Trading Update and Notice of Results

Nexteq (AIM: NXQ), a leading technology solutions provider to customers in selected industrial markets, today provides an update on trading for the financial year ended 31 December 2025 ("FY25").

Trading performance

As announced in December 2025, the Board is pleased to reconfirm that FY25 trading is expected to be in line with market expectations. This reflects a performance slightly ahead of the guidance laid out at the Capital Markets event in February 2025, with revenue of $90.2m (FY24: $86.7m) and strong progress made across the Group's signposts to success, particularly in increasing the number of $1m customers. Full year adjusted profit before tax is expected to be not less than market consensus forecast of $3.6m1, reflecting a change in customer mix, and the impact of increases in critical component costs, especially memory in Quixant computers.

The Quixant brand posted revenues of $60.1m, up 10% against the $54.8m recorded in 2024, despite its historically largest customer by value trading at a significantly lower level in 2025 due to the customer's ongoing corporate activity, as previously flagged. Consequently, and as a result of the focus on new business generation, Quixant secured a new largest customer in 2025. The Industrial Displays brand, Densitron, delivered revenues of $30.1m (FY24: $31.9m), driven by the continuing impact of end-of-life components, and the long implementation cycles of significant new business wins.

Financial position

Net cash on 31st December 2025 was $25.1m (FY24: $29.1m), reflecting the continued generation of positive operating cash flow, offset by increased investment in product development. Furthermore, the Group returned $3.6m of cash to shareholders in the first half of 2025 through dividends and its first share buy-back programme.

Outlook

The outlook for FY26 remains in line with previous guidance. Significant new customer wins in 2025 will be on-boarded through 2026, and the Board expects continuing positive order book momentum from new product introductions, including the innovative Gaming Software solution, LaunchPad, being formally launched in January 2026, alongside the realisation of previous large customer wins.

Operating costs remain under control in 2026, with savings made in the second half of 2025 allowing investment in new customer acquisition and integration support.

As has been widely reported, the ongoing issues in availability and the associated cost increases of DDR4 memory used in Quixant computers represents a potential risk in 2026. Through its procurement team located in Taiwan, Nexteq has been successful in managing the supply chain risks over recent years and is confident in its ability to secure the components needed for 2026. Nexteq is managing cost increases with its customer base, and, through its excellent customer and supplier relationships, developing engineered solutions which allow multiple vendors' DDR4 to be interchanged seamlessly as availability changes between the DDR4 suppliers. The launch of DDR-5 variants of key products is a key risk mitigation strategy which will allow multiple product lines to move away from DDR4 reliance in 2026.

Notice of Results

The Group expects to report its full year results for 2025 on 18th March 2026.

Duncan Faithfull, Chief Executive Officer of Nexteq plc, commented: "I am delighted with what Nexteq achieved in 2025, delivering revenue growth, and profit expectations. However, 2025 also saw a number of challenges, with continuing end-of-life and component issues, alongside the implementation of tariffs in North America on our customers' customers and the impact on their capital investments. As ever, Nexteq managed the supply chain challenges excellently and delivered consistently for its customers.

The Group continues to focus on its 'signposts to success', delivering pipeline growth through its new product development; increased revenue generation from Nexteq recently developed IP; and accelerating diversification of revenue as we deliver more $1m annual revenue customers. 2026 will be incredibly exciting as we launch new solutions in Densitron, and our 'game changing' Gaming Software product alongside a new range of Gaming Computers.

Nexteq continues to show great growth potential, and focus will be on pipeline conversion to ensure that potential is realised in 2027 and beyond."