LONDON (Alliance News) - Quixant PLC Tuesday posted a rise in pretax profit for 2014 and expressed confidence for 2015 and beyond, citing consolidation between larger gaming manufacturers as a potential growth driver as they seek to increase efficiencies.
Quixant provides computing platforms for casino gaming machines.
It posted a pretax profit of BP7.1 million, up from GBP6.0 million a year before, as revenue rose to GBP31.9 million from GBP24.2 million, although this was partly offset by higher operating expenses.
Quixant attributed the rise in revenues to a ramp up in project wins. The company listed on AIM in 2013, and said that this had helped to increase its profile and status, and in 2014 it won its first large project with what it called a Tier 1 manufacturer, defined as a manufacturer producing over 25,000 machines a year.
It also won a number of Tier 2 customers, or manufacturers producing between 5,000 and 25,000 machines a year, in 2014.
It proposed a full year dividend of 1.2 pence, up from 1.0 pence a year before. It said it plans to maintain a dividend policy which considers a balance between its growth in earnings per share, and its investment needs.
Quixant noted that over the last year and a half there has been "widespread" merger and acquisition activity among gaming machine manufacturers, with many citing "significant overhead savings as part of the justification for this activity." Quixant believes this is a potential opportunity to penetrate the Tier 1 manufacturers as they look for ways to save money, which it believes will help them reject "historical prejudices towards outsourcing".
"I believe this could be of significant benefit to Quixant and look forward to 2015 and beyond with confidence," said Chief Executive Officer Nick Jarmany in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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