Quixant PLC Trading Update and Notice of Results (6846T)
July 22 2020 - 1:00AM
UK Regulatory
TIDMQXT
RNS Number : 6846T
Quixant PLC
22 July 2020
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
22 July 2020
Quixant plc
("Quixant" or the "Company" or the "Group")
Trading update and Notice of Results
Solid net cash position supported by robust Densitron
trading
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 2020 (the "Period").
The board is pleased with the performance of Densitron, the
Group's business unit specialising in human machine interaction for
markets outside gaming. Densitron has experienced healthy demand
from a range of industrial sectors during the Period with a
highlight being the medical market which has seen elevated demand
from new and existing customers for our range of display products.
This sector represents an exciting growth area for the Group and
management is actively exploring further organic growth
opportunities. Additional strategic business wins in the broadcast
sector with customers such as Panasonic leave Densitron
well-positioned for growth as the economy emerges from
lockdown.
Gaming, which is the key market for the Group, has seen only
minimal orders during the past three months, with most of the
Group's gaming clients closed due to the Covid-19 pandemic. Casinos
and other gaming venues, however, started to reopen during the
latter part of the second quarter and, whilst the speed of recovery
of this part of the Group's revenues cannot be predicted, the Group
has seen an improvement in activity in June. The downturn in
revenues has been mitigated by the implementation of a swift
overhead cost reduction programme and a streamlining of the Group's
product base which, whilst thorough, have been implemented so as to
both leave the Group well-positioned to support customers in their
recovery and also explore new opportunities for growth.
The board is also pleased with the Group's working capital
position in the Period. Densitron's robust trading performance
combined with strong collection of receivables from the Group's
gaming customers and the benefits of a swiftly executed cost
management programme has yielded a solid net cash position at 30
June 2020 of $14.2m (31 December 2019: $16.1m). The Group also has
additional unutilised lines of credit of over $12.4m, including a
new $9.4m UK Government-backed Barclays revolving credit facility,
should additional facilities be required.
The board expects to announce its results for the six months
ended 30 June 2020 on 30 September 2020.
Jon Jayal, Chief Executive of Quixant, commented:
"Given the economic circumstances, I am pleased with the
performance of the Group in the first six months of the financial
year. Our Densitron business, which celebrates its 50-year
anniversary in 2020 has performed well and has demonstrated the
benefits of a diverse revenue base, and an ability to withstand
economic shocks.
"Our strong net cash position entering the pandemic has remained
largely intact, supported by robust Densitron trading, a swiftly
executed cost reduction programme and sustained cash collection
from our gaming customers, who have appreciated the flexibility and
partnership we have offered them in this challenging period. I am
pleased to see some early signs of activity beginning to return for
some of our gaming clients.
"Quixant's strength of customer relationships and flexibility of
approach has enabled the Group to drive some exciting evolutions in
our offering and business model during the past few months. This,
combined with our solid balance sheet, places the Company in a
strong position to grow over the longer term."
For further information please contact:
Quixant plc Tel: +44 (0)1223 892 696
Jon Jayal, Chief Executive Officer
Guy Millward, Chief Financial
Officer
Nominated Adviser and Broker:
finnCap Ltd Tel: +44(0)20 7220 0500
Matt Goode / Simon Hicks (Corporate
Finance)
Alice Lane (Corporate Broking)
Tel: +44 (0) 20 3405 0205
Financial PR:
Alma PR
John Coles / Susie Hudson / David
Ison / Kieran Breheny
About Quixant
Quixant, founded in 2005, was established as a designer and
manufacturer of highly optimised computing solutions and display
solutions for the global gaming industry. Through the acquisition
of Densitron Technologies plc in 2015, the Company diversified into
other markets and has a focused technology offering for the
broadcast sector, leveraging the business' extensive sector
knowledge across many industries.
The Company is headquartered in Cambridge in the UK, with a
global customer base and offices in North America, Europe and Asia.
The Taiwanese operation is responsible for design, procurement and
manufacturing of the Company's products. Quixant owns all its IP,
some of which is protected by patents and design rights.
In-depth information on the Company's products, markets,
activities and history can be found on the corporate website at
www.quixant.com.
This information is provided by RNS, the news service of the
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END
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