10th Sep 2024 14:43
(Alliance News) - Nexteq PLC on Tuesday celebrated its customer relationships and a healthy foundation for investment opportunities, despite posting a profit and revenue fall amid challenging market conditions.
The Cambridge, England-based technology solutions for manufacturers of electronic equipment said pretax profit dipped 7.8% to USD4.7 million in the first half of 2024 from USD5.1 million a year ago.
Revenue declined 14% to USD48.2 million from USD56.3 million.
The company highlighted "high" levels of customer retention and continued evolution of new product lines into mass production which it said targets the "the high volume, value segment of the gaming market."
Chief Executive Officer Duncan Faithfull said: "Despite the previously reported challenges Nexteq's trading faces because of wider market conditions, it is reassuring to report the group has maintained good profitability and achieved a record cash position which gives us a strong foundation for further investment opportunities. Equally, the group has performed well in the execution of key elements of its strategy, reflected in our strong levels of customer retention and continued innovation across our product lines to capture further markets and customers."
Nexteq said a process to recruit a permanent chair and chief financial officer is ongoing.
Looking ahead, CEO Faithfull said: "While we continue to monitor our end markets closely, we remain strategically well-placed for future growth, underpinned by our strong customer relationships, a clear product roadmap and a robust financial position. Now in the position as chief executive officer, I am excited to apply my experience across Nexteq's products, customers and markets to drive forward the group's vision. We remain confident in the long-term prospects across the Gaming and other key industrial markets where our product offering continues to resonate with customers."
Nexteq noted a current range of forecasts for 2024, citing an expected revenue between USD94.0 million and USD96.0 million, between 18% and 16% lower than USD114.3 million reported for 2023.
Further, forecasts for adjusted pretax profit for 2024 are USD9.4 million, which would be a dive of 36% from USD14.7 million reported for 2023.
Nexteq shares fell 3.0% to 96.00 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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