(Correcting headline to exclude reference to a higher revenue as revenue is down.)
(Alliance News) - Nexteq PLC shares edged lower on Wednesday as it reported a decline in revenue.
Nexteq is a Cambridge-based technology products provider for gaming and broadcast industries. Nexteq operates two brands: Quixant, a computer platforms provider, and Densitron, a specialist in human machine interface technology.
Shares in the company closed 1.9% lower at 155.00 pence each on Wednesday. In the last 12 months, the stock is down 10%.
In 2023, revenue fell 4.7% to USD114.3 million from USD119.9 million a year earlier.
Revenue from Quixant fell 6.6%, whilst Densitron revenue was broadly in line with 2022.
Pretax profit surged 47% to USD12.9 million from USD8.8 million.
Cost of sales in the period decreased 10% to USD72.8 million from USD81.3 million.
On the back of the results, Nexteq has paid out a dividend of 3.3p, up from 3.0p a year ago.
The company said it has entered 2024 with a confirmed order book covering five months of revenue.
It added that it is confident in meeting market expectations for 2024 revenue with the typical second half weighting.
Chief Executive Officer Jon Jayal said: "The group delivered an excellent financial performance in 2023, with profit levels and cash generation significantly above prior year and approaching historic highs. This performance comes despite macroeconomic uncertainty and customers seeking to moderate inventories, prompted by a higher cost of capital. We have remained focused on our customer proposition and long-term growth strategy, delivering higher value products to the market."
By Sophie Rose, Alliance News senior reporter
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Nexteq (NXQ)