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Nexteq PLC on Wednesday reported a plunge in profit during the first half of 2025 as a result of second-half weighted revenue, while the firm continues to anticipate a full-year earnings decline. The Cambridge, England-based technology solutions provider to customers in selected industrial markets said pretax profit for the six months that ended June 30 was $770,000, falling 84% from $4.7 million the year before. This was the result of revenue declining 16% to $40.7 million from $48.2 million, hurt by a return to the historic trend of second-half weighting, the company explained, having been first-half weighted in 2024. Cost of sales reduced 9.9% to $27.2 million from $30.2 million. Adjusted operating expenses were down 5.1% to $13.0 million from $13.7 million, reflecting the impact of restructuring completed at the end of 2024 and ‘focused’ management of the cost base in the first half. Adjusted earnings before interest, tax, depreciation and amortisation for the six-month period fell 67% to $1.9 million from $5.8 million. ‘The H1 2025 result was a mixed picture in that the group continues to face the challenges associated with reduced demand from our historically largest customers, but also proved that with the right focus on innovation, and revenue diversification, that there is a positive sentiment about the future trading periods for our business,’ said Chief Executive Officer Duncan Faithfull. Looking ahead, Nexteq anticipates full-year results in line with a company-compiled consensus for $85.5 million in revenue and $3.6 million in adjusted pretax profit. This would represent a 1.4% decline from $86.7 million in revenue in 2024 and a 25% fall from $4.8 million in adjusted pretax profit. Faithfull continued: ‘We are on track to deliver the expectation of stage one of the three-year plan, and the board remains confident that the renewed energy in the business, and the revived focus on innovative product development, will unlock the potential of the business through diversified revenues, and deliver the results in the plan by the end of 2027. Nexteq’s cash reserves provides the board with the opportunity to invest to accelerate growth, and to further diversify revenue. ‘We look forward to the remainder of 2025 and 2026, with a clear plan to execute, and a robust financial position from which to grow.’ Shares in Nexteq were down 3.8% at 76.00 pence in London on Wednesday afternoon. The stock is down 22% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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