Nexteq plc (R87.F) Q2 FY2025 Earnings Call Transcript & Summary

Good morning, and welcome to the Nexteq plc results for the 6 months ended 30th of June 2025 Investor Presentation. [Operator Instructions]. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to CEO, Duncan Faithfull. Good morning, sir.

Good morning. Thank you very much for the introduction, and good morning, everyone. Thank you for joining the business update for Nexteq plc for H1 2025. Just by way of an overview, the first 6 months of 2025 has been really exciting as we focused on the business transition that we highlighted at the Capital Markets Day in February of this year. As we focus on the structures for delivering long-term growth. We have been maintaining that laser focus on product and innovation delivery and also constantly delighting our customers, and that will be a theme we come back to often through the course of this presentation. The 3-year plan is really important to us. And I'm really excited to be able to report about that renewed sense of purpose and optimism that's really across our business as we look to deliver all of those objectives that form a part of that 3-year plan. So what are we going to cover over the next 25 minutes or so First of all, I just want to apologize for the photos on the screen. I think, if we tried, we couldn't get 2 photos to look more identical. So I promise that I won't grow beard the next time and but I will try and think of a different classist style just to make sure that you can tell us apart. But introducing Matt. So Matt's been in his role for about 1 year now. He is our CFO, and Matt's brought a huge [ amount ] to the business, and I'm delighted with his and our progress under his financial stewardship. But what we're going to cover just a quick recap on who we are and what we're trying to achieve, and then Matt will spend some time taking you through the H1 financial performance. So by way of an overall summary of the first half of 2025, you'll have seen some of the numbers in the announcement this morning, and we'll give you more detail on that as we go through this presentation. And yes, our numbers are down versus the same period of the previous year, but we knew that would happen based upon the order intake going through H2 2024. And our performance for H1 2025 is in line with expectations and is as predicted. As I mentioned earlier, the 3-year plan really is our guiding principle for the business, and we're making great progress against those key activities in that 3-year plan, and I'll update you on those shortly. A big focus of the 3-year plan is around how we diversify our revenue and really increase our order intake on a continuous basis. Really great progress is being made on this, and Matt will give you the details later on that. But the point I really want to focus on this slide is the line in green. And that is that we're on track to hit our full year 2025 objectives. And I'm not just saying that, actually, we have received all of the purchase orders to allow that statement to be made with confidence. So everything that we need to deliver our business forecast has been received, and now we're just focusing on delivery. And as ever, that's not as easy as we'd like it to be, and I'll touch on that later. But just to reiterate that point that we have received all of the demand forecast from our customers, and it's all about delivery now, not focusing on finding extra orders to hit that number. So in terms of a brief summary of who we are. I'd like to use this slide whenever we talk to you guys. It's really important to us particularly now that we've created the One Nexteq agenda that we highlighted at the presentation we gave in February. This is a constantly evolving slide, but there are some really key words and key messages in here that I'd just like to focus on. First of all, about delivering innovative technology solutions. We've really set up our business now to rekindle that spirit of R&D and to think about really great and new innovative solutions that will take our business forward. So a real focus on innovation. And as ever, our customers and exceeding their expectations is critical to us, whether that's through our technology or through the customer service that we give that really is over and above our competition. And our values that are listed at the bottom of this slide are changing. And these are more now about how we really want to behave to deliver that innovation and deliver that amazing customer experience. These are no longer just a set of words that, frankly, any AI engine could come up with. This is really what sets us apart in the industries that we're focusing upon. So again, you will have seen this slide before, but just to reiterate who we are. So we are a really good added value innovation-led technology solutions provider. And you can see that with the amount of patents and trademarks that we have on the left hand of this slide. We're very proud of those, and we protect those rigorously in all of the industries that we trade within. In the middle of this slide, first of all, I'll apologize for a slightly busy map, but it's busy for a reason. And that's because we've spent a lot of time and effort making sure we have global manufacturing and supply chain resilience across the world. And this chart shows our own locations, but also the locations of our key suppliers. And it really is truly a global business that's supporting the network of our customers across the world. But who do we supply? As most of you will know, we supply a range of markets from gaming through to industrial displays, broadcast and medical and many others. And in the bottom part of that central column of this chart, you can see some of the brilliant brand names of the customers that we work with and who we work with in a way that is all about creating added value solutions and really taking away their pain points through the partnership that we have together. The historical business split that you can see on the right-hand side is really just to show you the scale of those different market verticals that we trade into. And as many of you will know, historically, we've been largely reliant on the gaming industry to give the vast majority of our revenue. Although as we outlined in the Capital Markets Day in February, we're really focusing our innovation and our long-term innovation pipeline around how we develop those other market verticals to become the same size as that gaming vertical that you can see there. And the bottom of that chart, 60% or thereabouts of our revenue comes through North America. So how we support our customers in North America is really important. And we'll talk a little bit later on about what we're doing in order to make sure our sales and our account management processes are set up to make sure we get the best out of all of our customers, and we partner them in the most effective way. So again, a recap our trading brands. We have 2 brands that we're really, really proud of. We have Densitron and Quixant. Densitron that recently turned 50 years old, is focused on industrial display market and creating display and display control solutions for our customers. It's a range of hardware and software solutions. And on this slide, you can see a number of the bits of work that we're doing with our customers around our hardware solutions, and I'll touch on those again in a minute. Quixant, which turned 20 earlier this year, is focused solely on the gaming sector. And we create hardware and software solutions with true reputation for innovation and quality delivery. I'm going to tell you more about the latest piece of innovation shortly. But on the bottom of that slide, you can see the range of hardware in gaming from the orange boxes that are our gaming computer hardware products going through to our cabinet solutions on the right-hand side there. And again, I will update you on progress of all of those as we go through these slides. But the key thing is that quality and innovation delivery is what brings all of our group together. And increasingly, as we focus on the one next step principle of our business, we will be looking to see how the technology from both of these brands can help add value to the other. And more and more of the story as we go forward will be how computer and display technology can work together to create a true sense of innovation in how HMI functionality can operate. It's been a busy first half of 2025. So in terms of the focus areas for the group, as I mentioned earlier, that order intake and revenue diversification agenda has been something we've really focused on. And indeed, at the presentation we gave in February, we talked about our Signposts to Success. And these are 2 of them. Now Matt's going to talk about those later because great progress is being made. But it's been a big key focus for us across the business as we've gone through the first half of '25. We've already talked in earlier presentations about the new broadcast wins that we have with the new technology that was on that previous slide. We've been spending a huge amount of effort onboarding those through the course of H1, and that continues through H2 with revenue predicted to start in quarter 1 of 2026. But as ever, our sales cycle is quite long and the [ integration ] cycle is equally long. So making sure that's right and making sure that happens brilliantly for our customers in Q1 next year is really, really key. A focus on innovation. Again, I've spoken about that a lot already, but we're building a road map for both brands within the business that takes us through the 3-year plan, but beyond. And that beyond part of this is really, really important. So a lot of focus on actually how do we create technology that drives that innovation agenda. And we'll only do that with the right people in our team. So on the next slide, I'll talk about roles that we've been filling, but a true focus on making sure we're fit for now, but also fit for the future. And again, H1 has seen a big focus on the M&A work that we've been doing. And we hope that we'll be able to bring you news as we go through H2 about an outcome of some of that work, but things are looking really positive in terms of our M&A agenda. But there have been some challenges as we've gone through H1, and it's right to call those out. We're all aware of the tariff situation that happened towards the end of Q1 this year. And Nexteq has really risen to that challenge. And we are, in our Quixant business seeing no impact of tariffs on the computer part of our business. And in Densitron in the display element also, we remain unaffected. So excellent job by our team to make sure that our partners and our customers are not exposed to the impact of those tariffs. However, there seems to be computer chip shortages to deal with. And over the last 2 years, the Quixant business particularly have dealt with those superbly well, and that continues now. We have 2 current chip shortages that potentially impact production, but we saw that early, and we managed our supplier base to make sure that, that won't impact H2 2025. But it does involve a lot of work to make that happen. Our 2 largest customers are being acquired or have been acquired through the course of H1. And I'll give you an update later on Everi, which has been our historically largest customer. But our 2 biggest customers have both been acquired. And there's economic uncertainty across the market still. And that is making customer investments slower than pre-pandemic. So that's something that we're just managing on an ongoing basis to make sure that we map stock to our customer demand. And we're embedding new structure and new processes. We talked about a new CRM system to make us more effective in our sales channels, and that's just been completed as of last month. So we're embedding all of these new systems just to make us more effective as an organization. And in terms of what we've been doing in specifics. So on the left-hand side, some of the product work we've done. We spoke a lot about Tactila as a new Human Machine Interface proposition. We're building on the success we've had so far with those 3 customers I've already talked about, creating new solutions to add to that piece of innovation. And we're taking Tactila to the latest trade show, which happens this weekend in Amsterdam called IBC, where we're going to talk more and more about Tactila as a way of opening up the broadcast market to -- to the rest of our technology. Prodeck that you can see there, I'm really proud to say we won an award at the National Association of Broadcasters Convention in March of 2025 for industry innovation. And this is essentially us taking broadcast studios outside of the broadcast studio. This is a mini portable broadcast studio, and it truly is an innovative solution in the marketplace. And we're making great progress on both Tactila and Prodeck, sorry, from a pipeline perspective. Our computer hardware platforms for gaming continue to be a driver of the business performance and really proud to say we've been launching new products in that space. But LAUNCHPAD, which is the word that will be new to you all at the bottom of that slide, this is a solution we're launching in a few weeks at the big gaming convention in North America. And then again, in the big European version of that in January next year. And this is a new software solution in gaming that allows us to create a recurring revenue model for all of that excellent software we provide to the gaming sector. So look forward to updating you on the success of those launches when we speak next. In the center of this chart, you can see, again, another list of enviable clients that we have as a customer roster. And I'll talk about every specifically a little bit later. But on here, there are some really great names that some of you will know and some won't. Arrow, which is down the left-hand side of that center column, is a gaming customer in North America and will become our largest customer in 2025. Genting Casinos, just under the Arrow logo there, the cabinet proposition has gone live and is being rolled out literally as we speak. So they have purchased those cabinets from us and are rolling them out across the U.K. casino estate that they have. On the bottom right of that center column, there are 2 brands you might not be familiar with, and that's Cummins and Hach. And they're just really good examples of what we're trying to do differently in Nexteq because they combine the computer technology and the display technology from the 2 brands and combining it into one product solution for our customers. And we won significant new business with those 2 customers using that approach. And finally, on this slide, just talking about people. We have -- in H1, we've had a new strong commercial leader start in the U.S.A. who combines really great commercial skills, but importantly, with those key technical skills because it's a very technical sell, what we're trying to do now. So we're upskilling ourselves in terms of our technical capability in our largest market. We recently had a new Chief People Officer start just to help us with our people strategy as we implement the new focus areas of our business. And I'm really excited to be able to report that as of last week, we've recruited a Global Head of Product and Innovation, who will join shortly to help us create the solutions for the future. So lots of focus around people and lots of focus about making sure we keep our eye on being a brilliant technology support partner for our customers. So it's been a busy H1. That's what's been going on in the business. And I'll just hand over to Matt now, who will give you some financial highlights for H1.

Thank you, Duncan. So the financial highlights for H1. Nexteq delivered revenue of $40.7 million, which is down from the $48.2 million we had in 2024, with 2025 being H2 weighted year with -- in comparison to H1 2024, which was a H1 weighted revenue year, which was an anomaly for Nexteq. Traditionally, we have that H2 weighted year, and we're moving back into that cycle in 2025. From a gross margin level, we had 33.1% in H1, which was down on 2024, really reflecting quite a significant shift in customer and product mix on the gaming side. And then coming to our adjusted profit before tax, delivered $0.9 million in the first half, which really reflects the high operational gearing nature of our business. And also because of the high operational gearing gives us confidence is that as we move into a H2 weighting revenue, we're on track to deliver that adjusted PBT number for the year. A really good cash performance in H1 as well. So operating cash inflows were really strong, delivering cash conversion of 445%, up on last year's cash conversion. Our net cash balance is down $1 million versus the year-end. That really reflects the return of funds to shareholders. So in H1, we returned $3.6 million back to shareholders by way of dividend and the final part of the share buyback program, which we had ongoing earlier in the year, which ended in Q1. But just to reiterate, we have a strong order book built out, full coverage of the revenue number in terms of order book for the year. So we're happy that we're on track to deliver the full year number. In terms of our 3-year plan, just a quick recap on that. We outlined that at our Capital Markets Day back in February. And the key focus of that was to drive growth in revenue from what we finished in 2024, which was $86.7 million through to between $108 million and $120 million in 2027 doing that with 35% to 38% gross margin and that delivering EBITDA between 10% and 15% and then having M&A as being potentially accretive on top of this as we look to close out acquisition transactions through that 3-year plan. The other key part of that 3-year plan that we announced back in February was Signposts to success that we could update shareholders on how we were tracking towards delivering that number. And there were 3 elements to those Signpost to success. The first of those was around pipeline growth, which is about delivering quality leads that drive repeatable revenues from new customers. And our target for 3 years was to deliver 50% growth in the pipeline to $630 million of opportunities. So our pipeline at the end of 2024 was $420 million. And we're really pleased to report that in H1 2025, we delivered more than 10% growth in our opportunity pipeline, seeing significant leads and opportunities developed through LaunchPad, our gaming software that Duncan talked about and our Tactila broadcast product, not just in the broadcast market, but looking at what the opportunities are outside of that in broadcast. And the key focus for us in terms of pipeline development in 2025 was the consolidation of CRM systems. And I'm pleased to say that we're on track to complete that at the end of this month. The second Signpost to success was around Nexteq new IP revenue, and that's key for us in driving innovative solutions that are unique for our customers and again, deliver repeatable revenues. Our target for this was to deliver $10 million of revenue from new Nexteq IP products in 2027, up from the $1 million that we had in 2024. And again, H1 performance in this area is really strong. We had over $1 million of revenue, which came from our new Nexteq IP products. So that's spread across our award-winning Prodeck solution, Tactila and also the Gaming cabinets solutions that we were able to sell into casinos. Again, with the order book visibility that we have for H2, we know that we'll deliver more than $1 million in H2 of new Nexteq IP revenue. So a really strong performance in that second Signpost to success. And then the third one was related to $1 million customers. So here, our target for the end of the 3 years was to have a 100% increase in the number of customers delivering $1 million of revenue in 2027 and increasing that number to [ $20 million ]. Again, strong performance in the first half of the year. We've secured order book, where we know we will have an increased number of million-dollar customers in 2025. And also pleasingly, besides that being an increase in million dollar customers, a much greater diversification of revenue across those top customers. And you'll see the pie charts on the right-hand side of that slide really show the diversification in revenue that we're seeing in 2025 in H1 compared to 2024, where 45% of our revenue from top 10 customers came from one key customer. So really strong performance in those Signposts to success, and we're looking forward to sharing more details about those at the end of the year with further strong performance. I'll pass you back to Duncan.

Okay. Thank you, Matt. So as I mentioned earlier, it's been a busy time in H1 with our historically largest customer, Everi. So I thought I'd give you an update in terms of where they are as an organization. As you may know, both Everi and another gaming company, IGT, have been acquired by Apollo Global Management to create a larger gaming brand trading under the IGT name. What's really important to point out here, though, is that Everi is currently being treated separate to that from the point of view of the business model that they have with Quixant. And we will continue to trade with Everi under the current Quixant business model. Currently, however, there is an RFP going on literally right now for the IGT North America volume for computer supply going through 2026. We're a part of that RFP. And as I said, that process is ongoing, and we hope to be able to update you soon with the outcome of that. But that does create an opportunity for Nexteq. But again, just to reiterate, the Everi volume is not included in that piece of work, and we continue to work with Everi as before. The other important thing to note in terms of the IGT Everi situation is that all of the agreements that we have with IGT separate to the North America volume will continue as currently. So agreements we have with IGT for supplying computers for their Spanish business and for what will become the Brazilian business carries on outside of this RFP. And we're making great progress with both of those opportunities to secure volume going into 2026. So a big process for IGT North America ongoing. But again, final point, Everi remained outside of that process. So the volume with Quixant will be secured as we go through 2026. And what are we focusing on in H2? So from a Nexteq perspective, we have just launched an external market review to look at which market verticals will become the next focus areas of the Nexteq Group, and we expect results of that towards the end of October, and we will look forward to sharing the outcome of that with you guys when we meet again at full year results. We are investing and improving and upscaling our sales team to make sure that we have the hunters that we need in our market verticals that we're targeting. So that's a process of work that's going on now. And from an M&A perspective, we will continue having the positive conversations with the target that we're talking to right now. And again, as stated in the Capital Markets Day in February, we look to have positive news of a completed process towards the end of 2025. So lots going on at the group level. In Quixant, Apollo, IGT and Everi will and rightly retain our focus for the next few months as the RFP process happens and as we continue to protect that Everi volume. You'll see the Brazil flag there. Brazil is a hot topic in terms of the gaming industry at the moment. There are 2 elements of the Brazil opportunity. One is a federal law that makes casino operations legal, and that is ongoing. But there is an immediate opportunity with the way that the states in Brazil operate their lottery, and we are in active conversations now with a number of lottery providers. And again, I hope to be able to give you really positive news around that next time we speak. The deployment of LaunchPad and doing that brilliantly is a key focus for the business across the business right now. And again, we're launching that to selected customers in October and then the full marketing launch will be at the European Gaming Show in early 2026, but making sure that LaunchPad is exceptional is a focus area for the business. And our latest hardware products for gaming, you can see at the bottom of that center column, which is called IQON3. And that's really bringing the latest technology of graphical performance combined with a cost a cooling mechanism that's very important for the gaming industry, bringing all of that together to create a really cutting-edge new solution, which we're launching in October at the gaming show in Las Vegas. So big focus areas, all of those for Quixant. And in Densitron, as we move into the next set of trade shows that again happened this weekend coming, we're really focusing on how we develop Tactila and Prodeck and sell that to a wider audience across broadcast and other market verticals. So H2 from a recap, we have the purchase orders on hand to make sure we can deliver the numbers. And from a future perspective and how we deliver the 3-year plan, we're working on all of the things on this slide to make sure that tomorrow is as good as this year is going to be. So with that, I'm just going to pass through to Matt to go through some of the detailed financials behind that summary you've just heard. Matt?

Thank you. So the H1 2025 financial results. As I mentioned before, there's a reduction in revenue to $40.7 million in H1 2025. Q1 was quite a flat quarter from a revenue point of view. And that was as expected based on the order book performance that we had in H2, 2024 with Q2 being significantly ahead of that. And Q2 gives a really positive run rate into the second half, and we're expecting to see that momentum build through the second half with the order book that we've got. Gross margin, as I mentioned before, reduction comes from the change in product and customer mix in the gaming business. So 33.1% gross margin in H1 2025 compared to 37.3% in H1 2024. Adjusted operating expenses, we saw a reduction in those down to $13 million from $13.6 million. That reflects a lot of the restructuring we did at the back end of 2024 in November and December, but also reflects us keeping a tight control on costs through the first half of this year. And again, just reiterating the point around the order book that we have in place now to deliver the increase in performance in H2. So we're expecting to see a much more positive P&L on the second half of the year. So diving into the Quixant business. Quixant revenue is $26.9 million, and that's largely driven by the increase in platform sales, so the number of units that we sold. So those were up 7% year-on-year at just under 22,000 units. But what brings that revenue number down is that the average selling price reduced year-on-year. So we saw a higher mix of the mid-range and cost-effective solutions because of the change in mix of customers that we sold to during H1 this year. In terms of Densitron revenues, Densitron was down 20% year-on-year versus H1 2024 to $13.8 million of revenue. A really positive point here is around the strong gross margin. So we've continued at 38% gross margin, which is the record level that we had in 2024. And from a new business point of view, we've had some really strong success in H1 for Densitron. We've had a real focus on driving more than just the display as a solution for the customer. So really looking to design into more of the solution that the customer needs. And so you can see that in some of the numbers, where the average selling price across -- per unit across Densitron was $16 in the first half, yet we've been winning new business at an average rate of $25 per unit. So that allows us to drive efficiency in how we scale, but also deepens the value of what we supply to the customer, which enhances the repeatability of revenue that we have. So expecting that to really drive some benefit as we move into 2026 and beyond, and we'll continue that focus. Just diving into gross margin performance. So you can see the historic trend here. So whilst 33.1% is down versus where we were in H1 2024, actually much more closely aligns with the historic trend of an average of where Nexteq Group gross margin has been. Again, the kind of key driver for this is the change in the customer and product mix in the gaming side compared to what we saw in H1 2024. And we are expecting that to be an improved gross margin as we move into H2. And just to finally close on cash flow. So to reemphasize the point, really strong operating cash flows in H1, almost $4 million inflows from operations and from working capital positions. In terms of our CapEx of $1.2 million, that's primarily our investment in innovation. So our R&D processes, particularly the kind of final stages of development of LaunchPad solution and Tactila amongst some other gaming products that we're developing this year. And yes, so whilst cash is down $1 million year-on-year, that really reflects $3.6 million having been returned to shareholders by the dividends and share buybacks. So overall, our cash performance continues to be really positive even on the reduced trading level that we had in H1. Thank you. Back to you, Duncan.

Brilliant. Thank you, Matt. Okay. So just to pull all of this together in terms of the 3-year plan and the milestones by which we measure ourselves, we got 3 separate year of focus. So a foundation year this year, how we accelerate through 2026 and then look for that continuous improvement to make sure that we deliver the numbers that you can see at the bottom of the slide and that Matt has been through earlier. So in 2025, really focusing on embedding that One Nexteq principle, how we work together and using the different strengths of the brands to help the other, focus on onboarding excellently and making sure that the revenue that is due to start in 2026 happens on time in full, really focusing on our people, so looking at sales team effectiveness and making sure we have the right people in the right place and also that continued focus on M&A and delivering our commitments that we made at the Capital Markets Day. Order coverage is key and every briefing we have around our business is around how do we make sure we continue the good progress that Matt just highlighted on order coverage and Brazil. So Brazil has been that sort of focus area for a number of these briefings. But actually, we're getting to a point where that's starting to be realized, and we look to make sure we convert all of the opportunities in that. As we accelerate through 2026 and Tactila becomes mass production ready for those 3 broadcast wins, that's going to drive not only that revenue that we already have purchase orders for, but also allow us to take that technology to multiple other market verticals. LaunchPad really is key for us and a big opportunity for the business as we look to capitalize on what our brand means in gaming from a hardware perspective and how we put that into the software world. So I look forward to really updating you on how that can accelerate our 2026 revenue and the quality of revenue that we get from that. As I said to you earlier, we're doing that piece of research to look at how we define and plan our strategy as we go forward past the 3-year plan. So really looking at how do we need to structure to take advantage of the opportunities that come up from that research. And following that research, we will continue that focus on M&A, looking at how we accelerate our capabilities in the target verticals that, that research identifies as where we should play. And then in 2027, again, we talked about this a little bit at the Capital Markets Day, where we're talking to the graphics chip suppliers around how AI enablement can make gaming outcomes more interesting and more vivid for the consumer. So that piece of work, which we have already started, we're looking in 2027 that, that will come to fruition. And software will become an increasing part of our business, both in gaming, but also in the broadcast sector as we look to really bring excellent customer benefits to our partners from the technology that we can supply them. Looking again at M&A in different tiers and different market verticals. And by 2027, we expect that, that federal law, the big law in Brazil will be passed and actually that can really transform the business as we come to the end of that 3-year plan. So we're really excited about what the 3-year plan can do for Nexteq and for the brands within it, and we look forward to updating you against the progress around the 3-year plan next time that we speak. So that concludes the formal presentation that we wanted to give you today. And I'd like to hand back now and open this up to some Q&A. Thanks for your attention.

That's great. Thank you very much. What I'll do is I'll just bring your cameras up for the Q&A. [Operator Instructions] As you can see we have received a number of questions throughout today's presentation. What I'll do is I'll just hand back over to the team now, and then I'll pick up from you at the end.

Great. Thank you very much. So we've had a number of questions that sort of segment themselves into a few different subject areas. So I'm going to try and bring the answers to them in groups, so we don't have to cover all of the questions individually. There's a number of points being made around customer satisfaction and retention rates. So just to touch on that a little bit, we're really proud across both of our brands at the customer satisfaction rate that we get. That's largely driven by 2 things. First of all, the quality of the products that we make really is market-leading. We have tremendously high success rates across all of our bits of hardware that are out in the field. So that's the first bit. Second thing is from a customer service and account management point of view, we're very attentive in terms of our customer needs and back to that focus on making sure we really delight our customers at every transaction. So really proud of that as a performance -- but in terms of how we leverage that across the opportunities that can grow our business, there's a number of things that we're doing. And we're thinking around ourselves as Nexteq, not just the traditional Quixant and Densitron brands. So more and more, we're going to be thinking about how we bring together solutions that involve computer technology and display technology to create different value streams for the organization. And an example of that is how we're looking at gaming monitors development, but using the skill base that we have in the Densitron business that is a renowned expert in display management. So just thinking ourselves differently. And then also within the brands themselves, as we've talked about earlier in the slides around LaunchPad, we're using the expertise and the knowledge of Quixant as a brand within that gaming sector to launch a new piece of software that increases the penetration of our customer base in hardware and software. So thinking about how we act as a group, but also how we get further penetration in those brands that are well known in their own marketplaces. But yes, really key point for us as a business around customer satisfaction. Another question is around how the Board intends to deploy the current cash reserves that we have to accelerate that delivery of the 3-year plan. We use the cash reserves that we have in 2 ways. First of all, the Board allows us to spend some of that cash on strategic stock of the critical components, particularly for our computer section of the business. As we talked about earlier in the slides, there is a continuing process around shortages of key components. So how we manage those shortages is a real key advantage of us over our competition. So we do utilize some of those cash reserves to forward buy some of that stock to make sure that we can carry on supplying the customer demand. And that's really important when we look at 2025 because obviously, we're able to fulfill those orders on the basis of having the stock components -- stock of components that are required to go into those boards. So that's the first thing. And the second thing is the Board is very supportive in when we're targeting new market verticals in order to accelerate the penetration into those market verticals, if M&A is the appropriate way to do that from a bolt-on level, they are very happy to support that. So as we talked about in the slides, we're actively investigating some M&A opportunities that will further our technology development at a quicker rate, for instance, in the broadcast market vertical. And that is something that will continue as we go through the 3-year plan, particularly on the back of the research that we've described in the session. Just a point of admin, actually, there is a couple of questions around the Capital Markets Day presentation that we've referred to extensively through this session. We will make sure that any request for that presentation is responded to, and you will get access to those slides. And apologies, if that's something that hasn't happened to this point. There's a group of questions around how we're managing those Signposts to success that Matt talked about earlier. So I'll just hand over to Matt for an initial comment on that, particularly around the 1 million-plus customer base, and then I'll pick up again after Matt's answer.

Thanks, Duncan. Yes. So you had a question around the momentum from million-dollar customers and how that can replace some of the reduced volumes that we're seeing from our long-standing key customers. So I'll pick up that question in 2 parts. The first bit around the reduced volumes from our long-standing customers. So our 2 key customers on the gaming side, they both had quite unique situations this year facing acquisition challenges. So we don't see their reduction in volume as being a permanent reduction, just something they're managing through as part of their acquisitions and changes in their business. Positively, we've developed their next-generation platforms, both for Everi and Ainsworth, which are being integrated into their hardware stack. So we've run very much front foot with them to get them back to the volumes that we've had in the past. And in terms of the second part of that question around the -- how quickly we can gain momentum from new GBP 1 million customers. Already in H1, there was GBP 1 million customer that was a new one, and we expect to certainly in 2026, be progressing through to having new GBP 1 million customers. So either that's a net new customer or customers that we're scaling that we've increased their volume that they will cross over that $1 million threshold. So really, how quickly you can scale them depends on which products they're taking. So if we're selling existing solutions, we can onboard them much quicker than kind of new innovations that we're bringing through. So Tactila, as an example, we're progressing through into mass production in the middle of next year, and we'll start to see revenue scaling from key customers in that. And certainly, from LaunchPad as that goes live, we'll expect to see revenue scaling and potentially $1 million customers coming through from those innovations.

Okay. Thank you, Matt. I think the final point just on the $1 million customers point is the pipeline of innovation that we've been focusing on and delivering that real high-quality new solutions, both in hardware and software will make the development of those customer base accelerated and actually really high-quality revenue based on the software launch of the LaunchPad product that we're talking about to the gaming industry in North America in a couple of weeks. So sort of a really exciting time for us in our business as we look to really capitalize on being One Nexteq and bringing all of those key critical technology skills to both brands. And I think, Alexander, that largely covers off the questions. So I'd just like to hand back to you to finish off.

That's great. Well, thank you very much for answering those questions that came from investors. Of course, the company can't review all the questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to you both, Duncan, can I just ask you for any final closing comments?

Yes, of course. First of all, thank you very much for everyone's time to listen to the H1 outcome for Nexteq. We're really excited about what's coming, and we're particularly excited about the fact that 2025, we're confident in the full-year outcome, so much so that we're really thinking about '26 and beyond. So a really exciting time for us. For any questions that we didn't answer that have come in, we'll answer through the portal. So apologies, if we've missed your specific question, and we look forward to updating you again shortly once we get to the full year position. So again, thank you very much for your time.

That's great. And thank you once again for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. On behalf of the management team of Nexteq plc, we'd like to thank you for attending today's presentation, and good morning to you.