TIDMQXT
RNS Number : 9662S
Quixant PLC
23 March 2016
23 March 2016
Quixant plc
("Quixant" or the "Company")
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 2015.
Highlights:
-- Revenue growth of 31% to $41.8 million (2014: $31.9 million)
-- Adjusted EBITDA(1) increased 28% to $10.1 million (2014: $7.9 million)
-- Adjusted profit before tax(1) increased 28% to $9.2 million (2014: $7.2 million)
-- Adjusted fully diluted EPS(2) of $0.113 per share (2014: $0.0941 per share)
-- Proposed full year dividend of 1.5p per share (2014: 1.2p)
-- Net cash from operating activities of $6.3 million (2014: $2.1 million)
1. Adjusted by adding back $0.20 million in respect of share
based payments (2014: $0.16 million) and $1.17 million in respect
of acquisition costs (2014: $nil).
2. Adjusted by adding back $1.37 million in respect of share
based payments and acquisition costs and subtracting the associated
tax effect of $0.27 million (2014: $0.16 million adjustment less
tax effect of $0.032 million).
Operational Highlights:
-- Achieved broad based growth in revenue with reduced customer concentration.
-- Commenced volume shipments of gaming monitors.
-- Completed the earnings enhancing acquisition of Densitron
Technologies plc for GBP7.66m financed by cash and debt which
provides strong sales force with experience selling into markets
outside gaming.
Nick Jarmany, CEO of Quixant, commented: "I am delighted with
the strong growth we achieved in 2015 with both revenue and profits
at record levels. Our core business of computer gaming platforms
grew market share with increased sales across a wide range of
customers and our decision to move into the market for gaming
monitors has proved very successful. Volume shipments started in
the middle of the year and our pipeline of business is strong.
"We completed the acquisition of Densitron in November, our
first acquisition in the ten years we have been operating.
Densitron provides us with a geographically diverse sales team,
broadening our global footprint, as well as a wide and loyal
customer base providing the opportunity to sell Quixant products
into other markets.
"We have had a strong start to 2016 in both our core business
and also gaming monitors and with the potential opportunities
Densitron provides in other markets, I am confident the Group is
well placed to deliver strong growth in 2016 and beyond."
For further information please contact:
Quixant plc Tel: +44 (0) 1223 892696
Nick Jarmany, Chief Executive
Jon Jayal, General Manager
Nominated Adviser and Broker:
finnCap Ltd Tel: +44 (0) 20 7220 0500
Matt Goode (Corporate Finance)
Grant Bergman (Corporate Finance)
Simon Johnson (Corporate Broking)
Financial PR:
Alma PR
John Coles Tel: +44 (0) 7836 273 660
Hilary Buchanan Tel: +44 (0) 7515 805 218
Chairman's Statement
I am pleased to report on another strong year of growth and
business success for Quixant in 2015, delivering record results.
Through continued execution of our corporate strategy, we have
achieved significant growth in both revenue and profits and have
also invested to ensure a robust foundation for growth into 2016
and beyond.
We have seen growth across a range of size of customer in 2015
and reduced customer concentration. We also have a healthy pipeline
of "design-ins" which we believe sets us in good stead for future
growth. The "design-in" step represents a lengthy period of
collaboration between the engineering teams of Quixant and the
customer in order to develop the customer's game and integrate
Quixant's products into their machines.
As well as continuing to grow our market share in our core
business of computer gaming platforms in 2015, we have also started
to reap the benefits from our decision to establish a business in
gaming monitors. We have the opportunity to sell typically two or
more monitors for every one computer board we sell per gaming
machine. We have grown our resources to build our gaming monitors
business and have already seen further success in securing new
business in early 2016 for monitors.
In September 2015 we announced an offer to purchase Densitron
Technologies plc for GBP7.66m, financed through a combination of
the Company's cash reserves and new banking facilities. We
completed the acquisition on 10 November 2015. Densitron supplies
standard and custom electronic display solutions to industrial
markets globally and has around 60 staff located in North America,
Europe and Asia. We believe there are significant opportunities for
Quixant's products to be sold into other vertical markets outside
gaming and have already seen some evidence of this. Densitron has
an established and experienced global sales force which has long
term trusted relationships with companies in a wide range of
industrial markets. Through leveraging these relationships, Quixant
has a significant opportunity to sell products into these other
markets, as all display solutions require some type of computer or
electronics to drive them. We expect the acquisition to be earnings
enhancing in the first full year of ownership.
We paid a full year dividend of 1.2p per share in May 2015 and,
aligned to our progressive dividend policy and continued
strengthening in the balance sheet, the Board is pleased to propose
a 2016 full year dividend of 1.5p per share, a growth of 25% on the
prior period.
Quixant has significant headroom to grow its market share in the
gaming industry and we are confident of our prospects for continued
strong growth in this area. The acquisition of Densitron brings
further opportunities for diversification into other markets and
possible enhancement of this growth. We have had a strong start to
2016 and are well positioned to achieve our growth targets for the
year.
Chief Executive's Report
I am delighted to report on another year of robust growth in
2015. Adjusted pre-tax profits for the year were $9.2 million,
growth of 28% on the prior period, on the back of revenues of $41.8
million (2014: $31.9 million). We have achieved this strong growth
alongside investment into the business to position us well for
continued success in 2016 and beyond. During the year, which marked
the tenth anniversary since foundation of the Company, we reached
several important milestones in the development of Quixant
business.
Broad based revenue growth
Our growth in 2015 was broad based. We saw increased sales to
Tier 1 customers which was the primary engine to growth.
Pleasingly, we also saw strong performance from several Tier 3
customers which we have been working with for several years. They
have launched new products which have been well received by the
market and as a result their rate of consumption of computer
platforms has grown. This underlines the benefits Quixant brings in
enabling customers' R&D teams to focus on game development.
We have continued to consolidate our position in several Tier 1
customer projects where we are designed in but have yet to deliver
volume. We expect to see continued strengthened sales to Tier 1
customers in 2016.
Our customer concentration diminished in 2015, with Ainsworth
falling to 43% of total revenue over the year (2014: 58%). In
total, we shipped just under 34,000 units in 2015 (2014: 28,500).
Based on a 2015 independent industry survey conducted by G3
Magazine, which suggests that the annual new/replacement cycle for
machines is 475,000 per annum, this would imply Quixant occupied a
7% market share in new/replacement machines.
New product development
We launched QMax-1, a new flagship computer platform, and
several new monitor products to the gaming market in 2015. QMax-1
represents a new tier of performance for all-in-one gaming
platforms. By utilising an innovative design, we have harnessed the
power of games console level graphics into a compact package which
combines all of Quixant's benefits, including optimised gaming
features, longevity of supply and high reliability. We had a
product ready to demonstrate before AMD had publically announced
the chipset on which it was based and formally launched QMax-1 on
the same day as AMD's public announcement. So far reception from
customers has been positive towards QMax-1 as a solution for their
high end casino products.
In February 2016 at the ICE Exhibition in London, we launched
the QXi-6000 as successor to the mid-range QXi-4000. The QXi-6000
is well suited to customers who need a compact, fan-less solution,
high performance graphics and the capability to drive up to three
screens. Both QMax-1 and the QXi-6000 are optimised for 4K Ultra HD
graphics and video.
During the year, we were granted two new patents in the UK and
US. The technology described by these patents is incorporated into
the majority of Quixant's current product range and therefore the
UK patent helpfully enables us to take advantage of the UK Patent
Box regime.
Monitor products
Quixant was founded to design, manufacture and supply computer
platforms to the manufacturers of electronic gaming machines. In
doing so, we created a strong culture of innovation and exceptional
engineering design capabilities which, combined with our Taiwanese
manufacturing capabilities and understanding of the gaming market,
enabled us to create computer products which lead the market. We
have become a trusted technology partner with many customers who
see us not only as a supplier of computer products but also as an
innovative technology solutions provider. Some of these customers
have publically communicated this message.
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 03:01 ET (07:01 GMT)
As a result, we have identified opportunities to supply our
customers with other components which are connected with the
computer platform. In particular we have developed our own range of
gaming monitors which are also high value components in gaming
machines. We developed our monitor products range with the
underpinning principle that customers faced the same constraints in
terms of regulation, reliability and quality for monitor products
as for computer platforms. By moving into this area, Quixant has
been able to extend its advantages to customers for another
component in their machines and has been able to introduce combined
technology benefits. We commenced volume shipments of monitors to
our first customer around the middle of the year and have a strong
order book into 2016.
Based on this earlier success, in 2015 we invested in an expert
sales team based in Germany to lead our global gaming monitors
business. We believe there are substantial opportunities for growth
in this area, both into Quixant's existing customers and into new
customers. We believe there are also opportunities for us to
innovate in gaming monitors in conjunction with our computer
products.
Acquisition of Densitron
Over the last few years we have been approached by a number of
customers outside gaming who have identified the strengths Quixant
can bring to their business in their markets. In the past, we have
elected not to pursue these opportunities in order to focus on our
core business. However, we have always believed that at the
appropriate time we would seek to expand our business into other
markets.
The acquisition of Densitron brings a global sales team with
strong business and a broad base of customers who operate in a
range of industrial markets. The team has proven expertise in the
sale of complex electronic display solutions to these markets and
has built a significant and stable business in doing so. We believe
the acquisition provides a strong platform from which to develop
our business in industrial markets outside gaming.
Prior to the acquisition, Densitron was an AIM listed company
with over 40 years' experience in the electronic technology sector.
Densitron provides a range of solutions to its customers, many of
which are bespoke comprising a range of complex technologies. We
believe the sales team have the skills to consult and identify
customer requirements and expertise in the solutions available in
the market to guide the customer in making the correct choice,
which has earned them the reputation of being a trusted
partner.
Quixant's skills and strengths, particularly in its Taiwanese
procurement, quality control and manufacturing management
capabilities complements Densitron's strength in sales. We believe
this has the potential to enhance profitability, product quality,
engineering design capability and purchasing power.
Densitron's business in 2015 saw growth in revenue and operating
profit in line with its budgets and following completion made a
small positive contribution to Quixant's 2015 financial
performance.
We have been working hard since completion of the acquisition to
globally harmonise Densitron's systems and policies. In 2016 we
will continue efforts in this area to create an enhanced global
infrastructure on which to grow the business.
Investing for the future
Excluding Densitron, our headcount increased by 13% from 70 to
79 in 2015. 46% of our staff at 31 December 2015 were directly
responsible for product development. 32% of our overheads were
directly attributable to R&D activities, representing
reinvestment of 6% of revenue and 14% of gross profit into
R&D.
When combined with Densitron, total Group headcount at 31
December 2015 was 139.
In a business with operations which span 3 continents, good
communication and collaboration tools are essential to success.
Quixant invested in this area in 2015 by rolling out a global video
conferencing system and a collaborative digital whiteboard
solution. The latter enables participants in two or more locations
to engage in a common shared electronic whiteboard space to
brainstorm and collaborate on ideas. Users can also present,
annotate and modify a range of content interactively which enhances
the product development process across the Group by enabling
remotely located colleagues to work as if they are in one
location.
Outlook
Quixant's opportunity in its core gaming platforms business
continues to strengthen as the trend for the largest of the gaming
machine manufacturers to outsource gathers momentum. Combined with
a buoyant start in the gaming monitors business and the potential
growth that Densitron brings into other markets, the Group is well
aligned to deliver strong growth in line with our expectations for
2016 and beyond.
Financial Review
Revenue
Quixant delivered record revenues of $41.8 million, up 31% from
2014 ($31.9 million). The acquisition of Densitron made a
contribution of $5.2 million to revenue following completion.
Within Quixant's gaming business, revenue growth was driven by
the continuing development of our commercial relationships,
particularly in the Tier 1 and Tier 3 space, with Europe proving in
aggregate to be a strong region for growth. In addition to our
established range of computer platforms, we commenced volume
shipments of our gaming monitors in 2015. We have broadened our
customer base both in number to 126 (2014: 89) and across
geographies.
As a supplier of key components in gaming machines which are
subject to heavy regulation, we are required by customers to supply
a consistent product over a period of several years. As a result,
we typically hold multi-year supply contracts with our larger
customers. This provides us with a degree of repeatability and
security to our revenue stream.
Profit
Our gross profit for the year was $17.3 million (2014: $14.1
million), representing a gross margin of 41% (2014: 44%). This
reduction reflects the lower margins which can be earned on gaming
monitors and Densitron's display solutions.
Adjusted EBITDA increased 28% to $10.1 million (2014: $7.9
million). Adjusted profit before tax increased 28% to $9.2 million
(2014: $7.2 million). Adjustments to EBITDA and profit before tax
are to add back share based payments and acquisition costs of $1.4
million (2014: $0.16 million).
We continue to re-invest in the business to ensure our product
offering remains a market leading proposition. Excluding Densitron,
gross expenditure on R&D was $2.3 million, (2014: $2.1 million)
or 14% of gross profit (2014: 15%). These costs relate to our
development activities undertaken in Taiwan and Italy. $1.1 million
of these development costs were capitalised (2014: $1.0 million),
with amortisation for the year on total capitalised development
costs $0.4 million (2014: $0.4 million).
Balancing the investment requirements of the business to support
future growth with careful management of increases resulted in an
overhead spend of $9.5 million, including exceptional costs of
$1.4m (2014: $7.0 million). Following completion, Densitron
contributed $1.0 million to overheads. Our headcount increase to 79
people (2014: 70) was the biggest contributor to our increased
spend.
Taxation
There is a tax charge for the year of $1.4 million (2014: $0.9
million). This constitutes a corporation tax charge, which includes
prior period adjustments, of $0.121 million (2014: $0.271 million
and a deferred tax charge of $0.175 million (2014: $0.044 million).
The Group continues to benefit from enhanced tax reliefs available
in respect of qualifying R&D expenditure.
Foreign Exchange
To minimise foreign currency exposure the Group transacts and
reports in US Dollars as far as is practicable. With effect from 1
January 2016 Densitron have converted to accounting in US Dollars.
Where significant non-US Dollar expenses can be forecast with
respect to timing and value, the Board may take the decision to
hedge against unfavourable exchange rate movements.
Earnings Per Share
Basic earnings per share increased 5% to $0.0993 (2014:
$0.0946). Fully diluted earnings per share increased 5% to $0.0967
(2014: $0.0922). Adjusted fully diluted earnings per share
increased 20% to $0.113 (2014: $0.0941)
The calculations of earnings per share are included at Note
10.
Balance Sheet
The Group maintains a strong balance sheet with net assets of
$25.7 million (2014: $20.5 million).
Tangible non-current assets have grown primarily because of the
acquisition of our new office in Italy and the inclusion of
investment land owned by Densitron, which is valued at $0.7
million. Intangible non-current assets increased by $13.2 million
to $15.4 million, mainly due to goodwill arising on the acquisition
together with the recognition of intangibles acquired with
Densitron.
Current assets mainly comprise inventory and trade receivables.
Excluding the impact of the acquisition, we held inventory of $6.3
million (2014: $5.5 million). This is consistent with our inventory
strategy, which is structured such as to hold buffer inventory of
key product lines. This is a competitive advantage Quixant can
offer over other suppliers. The trade receivables of $16.7 million
(2014: $9.2 million) reflect the fact that our revenues are
typically weighted towards the second half of the year.
Non-current liabilities now include the banking facilities of
$7.4 million required to support the Densitron acquisition as well
as the long-term borrowings acquired. All liabilities are within
the Group's payment profile.
Cash Flow
The Group continued to generate high levels of operating cash
over the year. The cash generated amounted to $6.3 million (2014:
$2.1 million). Investment in our inventory strategy previously
mentioned was first implemented in 2014 which is a key reason
current period operating cash is significantly higher than that of
the prior period.
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 03:01 ET (07:01 GMT)
To support our growth aspirations the Group spent $12.8 million
(2014: $2.4 million) on investing activities. This is primarily
accounted for by $10.6 million (2014: $nil) of costs relating to
acquisitions.
New financing cash flows for the period under review principally
relate to an inflow of $7.4 million in respect of new banking
facilities and an outflow in respect of repayment of
borrowings.
Our overall cash outflow during the period was $0.8 million
(2014: $2.3 million) which gave a cash and cash equivalents balance
at the year-end of $3.9 million (2014: $4.7 million). We are in the
process of reviewing Group treasury strategy following the
acquisition.
Dividend
The board intends to maintain a progressive dividend policy
whilst continuing to invest in and to develop the Group's
businesses. As such the board proposes a dividend in respect of the
year of 1.5p per share (2014: 1.2p per share) payable on 19 May
2016 to all shareholders on the register at the close of business
on 13 May 2016. The corresponding ex-dividend date is 12 May
2016.
Outlook
The 2016 financial year has started well and we are confident of
another year of strong growth in line with our expectations.
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED 31 DECEMBER 2015 AND 2014
Note 2015 2014
$000 $000
Revenue 1,2 41,829 31,919
Cost of sales (24,503) (17,857)
-------- --------
Gross profit 17,326 14,062
Administrative expenses (3,995) (2,351)
Other operating expenses (5,469) (4,622)
-------- --------
Operating profit 7,862 7,089
Financial expenses (74) (30)
-------- --------
Profit before tax 7,788 7,059
Taxation (1,368) (943)
-------- --------
Profit for the year 6,420 6,116
======== ========
Other comprehensive income
for the year, net of income
tax
Foreign currency translation
differences (268) (183)
Total comprehensive income
for the year 6,152 5,933
-------- --------
Basic earnings per share 4 $0.0993 $0.0946
Fully diluted earnings per
share 4 $0.0967 $0.0922
BALANCE SHEETS
AS AT 31 DECEMBER 2015
Group Company
Note 2015 2014 2015 2014 1 January
2014*
$000 $000 $000 $000 $000
Non-current assets
Property, plant and equipment 5,996 5,218 3,580 3,684 3,582
Intangible assets 15,395 2,231 2,905 2,231 1,375
Investment property 740 - - - -
Investments in group
companies and associated
undertakings - - 11,875 196 109
Deferred tax assets 620 63 70 47 -
22,751 7,512 18,430 6,158 5,066
Current assets
Inventories 9,285 5,505 5,495 4,008 2,041
Tax receivable - - 325 322 -
Trade and other receivables 19,484 10,049 10,002 8,596 3,422
Cash and cash equivalents 3,861 4,722 1,401 1,070 6,870
32,630 20,276 17,223 13,996 12,333
Total assets 55,381 27,788 35,653 20,154 17,399
Current liabilities
Other interest-bearing
loans and borrowings (2,994) (100) (605) (100) (173)
Trade and other payables (15,274) (5,410) (10,881) (4,614) (2,177)
Tax payable (301) (211) (-) (-) (-)
(18,569) (5,721) (11,486) (4,714) (2,350)
Non-current liabilities
Other interest-bearing
loans and borrowings (8,744) (1,200) (8,448) (1,200) (1,986)
Provisions (750) (-) (-) (-) (-)
Deferred tax liabilities (1,667) (388) (671) (388) (281)
(11,161) (1,588) (9,119) (1,588) (2,267)
Total liabilities (29,730) (7,309) (20,605) (6,302) (4,617)
Net assets 25,651 20,479 15,048 13,852 12,782
Equity attributable to
equity holders of the
parent
Share capital 5 104 104 104 104 104
Share premium 5,181 5,181 5,181 5,181 5,181
Share based payments
reserve 470 273 470 273 113
Retained earnings 20,299 15,061 9,613 8,431 7,339
Translation reserve 5 (408) (140) (320) (137) 45
25,646 20,479 15,048 13,852 12,782
Non-controlling interest 5 - - - -
Total equity 25,651 20,479 15,048 13,852 12,782
======== ======= ======== ======= =========
*The Company balance sheet at 1 January 2014 has been presented
in accordance with IFRS 1, as a result of the parent Company's
transition to IFRS.
STATEMENT OF CHANGES IN EQUITY
GROUP
Share Total
Share Share Translation Based Retained Parent Non-controlling Total
Capital Premium Reserve Payments Earnings Equity Interest Equity
$000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 January
2014 104 5,181 43 113 10,035 15,476 - 15,476
Total comprehensive
income for the period
Profit - - - - 6,116 6,116 - 6,116
Other comprehensive
loss - - (183) - - (183) - (183)
Total comprehensive
income for the period - - (183) - 6,116 5,933 - 5,933
Transactions with
owners, recorded
directly in equity
Share based payments - - - 160 - 160 - 160
Dividend paid - - - - (1,090) (1,090) - (1,090)
Total transactions
with owners 160 (1,090) (930) (930)
Balance at 31 December
2014 104 5,181 (140) 273 15,061 20,479 20,479
Share Share Translation Share Based Retained Total Parent Non-controlling Total
Capital Premium Reserve Payments Earnings Equity Interest Equity
$000 $000 $000 $000 $000 $000 $000 $000
Balance at 1
January 2015 104 5,181 (140) 273 15,061 20,479 - 20,479
Total
comprehensive
income for the
period
Profit - - - - 6,420 6,420 - 6,420
Other
comprehensive
loss - - (268) - - (268) - (268)
Total
comprehensive
income for the
period - - (268) - 6,420 6,152 - 6,152
Transactions
with owners,
recorded
directly in
equity
Share based
payments - - - 197 - 197 - 197
Dividend paid - - - - (1,182) (1,182) - (1,182)
Total
contributions
by and
distributions
to owners - - - 197 (1,182) (985) - (985)
Transactions
with owners
Acquisition of
subsidiary with
a
non-controlling
interest - - - - - - 5 5
Total
transactions
with owners - - - - - - 5 5
Balance at 31
December 2015 104 5,181 (408) 470 20,299 25,646 5 25,651
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 03:01 ET (07:01 GMT)
COMPANY
Share Total
Share Share Translation Based Retained Parent
Capital Premium Reserve Payments Earnings Equity
$000 $000 $000 $000 $000 $000
Balance at 1 January
2014 104 5,181 45 113 7,339 12,782
Total comprehensive
income for the period
Profit - - - - 2,182 2,182
Other comprehensive
loss - - (182) - - (182)
Total comprehensive
income for the period - - (182) - 2,182 2,000
Transactions with owners,
recorded directly in
equity
Share based payments - - - 160 - 160
Dividend paid - - - - (1,090) (1,090)
Total contributions
by and distributions
to owners - - - 160 (1,090) (930)
Balance at 31 December
2014 104 5,181 (137) 273 8,431 13,852
Share Total
Share Share Translation Based Retained Parent
Capital Premium Reserve Payments Earnings Equity
$000 $000 $000 $000 $000 $000
Balance at 1 January
2015 104 5,181 (137) 273 8,431 13,852
Total comprehensive
income for the period
Profit - - - - 2,364 2,364
Other comprehensive
loss - - (183) - - (183)
Total comprehensive
income for the period - - (183) - 2,364 2,181
Transactions with owners,
recorded directly in
equity
Share based payments - - - 197 - 197
Dividends - - - - (1,182) (1,182)
Total contributions
by and distributions
to owners - - - 197 (1,182) (985)
Balance at 31 December
2015 104 5,181 (320) 470 9,613 15,048
CASH FLOW STATEMENTS
FOR THE YEARS ENDED 31 DECEMBER 2015 and 2014
Note Group Company
2015 2014 2015 2014
$000 $000 $000 $000
Cash flows from operating
activities
Profit for the year 6,420 6,116 2,363 2,182
Adjustments for:
Depreciation, amortisation
and impairment 871 645 684 609
Taxation expense 1,368 943 412 265
Financial expense 74 30 53 30
Equity settled share
based payment expenses 197 160 118 73
8,930 7,894 3,630 3,159
(Increase) in trade
and other receivables (2,140) (4,110) (1,406) (5,174)
(Increase) in inventories (1,490) (2,874) (1,487) (1,967)
Increase in trade
and other payables 2,166 2,682 6,202 2,385
7,466 3,592 6,939 (1,597)
Interest paid (74) (30) (53) (30)
Tax paid (1,112) (1,493) (155) (527)
Net cash from operating
activities 6,280 2,069 6,731 (2,154)
Cash flows from investing
activities
Acquisition of subsidiary,
net of cash acquired 3 (10,593) - (11,600) -
Acquisition of property,
plant and equipment (1,101) (938) (230) (407)
Acquisition of intangible
assets (1,151) (1,481) (1,142) (1,290)
Net cash from investing
activities (12,845) (2,419) (12,972) (1,697)
Cash flows from financing
activities
Proceeds from new
loan 7,754 - 7,754 -
Repayment of borrowings (868) (859) - (859)
Dividends paid (1,182) (1,090) (1,182) (1,090)
Net cash from financing
activities 5,704 (1,949) 6,572 (1,949)
Net (decrease)/increase
in cash and cash equivalents (861) (2,299) 331 (5,800)
Cash and cash equivalents
at 1 January 4,722 7,021 1,070 6,870
Cash and cash equivalents
at 31 December 3,861 4,722 1,401 1,070
NOTES
(forming part of the financial statements)
1. General information
Whilst the information included in this preliminary announcement
has been prepared in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
("IFRSs") as adopted by the European Union and as issued by the
International Accounting Standards Board, this announcement does
not itself contain sufficient information to comply with IFRSs. The
accounting policies adopted in this preliminary announcement are
consistent with the Annual Report for the year ended 31 December
2015.
The financial information set out in this document, which was
approved by the Board on 22 March 2016, is derived from the full
Group accounts for the year ended 31 December 2015 and does not
constitute the statutory accounts within the meaning of section 434
of the Companies Act 2006. The Group accounts on which the auditors
have given an unqualified report, which does not contain a
statement under section 498(2) or (3) of the Companies Act 2006 in
respect of the accounts for 2015, will be delivered to the
Registrar of Companies in due course.
The Board of Quixant PLC approved the release of this
preliminary announcement on 22 March 2016.
The Annual Report for the year ended 31 December 2015 will be
posted to shareholders in due course and will be delivered to the
Registrar of Companies following the Annual General Meeting of the
Company. The report will also be available on the investor
relations page of the Group's website.
Further copies will be available on request and free of charge
from the Company Secretary.
2. Analysis of turnover
2015 2014
$000 $000
By geographical market
Asia 3,958 1,387
Australia 14,479 13,252
Europe 7,274 2,965
North America 15,976 14,243
Other 142 72
41,829 31,919
====== ======
3. Acquisitions of subsidiaries
Acquisitions in the current period
On 10 November 2015, the Company acquired all of the ordinary
shares in Densitron Technologies plc for GBP7,663,601.66
($11,600,971) being 11p per share, satisfied in cash. Densitron
Technologies plc was a UK based AIM quoted company whose primary
business is the design, development and supply of electronic
displays into the industrial market place. The acquisition provides
the Group with the global infrastructure and sales capability to
sell Quixant's computer products into wider industrial markets. The
acquisition will complement Quixant's move into the provision of
displays to its gaming customers, alongside the specialised
computer systems it currently supplies. In the 6 weeks to 31
December 2015 the subsidiary contributed net profit of $117,000 to
the consolidated net profit after tax for the year. If the
acquisition had occurred on 1 January 2015, Group revenue would
have been an estimated $72,667,000 and net profit after tax would
have been an estimated $5,441,000. In determining these amounts,
management has assumed that the fair value adjustments that arose
on the date of acquisition would have been the same if the
acquisition occurred on 1 January 2015.
On 9 December 2015, the Company acquired all of the ordinary
shares in Alpha Display Europe GmbH (subsequently renamed Quixant
Deutschland GmbH) for $750,000 and contingent consideration
estimated as $750,000 to be satisfied in cash. Alpha Display Europe
GmbH was a private company incorporated in Germany whose primary
business is the sale of electronic displays into the industrial
market place. The acquisition provides the Group with additional
products which complement the current range of Quixant products and
customer requirements. The acquisition will assist Quixant's move
into the provision of displays to its gaming customers, alongside
the specialised computer systems it currently supplies. As this
company was acquired in December 2015, no profit has been included
for this period to the consolidated net profit for the year.
In January 2016, Alpha Display Europe GmbH was legally
registered as Quixant Deutschland GmbH. The accounts of Quixant
Deutschland GmbH as at 31 December 2015 have been estimated for the
purpose of acquisition accounting because the financial statements
have not been completed. The effect of the acquisition on all items
will be adjusted in the 2016 financial statements.
Effect of acquisitions
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 03:01 ET (07:01 GMT)
Quixant (LSE:QXT)
Historical Stock Chart
From May 2024 to Jun 2024
Quixant (LSE:QXT)
Historical Stock Chart
From Jun 2023 to Jun 2024
