Nexteq plc ($NXQ)

Good morning, and welcome to the Nexteq plc FY '25 results investor presentation. [Operator Instructions] I would now like to hand you over to our CEO, Duncan Faithfull. Good morning to you.

Good morning. Thank you very much for handing over, and thank you for joining the Nexteq 2025 results and future outlook. We really appreciate you joining. So today, we'll be taking a look back at 2025 performance, but also sort of the key updates that sit behind those numbers. But a large part of this will be what we're going to focus on through 2026 and 2027 to give you a view of the business and what we're doing to continue to grow profitably over the next few years. So this is the second time that you've watched Matt and I present full year results. We've used different photos this year, so we don't look identical. But just to introduce myself, Duncan Faithfull, Chief Executive Officer, been with the business since 2020. I'm really delighted to be working with Matt as the CFO, and we worked together running this business for 1.5 years. To Matt.

Thanks, Duncan. Yes, I'm delighted to be here again. Thank you very much. I've been with the business since the middle of 2022, working very closely with Duncan and CFO and CEO together for the last 1.5 years in the business.

So what are we going to cover over the next 20 minutes or so. So just a little bit about Nexteq, who we are, what we do and how we do it. Then a snapshot into 2025, just a quick look at the results but also those key external impacts that have impacted those numbers in 2025 and then I'll look forward into product development highlights, what we've done against the road map that we launched at the Capital Markets Day in February 2025. Stage 2 of this is that Matt will provide an update around our finances, but also the objectives of 2026 and how that links into that 3-year plan. And then we would really welcome your questions. It's actually a really important part of this for us. So I hope that you have a lot of questions for us. It really helps us understand your perspective of the business. So look forward to that a little bit later on. So who is Nexteq? So rather than read out our vision and our mission and our values, really, there's some really key words on this slide, innovation and empowerment, particularly empowering our customers through the outsourcing process, to enable them to focus really on what they do for a living. But what really encapsulates Nexteq is whatever the world throws at us, really, it's our commitment to innovative engineering solutions and how we do it. It's always with energy and with passion and with true domain knowledge. And the One Nexteq agenda, that we spoke to you about last year, has been thinking about how we utilize all of the skills across our business to think differently about the market verticals that we're really targeting. So for those of you who don't really know Nexteq particularly well, who are we? So we are a dual brand, multi-vertical organization and we're truly global in terms of how we operate. We operate from 6 countries and in a time when it's pretty uncertain out there, the resilience that, that brings us is something that is really important to us. Going down the left-hand side of this chart, we're an exceptional product and solutions business. We have over 46 trademarks and 30 patents, and that number is growing as we continue to invest in R&D and that commitment through product and solution innovation. Really, what we try and do is answer challenges that our customers don't really know they have yet, so really spending time and focus on creating solutions. Importantly, we have engineering spread across the U.K. and Italy and Taiwan. And we manufacture the majority of our solutions in Taiwan, and we partner with a number of world-class manufacturing organizations to deliver our solutions. The technology really plays across many different verticals. And in the center of this chart, you can see a One Nexteq circle in the center there. And around that is the different verticals that we work within. And we solve technology outsourcing challenges across all of these different market verticals, whether that's medical or transport, from intralogistics to agriculture and, of course, gaming, which a lot of you will know us for to ProAV and broadcast. But the key thing really is we have engineering skills across these categories. And whilst we used to think of ourselves as 2 different and separate businesses, we now utilize all of the skills from those businesses through One Nexteq to target opportunities across all of those market verticals. On the top of this chart, you can see 2 pie charts. The first one, it shows our geographical split. And we are 2/3 of our revenue comes from North America, the rest from EMEA and the rest of the world. By sector, we are still 2/3 of our revenue coming from gaming with a fairly equal spread across other market verticals. We expect that to change a little bit over the coming years as we try to continue to diversify both geographically and from a product perspective, just to give the group more resilience as we go through the next few years. And on the bottom right of that chart, you can see a list of our customers. This is just a snapshot of them. But these are all market leaders in their own fields and they trust us with true outsourcing solutions for their technology programs. And again, you can see many of those brand names that you're familiar with from gaming with Everi and Aristocrat, from broadcast with BBC and across many other industrial display solution markets that we work with. We're really proud of our customer mix. And as we go forward in this presentation and over the next couple of years, we'll be looking to continue to add recognizable brand names to that through our diversification agenda. So we spoke briefly there about our 2 brands. Most of you will be familiar with these. But just as a reminder, we have 2 trading brands. Densitron, which is market-leading display and HMI solutions across multiple verticals. And increasingly, as you can see, hopefully, by the top picture in that group of displays on the left-hand side of that chart, we're looking to be more than just the display. So how do we create solutions that include computers, that include the housing that goes around the display and of course, the HMI solutions that sits on top of them. Densitron really can offer so much more than just the display. An important part of Densitron is IDS, which is a controlled solutions business, which simplifies and automates workflows, and it's currently what the BBC trades with us using. And it's a really important part of how we think about offering a wider software solutions business across both Densitron and gaming. Quixant is the brand, again, you'll be familiar with and the targets, specifically the land-based gaming sector. Quixant recently achieved 20 years of age and is a true market leader in a supply of computers that run electronic gaming machines. Founded on true hardware innovation and really creative software solutions that sit on top of our computers. We have become an essential part of the game manufacturers' hardware builds for their product. Recently, we've launched a software model. It's a recurring revenue solution, which really does give true advantage to customers who use it, and we'll talk about that a little bit later on. We're really excited about what LaunchPad, which is what it's called, can do for our business as we go forward. Essentially, we're thinking of ourselves, as Nexteq, as a true technology outsourcing organization. So Quixant has been that for a number of years, where we allow our customers to focus really on what they do for a living, which is creating brilliant games. And in Densitron, we are progressing really quickly along the same path, where back to that ethos have been more than a display. We allow our customers in those various industrial technologies markets to focus on what they do for a living. So we're not just creating displays anymore, we are creating the computer solutions that sit behind it, how we create that into a system, how we utilize IDS, that exciting software business that we have, to create turnkey solutions similar to what we do in the gaming sector. So that's just a bit of background to Nexteq, but let's look at 2025 now, both in terms of the financials, but also the key operational highlights that fed into them. So I'll just hand over to Matt to talk through the right-hand side of the slide, and then I'll pick up again once he's done.

Thank you, Duncan. So the financial highlights for 2025. We delivered revenue of $0.2 million, which was up 4% from the prior year. Adjusted PBT was $3.6 million, which was in line with market forecast. That in itself was driven partly by a gross margin of 32.8%, which was down 310 basis points on the prior year. Net cash, we closed out at $25 million, is partly driven from positive operating cash conversion. So we had the third year in a row of that statistic being over 100%. And that in itself, the adjusted PBT, has driven our adjusted diluted EPS to $0.036 per share. So those are the final highlights for 2025.

Thank you, Matt. I think the important thing about that is we did what we said we were going to do. And that's a key part of how we run this business. So really delighted that from a revenue and an adjusted PBT perspective, we overachieved in terms of what our expectations were. But how did we do that? Again, launched at the Capital Markets Day in terms of the operational focus of the business, we sort of separated the activity into 2 sort of tranches really. One was looking at products and innovation, and the other one was how did we become really great to deal with what was that sort of supply chain management that we had to get right. So on the top of that sort of left-hand side of this chart, you can see products that we launched recently. In 2025, we won 2 really prestigious broadcast awards for innovation in terms of how you operate a broadcast environment through the product solution. LaunchPad is the gaming software platform that we introduced at G2E in Las Vegas in October 2025 and actually, we've just launched from a European perspective at the ICE Show in Barcelona. This is a true innovation in a market where it's actually quite difficult to do that. What LaunchPad is, it's essentially giving a vanilla game platform to our customers that sits on top of our hardware platforms and enables our customers really just to focus on creating great games and great games is what makes their money, sells cabinets and obviously, that means we then sell computers. So LaunchPad really does develop the Quixant's organization into a software revenue model as well as the hardware that it's known for. Tactila is our revolutionary HMI solution, looking at rotary dials in a whole new way. And Tactila is key to the growth of what's happening in broadcast and ProAV and a big piece of work through 2025 was making sure that our manufacturing process with our partners in Taiwan is robust and that we can fulfill the contract I'll talk to you about in just a second. So a lot of work operationally to make sure that Tactila can be mass produced effectively so we can sell with confidence. From the perspective of supply chain management, I'm really delighted to be able to tell you that we have Quixant cabinets, the full turnkey solution in U.K. casinos now. So we launched that through the middle of this year. And also, we have gaming cabinets on some cruise ships. So extending those distribution points of cabinets. And of course, they include our computers and all of the other technology that comes with being a Quixant customer. So some really great progress in terms of what we talked about at the Capital Markets Day that will drive the business forward over the next few years. But in terms of some more detail around what sits behind the numbers that Matt just talked you through. Again, a lot of this, I would have talked about before, but there's some important updates on this slide. On the left-hand side of this, you can see some customer names halfway through 2025, Apollo Global Management acquired 2 gaming companies. One was IGT. IGT is a market leader in terms of volume. It also acquired Everi that is our largest customer -- or was the largest customer. That's had a massive impact on 2025 because we planned and we assumed that 50% of the Everi volume would go as a result of this acquisition. It turned out to be a much more aggressive integration process. And 2025, Everi bought around about 1/4 of the volume it usually would have done from us, which makes the ability for us to grow our revenue in 2025 even more impressive. So despite that massive headwinds and challenges that we have to deal with, we grew our revenue. And largely, that was because we won a customer with a new product we developed last year. Arrow International bought 13,000 computers from us instead of roughly 2.5 that they would have usually because they were entering a new market with a new product we created for them. So we counteracted that issue from Everi with a really important account win. And Genting Casinos was that cabinet customers that I talked about earlier with regards to the cabinets in the U.K. casinos. So really good progress in a difficult time as Everi was transitioning into its new ownership position. But Densitron becomes a really important almost as a result of that. We won agreements with Clear-Com and with Wohler for solutions that include the exciting new Tactila solution. But it's not just about HMI, in Tactila. Through Cummins and HACH, two brand names you can see on the bottom left there, we have one business that is more of a system integration solution for Densitron as we talked about earlier. And then the BBC, which is that focal point for our IDS product, continues to go from strength to strength for this. So a real sort of story of customer movement. But what's important to take from that is the diversification agenda that we have because we can't rely on Everi now. It's about how we grow the rest of our business. And we're doing that through creating really innovative new solutions. And on the top of the right-hand side of this chart, you can see 4 different products. So ProDeck, we've already spoken about, making great strides in terms of distribution of that across multiple market verticals. The IQON 3 is our latest and greatest computer for the gaming sector. This has the large amounts of Quixant IP involved, particularly in the cooling mechanism which is very important because this drives significant graphics performance. And again, let's make our customers' lives easy and enable them to create brilliant new games, and they have to do that with brilliant graphic solutions. So IQON 3 was launched at the back end of 2025 and is already showing fantastic potential in terms of growth going forward. LaunchPad is that software platform that I've already spoken about and Tactila HMI solution. So really, really pushing on those things we talked about at the Capital Markets Day in February. But as ever, life isn't easy. As you can see on the bottom of that slide, there are some headwinds and challenges that we faced this year. Firstly, from the point of view of tariffs. Now whilst our products, certainly from a Quixant perspective, haven't attracted tariffs, our displays do, but the bigger issue we're facing here is that our customers' final products are made up of multiple different components. And many of those do attract tariffs. So that has meant that the cost of our customers' products have gone up which is impacting rate of sale. So again, we have to just watch the impact of tariffs today, but also what the future tariffs may become. And DDR4, DDR4 is the name of a memory chip that we use in a lot of our products in Quixant. And because of the impact of AI and the requirement for increased computing power, the availability of DDR memory chips has become severely curtailed and therefore, the price is going up. So it's very much back to that 2022, '23 year where the component and management is a really important thing for us to focus on. So as we go forward through '26 and beyond, we will tell you a lot about DDR and what we're doing to manage our situation. And Brazil is a wonderful opportunity for Nexteq. It's also taking a long time to get to the point where that's realized. So we're doing a lot of work to make sure that we're positioned for growth, but that growth hasn't come yet, although there is some exciting development that we'll look to tell you about as we speak again through 2026. So the numbers are never just as simple as the numbers. There's a lot that goes behind it. And hopefully, that gives you an idea of some of the work we've been doing at Nexteq through the last 12 months. Now I'll hand over to Matt, who will talk through some detailed financial results for you. Matt?

So in terms of our income statement performance in 2025, as I mentioned before, revenue increased by 4% to $90.2 million, that was largely driven by our new largest customer, taking account of the impact of the Everi volume dropping away, which Duncan talked to that was a fantastic achievement, given that pressure from the Everi volume. The other really key point in the income statement was a record gross margin for Densitron, so we achieved over 38% in 2025, which was driven by some really solid new wins that came through on the Densitron piece. In terms of group gross margin, that was down 310 basis points to 32.8%. The largest impact on that was on the gaming side. So the change in the product mix and customer mix that impacted our gross margin as well as the challenges from DDR4, which Duncan talked to about around availability and pricing pressure on components and needing to facilitate the supply of DDR4 with strategic buys. Operating expenses were down year-on-year by $900,000. That was realizing savings that we've implemented in 2024 through restructuring, looking at other areas of the business where there's opportunity to take out costs. That was partly offset by us having to write-off some capitalized development on DDR4-related gaming products as we now no longer see the opportunity to take those projects further into the future. All in all, that drove adjusted PBT down to $3.6 million, which is really positive in terms of us being able to hit the forecast that we put out into the market that does reflect the fall in gross margin. So although we have higher revenues than we had originally forecast because our gross margin is down slightly we're only still coming in line with adjusted PBT rather than seeing an increase in adjusted PBT. Coming on the back of that PBT numbers, our adjusted EPS was down year-on-year, reflecting that reduction in adjusted EPS, but our reported profit before tax and basic earnings per share both increased year-on-year. That's a result of there being us taking out the adjusted item that we had in2024, which was a $2.8 million write-off as goodwill. So we impaired goodwill in one of our CDUs. So that's the reason why profit before tax went up year-on-year. In terms of Quixant side of the business, so Quixant returned to its historic pattern of very much H2 weighted revenues in 2025. Something over the prior year was more of an anomaly where it was a H1 weighted year that was tied in with a lot of destocking cycles and customers. We had a really strong order book generation in the first half of 2025, which allowed us to deliver that enhanced performance in the second half. And as I talked about before, in the previous slide, the reduction in the gross margin was driven by the change in product mix and the impact of DDR4 challenges. You can see on the right-hand side of the table there, the change in gaming platform sales, which ties back to that margin piece. So we had an 18% increase in the number of platforms that shipped during 2025. So just over 51,000 PC platforms that we shipped. And you'll see the big increase there in the mid-range platforms, which ties in with our new biggest customer and also a decline in the high-end platforms, which tied in with the comments around Everi and their volumes falling last year for us. So strong performance in terms of volumes on the gaming side last year, for sure. Moving on to next slide, so looking at Densitron and their revenues. So H1 for Densitron was behind where we were in 2024. We see that reflecting the tail end of the destocking cycle for Densitron. We did have positive order book generation in the first half last year, which enabled us to deliver 12% growth in H2 2025 versus H2 2024. So some really positive highlights for Densitron as a business and its revenue performance last year was we had our first revenues from Tactila as pre-mass production units. So we shipped those to our OEM customers for testing and they've also onward supply to their customers with those initial units that we sent. But we're still pre-mass production with full mass production due to go live at the end of H1 this year. But as I mentioned before, we had a record gross margin on Densitron and that's really been driven by how we're winning new business. And this proposal that we have with our customers to sell a more fully integrated display. So not just selling the upfront display, but selling the PC unit, the housing and the drivers and the integration of the software as a full unit. And that gives us an enhanced value proposition to our customers and supports the increased gross margin. We also saw new revenues coming from multiple verticals in Densitron across industrial, medical, transportation is key areas where we won business and brought through revenue in 2025. In terms of cash flow, we closed the year on a net cash balance of $25 million at December 2025. We continued positive operating cash generation. So for the third year in a row, we had operating cash conversion of over 100%. In terms of the details of various movements on the cash balance, so working capital was down $2 million. That reflects the change in trade receivables that we had at the year-end. So we had a very strong Q4 in 2025 particularly in December. So that led to an increased receivables balance at the end of the year. We since collected in the majority of that cash so before moving into 2026 with positive working capital movements. CapEx of $4.1 million, which is higher than what we've had historically. The majority of that balance relates to our investment in innovation, so driving R&D across both the Densitron and the gaming brands, sort of bringing through our investment in Tactila and in LaunchPad is a significant part of that in CapEx. We also placed a $1.5 million deposit for a new property in Taiwan, which allowed us to consolidate various different leases that we have in Taiwan into one single property, which we would own, which is much more efficient structure for us to have in Taiwan. This would also be cash neutral when we sell the existing property that we own within Taiwan, which will happen later in the year. The final part of the cash flow is how we return value to our shareholders. So we returned $3.6 million in 2025, so $3 million by dividend and $0.6 million was the end of our share buyback program, which concluded in Q1 2025. We did initiate a second share buyback program in the second half of 2025 that didn't lead to any more buybacks in 2025, where we have seen quite a significant volume in 2026 subsequently. So moving on to our signposts to success. We presented these at the Capital Markets Day and laid out these 3 key success factors for us, which give you an indication of our performance and how we're building to deliver on our plan. So the first target was around growing our pipeline of opportunities. I'm pleased to say that we delivered a 14% increase year-on-year, seeing new opportunities come on board across both the Quixant and the Densitron brands with product launches like IQON 3 and LaunchPad getting closer to launch, helping to build out those pipelines on the Quixant side. The second of signposts of success was around our Nexteq new IP revenue, so the importance of bringing our IP through from product development into the market and generating the customers that enjoy the benefit of those unique technologies. So we increased our new IP revenue to over $3 million in 2025. That included Quixant cabinets, which Duncan talked about, ProDeck on the Densitron side being incorporated with a much wider range of software solutions on third parties that generated further appeal for ProDeck. And as seen, the first revenues come through from Tactila will be at premass production. So we'll see on this key signposts to success, LaunchPad starting to make a difference in our performance on that in 2026 and beyond. And the final of our signposts to success was around our $1 million customers. So we have some fantastic progress on this in 2025. We increased the number from 10 to 14 customers, but it's not just the number of customers that tells the whole picture there. You can see the final bar on the 2024 chart, which really reflects every revenue that we had in 2024 and how we've got a much better diversified base of revenue in 2025, of course, a much greater set of customers, which really takes away that risk that we have on Everi. It shows the reliance that we've had on 1 or 2 key customers in previous years, and provides a stable platform from which for us to grow moving forward.

Great. Matt, thank you. All right. So just to talk to you now around what we're going to focus on for 2026 and then beyond. Just to give you a bit of a background on the gaming market because it's obviously key to Nexteq. The gaming market is split up or we split it up into 3 tiers of customers, Tier 1, Tier 2 and Tier 3. Tier 1 from the perspective of markets where we can get market data, which is difficult in this market, 75% share is pretty much owned by 5 organizations. And in the main, they make their own computers. We sell them some side products that go as a part of their overall solution. But their main platform, which is what we target as Quixant they do themselves. So 75% of the gaming market is unaddressable by Quixant. And our really sort of sweet spot is that Tier 2 area where you'll see some names that you're familiar with over recent presentations called Ainsworth and Everi and Arrow that Matt has just been talking about. Now it's important to say that we have a chance right now to start trading in a more meaningful way with IGT. And actually, we've recently won new business with them in Spain and in Brazil. And that's really important because as we then talk to them around developing business for their main platform, now they have joined with Everi, the fact that our technology is integrated into their software stack is a really important developmental step for us. So we are really working hard with Everi and IGT to make sure that there is life after Everi and it was and as we used to know it. So Tier 2 is a really key focus area, particularly with LaunchPad, something that's really exciting in order to develop that tier of customers. But I just wanted to spend a second on Tier 3. Now largely Tier 3 sits outside of a lot of the market data. So from a perspective of an addressable market, there is around about 500,000 gaming cabinets in North America alone that sits within what we would call Tier 3. And that's in the amusement market and the route markets in North America, that's replicated across many other markets across the world. Now that's a massive opportunity for Quixant, but historically, we haven't addressed particularly well. And also that's being augmented now by online game creators wanting to get their game content in front of new audiences and that's in a land-based environment. So we are looking at solutions that addresses that Tier 3 opportunity, which is significant. So what is it we're doing? So 2026 activities and executing on our plan. Essentially, they fall into 4 buckets. But organizationally, we've got to set ourselves up to win. So executing all of these plans with that real accuracy and speed is what's key for us to hit those objectives that we talked about at that Capital Markets Day. So split into 4 buckets. From the Quixant side, which is the left-hand side of this chart, looking at true hardware innovation, but also how do we monetize that brilliant work we've done with LaunchPad. And on the Densitron side of this chart, how do we focus on different markets and different market verticals and using the HMI innovation that we have to create that more than the display work that we talked about earlier. So what does that really mean in terms of actionable items? So focusing on Quixant first and going through these in order on the left-hand side. So we are creating a new computer for the amusement market, which we're going to launch hopefully by G2E in October in Las Vegas. And part of that agenda is we're looking at different graphics chip solutions. So traditionally, this market has been serviced by AMD and Intel, but more and more, particularly with the issues around DDR and memory shortages, we're thinking of how we utilize our technology expertise to integrate different solutions, and you can see one listed there on the chart. We're launching new cabinets and new monitor solutions as we go through the second half of this year. And in the center of the left-hand side there, you can see winning IGT is a major objective for us. We're targeting to win 5 LaunchPad customers in 2026. Now that doesn't sound many, but actually, it's quite a complex integration cycle with the LaunchPad software. But what's great about that is every time we win a new LaunchPad customer, we also win the computer that goes with it. So it's a really important leverage point for us in Quixant to grow both the hardware and software elements of the business. And at the bottom there, you can see that real focus on securing storage and memory components through strategic purchases that Matt talked about earlier. So really in Quixant, how do we create new hardware and sell our new software solutions. On the Densitron side of this chart, some real sort of key points here. At the top there, you can see some market verticals that we're going to be specifically targeting with marketing campaigns to drive depth of distribution in those verticals. So as we learn and we win in these different verticals using our full system architecture that you can see on the second point down the right-hand side, where again it's that more than the display principle, we're going to really target market where we win and try and get greater depth and distribution. We have to deliver on the HMI customer commitments we have and there, those 2 big organizations that I mentioned earlier, plus we are now winning more and more solutions using those HMI commitments. And at the same time, we're innovative. We're creating new and innovative HMI solutions to keep the story going about how Densitron can add value. But really, I guess, the core thing around Densitron is that point around going beyond the display. So what do we mean by that? On here, you can see 2 charts. The one on the left is that traditional model by which an OEM would source a display and everything that goes with it. And it's a very complicated environment, particularly now where there are component shortages, there are lead times that are extending. And all our customers really want to do is focus on what makes them money, and that's not creating an infrastructure around a display solution. So on the right-hand side of this chart is what we do and it's integrated dropping subsystem principle more than a display and that we talked about through this. But we'd we take all of those variables that are difficult to manage and through Nexteq, whether that's computers, displays, the housing or the HMI solutions that operate this, we do that all for our customer and give them a finished solution that they then put into their finished products. So it's replicating that principle that Quixant has had across both of our trading brands to get further down that technology outsource model. And this is what Matt has talked about earlier around what's generating those record margins in Densitron, and we're really proud of what the team are doing because it involves truly being One Nexteq where we're using our experts in Italy, in Taiwan, in U.K. and across the world to create these finished solutions as sort of a true example of what One Nexteq really means. And on this slide, you can see some of these things that we've won that show exactly what we're talking about here. Now these may not -- these look like industrial displays because that's what we do. But the secret of this is we aren't just making the screen. We're not just making the display anymore. It's the computer, the housing and everything that goes within all of these solutions and it's a really exciting development for Densitron as we look to grow that over the coming years. So that's what we're doing. I'll just hand back to Matt now, and he'll talk to you a little bit about how that plays into the plan that we have. Matt?

Thanks. So how are we delivering innovation to diversify our revenue. This is a key signpost to success for us. This is all about how we generate new IP. And that's really important for us as a product-focused business because as we develop new IP, that drives a growth in our pipeline, and that supports us winning new million-dollar customers. So it's the starting point for all our signposts for success. And here on the chart, you see what our key product developments and product launches will be over the next couple of years. So we've already delivered IQON 3 and LaunchPad. As we move into 2026, we have Tactila moving to mass production. Our return to having gaming monitors within our product range and building out the amusement market product for the first time. As we move into 2027 and beyond, we have our focus on Densitron market verticals, so as we take a really focused approach of how we go to market across the different verticals in which we've been successful. In Densitron, there's also a next generation of HMI solutions. So that follows on the back of Tactila successfully launching that and what we innovate and bring next solutions in our unique technologies that we can offer to Densitron customers. And finally, on the gaming side, integrating with Snapdragon. So again, we further diversify away from the 2 main PC manufacturers. In terms of our capital allocation, this slide sets out how we look to allocate our capital for the benefits of driving shareholder value. So the chart you see working capital underpinning organic growth. This is how we invest in the resources that we need, both in terms of people and inventory to support the growth in the business. New IP development, which is really us funding all the things that we see on the previous slide, driving new business, developing new technologies and bringing through repeatable revenues from new customers. Strategic component purchasing, which we've seen back in 2022 and '23 was really important for us. And again, with the challenges from DDR4 and DDR5 supply and pricing, this is a really important focus for us to be able to beat the challenge within the market and secure products for our customers to sign the customers up on a long-term basis. Also, with our surplus cash, returning that to shareholders as we've seen from dividends and share buybacks that we've committed to over the last couple of years. And then finally, using funds for targeted M&A. So focus on opportunities that add value to the business, where we're not going to overpay to bring on board an acquisition. It has to be the right one, which drives value for us as a business and for you as shareholders. So as we go into 2026, there's a few key risks that the business faces at the moment and the mitigations that we're doing to take away those challenges as much as we can. So there's a risk around destocking recurrence that we've seen previously in the past particularly on our gaming customers as the destocking cycle normalized through 2024. We're really focused on getting visibility of what our customers' volumes are and their demand so we can ensure that our stock levels align with where that supply and demand will be to their own with customers in 2026 and beyond. Tariffs and trade policies is a one that came up as an impact in 2025. We saw the continued change of tariffs between the U.S., EU and other markets and particularly with our exposure to Asia supply base component manufacturing in China, this is a really important point. And so we've been focused on working with suppliers that can offer dual source manufacturing both in China and other Asian markets to help limit that impact on customers, but we see this as a continued risk for us as a business because we supply to OEMs who take parts from other suppliers and those parts can be subject to tariff as well. So we see that impacting potentially on our customers' demand in 2026. But certainly, the biggest impact -- the biggest risk for these spaces at the moment is around the DDR4 memory shortage and pricing. That is very much a high risk in 2026. As we see in the market today, the prices continue to increase, availability can be a challenge as well. For us, fortunately, we have very long-term supply agreements with key suppliers in the Asia memory market. We're utilizing those relationships to secure supply and to beat the market price. We're looking to get customers facing their POs as early as possible so we can secure the memory that ties in with their demand. And we're also moving our product range and accelerating the migration to DDR5-based solutions to mitigate our DDR4 risk. So in summary, we have a good handle on our risk and we have a good track record of managing our supply chains through these uncertain times and challenges, which we've seen historically.

Thank you very much. So to bring all of that together, in 2026, all of our execution, accuracy and speed and the whole organization is totally focused on that. For 2025, I'm really proud of what we did from a revenue perspective because despite a massive decline in our biggest customer, we grew our revenue, and that speaks to that diversification point and the focus on creating innovative products and solutions across the group. Densitron we're going to talk a lot about as we continue these conversations. So that more than the display perspective is a really strategic imperative for this group and driving that Densitron new product development and pipeline. That's a continuing story of strength and also opportunity for us as we look at different verticals. As Matt just talked about the memory point we are not going to lose sight on. It's the biggest risk to our business, and it's something we're managing very closely with our Taiwan operations team. And the gaming market, whilst it's mature, providing we continue the innovation agenda does offer significant opportunities for this group. And one of those is IGT. So as we focus on developing business with a wider IGT Apollo Group, we have to just be mindful of the continuing impact on Everi, the remaining business that we have with Everi. And targeted M&A, we have good cash on our balance sheet, and we are looking at how we can create some M&A activity that drives our effectiveness quickly, but it has to be the right opportunity, and we're searching for that on an ongoing basis. So it's a really exciting time for Nexteq. There's a lot of us to be developing, and it's that continued focus on R&D and creating really exciting innovative new products that will take us forward. So thank you very much for listening. And we really look forward to answering your questions. And I'll now hand back to the organizer. Thank you.

[Operator Instructions] I would like to remind you that the recording or this presentation along with a copy of the slides and the published Q&A can be accessed by dashboard. Duncan and Matt, as you can see, we have received a number of questions throughout today's presentation. If I may now hand back and kindly ask you to read out the questions more appropriate to do so. I'll pick up for you both at the end.

Great. Thank you very much. Well, firstly, thank you so much for all of your questions. We're going to answer these in groups because there's some replication across the different questions. So I think we'll split this into 3 tranches of answers. First of all, talk about sort of the component issues and how that might affect demand. I think Matt is going to pick up some specific questions around customers and what we're doing around that. And then I'll pick up at the end to talk about growth and LaunchPad particularly. So taking the first one around the components issues facing us at the moment. So first thing to say is it's not just affecting us. This is a technology-wide issue where the big AI organizations when they're looking to create their data centers are buying up capacity of memory for these data centers. And a key part of the Quixant product is the ability to drive graphical performance. In order to do that, you need the memory to make that happen. And so it's a key part of what Quixant provides. So how we're dealing with that is, we're utilizing some of that balance sheet strength to place future purchase orders with the big memory suppliers in the Far East where we confirm not only the price, but also the volume we're going to be able to get. I think it's worthy of note, though, there is a question over delivery time scale. So whilst we're committed to the volume that we need to fulfill our orders for our customers, actually, we still have to manage these suppliers really closely to make sure the delivery schedule is what we need. So one of the real strengths of Quixant has been borne out of a tricky last 5 years since the pandemic, we're managing some of these component manufacturers is a key part of being successful. And Quixant is really good at that, largely driven because we have our team in Taiwan who interface daily with all of these manufacturers. So we're really confident that we will get the product we need. The question and the thing we have to manage closely is just timing of delivery. So how does that play into demand? It's is a complicated position, particularly when it comes to North America, which was another question that came through. The combination of the impact of tariffs plus increased costs and availability issues around memory and storage devices is difficult to forecast the impact. The reason it's an issue for us is whilst Quixant particularly has managed that environment around tariffs really well. So the computers that we sell into gaming don't attract any of the recent tariffs, but the bill of material for our customers, so that includes metal work for cabinets, the displays, lots of other elements of their final slot machine, they do attract tariffs. So the impact of that has been that the sellout price of our customers' products to the casinos has gone up by a fairly significant amount. And I think the bit we're all watching is how much that impacts demand and rate of sale for our customers to their customers. At the moment, that hasn't been impacted. But I think as we go through 2026, we've just got to be very mindful that, that is something that could come and be an issue as we go through 2026. So nothing really to report in terms of rate of sale and demand yet. But I think the combination of memory pricing in the computer plus the tariff impact on the other cost of goods, I think we just have to watch from the point of view of demand. But again, for the people who watch Nexteq for some time, we are very skilled now at managing the challenges associated with the component shortages that we've seen before and we're seeing now. So that's just a bit about component issues and impacts on rate of sale, and Matt you want to pick up some of those questions on customers?

Sure. Thanks, Duncan. So I had a few different questions in around customers, particularly around $1 million dollar customers and also the importance of North America customer base. And so kind of picking up on the $1 million customers point first. As you saw in the presentation, we increased our number of $1 million customers to 14 in the year from 10 the previous year, which was a fantastic achievement and one of our key signposts to success that we were looking to drive and obviously, that's helped mitigate some of the impact of the reduction in volume that we saw from our biggest customer, Everi, in 2025. We're very much focused on building out the pipeline and converting those $1 million opportunity. So we're very focused, particularly our approach in Densitron, looking at that more fully integrated display is really about how we win bigger customers a much higher revenue value. Slightly more complex solutions does mean that it potentially takes a little bit longer to drive through those solutions to realize revenue from. But as we've got new technologies like Tactila coming into mass production at the end of Q2 this year, that should help us accelerate some of those solution rollouts to new customers as well as generating additional opportunities. So we really expect to start realizing considerable increase in the $1 million dollar customers and driving that revenue coming through from those in 2027 more so than in the current 2026 year. In terms of North America, this is our biggest market, both across Quixant and Densitron brands. We still see lots of significant opportunity in the North America market. We're winning -- we're driving out the pipeline increasing that across both Quixant and Densitron brands in North America. But actually, as we have the structure of our sales team we have, globally, we're based in all the key markets, so not just in North America, and a lot of our new product innovations help drive those opportunities outside of North America. So LaunchPad in particular, our first customer was outside of North America, and we see the main opportunity for LaunchPad being outside the U.S. market. Brazil is another area where we won our first PO and delivered that in 2025. On the gaming side, which again is outside of North America, helping to move away from that reliance. And certainly, Densitron, there's plenty of opportunity and a growing pipeline, which exists outside of North America. So we're very confident in the global opportunities despite the kind of the risks of slowdown in North America and how that can impact the business.

Great. Thank you, Matt. The final sort of tranche of questions are around growth and where we see that coming from. So there's a couple of parts to this answer. Just bear with me a little bit. I think for Nexteq, how we utilize all of the skill sets across the business to deliver different solutions is where the sort of the cornerstone of that growth will come from. So as Matt just talked about, that full system display solution that we talked through the presentation will drive significant growth as we go from '26 into '27 and beyond. And in fact, the sort of pipeline of those opportunities is really growing fast as we build the computer technology, the HMI technology plus the skill in display to create full solutions for industrial display market. So there will be a real focus on how we make sure we have engineering competence with sales team in the field to make sure we could convert those opportunities as quickly as possible because we're going back to executing with speed, we're very conscious with IGT and Everi and what's happened to that. We need to make sure we are adding to that pipeline quickly. So a big focus on full systems in display. And we're also going to be spending a lot of time and effort in marketing into those key verticals, into industrial displays, again, whether that's medical or ProAV or transport or agriculture or intralogistics. Over the next few months, we're going to be really aggressively marketing to those verticals. And I think as we go through this year and into next, you'll see some really interesting wins as we convert the opportunities that we're seeing in that space. So big focus around Densitron. In Quixant, LaunchPad is going to be a key part of our strategy as we go forward. So not only is that a recurring revenue opportunity for the business, it also ties people to our hardware. So as we sell a hardware and software package to our customers, not only does that increase revenue and quality of revenue, so there's a margin -- a positive margin impact to this. It also makes us incredibly sticky with our customers. So as we grow that customer base through LaunchPad, that's a key focus for us. Brazil, we've spoken a little bit about Brazil. Brazil is immediate opportunity for this group. For the last few years, we've talked about Brazil as something that's developing but within the lottery sector of Brazil, there is now operating licenses being granted for the big jurisdictions, and we are partnering with those people who are winning those licenses. So over the course of this year and into next, we'll be really happy to report how that's developing our business. And there's some really exciting news to come on that. The amusement sector for Quixant is a fantastically large opportunity with the right product. And the key to that sentence is the right product. So on my slides earlier, you saw a focus on creating different graphic solutions with the nontraditional graphics providers. That's going to be a key part of that story, and we're looking to create a solution that we can really target towards the end of this year, there's going to be right in the sweet spot for that amusement sector. So that's a key focus area for the business. As we've been talking, there's been some other comments around IGT. So IGT, as I said, has been acquired by Apollo as has Everi, our largest customer. Actually, that's a massive opportunity as well as a risk that's obviously been realized in 2025 and 2026. IGT is the biggest gaming manufacturer on the planet and the combined volume between the Everi brand and the IGT brand in North America alone is about 40,000 -- between 35,000 and 40,000 cabinets a year. So we are working with IGT now to ascertain our role in the new enlarged IGT organization. And I think Quixant is uniquely placed to offer some value to them. And again, I'll talk about that as we go through this year, progress we're making. But IGT is a very important part of our story because for us to win in Brazil, we are partnering with IGT in that space as well. And actually, the combination of North America and Brazil with IGT is going to be a big part of our future growth. LaunchPad, again, to finish in Quixant. So LaunchPad, yes, we've secured our first customer purchase order. We have a second signed agreement that we have now, and we're talking to many other opportunities about this. And I think we'll be really excited to report how we develop that as part of our growth agenda going forward. So that sort of groups all of the customers together -- questions together. I'm sorry.

Duncan, Matt. That's great. We are approaching the hours. Also thank you for addressing all those questions from investors today. Before we direct investors to provide you with their feedback, which I know is specifically important to yourself and the company, Duncan, can I just ask you for a few closing comments.

Sure. So we're fantastically proud about 2025 achievement, beating our revenue targets at a time when our largest customer was declining quite quickly. It's a fantastic achievement. But for looking forward and what we do next, managing those component issues, focusing on growth around being more than a display with the Densitron brands and focusing on LaunchPad will deliver a diversified group and a really healthy group as we go through '27 and '28. So we look forward to updating you on progress shortly. So thank you.

Fantastic. Thank you once again for updating investors today. Could you please ask investors not to close this session as you'll now be automatically be directed to provide you feedback which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good morning to you all.