TIDMQXT
RNS Number : 1571F
Quixant PLC
21 May 2013
21 May 2013
Quixant plc
("Quixant" or the "Company")
First day of dealings on AIM
Placing raising, in aggregate, approximately GBP4.55 million
Market capitalisation at placing price of approximately GBP30
million
Quixant (AIM:QXT), a leading provider of specialised computing
platforms for gaming and slot machine applications, is pleased to
announce the admission today of its ordinary shares to trading on
the AIM market of the London Stock Exchange and the commencement of
dealings in its ordinary shares under the ticker QXT.L.
As part of the admission process, the Company raised gross
proceeds of GBP3.88 millionthrough an over-subscribed placing of
8,434,782 new Ordinary Shares, at a placing price of 46 pence per
Ordinary Share (the "Placing Price"). In addition, 1,452,174
Ordinary Shares were placed on behalf of existing shareholders
("Vendors") at the Placing Price, raising GBP0.67 million for the
Vendors. The Ordinary Shares have been placed with a number of
institutional investors and High Net Worth Individuals.
On Admission, the Company will have a market capitalisation of
approximately GBP30 million at the Placing Price.
Overview:
-- Headquartered in Cambridge, UK, Quixant designs and
manufactures complete advanced hardware and software solutions
("Gaming Platforms") for the pay-to-play gaming and slot machine
industry, supplying manufacturers of gaming and slot machines.
-- Quixant's key strengths are:
o High quality, differentiated products;
o Established Far Eastern manufacturing capability;
o Experience in the gaming market;
o Market opportunity; and
o Brand recognition.
-- The Board's ambition is to continue to grow the business so
that the "Quixant" name becomes synonymous with the standard for
specialised gaming computer systems.
-- Quixant is capitalising on its progress made to date in
broadening the customer base, securing new long-term customer wins
and building the brand.
-- Quixant was founded in 2005 and has a strong financial track
record, and the Directors believe that the current sales pipeline
is supportive of continued substantial growth in 2013 and 2014.
-- Globally there are approximately 7.9 million gaming and slot
machines in operation, and market analysis predicts that the total
gaming market will grow by more than 9% over the next three
years.
-- Quixant's estimated market share is currently below 1%.
-- The purpose of the IPO is to provide working capital headroom
as the Company wins further contracts with larger customers, raise
the Company's profile in the industry and incentivise current and
future employees.
-- Smith & Williamson is Nominated Adviser and Broker to the Company.
Nick Jarmany, Co-Founder and MD of Quixant, commented: "I am
delighted with the support received from investors who recognise
the enormous growth potential for Quixant. Public company status
will support Quixant's continuing expansion as we broaden our
customer base globally, generating further profitable growth by
building on our leading proprietary technology, robust fundamentals
and strong growth drivers."
For further information please contact:
Financial PR:
Newgate Threadneedle Tel: +44 (0) 207 653 9850
John Coles, Fiona Conroy, Hilary Millar
Quixant plc Tel: +44 (0) 1223 892696
Nick Jarmany, Managing Director
Jon Jayal, General Manager
Nominated Adviser and Broker:
Smith & Williamson Corporate Finance Limited Tel: +44 (0) 207 131 4000
Azhic Basirov, Siobhan Sergeant, Oliver Cummings
BACKGROUND INFORMATION
Quixant, founded in 2005, designs and manufactures complete
advanced hardware and software solutions (Gaming Platforms) for the
pay-to-play gaming and slot machine industry.
The Company currently has a total of 58 employees and is
headquartered outside of Cambridge in the UK, with its global sales
team, finance, marketing and administrative functions based at its
head office. Its US subsidiary, based in Las Vegas, is responsible
for sales and sales support to the North American market. Quixant
has its own manufacturing and engineering operation in Taiwan,
which has evolved with the rapid growth of the Company. Quixant's
Italian subsidiary, Quixant Italia, houses the Group's software
engineering and customer support team.
Summary Financial Information
2012 2011 2010
US $'000 US $'000 US $'000
Revenue 21,577 9,100 5,303
Gross Profit 9,900 3,792 2,418
EBITDA 5,081 1,440 715
Profit Before Tax 4,990 1,318 622
Profit After Tax 3,791 1,088 608
Net Assets 5,889 2,021 968
Net Cash Infow 852 806 112
Net Debt (476) (1,391) (527)
Placing Statistics
Placing Price per Ordinary Share GBP0.46
Number of Ordinary Shares in issue before the Placing 56,200,000
Number of Placing Shares
- New Ordinary Shares 8,434,782
- Vendor Shares 1,452,174
- Total 9,886,956
Number of Ordinary Shares in issue following completion
of the Placing 64,634,782
Estimated net proceeds of the Placing receivable GBP3.10
by the Company million
Estimated expenses of the Placing payable by the GBP0.78
Company million
Market capitalisation of the Company at the Placing GBP29.72
Price following completion of the Placing million
Placing Shares expressed as a percentage of the
Enlarged Issued Share Capital 15.30%
Large Market Opportunity
In 2012, it is estimated that approximately 450,000
new/replacement gaming and slot machines were built. Quixant
shipped approximately 18,500 Gaming Platforms in 2012. Market
analysis predicts that the total gaming market will grow by more
than 9% over the next three years. Quixant's market share of the
total installed base of gaming and slot machines is currently below
1%.
Given the nature of the gaming industry, in particular, the
highly regulated environment in which they operate, gaming and slot
machine manufacturers tend to develop long term working
relationships with suppliers which can provide a consistent and
reliable product.
Quixant has positioned itself as one of the leading suppliers of
specialised gaming computer systems, capitalising on developments
within the global gaming and slot machine manufacturing sector.
Quixant intends to significantly increase its market share as the
trend for manufacturers to outsource their gaming hardware
production to specialist suppliers continues, and accelerates as PC
technology becomes more complicated and manufacturers target new
markets with varying regulatory regimes.
Key strengths
High quality, differentiated technology
Quixant provides an all-in-one solution, based on PC technology
with hardware features alongside software, developed by Quixant
specifically to address the requirements of the gaming industry.
Products feature innovative mechanical designs which are optimised
for operation in the gaming and slot machine environment. Quixant
has secured a patent on aspects of its enclosure design and is in
the process of securing further patents.
The software developed by Quixant communicates with the
electronic hardware and connected gaming accessories in gaming and
slot machines. Using this as a foundation, Quixant's customers can
focus on game development which ultimately has the greatest impact
on their commercial success, as well as reducing the time required
to bring new games machines to market.
Established Far Eastern manufacturing capability
Quixant's manufacturing operation was established in Taiwan in
2007 and now has over 30 employees, enabling the delivery of
high-value design alongside competitive costing. The management
team in Taiwan has significant experience in computer hardware
manufacturing and is headed by Co-founder, Chen-Tai (JJ) Lin.
Quixant is, therefore, able to couple high-value design
capability with Far Eastern manufacturing cost competitiveness.
Experienced and aligned management team
With over 25 years of combined experience in supplying PC based
Gaming Platforms to the gaming and slot machine market, the
management team at Quixant has established contacts with a
significant number of gaming and slot machine manufacturers
worldwide. Management has a detailed understanding of the overall
technology and regulatory requirements of the global gaming
industry. Quixant's products have been designed to be compliant
with the regulatory requirements in most major gaming jurisdictions
and markets, worldwide.
Leading Products
Quixant produces a range of Gaming Platforms - high performance,
PC compatible systems designed and tuned specifically to meet the
complex needs of the gaming and slot machine industry.
When a gaming and slot machine manufacturer develops a new
machine, it needs to pass a regulatory approval process in each
jurisdiction in which it will be sold or operated. This is an
expensive and time consuming process, with every subsequent minor
variation requiring re-approval in advance and any unauthorised
change potentially leading to a manufacturer experiencing
regulatory consequences. It is therefore crucial for gaming and
slot machine manufacturers to secure a stable source of computer
hardware and software from trusted suppliers.
The development of Quixant's Gaming Platforms is based on the
following design principles which the
Directors believe are essential characteristics for gaming and
slot machine applications:
-- Long lifecycles on key components to enable a 3- 5 year
supply lifetime of the Gaming Platform
-- Low power consumption components and, where possible, the
ability to cool the Gaming Platform without fans
-- High reliability
-- Tailored electronics to enable direct interface with a range
of third party gaming and slot machine hardware (e.g. bill
acceptors, coin hoppers and ticket-in, ticket-out machines)
-- Compliance with the regulatory requirements imposed on
machine manufacturers in major global gaming jurisdictions
-- High performance graphics processing capabilities and support for multiple screens
-- High degree of security against hacking and unauthorised
copying of game software and computer hardware
-- Ability to customise Quixant products easily in order to
match the requirements of individual customers
Functionality includes:
-- Interfaces to specialised gaming peripherals (e.g. bill
acceptors, ticket-in, ticket-out machines, coin hoppers)
-- Ability to store critical game data ("player tracking data")
in memory which is preserved in the event of power failure
-- Security features required to ensure integrity of software
operating on the machine and the hardware in the machine itself
-- Logging capability, even when the gaming and slot machine
mains power is switched off, to detect, for example, intrusion into
the machine cabinet
Quixant is an AMD Fusion Partner Elite Member and also a
Microsoft Windows Embedded Silver Partner.
Quixant also supplies several additional complementary accessory
products to its Gaming Platforms which include monitors, storage
devices and operating system licenses.
Board of Directors
Michael Peagram (69), Non-executive Chairman
Michael has a background in the pharmaceutical and chemical
industry. As managing director of Holliday Chemical Holdings Plc,
he oversaw the international expansion of the company, leading to a
listing on the Official List in 1993 and the subsequent sale to
Yule Catto Plc in 1998, following which he remained as deputy
chairman until 2007. Subsequently, Michael has held various
non-executive director positions, principally as chairman, for
growing AIM listed companies such as CRC Group plc (computer and
mobile phone servicing) and RMR plc (internet conferencing). He is
currently non--executive director of Hangar8 plc along with a
number of other appointments. Michael is also an active investor in
numerous private technology companies and is involved with a number
of community based business and technology development ventures. He
has a doctorate in Chemistry from Oxford University and an MBA from
Manchester Business School.
Nick Jarmany (51), Managing Director
Nick is a founding director of Quixant and has brought extensive
management experience and computer engineering knowledge to the
Company. Nick has a background in the technology industry and he
was employed by Densitron Technologies PLC ("Densitron") for 22
years. In this time he held numerous roles in design, engineering,
sales and, finally as, Group Technical Director. Nick had overall
responsibility for Densitron's gaming business strategy, led the
design process and negotiated with key suppliers and customers in
the USA, Europe and Asia. He has an honours degree in Electronic
Engineering from the University of Sheffield.
Gary Mullins (42), Sales Director
Gary is a founding director of Quixant and has a proven track
record in technology sales and marketing. He was employed by
Densitron for more than 10 years in sales and marketing. At
Densitron, Gary was responsible for securing contracts with
numerous multi-nationals. Gary has a proven track record of winning
large orders for technical products from major companies. Prior to
founding Quixant, he was sales director at NTera Limited, a
nanotech electronic paper displays developer. He has an honours
degree in Electronic Systems from the Royal Military College of
Science.
Chen-Tai (JJ) Lin (50), Manufacturing Director
JJ is a founding director of Quixant and has 23 years'
experience in computer hardware manufacturing. JJ's previous roles
include leading the design teams at GIT Technologies Ltd and
TC-Tech, developing automotive test systems and managing the
hardware production at Intimate Partner Co., a major EMS house,
producing motherboards and graphics cards for large Taiwanese
brands. JJ was the General Manager of Densitron Computers Taiwan
Ltd, a manufacturer of long-life custom embedded PC products for
the gaming market, and became the General Manager of Techware
Technology Co. Ltd, a Taiwanese Windows CE development house. He
has a degree in Electronic Engineering from the National Taiwan
University of Science and Technology.
Cresten Preddy (59), Finance Director
Cresten is an experienced accountant with 41 years in practice.
Cresten began her career at Baker, Rooke & Amsdoms before
moving to Arthur Andersen. She left Arthur Andersen after 18 years
moving to NCL Investments Limited, to become its financial
controller and company secretary. In April 2004, Cresten
established her own practice, providing accounting services to a
variety of clients as a qualified sole practitioner. Cresten has
worked with and advised Quixant since July 2009 and joined the
Company in July 2012. Cresten is a Fellow of The Institute of
Chartered Accountants in England and Wales.
Guy van Zwanenberg (58), Non-executive Director
Guy has 40 years' experience in industry and practice. He
qualified as a Chartered Accountant with Grant Thornton and then
spent three years working with James Gulliver. Guy subsequently
moved to become UK Finance Director of an American computer
accessory company which was taken public in 1989. In 1991, he
established his own interim financial management business and has
since been involved in a number of SME businesses providing
strategic and financial help. He joined Gaming King plc in 1998 on
a part time basis as Finance Director and became Company Secretary
and non-executive director in 2006, remaining as a non-executive
director when the company listed on AIM as Sceptre Leisure plc in
2008, and where he sits on the Audit and Remuneration committees.
Guy is both a Fellow of The Institute of Chartered Accountants in
England and Wales and a Chartered Director.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCNKKDNABKDCPB
Quixant (LSE:QXT)
Historical Stock Chart
From May 2024 to Jun 2024
Quixant (LSE:QXT)
Historical Stock Chart
From Jun 2023 to Jun 2024