Quixant PLC – Final Results

Quixant PLC – Final Results

Quixant (AIM: QXT), a leading provider of specialised computing platforms and monitors for gaming and slot machine applications, is pleased to announce its Final Results for the year ended 31 December 2018.

Financial Highlights:

  • Revenue growth of 5% to $115.2 million (2017: $109.2 million)
    •  Quixant Gaming division revenue $77.6m (2017: $71.1m)
    –      Gaming Platforms revenue $62.5m (2017: $54.8m)
    –      Gaming Monitors revenue $15.1m (2017: $16.3m)
    •  Densitron division revenue of $37.5m (2017: $38.1m)
  • Adjusted1 pre-tax profit up 3% to $18.2m (2017: $17.7m)
  • Pre-tax profit down 5% to $14.3m (2017: $15.0m) including $3.0m restructuring costs
  • Adjusted2 diluted EPS up 14% to $0.260/share (2017: $0.229/share)
  • Diluted EPS up 8% to $0.213/share (2017: $0.197/share)
  • Net cash from operating activities up 40% to $11.3m (2017: $8.1m)
  • Net cash at period end of $9.7m (2017: $4.5m)
  • Proposed full year dividend of 3.1p per share (2017: 2.6p), an increase of 19%

1.     Adjusted by adding back items included in the adjusted PBT reconciliation in note 2 to the financial statements totalling $3.9m (2017: $2.7m).
2.     Adjusted by adding back the items included in note 1 above and subtracting the associated tax effect as set out in note 3 to the financial statements. In 2018 these amounted to $3.1m (2017: $2.1m).

Operational highlights

  • Increased market share in the core Gaming Division to 13%, supplying 61,000 platforms (2017: 11% and 52,000)*
  • Enhanced features added to the Gaming Ecosystem®, expanding Quixant’s routes to market
  • New products launched by Densitron to target the broadcast market
  • Enhanced Group structure to create more scalable operations
  • Appointment of key senior management, including Guy Millward as Chief Financial Officer and Andrew Miller as Head of Corporate Operations
  • Significant long-term growth opportunities, including opening of the market in Japan

*Source: G3 Global Gaming Market report 2018 – 475,000 annual replacement cycle

Jon Jayal, Chief Executive Officer of Quixant, commented: “2018 saw another year of record revenue and profits with revenue for our core gaming platforms up 14%. This was achieved despite softer than expected demand from several of our key customers. Market conditions have normalised during 2019, although some of our key customers have indicated to us that their demand for our gaming platforms will be more second half weighted than previous years, and we consequently anticipate our performance to mirror this trend. In light of this, we are taking a modestly more prudent view of our anticipated revenues for 2019, although our flexible cost model will ensure that the consequential impact on our anticipated profitability for 2019 is minimised.  Following a wealth of organisational enhancements we believe Quixant is excellently positioned for robust long-term growth, with a substantial new business gaming pipeline in excess of $30m for delivery in 2020 and beyond. Our Densitron vertical market focused strategy is delivering results with the order book in the broadcast sector now reaching $4.5m.”

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