16 January 2023
Quixant plc
("Quixant" or the "Group")
Trading Update and Notice of Results
Record annual revenues
Quixant (AIM:QXT), a leading provider of innovative, highly engineered technology products principally for the global gaming and broadcast industries, provides an update on trading for the financial year ended 31 December 2022 ("FY22").
Trading
The Board is pleased to confirm that, further to upgrading FY22 revenue expectations on 13 October 2022, positive trading across both the Gaming and Densitron businesses continued through the fourth quarter, reflecting the strong demand for our products. The Board expects to report full year revenues of $119.9m, 38% up year-on-year, the highest revenue performance in the Group's history, and slightly ahead of market expectations1. This is despite the backdrop of substantial supply and economic disruption. The Gaming business posted revenues of $74.1m, representing its best performance since 2018 and the Densitron business delivered $45.8m, beating the revenue record set in FY21 by 15%.
The Group expects adjusted profit before tax to be slightly ahead of market expectations1. Whilst supply chain challenges persisted through the second half of FY22, a stabilisation in component pricing led to a partial recovery in gross margins towards historic levels.
| | FY22 | | FY21 | | Change | |
| | ($m) | | ($m) | |
| |
| Group Revenue | 119.9 | | 87.1 | | 38% | |
| Gaming Revenue | 74.1 |
| 47.3 |
| 57% | |
| Densitron Revenue | 45.8 |
| 39.8 |
| 15% | |
| |
|
|
|
|
|
|
Financial position
Net cash at 31 December 2022 increased to $12.9m from $12.0m at 30 June 2022, driven by lower working capital requirements as the Group reduced the level of its strategic inventory holdings.
Outlook
The Group starts the new financial year with a strong order book, which provides good forward visibility supporting further revenue growth in FY23. Management continues to monitor macro-economic challenges, including recession, ongoing supply risks and inflationary pressures, but believes that the Group is well placed to continue to deliver good growth given its resilient end-markets and strategic positioning.
Notice of Results
The Group expects to report its full year results for 2022 on 21 March 2023.
Jon Jayal, Chief Executive Officer of Quixant plc, commented: "The Group has delivered an excellent year of growth, significantly ahead of initial expectations. Against a backdrop characterised by substantial supply and economic disruption, this performance is even more pleasing.
"This is testament to the strength of our customer relationships, quality of our people, resiliency in our management of supply chains and the value attributed to our innovative technology solutions. Driven by our growth strategy, we have exited the year with a more diversified product set, broader customer base and more robust platform from which to grow.
"As we start the new year, we remain cognisant of wider recessionary challenges however a robust order book supports further growth in FY23. We believe our business strategy positions us well for long-term diversified growth in the Group's revenue and profits."
1 The current range of forecasts for the year ended 31 December 2022 is revenue of between $115.3m and $115.1m with a consensus of $115.2m and adjusted profit before tax of $10.1m.
| Quixant plc Jon Jayal, Chief Executive Officer Johan Olivier, Chief Financial Officer
| Tel: +44 (0)1223 892 696 |
| Nominated Adviser and Broker: finnCap Ltd Matt Goode / Simon Hicks (Corporate Finance) Alice Lane / Charlotte Sutcliffe (ECM)
| Tel: +44 (0) 20 7220 0500 |
| Joint Broker: Canaccord Genuity Limited Simon Bridges / Andrew Potts
| Tel: +44 (0) 20 7523 8000 |
| Financial PR: Alma PR Hilary Buchanan / Kieran Breheny / Will Ellis Hancock | Tel: +44 (0)20 3405 0205 |
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.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
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