**Summary**
Nexteq PLC (AIMNXQ), a leading technology solutions provider, released a trading update for the financial year ended 31 December 2025 (FY25), confirming that performance is in line with market expectations. Key highlights include
1. **Financial Performance**
Revenue grew to $90.2 million (FY24$86.7 million), slightly ahead of guidance.
Adjusted profit before tax is expected to meet or exceed the market consensus of $3.6 million, despite challenges like increased component costs (e.g., memory in Quixant computers) and a shift in customer mix.
Quixant revenues rose 10% to $60.1 million, while Densitron revenues declined to $30.1 million due to end-of-life components and long implementation cycles.
2. **Financial Position**
Net cash decreased to $25.1 million (FY24: $29.1 million) due to increased investment in product development and shareholder returns ($3.6 million via dividends and share buy-backs).
3. **Outlook for FY26**
Significant new customer wins in 2025 will contribute to growth in 2026.
Launch of innovative products like the Gaming Software solution, LaunchPad, and DDR-5 variants to mitigate DDR4 memory supply and cost risks.
Operating costs remain controlled, with savings reinvested in customer acquisition and integration.
4. **Challenges and Mitigation**
Ongoing DDR4 memory availability and cost issues are being managed through supply chain expertise, customer collaboration, and the transition to DDR-5.
5. **Notice of Results**
Full-year 2025 results will be announced on 18 March 2026.
CEO Duncan Faithfull expressed satisfaction with FY25 achievements, highlighting revenue growth, profit delivery, and progress on strategic initiatives. He emphasized the exciting prospects for 2026, including new product launches and continued focus on pipeline conversion to drive future growth.
Nexteq remains well-positioned for growth, leveraging its global presence, innovative solutions, and strong customer relationships across its Quixant and Densitron brands.