Nexteq PLC on Wednesday reported a surge in profit during the first half of 2023, amid its rebrand.
Nexteq is a Cambridge-based technology products provider for gaming and broadcast industries. Nexteq operates two brands: Quixant, a computer platforms provider, and Densitron, a specialist in human machine interface technology.
In May, Nexteq changed its name from Quixant PLC. It said that the rebrand reflected its ‘evolution to a diversified business platform supplying multiple products into a range of industries’.
On Wednesday, Nexteq said pretax profit surged by 81% to $5.1 million in the six months that ended June 30 from $2.8 million a year before.
Revenue rose by 5.6% to $56.3 million from $53.3 million a year earlier. Quixant revenue was up 9.2% to $34.3 million from $31.4 million, whilst Densitron revenue was virtually unchanged at $22.0 million compared to $21.9 million.
Nexteq explained that the majority of the growth seen in the first half of 2023 was driven by increased volumes, complemented by modest price inflation.
It added that during the period it saw its order book normalising from the high levels seen in 2021 and 2022, as customers reduced their inventory levels.
‘The extended component lead times and supply shortages seen in 2021 and 2022 drove exceptional order intake for our products to mitigate widespread electronic component market shortages. Whilst our end customers navigate evolving economic conditions and adopt a more cautionary stance to holding inventory, the value attributed to our technology and customer service is reflected in the consistently high customer satisfaction and retention rates,’ Nexteq explained.
Looking ahead, Nexteq said profit is expected to be in line with market expectations for full year on revenue broadly in line with prior year. The company noted that 2023 forecasts for revenue is between $119.0 million and $120.1 million and adjusted pretax profit of $12.4 million.
In 2022, as Quixant, the company reported adjusted pretax profit of $10.2 million on revenue of $119.9 million.
Chief Executive Jon Jayal said: ‘The group has delivered a solid first half performance with increased revenues across our strategic sectors together with materially improved profitability. Alongside this, we have seen evidence of our strategy to diversify across our customers, product offerings and markets paying off, with the first deliveries of our turnkey gaming cabinet solution during the period and a strengthening of our presence in the Broadcast market. ’
Nexteq shares were up 1.2% to 127.00 pence each in London on Wednesday morning.
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