Here is a summary of the trading update and notice of results for Nexteq PLC as of July 24, 2024
Nexteq PLC, a leading technology solutions provider, has released a trading update for the first half of 2024, anticipating a 15% decrease in group revenue compared to the same period last year.
The decrease in revenue is attributed to softer customer demand across both divisions, with key Quixant customers indicating lower demand.
Despite the revenue decline, the Group maintains a strong financial position with a robust gross margin performance and effective cost management, resulting in double-digit adjusted profit before tax margins.
Net cash has increased to $36.9 million as of June 30, 2024, up from $27.9 million at the end of 2023.
The outlook for the second half of 2024 is cautious, with expected revenues broadly in line with the first half, leading to a forecasted 15%-20% decline in full-year revenues compared to market expectations.
The Board attributes this to continued de-stocking and anticipates an improvement in order intake in 2025 as customer buying patterns normalize.
Adjusted profit before tax is expected to be 30%-40% below market expectations due to lower revenues, despite the Boards strong focus on cost and cash management.
The Group maintains a strong balance sheet and is evaluating acquisition opportunities to support its growth strategy.
The Board also announces a transition, with several key members stepping down over the coming months, including the Non-Executive Chair, Chief Executive Officer, and Chief Financial Officer.
The results for the six months ended June 30, 2024, will be announced on September 10, 2024.
Overall, despite the challenges faced in the first half of 2024, Nexteq PLC remains confident in its long-term growth prospects, with a diversified product portfolio and a strong focus on cost and cash management.