Looks very solid, good growth in revenue, profit, eps, and all well ahead of forecasts.
Couple of board changes CE and CFO, in both case explained and previous incumbent will remain involved so doesn't look like anything nasty going on. Growing business and some areas need a stronger grip like inventories which has expanded significantly driving up working capital, but recognized and being worked.
The Desitron acquisition looks like work in progress with revenues pretty flat (which emphasizes how well the gaming division is doing)
I have but a toe dipped here, may be tempted to stick more in.
Strong revenue growth of 21% to $109.2 million (2016: $90.4 million)
o Quixant Gaming Division revenue $71.1m (2016 $53.0m)
o Densitron division revenue of $38.1m (2016 $37.4m)
Adjusted pre-tax profit1 up 28% to $17.7m (2016: $13.8m)
Pre-tax profit up 29% to $15.0m (2016: $11.7m)
Adjusted fully diluted EPS2 of $0.229/share (2016: 0.166/share)
Fully diluted EPS of $0.197/share (2016: $0.139/share)
Net cash from operating activities of $8.1m (2016: $10.1m)
Net cash at period end of $4.5m (2016: $(0.1)m
FY dividend of 2.6p per share (2016: 2.0p)
"The Group's results for the full year to 31 December 2017 are expected to be announced on 22 March 2018."
The words expected to be announced comes across as a bit uncertain and their Financial calendar still shows TBA but I assume the results will be out on Thursday.
The TU was reassuring about earnings (below), despite a write off so hopefully no bad surprises. Good numbers is sadly no guarantee of positive market reception these days, the outlook will no doubt be important, news since the TU has been fairly positive.
"The Board of Quixant is pleased to announce that it expects to report revenue for the twelve months ending 31 December 2017 of approximately $109m, an increase of 20% over the prior period. The Board also expects to report adjusted profit before tax in line with market expectations despite a $1.6m write off in relation to a loss resulting from the substitution of a component incorporated into several of our products. Net cash at 31 December 2017 was approximately $4.2m."
"With one of the most exciting product launches since its inception in 2005, Quixant the market-leading supplier of PC-based gaming platform and display solutions is excited to introduce a portfolio of products which bring AMDs cutting-edge RyzenTM Embedded APU technology to the global gaming market for the first time".
Here's hoping the sales matches the launch enthusiasm. Sounds exciting but I confess outside of my hardware knowledge spectrum. More gaming power for less CPU imho.
This year represented our thirteenth appearance at ICE, and was our strongest yet, comments John Malin, Sales Director for Quixant UK. We see the event as a fundamental pillar of our yearly calendar. It is therefore very pleasing to see our considerable effort put into technology development receive a very positive reception, acting as a driver to move business even further forward through 2018.
Another great set of results which from the SP hike in the last few days the market was expecting. The only negative to me was the absence of an inaugural interim divi - never mind. I'll file this one in the growth section of the portfolio and keep holding.
Never looked at Fever-Tree share price chart before. Since floating in Nov 2014 SP has been going up in a more or less straight line on a log scale at a rate of 138.4% pa. Wish I'd bought shares in them in 2014! Up 1250% from 7 Nov 2014.
Thought name was familiar and noted I bought a bottle of their premium tonic water from Waitrose recently so looks like they have found niche market.
Found this Times article but is from 26 July so not reason for today's rise, however is an interesting article on history of Quixant. To access full article need to register but no cost involved just name, email and think up a password.
"James Wood, an analyst at Canaccord Genuity, which initiated coverage of Quixant this week with a buy recommendation, has a 500p target price on the shares. Benjamin May, an analyst at Berenberg, is shooting for 600p. " + a bit more on Brazilian expansion prospects.
Good timing on top up. I missed the boat buying near previous peak on 20 Apr this year. On mid price now up 0.5% on gross purchase cost. Will be happy if SP gets to 600p in next 12 months and will probably take profits if that happens.
I think you are right that Berenberg 600p was probably trigger for recent rise.
Problem with QXT is that to grow they need to keep increasing sales of their specialist gaming computers, which is not that easy as market for them not huge. SharePad (consensus of broker analysts) has forecast for pretax profit growth of 47.8% so perhaps 600p SP target obtainable.
Quite a lot of sizeable trades going through. Looks like institution(s) building a stake in QXT. About back to my purchase cost after price drifted down for a couple of months (was getting near stop loss trigger point).
Bought some yesterday and some more today. Did not have to pay anywhere near ask price of 415, got for about 409. Nice that now no stamp duty on AIM shares, makes up for wider spreads.
Slight cause for unease in that I notice from SharePad that institutional investors have reduced their holding by 9.5% in the last 3 months. Profit taking I imagine. They are pricey with a PE of 27.1% but will be OK if they can continue to grow at the forecast rate e,g. normalised EPS growth of 31.2% pa. SP flat today according to official (mid-price) closing prices for yesterday and today.
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