Nexteq (AIM:NXQ), the AIM-listed technology solutions provider to industrial markets including gaming and displays, reported group revenue of $26.7m for the six months to 30 June, down 34% from $40.7m a year earlier.
The group swung to an adjusted pre-tax loss of $4m, compared with a $0.9m profit in the same period last year, while adjusted diluted earnings per share fell to -7.60c from 1.17c.
Quixant, the company's gaming-focused division, saw revenue drop 53% to $12.8m as customers cut board volumes by 56% to 9.7k units, hit by a roughly 30% rise in their own product costs from tariffs and component pricing. Densitron, the display solutions business, held revenue broadly flat at $13.9m and lifted gross margin to a record 38%.
Net cash turned negative at -$1.4m, from $25m at the end of December, reflecting a $12m short-term Taiwan mortgage, $8.5m returned to shareholders via dividends and buybacks, and strategic inventory investment. The Board expects to reverse the mortgage in the second half, adding over $15m to net cash, partly through the planned October sale of the Taiwan property.
"H1 2026 was a challenging period for Nexteq, with the headwinds facing our end markets intensifying during the period," said chief executive Duncan Faithfull, adding that the company's focus is on "executing well" as it enters its seasonally stronger second half.
Nexteq reiterated full-year guidance in line with its 21 May trading statement, citing order coverage of 83% at the end of August, though it flagged that two significant gaming orders are still needed to secure the year-end position.
News Intelligence what this means for the company
Nexteq's H1 revenue collapsed 34% to $26.7m, with gaming division Quixant down 53% as customers slashed board orders by 56% in response to tariff-driven cost pressures. The company swung to a $4m adjusted pre-tax loss and net cash flipped negative to -$1.4m, though management reiterated full-year guidance and flagged a planned Taiwan property sale to restore cash in H2—a bet on recovery that hinges on two significant gaming orders still needed to hit year-end targets.
The sharp contraction in Quixant—which fell from roughly half group revenue to under half—exposes Nexteq's exposure to cyclical gaming capex and tariff pass-through risk. Densitron's flat revenue and record 38% margin offer some offset, but the company's ability to meet full-year guidance now depends on order execution and the Taiwan property sale closing as planned.
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