Results from Quixant (QXT) are often subject to seasonal effects, so underlying trading can be difficult to gauge. This year, the bulk of sales are expected to fall into the second part of the financial year. Curiously, that’s in direct contrast to 2017, but management insists the group has put in a “robust performance” during July and August and is currently in control of a “record sales pipeline”.
That record order book is largely weighted towards the company’s gaming division. Last year, bosses said some of its key customers had brought forward orders into the first half of the year. But this year has seen “more normal patterns of demand”, and the board is confident it can maintain what have been historically high customer retention rates. That helps explain rather sluggish revenue growth at the half-way stage which, combined with slightly higher operating expenses on restructuring initiatives, left statutory pre-tax profits down year-on-year.
Chief executive Jon Jayal said he was confident the group would meet full-year expectations and, to that end, analysts at Peel Hunt still expect pre-tax profits of $18.6m for 2018, giving EPS of 22.2¢, compared to $17.5m and 22.6¢ in 2017.
| QUIXANT (QXT) | ||||
| ORD PRICE: | 458p | MARKET VALUE: | £ 303m | |
| TOUCH: | 450-465p | 12-MONTH HIGH: | 495p | LOW: 379p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 37 | |
| NET ASSET VALUE: | 76p* | NET CASH: | $2.5m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
| 2017 | 56.9 | 8.7 | 11.2 | nil |
| 2018 | 50.3 | 6.1 | 7.6 | nil |
| % change | -12 | -30 | -33 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of $15m or 23¢ a share £1 = $1.32 | ||||
