REG - Nexteq PLC - Trading Update and Notice of Results

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RNS Number : 3181P  Nexteq PLC  19 January 2026

19 January 2026

Nexteq plc

("Nexteq" or the "Group")

Trading Update and Notice of Results

 

Nexteq (AIM: NXQ), a leading technology solutions provider to customers in
selected industrial markets, today provides an update on trading for the
financial year ended 31 December 2025 ("FY25").

Trading performance

As announced in December 2025, the Board is pleased to reconfirm that FY25
trading is expected to be in line with market expectations. This reflects a
performance slightly ahead of the guidance laid out at the Capital Markets
event in February 2025, with revenue of $90.2m (FY24: $86.7m) and strong
progress made across the Group's signposts to success, particularly in
increasing the number of $1m customers.  Full year adjusted profit before tax
is expected to be not less than market consensus forecast of $3.6m(1,)
reflecting a change in customer mix, and the impact of increases in critical
component costs, especially memory in Quixant computers.

The Quixant brand posted revenues of $60.1m, up 10% against the $54.8m
recorded in 2024, despite its historically largest customer by value trading
at a significantly lower level in 2025 due to the customer's ongoing corporate
activity, as previously flagged. Consequently, and as a result of the focus on
new business generation, Quixant secured a new largest customer in 2025. The
Industrial Displays brand, Densitron, delivered revenues of $30.1m (FY24:
$31.9m), driven by the continuing impact of end-of-life components, and the
long implementation cycles of significant new business wins.

Financial position

Net cash on 31st December 2025 was $25.1m (FY24: $29.1m), reflecting the
continued generation of positive operating cash flow, offset by increased
investment in product development.  Furthermore, the Group returned $3.6m of
cash to shareholders in the first half of 2025 through dividends and its first
share buy-back programme.

Outlook

The outlook for FY26 remains in line with previous guidance.   Significant
new customer wins in 2025 will be on-boarded through 2026, and the Board
expects continuing positive order book momentum from new product
introductions, including the innovative Gaming Software solution, LaunchPad,
being formally launched in January 2026, alongside the realisation of previous
large customer wins.

Operating costs remain under control in 2026, with savings made in the second
half of 2025 allowing investment in new customer acquisition and integration
support.

As has been widely reported, the ongoing issues in availability and the
associated cost increases of DDR4 memory used in Quixant computers represents
a potential risk in 2026. Through its procurement team located in Taiwan,
Nexteq has been successful in managing the supply chain risks over recent
years and is confident in its ability to secure the components needed for
2026. Nexteq is managing cost increases with its customer base, and, through
its excellent customer and supplier relationships, developing engineered
solutions which allow multiple vendors' DDR4 to be interchanged seamlessly as
availability changes between the DDR4 suppliers. The launch of DDR-5 variants
of key products is a key risk mitigation strategy which will allow multiple
product lines to move away from DDR4 reliance in 2026.

Notice of Results

The Group expects to report its full year results for 2025 on 18th March 2026.

Duncan Faithfull, Chief Executive Officer of Nexteq plc, commented: "I am
delighted with what Nexteq achieved in 2025, delivering revenue growth, and
profit expectations.  However, 2025 also saw a number of challenges, with
continuing end-of-life and component issues, alongside the implementation of
tariffs in North America on our customers' customers and the impact on their
capital investments.  As ever, Nexteq managed the supply chain challenges
excellently and delivered consistently for its customers.

The Group continues to focus on its 'signposts to success', delivering
pipeline growth through its new product development; increased revenue
generation from Nexteq recently developed IP; and accelerating diversification
of revenue as we deliver more $1m annual revenue customers.  2026 will be
incredibly exciting as we launch new solutions in Densitron, and our 'game
changing' Gaming Software product alongside a new range of Gaming Computers.

Nexteq continues to show great growth potential, and focus will be on pipeline
conversion to ensure that potential is realised in 2027 and beyond."

 

(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)1223 892 696

 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 / Edward 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. Through innovative technology solutions, it
enables 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.

The Group operates in six countries and services over 500 customers worldwide,
and its 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.

Nexteq operates two distinct brands: Quixant, a specialised computer platforms
provider, and Densitron, leaders in human machine interface. 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 divisions can be found at
www.nexteqplc.com.

 

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