Nexteq set to report year in line with market expectations

19th Jan 2026 13:02

(Sharecast News) - Nexteq said in an update on Monday that it expected to report full-year trading for 2025 in line with market expectations, underpinned by revenue growth, improved customer diversification and continued progress against its strategic priorities.]

For the year ended 31 December, Nexteq said revenue was expected to be $90.2m, up from $86.7m in 2024 and slightly ahead of the guidance outlined at its capital markets event in February.

Adjusted profit before tax was expected to be no lower than the current market consensus of $3.6m, reflecting a shift in customer mix and higher input costs, particularly rising memory prices affecting its Quixant computers.

Within the group, the Quixant brand delivered revenue of $60.1m, an increase of 10% on the prior year, despite reduced activity from what had historically been its largest customer, which Nexteq said was due to ongoing corporate activity.

The AIM-traded company, formerly known as Quixant, said a focus on new business generation during the year resulted in Quixant securing a new largest customer in 2025.

Revenue at the industrial displays business Densitron fell to $30.1m from $31.9m, reflecting the continued impact of end-of-life components and the long implementation cycles associated with major new customer wins.

Net cash as at 31 December stood at $25.1m, compared with $29.1m a year earlier, as ongoing positive operating cash flow was offset by increased investment in product development.

During the first half of 2025, the group returned $3.6m of cash to shareholders through dividends and its inaugural share buyback programme.

Looking ahead, Nexteq said its outlook for 2026 remained unchanged, with significant customer wins secured in 2025 expected to be onboarded during the year.

The board said it expect#ed continued order book momentum to be supported by new product introductions, including the formal launch of its LaunchPad gaming software solution in January, alongside the delivery of earlier large customer contracts.

Operating costs were expected to remain under control, with savings achieved in the second half of 2025 allowing further investment in customer acquisition and integration.

The group also highlighted ongoing risks linked to the availability and rising cost of DDR4 memory used in Quixant computers, but said it remained confident in managing supply chain challenges through its Taiwan-based procurement team.

Nexteq said it was mitigating cost pressures through customer pricing, engineering solutions that enable interchangeable memory suppliers, and the launch of DDR5 variants across key product lines during 2026.

"I am delighted with what Nexteq achieved in 2025, delivering revenue growth, and profit expectations," said chief executive Duncan Faithfull, while acknowledging challenges from component constraints and tariffs in North America.

He added that 2026 would be "incredibly exciting" as the group launched new Densitron solutions, gaming software and a new range of gaming computers, with a continued focus on converting pipeline opportunities into sustainable growth.

Nexteq said it expected to publish its full-year results for 2025 on 18 March.

At 1241 GMT, shares in Nexteq were up 1.43% at 71p.

Reporting by Josh White for Sharecast.com.