TIDMQXT
RNS Number : 2384I
Quixant PLC
24 March 2015
24 March 2015
Quixant plc
("Quixant" or the "Company")
Final Results
Quixant (AIM: QXT), a leading provider of specialised computing
platforms for casino gaming machine applications, is pleased to
announce its Final Results for the year ended 31 December 2014.
Highlights
-- Revenue growth of 32% to $31.9 million (2013: $24.2 million)
-- Adjusted EBITDA(1) increased 22% to $7.9 million (2013: $6.5 million)
-- Adjusted profit before tax(1) increased 18% to $7.2 million (2013: $6.1 million)
-- Adjusted fully diluted EPS(2) of $0.0941 per share (2013: $0.0777 per share)
-- Proposed full year dividend of 1.2p per share (2013: 1.0p)
-- Net cash from operating activities of $2.1 million (2013: $2.5 million)
1. Adjusted by adding back $0.16 million in respect of share
based payments (2013: $0.11 million).
2. Adjusted by adding back $0.16 million in respect of share
based payments and subtracting the associated tax effect of $0.032
million (2013: $0.11 million adjustment less tax effect of $0.023
million).
Operational highlights
-- Further penetration of Tier 1 and Tier 2 customer segments
and overall growth of customer numbers.
-- Significant investment for future growth with an increase in
human resources and enhancements in facilities and
infrastructure.
-- Launch of new high and low end products.
Nick Jarmany, CEO of Quixant commented: "I am pleased that we
are again reporting strong growth in revenue and profits, in line
with market expectations. We continue to attract new customers,
both large and small, as the benefits of outsourcing computer
platform development become more widely adopted.
There has been widespread M&A activity amongst the larger
gaming manufacturers which has resulted in them seeking increased
efficiencies. I believe this could be of significant benefit to
Quixant and look forward to 2015 and beyond with confidence."
For further information please contact:
Quixant plc Tel: +44 (0)1223 892696
Nick Jarmany, Chief Executive
Jon Jayal, General Manager
Nominated Adviser and Broker: Tel: +44 (0)20 7220 0500
finnCap
Matt Goode (Corporate Finance)
Grant Bergman (Corporate Finance)
Victoria Bates (Corporate Broking)
Financial PR:
Alma PR
John Coles Tel: +44 (0)7836 273660
Josh Royston Tel: +44 (0)7780 901979
Hilary Buchanan Tel: +44 (0)7515 805218
About Quixant
Quixant, founded in 2005, designs and manufactures complete
advanced hardware and software solutions (Gaming Platforms) for the
pay-for-play gaming and slot machine industry. The Company is
headquartered in Balsham, just outside of Cambridge, in the UK.
Quixant UK Ltd is responsible for the Group's global sales function
(excluding North America) and its Las Vegas based subsidiary,
Quixant USA Inc, 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
srl, houses the Group's software engineering and customer support
team.
Quixant's high quality, specialised products provide an
all-in-one solution, based on PC technology but with augmentative
hardware features and operating software developed 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's proprietary
hardware and embedded software is flexible in its design, enabling
Quixant to easily respond to changes in regulation or customers
operating in different markets or jurisdictions.
Chairman's Statement
I am delighted to report on a highly productive 2014 for
Quixant. We have successfully delivered on ambitious targets,
posting strong growth in both revenue and profit. We have also made
progress in reaching important milestones with respect to
development of our brand, products, operations and people.
We are uniquely positioned to capitalise on the growing trend
amongst gaming machine manufacturers of outsourcing the computer
platform used to power their machines. The computer platform is no
longer a differentiator, but is a crucial component that must meet
or exceed their needs. Our progress to date still represents a
fraction of the available opportunity.
Our reputation in the industry is of paramount importance to
Quixant, and we are proud to be suppliers and trusted partners to
many highly respected manufacturers in the industry. During 2014 we
have continued to build and strengthen these relationships and
would like to express our gratitude to our loyal customers, many of
whom have worked with us for several years and believe in the
Quixant model.
We have worked hard over the last twelve months to develop our
business, brand and infrastructure to ensure that Quixant
represents an attractive proposition for even the largest of
manufacturers in the gaming industry, the so called Tier 1s. Our
AIM listing in 2013 has supported this effort and increased our
profile and status as a public company. During 2014 we announced
our first large project with a Tier 1 manufacturer, which
represents a significant milestone in Quixant's history. We have
seen continued success in building a healthy book of business in
the Tier 1 space which underpins our growth for 2015 and
beyond.
In keeping with our progressive dividend policy, and in light of
continued growth in 2014 and a strengthened balance sheet, the
Board is pleased to propose a 2014 full year dividend of 1.2p per
share (1.0p per share in respect of 2013 full year dividend).
The Company is fortunate to have a remarkable team of
individuals whom I would like to thank for achieving excellent
progress over the year. I would also like to express my sincere
gratitude to our shareholders for their support to the Company and
we are confident that the year ahead will be an exciting one.
Chief Executive's Report
In 2014 we delivered record revenue and profits. Revenues over
the year grew by 32% from $24.2 million to $31.9 million, adjusted
EBITDA grew by 22% from $6.5 million to $7.9 million, and adjusted
profit before tax increased 18% from $6.1 million to $7.2 million
(EBITDA and profit before tax are adjusted to add back $0.16
million and $0.11 million in respect of share based payments in
2014 and 2013 respectively). Despite strategic investment in
inventory and an increase in working capital requirements, our
operations generated cash of $2.1 million.
Continuing growth & customer spread
The increase in revenue in 2014 was primarily due to the ramping
up of the new Tier 2 project wins previously reported. These
projects represent long term business relationships with
manufacturers to supply them with computer platforms over a
multi-year period. Our experience has been that, once manufacturers
have selected Quixant as a supplier of computer platforms for their
machines, when they come to develop their next generation of
machine this is typically designed around a Quixant platform. These
platforms are engineered to offer a straightforward upgrade path,
reducing customer development costs.
I am pleased to say that during 2014 we made good progress in
our ongoing efforts to both grow and broaden our customer base. We
have already made healthy progress in capturing significant
business in the Tier 2 space and during 2014 we have started a
number of new projects with several Tier 2 and Tier 1
manufacturers. We expect that shipments for some of these projects
should commence in 2015.
The tables on this page illustrate the number of project
design-ins and volume production projects, split by tier of
customer at the end of 2013 and end of 2014.
We classify our customers and prospects in terms of three tiers
of manufacturer: "Tier 1" incorporates the largest gaming machine
manufacturers, typically producing over 25,000 machines per annum.
"Tier 2" typically produce between 5,000 and 25,000 machines per
annum, and "Tier 3" typically produce less than 5,000 machines per
annum.
Number of Project Design-ins
Number of Tier 1 Tier 2 Tier 3
projects
----------- ------- ------- -------
2013 2 3 5
----------- ------- ------- -------
2014 9 6 8
----------- ------- ------- -------
Number of Volume Production Projects(1)
Number of Tier 1 Tier 2 Tier 3
projects
----------- ------- ------- -------
2013 2 3 20
----------- ------- ------- -------
2014 3 3 24
----------- ------- ------- -------
1. Please note that due to industry consolidation, one project
in volume production in respect of a Tier 2 customer at the end of
2013 became a project under a Tier 1 customer at the end of
2014.
Quixant operates in a long gestation period market. It typically
takes two years from the commencement of the first serious
discussions with a new customer, or for a new project with an
existing customer, to the commencement of volume production orders.
Winning new business with a customer leads to an initial period of
intense engineering cooperation between Quixant and the customer to
"design-in" our products into their surrounding systems and develop
the game on our platform. After that the regulatory approval
process commences and once that is complete machines can be
installed in venues. Once volume production commences, volumes ramp
up over a period of around 12 months or more before full run rates
are achieved. This long lead-in is balanced by the stickiness of
the business once projects are won.
Australian based Ainsworth Game Technology has historically been
a key contributor to Quixant's revenue and they remain a very
important customer. It was therefore reassuring to have signed a
contract extending out to 2019 for a new generation of Quixant
product to power their machines. As a proportion of total sales
Ainsworth now represent just under 60% of our total revenue,
reduced from 72% in 2013, despite sales to Ainsworth growing during
the year. The majority of this reduction in concentration is due to
other Tier 2 projects which together contributed to over 27% of
revenue in 2014 (including the contribution from a Tier 2 project
which became a Tier 1 project in 2014 as a result of industry
consolidation), up from 11% in 2013.
In 2014, we shipped 28,500 units, a 30% increase over 2013. This
remains a small percentage of the total available market, which has
been estimated to conservatively consume around 500,000 units per
annum.
Commercial landscape
Quixant has been at the forefront of the trend towards
outsourcing computer platform development by gaming machine
manufacturers, and has cultivated lucrative, long-term, stable
business relationships with many of the major participants in the
industry. Quixant is the only company focused exclusively on the
design and manufacture of highly optimised computer platforms for
the global gaming industry, which has proven to be a major
competitive advantage.
In July 2014 we announced the securing of a significant project
with a Tier 1 manufacturer, later named as Novomatic Group. Tier 1
manufacturers, which are the largest gaming machine manufacturers
in the industry and typically supply over 25,000 machines per
annum, have historically undertaken computer platform development
in-house using their own engineering teams. For several reasons,
however, there is a gradual transition away from in-house
development to outsourcing computer platform development:
Firstly, internal development of the computer platform no longer
represents a competitive advantage for manufacturers, particularly
now that optimised, high quality solutions can be sourced
externally. Players do not choose one machine over another because
of the computer platform inside - the decision is based on the
attraction of the game presented to them. Internal development of
the computer platform is complex and requires significant
resources. Manufacturers are increasingly looking to focus a higher
proportion of their expenditure in the areas crucial for
competitive success, principally in game development.
Secondly, development of computer platforms in-house is no
longer cost effective due to the increasing complexity of computer
design and the increased competition between manufacturers.
Thirdly, manufacturers increasingly have to compete globally in
markets that have a variety of cost/performance profiles. They are
finding their historic "single platform" approach does not fit in
with these regional differences, and access to a range of different
but compatible solutions, such as offered by Quixant, is
required.
Finally, internal development also tends to be much slower. They
do not have the range of skills and access to advance information
needed to deliver the latest technology to market quickly. The
internal solutions therefore tend to be several generations behind
when their products are launched, compared to Quixant.
There has been widespread M&A activity between the large
gaming machine manufacturers over the last 18 months. Many have
made public commitments to significant overhead savings as part of
the justification for this activity. We believe this activity
provides an increased opportunity for Quixant to penetrate the Tier
1 manufacturers, as they are now actively looking at efficiency
savings. This is causing the traditional working methods of these
long established companies to be reviewed in detail at the most
senior levels, making it easier for us to present the commercial
benefits of the Quixant approach.
Our progression into working with Tier 1 manufacturers is a
necessarily gradual process and requires significant time from a
commercial and engineering perspective. Typically Tier 1 internal
hardware engineering teams have been a key asset and redeployment
of these resources away from computer platform development to other
areas of gaming machine development requires a period of
adjustment. Our success with the Tier 1 manufacturers has therefore
been gradual; we typically win specific projects initially (which
may relate to a new jurisdiction or market which the manufacturer
wishes to enter into and for which it does not currently have a
suitable solution) which then exposes customers to the Quixant
benefits, builds their trust and allows them to adjust to the
outsourced approach. Success in these initial projects should lead
to further opportunities in larger projects and, potentially, the
opportunity to replace the manufacturer's main in-house developed
computer platform.
Building infrastructure for growth
Winning major new business requires Quixant to expend
significant sales and especially engineering resource in the
design-in phase of a new project. It is therefore essential to have
the necessary expert resources in place. We have been proactive in
growing our infrastructure and resources to ensure we are well
positioned to service these projects and to deliver unrivalled
levels of service and innovation to customers.
In 2014 we grew the number of employees by 11% from 63 to 70,
the majority of whom were hired into engineering roles. As at the
end of December 2014, 50% of our employees were engineers directly
involved in product development. In 2014, 30% of total operating
costs were attributable to R&D activities, representing
reinvestment of 7% of sales revenue and 15% of gross profit into
R&D.
Ensuring our core business values, methods and ethos continue to
permeate through the rapidly growing organisation is an important
challenge. We have worked hard to do this through regular employee
newsletters and enabling networking of employees at every available
opportunity. With an organisation based in 3 continents, good
communication is vital. In 2014 we completed the roll out of a
global telephony system that enables staff to speak to anyone in
our four office locations simply by dialling their internal
extension number. We will continue to invest in this area in 2015
to enable interactive engineering meetings between offices.
In 2014 we completed the move to our prestigious new facility in
Las Vegas, which serves as our North American customer sales and
support operation. With our increasing US customer base and the
enormous scope for further growth in this market, we have benefited
from having purpose built training and large scale warehousing
facilities, both of which are vital to success in this market.
Sales to North American customers now represent 45% of total
revenue (2013: 34%).
Towards the end of the year we also committed to expand our
software development and customer support centre near Rome, Italy.
The ability to provide expert training, and for our customers to
interact directly with the engineering team responsible for
developing our products, is one of Quixant's key differentiators.
The new facility is currently completing construction and is
expected to be ready in May 2015. It will provide much needed extra
space for our growing Italian engineering team, specialised
customer seminar and training workshop facilities; a dedicated
testing lab and a conference room.
Product development
At the ICE Exhibition in London in February 2014 we previewed
our latest Ultra High Definition (4K) capable high performance
gaming platform, the QX-50, to a select group of customers under
NDA. 4K technology offers four times the graphics definition of
current HD screens and is already making inroads in the consumer
market. We believe Quixant is the first company to bring this
technology to market for gaming manufacturers. Our AMD Elite
Embedded Partner status provides us with early access to AMD's
latest embedded chipset technology, which, along with our expert
engineering capability, enabled us to preview the complete working
QX-50 gaming platform even before the official AMD launch of the
chipset. Demonstrating how quickly Quixant can deliver complete
gaming platforms using the latest technology to the market
reinforces the benefits that Quixant brings. We publically launched
the QX-50 at G2E Asia in May 2014 on the same day that AMD
publically released the chipset around which it is based.
At the other end of Quixant's range we also launched the QXi-306
and QXi-307 which are low-cost platforms targeting the Italian and
Spanish / Latin American markets respectively. We developed a
unique plastic enclosure design for these products which meets with
specific market regulations but also facilitates cooling of the
electronics without the use of fans, which are a major contributor
to hardware failures. We have an EU registered design for this
product and have also filed a patent in the UK for the enclosure
design.
We have been active in continuing to secure IP protection for
Quixant's technology, filing two patent applications in 2014 and
being granted one further patent in the US in early 2015.
10 year anniversary
In 2015 Quixant celebrates its 10 year anniversary. Over that
time the Company has consistently achieved year on year growth
despite being in the midst of the deepest recession since the
1930s. I am immensely proud of the business that we have
established and the incredible enthusiasm, creativity and
capability of the high-calibre people that have made this happen.
The Company has transformed itself from its origins as a small
number of founding individuals to being a global organisation
comprising a wealth of talented individuals working closely
together in a well-structured and managed environment. I would like
to thank the fantastic team of people who have made the original
dream become a reality and who continue to make the future look
ever more exciting.
I would also like to take this opportunity to thank Ainsworth
Game Technology, who became our first significant customer back in
2007. Their early belief in the Quixant business proposition and
trust placed in us was instrumental in enabling Quixant to get to
where it is today. We are honoured that this relationship continues
to grow.
Outlook
We remain confident in the progress we are making penetrating
more customers, including those in the Tier 1 and Tier 2 segment.
As already outlined we also believe the recent M&A activity
amongst many of the major manufacturers serves to further open up
the industry to our business proposition, causing decision-makers
to reject historical prejudices towards outsourcing in order to
achieve cost reductions. As a result, we are confident in achieving
our expected strong growth targets for 2015 and beyond.
Financial Review
Revenue
Revenue for the year grew by 32% to $31.9 million (2013: $24.2
million) driven principally by the continuing ramp up of two Tier 2
projects under which initial shipments commenced in 2013 (including
the contribution from a Tier 2 project which became a Tier 1
project in 2014 as a result of industry consolidation). Customer
concentration fell during 2014 with the broadening of our customer
base to a total of 89 customers (2013: 82). Within these customers
we have increased the number of active projects in progress.
The geographical split of our revenue was more heavily weighted
towards the North American market in 2014 compared to 2013, driven
by significant growth from customers in that region.
Region 2014 2013
--------------- ----- -----
North America 45% 34%
--------------- ----- -----
Australia 42% 51%
--------------- ----- -----
Europe 9% 13%
--------------- ----- -----
Asia 4% 2%
--------------- ----- -----
ROW 0% 0%
--------------- ----- -----
Profit
Our gross profit for the year was $14.1 million (2013: $11.2
million), representing a gross margin of 44% (2013: 46%). A higher
proportion of sales in 2014 were derived from newer products than
in 2013, which typically initially carry a higher cost of sales.
Historically, we have seen an improvement in the margins on
products as they become more mature.
Adjusted EBITDA increased in 2014 by 22% to $7.9 million (2013:
$6.5 million), and adjusted profit before tax grew 18% to $7.2
million (2013: $6.1 million). EBITDA and profit before tax are
adjusted to add back $0.16 million and $0.11 million in respect of
share based payments in 2014 and 2013 respectively. Reported profit
before tax therefore increased by 18% to $7.1 million (2013: $6.0
million).
We are committed to reinvesting profits in the business to
ensure the delivery of long term growth and during 2014 15% of
gross profit was reinvested into R&D (2013: 17%). $1.0 million
of our development costs were capitalised (2013: $0.9 million).
Amortisation of capitalised development costs over the year was
$0.4 million (2013: $0.1 million).
The 35% increase in overhead expenses to $7.0 million (2013:
$5.2 million), is primarily attributable to advance investment in
the business to gear up for the range of major business
opportunities which are in the pipeline. Our headcount increased by
7 to 70 people at year end, primarily to support our product
development functions.
The tax charge for the year was $0.9 million (2013: $1.2
million), representing an effective tax rate of 13% (2013: 20%),
including a prior year tax credit of $0.3 million. Our appointed
tax advisors help to ensure we contribute a fair and proper
allocation of tax between the jurisdictions in which we
operate.
The resulting profit after tax increased 27% to $6.1 million
(2013: $4.8 million).
Cash Flow
Despite making a strategic investment into inventory in 2014 and
an intensive use of working capital to finance strong fourth
quarter sales, we continue to be cash generative and in 2014 we
netted $2.1 million from operating activities (2013: $2.5 million).
We have identified holding strategic inventory as a competitive
advantage to be able to offer customers short lead times for
deliveries compared to our competitors. As we carry a relatively
small number of stock lines, we are able to operate this policy
effectively. As a result of this investment, we held stock of $5.5
million at year end (2013: $2.6 million).
To support growth aspirations, we spent $2.4 million (2013: $1.9
million) on investing activities, including the payment of a
deposit on our new, enhanced Italian facility, and the completion
of the fitting out of our USA facility. Intangible asset investment
accounted for $1.5 million (2013: $0.9 million), which included
investment into key product development and manufacturing systems
in Taiwan.
The $1.9 million cash outflows from financing (2013: $0.1
million, after excluding IPO related net inflows of $4.8 million)
are due to the repayment of our mortgage on the Cambridge office in
the UK ($0.9 million), and the payment of our maiden dividend in
May 2014 ($1.1 million). The sole remaining monthly financing
outflow is in respect of the repayment of our mortgage loan in
Taiwan, on which we have secured attractive interest rates.
Overall, we netted a cash outflow over 2014 of $2.3 million
(2013: $5.2 million cash inflow) which gave a cash balance at the
year-end of $4.7 million (2013: $7.0 million).
We are in a strong financial position to finance our future
plans.
Balance Sheet
Our consolidated balance sheet strengthened over the year with
net assets increasing to $20.5 million (2013: $15.5 million).
Non-current assets principally relate to the Group's investment
in tangible property, plant and equipment, intangible computer
software, and the internally generated development. We own premises
in the UK, USA and Taiwan and are in the process of completing on a
new facility in Italy. This means that by the end of 2015 we will
own property in all four of the locations from which we
operate.
Current assets have increased to $20.3 million (2013: $15.6
million). The high level of trade debtors is a reflection on the
high weighting to sales in the fourth quarter of the year. This
seasonality of our revenue is consistent with historic trends.
Since period end, we have collected all outstanding trade debtors
as at 31 December 2014. Higher inventory levels of $5.5 million
(2013: $2.6 million) evidences our strategic investment into
inventory to be able to offer customers the short lead times
previously mentioned.
Current liabilities have increased to $5.7 million (2013: $3.7
million) primarily as a result of the impact on trade creditors of
heavy fourth quarter sales.
Dividend
The Board proposes a full year dividend of 1.2p per share (2013:
1.0p per share) payable on 19 May 2015 to all shareholders on the
register at the close of business on 1 May 2015. The corresponding
ex-dividend date is 30 April 2015. The Board intends to maintain a
dividend policy which considers the balance between the growth in
earnings per share and the investment needs of the business.
CONSOLIDATED INCOME STATEMENT
for the years ended 31 December 2014 and 2013
Note 2014 2013
$000 $000
Revenue 1,2 31,919 24,235
Operating expenses (24,830) (18,200)
Operating profit 7,089 6,035
Financial expenses (30) (61)
Other income - -
Profit before tax 7,059 5,974
Taxation (943) (1,224)
Profit for the year 6,116 4,750
Basic earnings per
share 3 $0.0946 $0.0777
Fully diluted earnings
per share 3 $0.0922 $0.0762
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the years ended 31 December 2014 and 2013
2014 2013
$000 $000
Profit for the year 6,116 4,750
Foreign currency translation
differences (183) (29)
----- -----
Total comprehensive
income for the year 5,933 4,721
===== =====
All items of other comprehensive income may be reclassified to
profit and loss in future periods.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2014 and 2013
Note 2014 2013
$000 $000
Non-current assets
Property, plant and
equipment 5,218 4,554
Intangible assets 2,231 1,253
Deferred tax asset 63 -
------- -------
Total non-current assets 7,512 5,807
------- -------
Current assets
Inventories 5,505 2,631
Trade and other receivables 10,049 5,939
Cash and cash equivalents 4,722 7,021
------- -------
Total current assets 20,276 15,591
------- -------
Total assets 27,788 21,398
======= =======
Current liabilities
Other financial liabilities (100) (173)
Trade and other payables (5,410) (2,677)
Corporation tax payable (211) (805)
------- -------
Total current liabilities (5,721) (3,655)
------- -------
Non-current liabilities
Other financial liabilities (1,200) (1,986)
Deferred tax liability (388) (281)
------- -------
Total non-current liabilities (1,588) (2,267)
------- -------
Total liabilities (7,309) (5,922)
------- -------
Net assets 20,479 15,476
======= =======
Equity
Share capital 4 104 104
Share based payments
reserve 4 273 113
Share premium 5,181 5,181
Retained earnings 15,061 10,035
Translation reserve (140) 43
------- -------
Total equity 20,479 15,476
======= =======
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the years ended 31 December 2014 and 2013
Total
Share Share Share Retained Translation Shareholders
Based
Capital Payments Premium Earnings Reserve Funds
$000 $000 $000 $000 $000 $000
At 1 January 2013 27 - 505 5,285 72 5,889
Comprehensive income
Profit for the year - - - 4,750 - 4,750
Other comprehensive
income - - - - (29) (29)
Transactions with
equity holders
Share bonus issue 63 - (63) - - -
Issue of shares 14 - 5,873 - - 5,887
Share issue expenses - - (1,134) - - (1,134)
Share based payments - 113 - - - 113
At 31 December 2013
and 1 January 2014 104 113 5,181 10,035 43 15,476
Comprehensive income
Profit for the year - - - 6,116 - 6,116
Other comprehensive
income - - - - (183) (183)
Transactions with
equity holders
Share based payments - 160 - - - 160
Dividend paid - - - (1,090) - (1,090)
------- -------- ------- -------- ----------- ------------
At 31 December 2014 104 273 5,181 15,061 (140) 20,479
======= ======== ======= ======== =========== ============
CONSOLIDATED CASH FLOW STATEMENT
for the years ended 31 December 2014 and 2013
2014 2013
$000 $000
Cash flows from operating
activities
Profit for the year 6,116 4,750
Adjustments for:
Depreciation 142 227
Amortisation 503 120
Financial expenses 30 61
Taxation expense 943 1,224
Share based payments
expense 160 113
------- -------
7,894 6,495
(Increase) in trade
and other receivables (4,110) (1,568)
(Increase) in inventories (2,874) (212)
Increase/(decrease)
in trade and other
payables 2,682 (984)
------- -------
3,592 3,731
Interest paid (30) (61)
Tax paid (1,493) (1,190)
------- -------
Net cash from operating
activities 2,069 2,480
------- -------
Cash flows from investing
activities
Acquisition of property,
plant and equipment (938) (1,024)
Acquisition of intangible
assets (1,481) (871)
------- -------
Net cash from investing
activities (2,419) (1,895)
Cash flows from financing
activities
Dividend paid (1,090) -
Repayment of borrowings (859) (120)
Proceeds on issue of
shares - 5,887
Share issue expenses - (1,134)
------- -------
Net cash from financing
activities (1,949) 4,633
------- -------
Net (decrease)/increase
in cash and cash equivalents (2,299) 5,218
Cash and cash equivalents
at 1 January 7,021 1,803
------- -------
Cash and cash equivalents
at 31 December 4,722 7,021
------- -------
Notes
1. Basis of preparation
The basis of preparation and summary of significant accounting
policies applicable to the consolidated financial statements of
Quixant Plc can be found in Note 1 of the Annual Report and
Financial Statements, available from the Company's website. The
consolidated financial statements of Quixant Plc have been prepared
in accordance with International Financial Reporting Standards
('IFRSs') as issued by the International Accounting Standards Board
('IASB') and as endorsed by the EU.
The information in this news release does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006 ('the Act'). The statutory accounts for the year
ended 31 December 2014 will be delivered to the Registrar of
Companies in England and Wales in accordance with Section 441 of
the Act. The auditor has reported on those accounts. Its report was
unqualified and did not contain a statement under Section 498(2) or
(3) of the Act.
2. Analysis of turnover
2014 2013
$000 $000
By geographical market
Asia 1,387 293
Australia 13,252 12,161
Europe 2,965 3,406
North America 14,243 8,307
Other 72 68
------ ------
31,919 24,235
------ ------
3. Earnings per ordinary share (EPS)
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of shares outstanding during the period.
Year ended Year ended
31 December 31 December
2014 2013
$000 $000
Earnings
Earnings for the
purposes of basic
and diluted EPS
being net profit
attributable to
equity shareholders 6,116 4,750
Number of shares
Weighted average
number of ordinary
shares for the
purpose of basic
EPS
Number of shares 64,634,782 61,154,496
Effect of dilutive
potential ordinary
shares:
* Share options 1,710,200 1,163,082
Weighted number
of ordinary shares
for the purpose
of diluted EPS 66,344,982 62,317,578
Basic earnings
per share $0.0946 $0.0777
Fully diluted earnings
per share $0.0922 $0.0762
4. Share capital
2014 2013
No. $000 No. $000
At beginning of the year
Ordinary shares of 0.1p (2013: 5p) each 64,634,782 104 276,000 27
Bonus issue of 828,000 shares of 5p each - - 828,000 63
20,000 shares of 5p each issued - - 20,000 1
---------- ---- ----------- ----
64,634,782 104 1,124,000 91
---------- ---- ----------- ----
Share sub-division into 56,200,000 shares of 0.1p each - - 56,200,000 -
8,434,782 ordinary shares of 0.1p issued - - 8,434,782 13
---------- ---- ----------- ----
At 31 December 64,634,782 104 64,634,782 104
========== ==== =========== ====
Share based payments
In 2013 the Company issued share options to employees. To be
able to exercise these options, employees are required to be
employed by the Company for a period of three years from the grant
date. In addition exercise is conditional on the Company achieving
a minimum level of EPS growth over the vesting period.
Options have been issued over 1,710,200 shares, with an exercise
price of GBP0.49. Options issued under the scheme expire 10 years
from grant date.
The fair value of employee share options is measured using a
Black Scholes model. Measurement inputs and assumptions are as
follows:
31 December 31 December
2014 2013
Fair value at grant GBP0.19 GBP0.19
date
Share price 0.46p 0.46p
Exercise price 0.49p 0.49p
Expected volatility 50% 50%
Expected option life 5 years 5 years
Risk-free interest
rate 0.9% 0.9%
The fair value at grant date of GBP0.19 was converted at the
exchange rate on the grant date to give a fair value of $0.29 per
option. The total expense recognised in the period in respect of
share options is $160,000 (2013: $113,000).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LLFFDVDIVFIE
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