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RNS Number : 1690F  Nexteq PLC  21 May 2026

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.

21 May 2026

Nexteq plc

("Nexteq" or the "Company")

Trading Update

Nexteq plc (AIM: NXQ), a leading technology solutions provider to customers in
selected industrial markets, today provides the following update on trading.

As highlighted with the Group's FY25 results in March, the Group continues to
navigate a challenging trading environment, with global geopolitical
uncertainty impacting customer confidence.

In the Group's Quixant division, which serves the land-based gaming market,
trading conditions have been impacted indirectly by US tariffs, and directly
by higher costs for critical memory and storage components (DDR4 and DDR5),
which have increased our customers' prices to end markets. These factors have
affected demand resulting in the continued softening of order coverage,
meaning the Board now believes that revenue for 2026 will fall below its
previous expectations. The Board believes these factors will be temporary
albeit it is difficult to accurately predict when they will abate given
current macro-economic uncertainty.

The Group's Densitron division, which serves targeted verticals in the
industrial market, has also experienced challenges with specific customer
demand but remains on track to deliver year on year growth, with improved
margins on new customer wins continuing through its strategy to offer 'more
than the display'.

As a result of the continuing uncertainty in the Quixant business, FY26 Group
revenue is now expected to be approximately 15% below previous market
expectations(1) with a consequential impact on adjusted profit before tax.
More pleasingly, current gross margin % performance is expected to continue
through FY26. The Board and Executive team remain strongly focussed on cost
management to mitigate the impact on profitability as far as possible.

The Board remains confident in the Group's ability to return to growth in
2027, with the opportunity pipeline continuing to grow across both Quixant and
Densitron businesses in H1 2026, and recent wins with LaunchPad gaming
software platform and in Densitron provide encouraging signs into 2027 and
beyond given the typical customer integration cycle. In addition, the
opportunity for Quixant in Brazil is crystallising, with significant growth
potential in 2027.

Duncan Faithfull, CEO of Nexteq commented:

"The combination of significantly increased costs of critical components, and
the effect of US trade tariffs has impacted the run rates of our clients in
the Gaming industry. The uncertainty around the future run rates of our
existing Quixant client base is driving the temporary reduction in
expectation, but with 100% retention of customers, we are confident that
normal volume levels will return through 2027.  Our exciting new products are
driving pipeline growth and new business conversion across both brands, and
will positively impact revenues and margins in 2027 and beyond."

(1)FY26 consensus market expectations at the date of this announcement are
$85.0m revenue, $4.8m adjusted EBITDA and $2.0m 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)

 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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