Quixant PLC Trading Update and Notice of Results (3980S)
July 14 2022 - 2:00AM
UK Regulatory
TIDMQXT
RNS Number : 3980S
Quixant PLC
14 July 2022
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
14 July 2022
Quixant plc
("Quixant" or the "Group")
Trading Update and Notice of Results
Strong demand drives FY22 revenue and profit upgrade
Quixant (AIM:QXT), a leading provider of innovative, highly
engineered technology products principally for the global gaming
and broadcast industries , is pleased to provide an update on
trading for the six months ended 30 June 2022 and outlook for the
remainder of 2022.
Trading
The strong demand across both Gaming and Densitron businesses
seen in 2021 has continued in the first half of 2022, with order
intake during the period ahead of first half revenues and prior
year bookings.
Group revenue for H1 is expected to be $53.3m, 46% up
year-on-year and the highest first half revenue performance since
2017, and ahead of management expectations. The recovery in the
Gaming division has continued with first half revenues of $31.4m, a
71% increase on the previous year. Densitron is expected to deliver
revenue of $21.9m in the first half, 21% up on H1 2021, delivering
the strongest half year performance since acquisition in 2015.
Six months Six months Change
ended ended
30 June 30 June
2022 2021
($m) ($m)
Group Revenue 53.3 36.5 46%
Gaming Division Revenue 31.4 18.4 71%
Densitron Revenue 21.9 18.1 21%
Supply chain constraints continue to impact the availability of
key components but the strategic stock purchase programme, which
has been operating since January 2021, has allowed the Group to
manage these challenges well and continue to supply product to meet
customer demand. We expect this industry-wide issue to persist
until at least the first half of 2023. Supply chain issues also
continue to lead to component price volatility impacting gross
margins, although the Group is seeing early signs of gross margin
recovery. The Group is not immune to global inflationary pressures
leading to increased operating costs which are being managed,
together with making investments to support future growth.
The Group's net cash position at 30 June 2022 was $12.0m (31
December 2021: $17.6m), reflecting the Group's continued investment
in stock to mitigate the impact of the global supply chain
constraints and meet customer demand.
Outlook
Trading in the first half was ahead of management expectations
reflecting the continued recovery in the Gaming division, good
momentum in Densitron and resilient supply chain management. The
Group enters the second half of 2022 with an order book which gives
good visibility of full year trading. Despite inflationary
pressures, we now expect revenue and profit to be ahead of market
expectations (1) .
Notice of Results
The Board expects to announce its results for the six months
ended 30 June 2022 on 6 September 2022.
Jon Jayal, CEO of Quixant, commented : "It is extremely pleasing
to report such strong trading in the first half of the year giving
us confidence in ongoing growth, underpinned by buoyant order
intake. The business has risen to the ongoing challenges presented
by the electronic component market shortages and worked tirelessly
with all stakeholders to mitigate the effects on our customers. We
enter the second half of the year with confidence of continued
strength in trading and therefore expect full year revenues and
profit to be ahead of market expectations(1) . "
(1) The current range of forecasts for the year ended 31
December 2022 is revenue of between $95.5m and $95.8m with a
consensus of $95.7m and adjusted profit before tax of $7.8m.
Quixant plc Tel: +44 (0)1223 892 696
Jon Jayal, Chief Executive Officer
Johan Olivier, Chief Financial Officer
Nominated Adviser and Broker: Tel: +44 (0) 20 7220 0500
finnCap Ltd
Matt Goode / Simon Hicks (Corporate
Finance)
Alice Lane / Charlotte Sutcliffe
(ECM)
Joint Broker: Tel: +44 (0) 20 7523 8000
Canaccord Genuity Limited
Simon Bridges / Andrew Potts
Financial PR: Tel: +44 (0)20 3405 0205
Alma PR
John Coles / Hilary Buchanan / Kieran
Breheny
About Quixant
Quixant, founded in 2005, designs and manufactures highly
optimised computing solutions and monitors principally for the
global gaming and broadcast industries. The Company is
headquartered in Cambridge in the UK, with offices throughout
Europe, North America and Asia. Quixant has its own manufacturing
and engineering operation based in Taiwan and software engineering
and customer support teams based in Italy and Slovenia. 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.
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