Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineSuper set of full year results reinforces our positive view on Quixant
Quixant (QXT:AIM) 410p
Loss to date: -6.3%
Original entry point: Buy at 437.5p, 25 January 2018
Full results from the gaming machine platform supplier beat expectations on multiple levels. Stockbroker FinnCap had forecast $108.8m revenue, $17.3m pre-tax profit and 2.4p dividend per share. Quixant managed to produce $109.2m revenue, $17.7m pre-tax profit and 2.6p dividend per share.
FinnCap says cash generation was slightly weakened by increased inventory to counter growing worldwide demand for electronic components and to avoid price rises.
Quixant now accounts for more than 10% of market activity, having shipped 52,000 gaming platforms in 2017. FinnCap also notes Quixant is now becoming recognised for monitor quality, independently of its platforms.
‘Button decks (touch screen monitors replacing the smash buttons) are a typical example of Quixant’s ability to take a simple well-known industry product and innovate it to enhance quality and its ability to attract players, thereby enhancing value to the customer and price and margin for Quixant.’
The stockbroker has increased its 2018 pre-tax profit forecast by 6% to $19.4m. It expects the business to make $21.9m pre-tax profit in 2019.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
