Operator News
UK – 2013 profit jumps by 20 per cent at Quixant
By Phil - 25 March 2014
Platform developer Quixant saw pre-tax profits increase by 20 per cent in 2013, its first year since listing on the AIM market, with revenues driven by deals signed with new customers.
Pre-tax profit increased by 20 per cent to US$5.9m, up from $4.9m. Revenue increased by 12 per cent to $24.2m, up from $21.6m allowing it to propose a full year dividend of 1p a share.
The company stated: “We have made excellent progress financially, operationally and commercially and enjoyed strong support from the investment community following our entry to the AIM market in May 2013.”
Quixant added new customers during the year, taking its total number of customers to 82 from 63. Its largest, Ainsworth Game Technology, generated 72 per cent of the company’s revenues.
In terms of orders, Quixant shipped around 21,800 boards during the year, up from 18,500 in 2012, but said that this accounts for less than a five per cent share of the market, estimating that
there’s been around 450,000 to 500,000 new replacement machines installed in the market in recent years. 2014 has begun in line with expectations with volume sales beginning with one of its new Tier 2 customers. Its order book is twice as full as it was at this time last year.
Jane Anscombe, analyst at Edison Investment Research said: “Quixant is one to watch. Its final results were ahead of expectations with PBT of $6m up 20 per cent, but its big opportunity is to replicate the success it has had with one major customer. It moved into volume production with two new large customers in the second half of 2013 and we believe there is much more to come in 2014. The order book is currently more than twice the 2013 level and management’s confidence is demonstrated with a 1.0p maiden 2013 dividend. The shares’ premium rating (2014e P/E of 28.5x) is fully justified. Quixant has an unusual niche business, combining PC engineering expertise with a deep knowledge of the gaming industry and its regulations – which provide a considerable barrier to entry. It listed on AIM in May 2013 and brings X-box type PC capability to slot machines.”
