Gaming and slot machine software group Quixant (LON:QXT) reported a bright start to 2016 aided by recent acquisition Densitron.
Quixant paid £7.7mln for the electronic display group in November to broaden its customer base away from casino and slot machines. Nick Jarmany, Quixant’s chief executive, said Densitron had done well in the two months under its ownership and overall group earnings in 2015 would be ‘comfortably in line’ with market forecasts.
Broker finnCap raised its forecasts for 2015 a touch to revenues of $42.2mln (32% growth) and profits of $8.7mln, a 21% improvement.
The dip in profits margins to 21%, from 23%, reflects the growing volumes of gaming machine video screen sales alongside the original logic-box business, it added.
Jarmany said that the order book going in to 2016 was very healthy, which would help it meet forecasts for 2016 as well.
Finncap expects earnings to rise by a further 17% this year and has a 200p target price.
Shares rose 2% today to 162p.