Quixant surges on integration of Denistron

Gaming technology company Quixant announced its interim financial results for the six months to 30 June on Wednesday, which included a full six month contribution by Densitron Technologies, acquired in November 2015.

The AIM-traded firm reported group revenue of $41.3m, which included a 56% rise in Quixant core gaming division revenue to $21.2m and Densitron division revenue of $20.1m

Group Gross Margin reached 35%, with Quixant’s margin shrinking to 42% from 44% and Densitron’s gross margin at 28%.

The board posted group adjusted EBITDA of $6.0m, up from $3.1m, and group pre-tax profit of $4.4m, improving from $2.6m.

It confirmed fully diluted earnings per share of $0.052 per share, against $0.031 per share a year ago.

Net cash from operating activities grew to $6.1m, compared to $5.1m, and net debt as at 30 June 2016 reduced to $3.3m, from $7.9m at the start of the period.

“I am delighted with the performance of the group over the first six months of the year,” said CEO Nick Jarmany.

“Our core gaming business is going from strength to strength and has continued its track record of revenue and profit growth.

“I am particularly pleased to see our progress in the largest gaming machine manufacturers and our increasingly diversified customer base.”

Jarmany said that as the group continues to diversify its customer base and revenue streams, its historic second half weighting will reduce.

“The Densitron division since acquisition in November 2015 has performed well,” he explained.

“We have worked hard to leverage the benefits of the combined business and introduced new strategic initiatives which we believe will enhance performance.

“We are also being introduced to the wider industrial marketplace and seeing opportunities to leverage Quixant's capabilities and infrastructure in a number of sectors.”

Jarmany added that Quixant remained in an “excellent position” to continue its track record of profitable growth.

“Our share of the gaming market is growing fast, although in percentage terms is still relatively modest.

“We have an excellent reputation and are a highly trusted partner of many major gaming machine manufacturers.”

He explained that the company remained on track to achieve full year market expectations and was well placed to continue its record of strong growth.