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This technology group is down, but not out

Nexteq has warned on profits again, but it’s worth holding on to the lowly rated shares for their recovery potential
This technology group is down, but not outPublished on October 31, 2024
  • Pre-tax profit guidance reduced by a third
  • Robust cash position
  • Strong free cash flow generation
  • Share price down 18 per cent

Nexteq (NXQ:72.5p), a technology design and supply chain partner to customers in gaming, medical, broadcast and industrial markets, has issued its second profit warning in three months.

The news prompted joint house broker Cavendish to cut its full-year pre-tax profit estimate by a third to $6mn on revenue of $85.5mn. At the start of the year, analysts had expected the company to match last year’s bumper pre-tax profit of $14.3mn on revenue of $114mn, so the scale of the downgrade is significant.

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