$000
Net cash from operating activities
(773)
4,062
Add back:
Tax paid/(received)
411
(128)
Adjusted Operating cash flow
(362)
3,934
Adjusted Operating Cash conversion % (Adjusted operating cash flow/Adjusted Profit before tax)
9%
445%
Net cash
Cash and cash equivalents
10,670
28,496
Loans and borrowings
(12,106)
(355)
Net cash
(1,436)
28,141
2. Business and geographical segments
The Chief Operating Decision Maker (CODM) in the organisation is an executive management committee comprising the Board of Directors. The segmental information is presented in a consistent format with management information. The Group assesses the performance of the segments based on a measure of revenue and profit before tax. The segmental split of the balance sheet is not reviewed by the CODM, and they do not look at assets/liabilities of each division separately but combined as a group. Therefore, this split for assets has not been included.
The operating segments applicable to the Group are as follows:
·
Quixant - Design, development and manufacturing of gaming platforms, cabinets, and display solutions for the casino gaming and slot machine industry.
·
Densitron - Sale of electronic display components to global industrial markets and custom Human Machine Interface (HMI) products to the Broadcast market. IDS is included in the Densitron reporting segment, due to the nature of IDS business, the products that are sold and the market that the business operates in are all consistent with that segment.
Reconciliation of segment results to profit after tax:
Six months ended
30 June 2026
Six months ended
30 June 2025
$000
$000
Quixant
3
4,803
Densitron
2,136
1,896
Segment results
2,139
6,699
Corporate cost
(6,902)
(6,329)
Operating (loss)/profit
(4,763)
370
Finance income
233
497
Finance expense
(136)
(97)
(Loss)/Profit before tax
(4,666)
770
Taxation
(207)
(138)
(Loss)/Profit after tax
(4,873)
632
Six months ended 30 June 2026
Six months ended 30 June 2025
$000
$000
$000
$000
$000
$000
Quixant
Densitron
Total
Quixant
Densitron
Total
Other information
Depreciation of owned assets
78
7
85
67
6
73
Amortisation of intangible assets
471
175
646
505
254
759
Impairment of intangible assets
-
-
-
-
-
-
549
182
731
572
260
832
1Depreciation and amortisation of $493k (H1 2025: $635k) were not allocated to segments as these were reported to the CODM as corporate costs.
3. Analysis of turnover
Six months ended 30 June 2026
Six months ended 30 June 2025
$000
$000
$000
$000
$000
$000
Quixant
Densitron1
Total
Quixant
Densitron
Total
By primary geographical market
Asia
1,106
4,349
5,455
1,411
3,600
5,011
Australia
5
27
32
307
57
364
UK
11
1,083
1,094
1,158
1,227
2,385
Europe excl. UK
1,191
3,977
5,168
840
3,774
4,614
North America
10,392
4,160
14,552
23,156
4,255
27,411
Rest of World
35
342
377
11
909
920
12,740
13,938
26,678
26,883
13,822
40,705
1Densitron Revenue from products splits into Densitron $13.5m (H1 2025: $13.3m) and IDS $0.4m (H1 2025: $0.5m). IDS Revenue includes service revenue of $0.3m (H1 2025: $0.3m) recognised throughout the performance period.
The above analysis includes sales to individual countries in excess of 10% of total turnover of:
Six months ended
30 June 2026
Six months ended
30 June 2025
$000
$000
USA
13,926
26,998
Japan
2,897
2,645
No revenues (H1 2025: $16.8m) are derived from any customers (H1 2025: three customers) who individually accounted for more than 10% of Group revenues in H1 2026.
4. Earnings per share
Six months ended
30 June 2026
Six months ended
30 June 2025
$000
$000
Earnings
Earnings for the purposes of basic and diluted EPS being net profit attributable to equity shareholders
(4,873)
632
Number of shares
Weighted average number of ordinary shares for the purpose of basic EPS
55,797,469
60,061,621
Effect of dilutive potential ordinary shares:
Share options2
-
863,143
Weighted number of ordinary shares for the purpose of diluted EPS
57,694,347
60,924,764
Basic earnings per share
($0.0873)
$0.0105
Diluted earnings per share
($0.0873)
$0.0104
2 No dilution of ordinary shares for H1 2026 based on the net loss position. The number of share options with dilutive potential at 30 June 2026 is 1,896,878.
Six months ended
30 June 2026
Six months ended
30 June 2025
Calculation of adjusted diluted earnings per share:
$000
$000
Earnings
Earnings for the purposes of basic and diluted EPS being net profit attributable to equity shareholders
(4,873)
632
Adjustments:
Amortisation of customer relationships, technology and order backlog
-
91
Revaluation of investment property
-
(206)
Share-based payments expense
218
220
Restructuring costs
469
-
Tax effect of adjustments
(54)
(26)
Adjusted earnings
(4,240)
711
Adjusted diluted earnings per share2
($0.0760)
$0.0117
5. Related party transactions
During the period, the Group paid €13,866 (H1 2025: €15,600) for administrative services to Francesca Marzilli, the wife of Nicholas Jarmany. Francesca Marzilli resigned on 10 June 2026. There were no other related party transactions, other than transactions with key management personnel, who are the Directors of the Company and the Executive Committee.
6. Post balance sheet events
The Company, through its Taiwan branch, accepted an offer in August 2026 from a third party to purchase its new office in Taipei, Taiwan. This non-binding offer includes the receipt of a returnable guarantee deposit of $1.5m. The sale transaction is expected to complete in October 2026.
On 24th June 2026, the Company announced that Nicholas Jarmany, Non-Executive Deputy Chair, would retire from the Board with effect from 31 August 2026. Nick co-founded the business in 2025 and served as Chief Executive Officer until 2018, when he became Deputy Chair.
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