Nexteq reorganises ahead of growth
Nexteq was hit by destocking last year and that led to lower profit. The core business is gaming machines technology, but there will be an increasing focus on broadcast and medical markets. Profit could fall again this year before returning to growth in 2026.
In 2024, revenues dipped from $114.3m to $86.7m, while pre-tax profit dived from $14.7m to $4.8m. The dividend was still raised by 12% to 3.7p/share and the plan is to raise it steadily each year. Cash was $29.1m at the end of 2024. the business remains cash generative.
Acquisitions are planned to use the cash. There could be a medical design house and a broadcast business added onto the group to help to grow in those sectors. This should enhance earnings.
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Mortgage Advice Bureau upturn
Mortgage network and broker Mortgage Advice Bureau is seeing an initial improvement in the mortgage market and later this year there will be a boost from fixed-interest mortgages taken out at around the time of the Liz Truss Budget coming to an end. Longer-term, the plan is to improve margins, while doubling revenues and market share, which is currently 8.4%.
In 2024, revenues were 11% ahead at £266.5m, while pre-tax profit recovered from £23.2m to to £32m. Net debt was £9.7m at the end of the year. The total dividend edged up from 28.1p/share to 28.2p/share. The number of advisers has risen since the end of 2024.
Mortgage Advice Bureau is considering a move to the Main Market.
Eagle Eye sets out targets
Digital personalised marketing technology developer Eagle Eye believes that it can achieve annual revenues of £100m within five years. A deal with an OEM, which will include the technology in its products will help to reach the target.
In the six months to December 2024, revenues were flat at £24.2m, but lower contributions from services and SMS masked 10% growth in SaaS revenues. There was a lack of new wins in the period, but there have been some since.
Investec forecasts an improvement in pre-tax profit from £3.9m to £5.4m. Net cash will continue to build up and could reach £13m by the end of June 2025.
