Quixant (AIM:QXT), a leading provider of innovative, highly engineered technology products principally for the global gaming and broadcast industries, announces its final results for the year ended 31 December 2020.
FINANCIAL HIGHLIGHTS
· | Group revenue of $63.8m (FY 2019: $92.3m) |
· | Quixant Gaming division revenue of $30.3m (FY 2019: $56.2m) o Gaming platforms revenue of $27.5m (FY 2019: $46.6m) o Gaming monitors revenue of $2.8m (FY 2019: $9.6m) |
· | Densitron division revenue of $33.5m (FY 2019: $36.2m) |
· | Group adjusted pre-tax profit of $1.3m (FY 2019: $10.7m profit)1 |
· | Group reported pre-tax loss of $2.0m (FY 2019: $9.4m profit) |
· | Adjusted fully diluted EPS of ($0.0040)/share (FY 2019: $0.1396/share)2 |
· | Fully diluted EPS of ($0.0445)/share (FY 2019: $0.1243/share) |
· | Net cash from operating activities of $4.0m (FY 2019: $14.9m) |
· | Net cash at 31 December 2020 $17.4m (FY 2019: $16.1m) |
· | Dividend of 2.0p per share recommended (2019: Nil) |
1. Adjusted by adding back items included in the adjusted PBT reconciliation in note 1 to the financial statements totalling $3.3m (2019: $1.3m).
2. Adjusted by adding back the items included in note 1 above and subtracting the associated tax effect as set out in note 9 to the financial statements. In 2020 these amounted to $2.7m (2019: $1.0m).
OPERATIONAL HIGHLIGHTS
· | Return to profitability in H2 2020 driven by improved performance in Gaming business and continued resilient Densitron trading. |
· | Close customer engagement through the crisis leading to positive net cash generation through the year, improved relationships and increased new business potential. |
· | New gaming business models arising from market disruption due to COVID-19 bringing about opportunities, with a pilot customer due to commence a lease programme of Quixant technology in H2 2021. |
· | New gaming business wins in 2020 expected to contribute in excess of $5m of revenue in 2021. |
· | Densitron sales supported by conversion of pipeline in broadcast and medical sectors which both showed year-on year growth to partially offset declines in other sectors. |
· | 106% order coverage of Group internal budget for first six months of the year. |
Jon Jayal, Chief Executive Officer of Quixant, commented:
“Considering that our key global gaming market was so materially impacted in 2020 due to the pandemic, I believe that to report an adjusted profit before tax and an improvement in our net cash position from FY 2019 is a remarkable achievement. It reflects the resilience in our Densitron business, the strength of the relationship we have with our customers and a robust balance sheet entering the year.”
“2021 has started strongly with healthy order intake such that we now have 106% coverage of internal budget for the first half of the year. As the gaming industry evolves out the crisis, we are bringing pioneering new offerings to market which we believe will support customers in their recovery. It is also pleasing to see double digit growth in our Densitron broadcast business despite the headwinds caused by the pandemic. The electronic component shortages present us with short-term supply chain risks, but we continue to utilise our strong cash position to mitigate the impact of these on 2021 trading.”
“The Board is confident in the future prospects of the Group which is reflected in our decision to recommend payment of a dividend.”
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