REG - Nexteq PLC - Interim Results
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RNS Number : 6812Y Nexteq PLC 10 September 2025
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.
10 September 2025
Nexteq plc
("Nexteq" or the "Group")
Interim Results
Resilient performance with strong order intake and cash generation
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 2025.
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 2025 Six months to 30 June 2024 Change
Group revenue $40.7m $48.2m (16%)
Quixant revenue $26.9m $30.9m (13%)
Densitron revenue $13.8m $17.3m (20%)
Group gross margin 33.1% 37.3% (420bps)
Adjusted EBITDA(1) $1.9m $5.8m (67%)
Adjusted Group profit before tax(1) $0.9m $5.0m (82%)
Group profit before tax $0.8m $4.7m (84%)
Adjusted diluted earnings per share(1) 1.17c 6.07c (81%)
Diluted earnings per share 1.04c 5.70c (82%)
Net cash from operating activities $4.1m $9.9m (59%)
Net cash(1) $28.1m $29.1m(2) (3%)
(1)For details on adjusted measures refer to note 1 and note 4 of the
condensed consolidated financial statements.
(2)Balance as at 31 December 2024.
· Revenue impacted by sales mix, with revenue seasonality also returning to the
historic trend of H2 weighting, having been H1 weighted in 2024.
· Gross margin declined, as expected, reflecting changes in product mix and
customer volumes within Quixant division. Densitron gross margin maintained at
record levels.
· Robust cost control with strategic actions taken in Q4 2024 to restructure the
business as OneNexteq delivering meaningful overhead savings of $1.2m per
annum.
· Strong cash position, reflecting positive cashflows partially off-set by
shareholder returns through dividends and share buy-backs.
OPERATIONAL HIGHLIGHTS
· Strong order intake, significantly ahead of the comparative period, securing
multi-year purchase orders from key customers.
· Ongoing diversification of Group revenues giving management confidence it will
report a higher number of $1m customers in 2025, ahead of the 10 reported for
2024.
· Supply chain challenges arising from Tariff management, and recent memory
component shortages leading to price increases are being managed with minimal
risk to performance.
· Nexteq new IP revenue grew to over $1m in the period, underpinned by sales of
Gaming cabinets and the award winning ProDeck.
· Across Nexteq, customer satisfaction and retention rates remain at excellent
levels.
· New Gaming Hardware Platforms have been delivered to our two historically
largest customers in record time as they go through their own acquisition
processes.
· Customer on-boarding following new wins in Industrial displays market
verticals, and the on-boarding process of the three new Broadcast customers
continues, with predicted revenue start dates of Q2 2026 now confirmed.
· Roadmap for innovation now developed for 2025 H2 and 2026.
CURRENT TRADING AND OUTLOOK
· Strong order intake providing order coverage of 2025 revenue expectations
notwithstanding a significantly lower opening order book position in January
2025.
· Revenue and profit before tax for 2025 expected to be in line with
expectations as set out in July trading update(1).
· Strong balance sheet supported by good operating cash generation, positioning
the Group for investment to drive future organic and acquisitive growth.
Duncan Faithfull, Chief Executive Officer of Nexteq commented:
"The H1 2025 result was a mixed picture in that the Group continues to face
the challenges associated with reduced demand from our historically largest
customers, but also proved that with the right focus on innovation, and
revenue diversification, that there is a positive sentiment about the future
trading periods for our business.
We are a product development business, and a very good one, with the spirit of
innovation at the core of our DNA. Following the significant reorganisation
of the business through H1, as we continually develop the 'One Nexteq'
principle, we have made massive steps on the delivery of new hardware
solutions across our focus target markets, as well as preparing for the launch
of our unique software proposition in the Gaming sector. I am very proud of
our product teams, who constantly supply a valuable source of inspiration
through their innovation agenda.
As with previous examples of supply chain challenges, Nexteq has risen to the
current challenges around memory component shortages, as well as the Tariffs
imposed by the USA. We have managed to negotiate both with minimal
disruption to our ability to deliver for our customers, from both a product
availability and pricing perspective. Having such close links to the far
east supply chains in these challenging situations is a real 'game changer'
for us versus our competition.
We are on track to deliver the expectation of stage one of the three-year
plan, and the Board remains confident that the renewed energy in the business,
and the revived focus on innovative product development, will unlock the
potential of the business through diversified revenues, and deliver the
results in the plan by the end of 2027. Nexteq's cash reserves provides the
Board with the opportunity to invest to accelerate growth, and to further
diversify revenue. We look forward to the remainder of 2025 and 2026, with a
clear plan to execute, and a robust financial position from which to grow.
We are proud of what we are creating at Nexteq, and always proud of our
wonderful team of people delivering for our customers."
Investor Presentation
Nexteq is hosting an online presentation open to all investors on 10 September
2025, at 10.00am BST. Anyone wishing to connect should register
here: https://www.investormeetcompany.com/nexteq-plc/register-investor
(https://www.investormeetcompany.com/nexteq-plc/register-investor) .
(1) The current consensus forecasts for the year ended 31 December 2025 are
$85.5m revenue, $6.0m adjusted EBITDA and $3.6m adjusted profit before tax.
Nexteq plc Tel: +44 (0)20 3597 6800
Carol Thompson, Non-Executive Chair
Duncan Faithfull, Chief Executive Officer
Matt Staight, Chief Financial Officer
Nominated Adviser and Broker: Tel: +44 (0)20 7220 0500
Cavendish Capital Markets Ltd
Matt Goode / Teddy Whiley (Corporate Finance)
Tim Redfern / Harriet Ward (Corporate Broking)
Financial PR: Tel: +44 (0)20 3405 0205
Alma Strategic Communications
Hilary Buchanan / Emma Thompson
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
Summary of H1 performance:
· H1 outcome in line with expectations, with ongoing market softness leading to
lower revenues than same period in 2024 and a shift back towards the
traditional H2 weighting.
· On track to deliver full year expectations as set out in the July trading
update.
· Significant progress being made against the three-year plan objectives, with
increased order intake; new Nexteq IP based revenue; and increase in $1m per
year customer numbers.
· Focus on revenue diversification with a new 'top 2' customer, and customer
on-boarding following new wins in Industrial displays market verticals
· New products and solutions across Gaming and Broadcast delivering impressive
pipeline growth, highlighting renewed focus on Innovation.
· Strong cash generation continues and M&A discussions ongoing with the aim
to deliver one completed deal by the end of 2025.
Strong order intake and progress across all signposts to success, supporting
the full year forecast
Whilst the Gaming and Industrial Displays markets have shown continued
softness, the Group has delivered a resilient performance in line with
expectations whilst making good strategic progress as it reaches the end of
the first six months of the new three-year plan. As detailed at the Capital
Markets Day (CMD) in February 2025, focus has been on developing the strategic
enablers of the Group's growth ambitions, with significant progress made
against strategic, and customer specific objectives. Key developments in line
with plan include:
· Opportunity Pipeline growth
The sales opportunity pipeline has increased by over 10% in H1 2025 with key
opportunities developed across both the Quixant gaming business and the
Densitron display business. This growth has been driven through a refreshed
marketing approach with investment focused on direct and social campaigns. The
consolidation of CRM systems remains on track to be completed in Q3 2025
which, in combination with the refreshed marketing approach, provides a strong
platform for future pipeline performance.
· $1m customers growth
Strong progress was made during H1 2025 in diversifying revenue across top
customers, with the increasing order book giving management confidence it will
report a higher number of $1m customers in 2025, ahead of the 10 reported for
2024. The order book from key customers indicates material progress towards
the Group's target of 20 customers with at least $1m of revenue in 2027.
Management also expects a more diversified spread of revenue across the $1m
customer base, with one >$1m customer providing significant year on year
organic growth and expected to become the Group's largest customer in 2025 for
the first time.
· Nexteq new IP revenue growth
Nexteq new IP-based revenue increased in H1 2025 with over $1m of revenue
delivered through its innovations of ProDeck, Tactila and Gaming Cabinet
solutions. Management expects continued growth of Nexteq new IP revenue in H2
2025 based on the order book, with Gaming cabinets on track to deliver at
least one $1m revenue customer in 2025 full year. As presented at the CMD,
innovation around our competencies is the focus of the Group, and under the
Quixant brand, Nexteq has been developing its new Gaming software solution.
This is being tested with the Gaming regulator ready to soft launch with
specific customers in October 2025, with the full launch now in January 2026
at the ICE trade show in Barcelona to target the new software core customer
base.
Trading Environment summary
In Gaming, uncertainty remains around the Group's largest customer, Everi.
Everi has recently been acquired by Apollo Global Management, as has
International Gaming Technology (IGT), to create an enlarged group focusing on
land-based gaming and fintech solutions. Nexteq has been focusing on
developing a new hardware platform solution for Everi, which has recently been
launched, as well as working with IGT across multiple geographic markets to
position us positively across the consolidated Apollo led organisation. We
continue to supply and support Everi, but our volumes are significantly down
as they prepare for their new future. We are currently in an Apollo RFP
process relating to contract manufacturing of the IGT North America board
volume, which would be material to the Group. The Everi North America volume
is not included in the RFP process at this time and hence Quixant continues
pursuant to our previous commercial arrangements.
Quixant has continued to develop its hardware platform portfolio and has
recently won a major new agreement with a North American Gaming customer,
which has replaced the reduction in Everi volume, and is on track to be the
new largest customer in 2025, on one of the newly developed hardware
platforms. As the Group seeks further diversification of its revenue base,
this is a key development, as are the opportunities in Brazil, where in H1
2025, the Group has developed partnerships and commercial agreements with the
major players in that jurisdiction, as the new Lottery market prepares to roll
out in the first states. The federal gaming law is due to be voted on in
September 2025 by the Brazilian senate.
The Densitron pipeline continues to grow strongly, with a new $1m customer
established in H1 2025 and growth back beyond $1m for a historical customer.
The Broadcast sector continues to be a major focus as the Group works to
integrate the three key customers won with Tactila solutions as progress is
made towards full mass production of this innovation.
Order intake performance is strong, as is cash generation, and the excellent
management of the complicated supply chain continues, with the Group seeing
little impact from the recent Tariff increases. As highlighted in the
trading update in July, planning around the current supply issues of a memory
component has been handled effectively, with no impact seen in H1 2025.
Current Trading and Outlook
Nexteq is pleased to confirm that order coverage has been secured to deliver
2025 full year revenue, and the outlook for the remainder of 2025 is continued
improvement on order intake, with revenue and profit expectations to be
achieved at year end. The Group is focused on pipeline growth; on-boarding new
customers already won; delivery of the innovation roadmaps across Quixant and
Densitron; and the ongoing evaluation of targeted M&A activity.
Our partners continue to seek suppliers which can be resilient through the
current component shortages, and who find solutions to unexpected impacts like
the tariff situation of H1, which is why through these uncertain times, Nexteq
retains its customer base.
Group Financial Performance
Group revenues were 16% lower year on year at $40.7m (H1 2024: $48.2m), with
Quixant revenue declining 13% to $26.9m (H1 2024: $30.9m) and Densitron
declining 20% to $13.8m (H1 2024: $17.3m). This reflects a timing change for
revenue, with 2024 being a unique year of H1 weighted revenue and 2025
returning to the normal pattern of H2 weighted revenue for the Group. Quixant
board sales (volume) increased to 21.9k in H1 2025, up 7% from the 20.5k
shipped in H1 2024, however the Quixant revenue decline results from changes
in product mix and refreshed pricing for key customers.
Gross margin in H1 2025 was 33.1%, 420bps down from the 37.3% achieved in H1
2024. The decrease results from the changes in Quixant product and customer
mix. Densitron gross margin remained at the record level delivered in 2024.
Adjusted operating expenses decreased by $0.7m to $13.0m (H1 2024: $13.7m),
reflecting the impact of restructuring completed at the end of 2024 and
focused management of the cost base in H1 2025.
Adjusted Group operating profit in the first half was $0.5m, compared to the
$4.4m reported in H1 2024. Statutory operating profit was $0.4m (H1 2024:
$4.0m), reflecting the reduced revenue and gross margin in H1 2025.
Adjusted Profit before tax in the first half was $0.9m, compared to the $5.0m
reported in H1 2024. Statutory profit before tax was $0.8m (H1 2024: $4.7m).
The adjustments to statutory profit before tax and statutory operating profit
of $0.1m (H1 2024: $0.3m) comprised a share-based payments expense of $0.2m
(H1 2024: $0.1m), amortisation of acquired intangibles of $0.1m (H1 2024:
$0.2m) and a revaluation gain on investment property $0.2m (H1 2024: $nil).
The tax charge on adjusted profit before tax was $0.1m (H1 2024: $0.8m), an
effective tax rate of 16.0% (H1 2024: 17.0%), driven by the mix of profits
across our regions in the first half. We expect the full year tax rate to be
within a range of 16-19% (2024: 16-19%). The tax charge on reported profit was
$0.1m (H1 2024: $0.8m).
Adjusted diluted earnings per share was 1.17c, a reduction of 81% on H1 2024
(6.07c per share). Diluted earnings per share was 1.04c, a reduction of 82% on
H1 2024 (5.70c per share).
Cash flow
Adjusted operating cash flow, which excludes tax payments, was $3.9m (H1 2024:
$11.3m), which resulted in adjusted operating cash conversion of 445% (H1
2024: 225%), reflecting the Group's ability to generate strong cash flows
despite a reduction in profitability.
The Group capitalised $0.9m of development costs (H1 2024: $1.0m), reflecting
increased support for recently launched products alongside focused innovation
across both Quixant and Densitron brands.
Net cash was $28.1m on 30 June 2025, compared with $29.1m on 31 December 2024,
and comprised cash and cash equivalents of $28.5m (H1 2024: $37.3m) and gross
debt of $0.4m (H1 2024: $0.4m).
Share buyback
The share buyback programme implemented in April 2024 and extended in July
2024, with authority to purchase up to 10% of the Group's issued share
capital, was fully utilised in H1 2025. This returned $7.5m to shareholders
through 2024 and H1 2025, with $0.6m of this returned in H1 2025.
On 2 September 2025, the Group announced its intention to commence a further
share buyback programme subject to authorisation by shareholders at a General
Meeting on 18 September 2025. This buyback programme would provide 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 Board remains committed to allocating capital towards diversification of
the Group's revenues into new market sectors, consistent with its growth
strategy.
The Group's capital allocation policy remains unchanged, with a cash
generative business model and strong balance sheet with good liquidity
allowing it to invest in the business to drive organic growth and take
advantage of acquisition opportunities. Priorities for capital allocation are:
- Maintain a strong balance sheet with good liquidity;
- Investment in acquisitions to progress the Group's ongoing growth and
diversification agenda;
- Maintain a progressive dividend payment; and
- Any excess cash not required for investment in the medium-term growth of the
business will be available for distribution to shareholders, including by
means of share buybacks.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2025 AND 30 JUNE 2024
Unaudited 30 June 2025 Unaudited 30 June 2024
Note
$000 $000
Revenue 3 40,705 48,231
Cost of sales (27,224) (30,221)
Gross profit 13,481 18,010
Operating expenses (13,111) (13,984)
Operating profit 370 4,026
Finance income 497 721
Finance expense (97) (65)
Profit before tax 1 770 4,682
Taxation (138) (797)
Profit for the period 632 3,885
Other comprehensive expense for the period
Foreign currency translation differences 2,756 (1,520)
Total comprehensive income for the period 3,388 2,365
Basic earnings per share 4 $0.0105 $0.0584
Diluted earnings per share 4 $0.0104 $0.0570
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 2025 AND AT 31 DECEMBER 2024
Unaudited 30 June 2025 31 December 2024
$000 $000
Non-current assets
Property, plant and equipment 5,092 5,688
Intangible assets 11,537 11,494
Right-of-use assets 2,133 2,403
Deferred tax assets 2,564 2,476
Trade and other receivables 0 61
21,326 22,122
Current assets
Inventories 20,179 17,435
Trade and other receivables 22,874 16,461
Cash and cash equivalents 28,496 29,469
Assets held for sale 1,062 -
72,611 63,365
Total assets 93,937 85,487
Current liabilities
Loans and borrowings (99) (87)
Trade and other payables (20,073) (11,775)
Lease liabilities (582) (501)
(20,754) (12,363)
Non-current liabilities
Loans and borrowings (256) (271)
Provisions (524) (355)
Lease liabilities (1,791) (1,878)
(2,571) (2,504)
Total liabilities (23,325) (14,867)
Net assets 70,612 70,620
Equity attributable to equity holders of the parent
Share capital 106 106
Share premium 6,747 6,747
Treasury shares (7,639) (6,996)
Share based payments reserve 877 888
Retained earnings 70,024 72,134
Translation reserve 497 (2,259)
Total equity 70,612 70,620
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 2025, 31 DECEMBER 2024 AND 30 JUNE 2024
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 2024 106 - 6,747 (810) 1,905 74,398 82,346
Total comprehensive income for the period
Profit for the period - - - - - 3,885 3,885
Other comprehensive expense - - - (1,520) - - (1,520)
Total comprehensive income for the period - - - (1,520) - 3,885 2,366
Transactions with owners, recorded directly in equity
Treasury shares purchased - (218) - - - - (218)
Share based payments - - - - 155 - 155
Exercise of share options - - - - - - -
Total contributions by and distributions to owners - (218) - - 155 - (63)
Unaudited balance at 30 June 2024 106 (218) 6,747 (2,330) 2,060 78,283 84,648
Unaudited balance at 1 July 2024 106 (218) 6,747 (2,330) 2,060 78,283 84,648
Total comprehensive income for the period
Profit for the period - - - - - (3,574) (3,574)
Other comprehensive income - - - 71 - - 71
Total comprehensive income for the period - - - 71 - (3,574) (3,504)
Transactions with owners, recorded directly in equity
Treasury shares purchased - (6,778) - - - - (6,778)
Share based payment credit - - - - (751) - (751)
Share based payments - - - - (181) - (181)
Deferred tax on share-based payment expense - - - - 21 - 21
Reserve transfer - - - - (261) 261 -
Dividend paid - - - - - (2,836) (2,836)
Total contributions by and distributions to owners - (6,778) - - (1,172) (2,575) (10,525)
Balance at 31 December 2024 106 (6,996) 6,747 (2,259) 888 72,134 70,620
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
Share buy backs - (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
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2025 AND 30 JUNE 2024
Unaudited Unaudited
30 June 30 June
2025 2024
$000 $000
Cash flows from operating activities
Profit for the year 632 3,885
Adjustments for:
Depreciation and amortisation 1,115 1,079
Loss on disposal of property, plant and equipment 10 (1)
Depreciation of leased assets 353 314
Provision for doubtful debts 252 412
Movement in provisions 30 4
R&D tax credit (82) (38)
Taxation charge 139 797
Finance income (497) (721)
Finance expense 4 65
Exchange rate losses/(gains) (120) 232
Share-based payment expenses 220 155
2,056 6,183
(Increase)/Decrease in trade and other receivables (6,856) 2,547
(Increase)/Decrease in inventories (373) 2,216
Increase/(Decrease) in trade and other payables 9,016 420
3,843 11,366
Interest received/(paid) (1) (12)
Lease liability interest paid 92 (49)
Tax received/(paid) 128 (1,455)
Net cash from operating activities 4,062 9,850
Cash flows from investing activities
Capitalised development expenditure (912) (980)
Acquisition of property, plant and equipment (315) (279)
Acquisition of intangible assets (12) (46)
Interest received 497 721
Net cash from investing activities (742) (584)
Cash flows from financing activities
Reduction/repayment of borrowings (44) (44)
Mortgage interest paid (3) (5)
Payment of lease liabilities (306) (305)
Share buy-back (642) (218)
Dividends paid (2,974) -
Net cash from financing activities (3,969) (572)
Net (decrease)/increase in cash and cash equivalents (649) 8,694
Cash and cash equivalents at 1 January 29,469 28,406
Foreign exchange rate movements (324) 241
Cash and cash equivalents at period end 28,496 37,341
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 2024 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 2024 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 2024 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
2024. 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
2025 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 10 September 2025.
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 Profit before tax
Six months ended 30 June 2025 Six months ended 30 June 2024
$000 $000
Profit before tax 770 4,682
Adjustments:
Amortisation of customer relationships, technology and order backlog(1) 91 179
Revaluation of investment property(2) (206) -
Share-based payments expense(3) 220 155
Adjusted Profit before tax 875 5,016
(1) The amortisation of customer relationships, technology and order backlog
has been excluded as it is not a cash expense to the Group.
(2) The revaluation gain on the 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.
Adjusted Profit after tax
Profit after tax 632 3,885
Adjustments:
Amortisation of customer relationships, technology and order backlog 91 179
Revaluation of investment property (206) -
Share-based payments expense 220 155
Non-recurring tax benefits(1) (26) (84)
Adjusted Profit after tax 711 4,135
(1) Tax on adjusted items relating to amortisation of customer relationships,
technology and order backlog of $0.1m (H1 2024: $0.2m), share-based payments
expense of $0.2m (H1 2024: $0.2m) and revaluation gain on investment property
$0.2m (H1 2024: $nil).
Adjusted Operating profit
Operating profit 370 4,026
Adjustments:
Amortisation of customer relationships, technology and order backlog 91 179
Revaluation of investment property (206) -
Share-based payments expense 220 155
Adjusted Operating profit 475 4,360
Adjusted Operating expenses
Operating expenses (13,111) (13,984)
Adjustments:
Amortisation of customer relationships, technology and order backlog 91 179
Revaluation of investment property (206) -
Share-based payments expense 220 155
Adjusted Operating expenses (13,006) (13,650)
Adjusted EBITDA
Six months ended 30 June 2025 Six months ended 30 June 2024
$000 $000
Profit before tax 770 4,682
Depreciation and amortisation 1,467 1,393
Finance Income 97 65
Finance expense (497) (721)
EBITDA 1,837 5,419
Adjustments:
Revaluation of investment property(2) (206) -
Share-based payments expense(3) 220 155
Adjusted EBITDA 1,851 5,574
Adjusted Operating cash flow
Six months ended 30 June 2025 Six months ended 30 June 2024
$000 $000
Net cash from operating activities 4,062 9,850
Add back:
Tax paid/(received) (128) 1,455
Adjusted Operating cash flow 3,934 11,305
Adjusted Operating Cash conversion % (Adjusted operating cash flow/Adjusted 445% 225%
profit before tax)
Net cash
Cash and cash equivalents 28,496 37,341
Loans and borrowings (355) (403)
Net cash 28,141 36,938
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 Six months ended
30 June 2025 30 June 2024
$000 $000
Quixant 4,803 8,014
Densitron 1,896 2,069
Segment results 6,699 10,083
Corporate cost (6,329) (6,057)
Operating profit 370 4,026
Finance income 497 721
Finance expense (97) (65)
Profit before tax 770 4,682
Taxation (138) (797)
Profit after tax 632 3,885
Six months ended 30 June 2025 Six months ended 30 June 2024
$000 $000 $000 $000 $000 $000
Quixant ( ) Densitron Total Quixant Densitron Total
Other information
Depreciation of owned assets 67 6 73 54 5 59
Amortisation of intangible assets 505 254 759 355 202 557
Impairment of intangible assets - - - - - -
572 260 832 409 207 616
(1)Depreciation and amortisation of $635k (H1 2024: $778k) were not allocated
to segments as these were reported to the CODM as corporate costs.
3. Analysis of turnover
Six months ended 30 June 2025 Six months ended 30 June 2024
$000 $000 $000 $000 $000 $000
Quixant ( ) Densitron(1) Total Quixant Densitron Total
By primary geographical market
Asia 1,411 3,600 5,011 497 5,096 5,593
Australia 307 57 364 1,259 18 1,277
UK 1,158 1,227 2,385 1,731 994 2,725
Europe excl. UK 840 3,774 4,614 2,588 4,677 7,265
North America 23,156 4,255 27,411 24,445 6,071 30,516
Rest of World 11 909 920 371 484 855
26,883 13,822 40,705 30,891 17,340 48,231
(1)Densitron Revenue from products splits into Densitron $13.3m (H1 2024:
$16.7m) and IDS $0.5m (H1 2024: $0.6m). IDS Revenue includes service revenue
of $0.3m (H1 2024: $0.2m) recognised throughout the performance period.
The above analysis includes sales to individual countries in excess of 10% of
total turnover of:
Six months ended Six months ended
30 June 2025 30 June 2024
$000 $000
USA 26,998 30,255
Revenues of $16.8m (H1 2024: $20.8m) are derived from three customers (H1
2024: three customers) who individually accounted for more than 10% of Group
revenues in H1 2025. These revenues are attributed to the Quixant segment.
4. Earnings per share
Six months ended Six months ended
30 June 2025 30 June 2024
$000 $000
Earnings
Earnings for the purposes of basic and diluted EPS being net profit
attributable to equity shareholders
632 3,885
Number of shares
Weighted average number of ordinary shares for the purpose of basic EPS 60,061,621 66,510,153
Effect of dilutive potential ordinary shares:
Share options 863,143 1,602,231
Weighted number of ordinary shares for the purpose of diluted EPS 60,924,764 68,112,384
Basic earnings per share $0.0105 $0.0584
Diluted earnings per share $0.0104 $0.0570
Six months ended Six months ended
30 June 2025 30 June 2024
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
632 3,885
Adjustments:
Amortisation of customer relationships, technology and order backlog 91 179
Revaluation of investment property (206) -
Share-based payments expense 220 155
Tax effect of adjustments (26) (84)
Adjusted earnings 711 4,135
Adjusted diluted earnings per share $0.0117 $0.0607
5. Related party transactions
During the period, the Group paid €15,600 (H1 2024: €15,600) for
administrative services to Francesca Marzilli, the wife of Nicholas Jarmany.
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
On 2 September, the Group announced its intention to commence a further share
buyback programme subject to authorisation by shareholders at a General
Meeting on 18 September. This buyback programme would provide authority to
purchase up to 10% of the Group's issued share capital, equating to 5,988,515
ordinary shares of 0.1 pence each. The buyback would return a maximum of
£6.0m to shareholders.
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