24 Jan 2019 07:00
24 January 2019
Quixant plc
("Quixant" or the "Group")
Trading Update and Notice of Results
Quixant (AIM: QXT), a leading provider of innovative, highly engineered technology products principally to the global gaming industry, is pleased to provide the following update on trading for the year ended 31 December 2018.
The Board anticipates reporting that the core business has performed strongly with revenue from gaming platforms expected to achieve double digit annual growth. Furthermore, in the second half of the year gaming platform revenues were significantly higher than the same period in 2017.
As flagged at the interim results, the Group's strategy in its gaming monitors business is to seek to improve margins and the Board therefore expects to report a reduction in revenues for the year for these products. Densitron revenues are expected to be flat as the Group continues to restructure and refine the product range.
Overall, Group revenues are expected to be c. $115m, slightly lower than current market forecasts of $120m, predominantly as a result of the decline in gaming monitors, leading to adjusted profit before tax also being slightly lower than market expectations of $18.98m. Net cash at 31 December 2018 was approximately $9.9m.
The Group's results for the full year to 31 December 2018 are expected to be announced on 25 March 2019.
Jon Jayal, CEO of Quixant, said:
"I am pleased that our core gaming platforms business has continued to perform strongly, growing revenues and market share in what has proved to be a challenging year for the global gaming industry. We continue to see a robust market for gaming monitors and, after having made the strategic decision to reduce our exposure to low margin business, I anticipate our monitor business will return to growth with improved margins in the future.
"During the year we have made some senior hires and formed divisional boards, to reflect the growth in the Group's business in recent years. I am confident we are well positioned to deliver on the significant market opportunity in both gaming and other markets and continue our track record of strong, profitable growth."
The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
For further information please contact:
Quixant plc | Tel: +44 (0)1223 892 696 |
Jon Jayal, Chief Executive Officer |
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Nominated Adviser and Broker: |
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finnCap Ltd | Tel: +44(0)20 7220 0500 |
Matt Goode / Simon Hicks (Corporate Finance) |
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Alice Lane (ECM) |
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Financial PR: | Tel: +44(0) 20 3405 0205 |
Alma PR |
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John Coles / Hilary Buchanan / Susie Hudson |
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About Quixant
Quixant, founded in 2005, designs and manufactures highly optimised computing solutions and monitors principally for the global gaming industry. The Company is headquartered in Cambridge in the UK where the global sales function is based. North America sales and sales support is run from their subsidiary in Las Vegas. Quixant has its own manufacturing and engineering operation based in Taiwan and software engineering and customer support team based in Italy. All the specialised products software and manufacturing are produced in-house and Quixant owns all its own IP some of which is protected by patents and design rights.
In November 2015 Quixant acquired Densitron Technologies plc. Densitron has a strong heritage in the sale of electronic display solutions to global industrial markets. Through Densitron's experienced sales team, Quixant has a robust platform to build its business into wider industrial markets. In-depth information on the Company's products, markets, activities and history can be found on the corporate website at www.quixant.com.