Quixant PLC 
Annual Report and Accounts 
For the year ended 31 December 2013 
 
 
 
   
 
2 
 
CONTENTS 
           Page 
 
Highlights          3 
Chairman’s statement        4 
Chief executive’s report        5 - 10 
Financial review         11 - 12 
Corporate Governance        13 
Strategic Report         14 - 15 
Directors’ Report         16 - 17 
Statement of Directors’ responsibilities      18 
Independent Auditor’s Report       19 - 20 
Consolidated statement of comprehensive income    21 
Consolidated statement of financial position     22 - 23 
Consolidated statement of changes in equity     24 
Consolidated cash flow statement       25 
Notes forming part of the consolidated financial statements   26 - 46 
Company balance sheet        47 - 48 
Notes forming part of the Company balance sheet    49 - 57 
Company information        58 
 
Statutory information 
Quixant PLC is a Public Limited Company incorporated in the United Kingdom (Registration number: 4316977).  
On 15 May 2013, the company issued an admission document and from 21 May 2013 the Company’s ordinary 
shares are traded on the Alternative Investment Market of the London Stock Exchange (AIM). 
 
    
 
3 
Highlights 
 
 Revenue growth of 12% to $24.2 million (2012: $21.6 million)  
 Adjusted EBITDA increased 25% to $6.4 million (2012: $5.1 million) 
 Profit before tax increased 20% to $6.0 million (2012: $5.0 million
1
) 
 Fully diluted EPS of $0.0762 per share (2012: $0.0687 per share) 
 Proposed full year dividend of 1.0p per share 
 Net cash from operating activities of $2.5 million (2012: $1.9 million) 
 Total cash of $7.0 million at period end (31 December 2012: $1.8 million) 
1
 – includes a one-off profit on the disposal of a property of $0.198 million 
 
Operational highlights 
 
 Successful admission to AIM with oversubscribed placing raising gross proceeds of $5.9 million 
 Heightened brand profile as a result of PLC status leading to strengthened pipeline of new business 
opportunities 
 Commencement of volume production for two new “Tier 2” customers at end of H1 2013 
 New design in projects commenced with one further new “Tier 2” customer in H2 2013 
 Launch of new product – QXi-300 
 Expansion of USA sales and customer support operations 
 
    
 
4 
Chairman’s statement 
 
2013 has been a transformational year for Quixant. We have made excellent progress financially, operationally 
and commercially and enjoyed strong support from the investment community following our entry to the AIM 
market in May 2013.  I would like to thank our new shareholders for their commitment to the Company.   
 
Quixant has the benefit of operating in a large and growing niche market and offers products which are highly 
engineered to meet the very specific demands of this market.  The company currently has a small share of the total 
market and we are excited at the opportunities which lie ahead to increase this share.  The AIM listing has given 
us an increased presence and status which is invaluable in attracting the business of multi-billion dollar game 
machine manufacturers to use our products as a key component in their machines. 
 
The company has a team of remarkably knowledgeable and committed individuals and I would like to thank them 
for their efforts over the year.  The share incentive scheme, which was put in place at the time of the flotation, 
provides long term motivation of the broad employee base. 
 
Our financial results reflect strong growth in both revenue and profits compared to 2012 and the capital raised as 
part of the admission to AIM further strengthened our healthy balance sheet.  The Board feels it is appropriate to 
propose a full year dividend of 1.0p per share to be paid to shareholders in May.  Going forward we intend to 
maintain a progressive dividend policy. 
 
We continue to develop our systems and resources to support our planned growth and also we continue to add 
specialised technical skills to strengthen our product development functions to maintain our leading market 
position.  We are well positioned going into 2014 to meet market expectations for further growth with a very 
strong order book, several major active new business opportunities and increased brand awareness and presence 
in the market. 
 
    
 
5 
Chief Executive’s Report 
 
I am pleased to report on a very successful first year on the AIM market for Quixant.  I am delighted with the 
performance of the company, the progress we have made over the past year and our positioning going into 2014.  
We have delivered growth in both revenue and profits through disciplined execution of our corporate strategy and 
have put in place the foundations for continued growth over future years as a public company. 
 
During the year we grew our revenue by 12% from $21.6m to $24.2m, adjusted EBITDA by 25% from $5.1m to 
$6.4m and our profit before tax by 20% from $5.0m to $6.0m.  We have remained strongly cash generative, and 
during the year our operations generated cash of $2.5m which, combined with proceeds from the issuance of new 
share capital at IPO of $5.9m ($4.8m after expenses), left the company with a healthy net cash balance of $4.9m 
at the end of the year.  We have also made material investment into our business and grown our employee 
headcount from 50 to 63 over the year. 
 
When we embarked on the process of listing Quixant on AIM one of the key drivers behind this decision was the 
Directors’ view that the company would benefit from the heightened profile, credibility and security it would offer 
among major customers and prospects, many of whom are large public listed companies.    We have already seen 
evidence that the additional profile of the business following our AIM listing has reaped rewards in terms of the 
business opportunities which have evolved over 2013 and the recognition the company has received by major 
game machine manufacturers.   
 
Quixant’s core products, highly optimised computer platforms which are designed to drive pay-to-play gaming 
machines, are a crucial and complex component within these machines and customers depend on us as a trusted 
supplier.  Once our product has been designed into their machines customers require a stable supply for many 
years.  They therefore place significant emphasis, as part of their due diligence process, on the long term stability 
of suppliers of these key components.  We believe our listing on AIM gives them considerable comfort. 
Dynamic towards outsourcing 
 
Due to the specialist requirements of the gaming market historically many of the larger game machine 
manufacturers had no choice other than to develop their own computer platform technology in-house, and in doing 
so this could give them a competitive edge.  However, Quixant’s cutting edge computer platforms, which are 
specifically designed for gaming, enable game machine manufacturers to focus on developing the most popular 
games.  The vital ingredient to ensuring a successful machine is manufacturers having better game revenues than 
their competitors, which is the principal metric that site owners assess in deciding which machines to install on 
their floors.  It is therefore vitally important that manufacturers focus their resources on these key areas of game 
development and innovative cabinet design.     
 
An outsourcing model provides many additional benefits, the commoditisation of the computer platforms 
providing all manufacturers, big and small, access to the same hardware technology. Smaller manufacturers are 
already well progressed on the transition to outsourced computer platforms as they do not typically have the scale 
of R&D teams or the purchasing power to be able to develop or manufacture their own solutions.    
 
Quixant’s design expertise and knowledge of the global gaming market combined with our Far Eastern 
manufacturing capability enables us to deliver platforms that provide optimised solutions using the latest 
technology which are cost competitive compared to the in-house alternative.  Quixant’s market opportunity is 
therefore driving this trend for outsourcing with the larger, global game machine manufacturers. 
Broadened customer base 
 
During 2013, we made good progress in penetrating and securing new major customers.  An analysis of our 
customer revenue attribution reveals an increase in the number of customers contributing over $1 million revenue 
from one to four in the year.  We have also increased our total number of customers from 63 to 82 in the year, 
demonstrating the strength of the sales pipeline and the headroom we have to materially grow our market share. 
   
 
6 
 
 
 
We classify our customers and prospects in terms of three tiers of manufacturer: “Tier 1” incorporates the largest 
gaming machine manufacturers, typically producing over 25,000 machines per annum.  “Tier 2” typically produce 
between 5,000 and 25,000 machines per annum, and “Tier 3” typically produce less than 5,000 machines per 
annum).  We completed the “design-in” of our products with two new “Tier 2” customers and commenced volume 
shipments during 2013.  We also formalised our arrangement with one of these Tier 2 customers in December 
2013 with the signing of a three year supply agreement. 
 
Towards the latter part of the year we commenced the design-in process with another Tier 2 customer in Europe 
and delivered first product samples in early 2014.  The design-in phase involves significant interaction between 
Quixant and customer engineering teams to evaluate our products’ fit for their needs and aspects of our standard 
hardware and software are tailored to meet any unique requirements.  Typically this design-in process takes several 
months but is a key part of Quixant’s value proposition in serving not simply as a supplier but also as a 
collaborative development partner for customers.   
 
Tier 3 and some Tier 2 manufacturers have already embraced the benefits of outsourcing the design and supply 
of their computer platforms to a third party, and we are now seeing this trend migrating into the Tier 1 
manufacturers.  We believe our class-leading technology, reputation and industry contacts make Quixant well 
positioned to benefit from this trend, leading to exciting future growth opportunities. 
 
Ainsworth Game Technology (“Ainsworth”) remains a key customer for Quixant.  The winning of Ainsworth’s 
business back in 2007 was a major milestone in Quixant’s history. Quixant supply the computer platforms used 
in all of Ainsworth’s gaming machines.  Ainsworth has experienced rapid growth in the last few years, most 
recently evidenced by the strong financial performance in its interim results to December 2013.  It remains an 
excellent example of how working with Quixant can enable greater focus on core competencies that can then lead 
to increased success. Ainsworth has an outstanding record for producing games that perform significantly above 
the average.  Ainsworth continues to be a key customer to Quixant and we were delighted to be able to announce 
in February 2014 the signing of a new contract extending this relationship through to 2019. 
Product Development 
 
We continue to develop our underlying hardware and software technology.  Over 8% of our total sales revenue 
and over 17% of our gross profit is invested into R&D expenditure and over 40% of our employees are involved 
in R&D and product development. 
22
32
40
4
12
11
1 1
4
0
5
10
15
20
25
30
35
40
45
2011 2012 2013
Number of Customers
Customers Split by Revenue
at 31 December 2013
$10,000+
$100,000+
$1,000,000+  
 
7 
 
Through our position as the only AMD Embedded Elite partner we benefit from early access to new up-coming 
CPU and GPU technology.  This enables Quixant to release complete new gaming platforms for sale on the very 
day a new chipset is formally announced by AMD and we are often previewing these platforms several months 
before.  This reinforces Quixant’s “time to market” proposition to customers.  
 
In 2013 we launched the QXi-300, a compatible update of the successful QXi-200, which leverages similar CPU 
architecture to that used by Sony and Microsoft in their Playstation 4 and Xbox One consoles. We have also 
completed development of early samples of the QXi-306 which has been designed to meet the needs of the 
upcoming Italian Comma 6a+ law change. A variant of the QXi-306 is anticipated to be popular in Spanish and 
South American markets.  
 
At the ICE Totally Gaming show in London in early February we previewed the QX-50, our next generation high-
end platform based on a new AMD CPU and GPU which is expected to be publically released in the first half of 
2014. This product majors on the anticipated upcoming demand for games utilising 4K Ultra High Definition 
displays and we believe it is the first computer gaming platform in the market which is optimised to drive this 
display technology.  The preview of the QX-50 attracted significant interest and generated several opportunities 
with major potential customers. 
 
As a technology company Quixant is constantly striving to innovate and develop new technologies to increase the 
performance, functionality and value of our products and we act to protect these.  During the year we were granted 
a patent in the US for the innovative enclosure design used on our QXi-200 product, submitted applications for a 
further four patents and were granted a design right for the enclosure design used in the new QXi-306.  The 
mechanical designs of our products are a key differentiator and we have dedicated mechanical engineers 
responsible for developing optimised enclosures that meet the regulatory requirements of global gaming 
jurisdictions.   
Gaming market overview 
 
There are several different types (or class) of gaming machines in existence, servicing markets in different 
jurisdictions.  Each class of machine and each jurisdiction carries with it specific regulatory requirements that all 
machines must comply with to be granted a license.  This brings about significant challenges and cost for 
manufacturers aiming to supply multiple classes of machine to multiple jurisdictions.  When we design our gaming 
platforms we aim to create solutions which meet the regulatory requirements of all major global gaming markets, 
facilitating a more straightforward process for manufacturers in achieving regulatory approvals.   
 
The major types/class of machine which are in operation globally are: 
 AWP (Amusement With Prize) - machines with limited prizes that are often classified as amusement 
machines rather than gambling.  These machines are common in bars, pubs and clubs in the UK and 
Europe. 
 SWP (Skill With Prize) – similar to AWP, but require a degree of player skill  
 VLT (Video Lottery Terminal) – is generally a gaming machine that operates in such a way as to be 
legally classed under lottery rules. They are connected to central servers that generally determine game 
outcome and enable jurisdictions to collect their share of revenues 
 FOBT (Fixed Odds Betting terminal) – UK definition for slot machines located in betting shops 
 Class II – US classification of a gaming machine, similar to VLT  
 Class III – US classification that describes a classic slot machine, where the outcome is determined 
locally and is random. This is the classic “Vegas slot” 
 Pachislo – Japanese video slot machines derived from the Pachinko game. 
 
Quixant targets manufactures of all classes of machines through its range of products that are targeted at different 
price/performance points. Values of complete machines range from €2,000 for a European AWP machine up to 
$25,000 for high-end casino machines installed in Australia and North America. 
 
The global gaming market is dynamic and there is a general trend towards governments legalising gambling under 
controlled regulatory frameworks.  New markets being legalised for gaming present opportunities for 
manufacturers to increase their installed base.  We are particularly excited by North America, where there is   
 
8 
already legislation expected to result in 90,000 new slot machine being installed over the next three years.  There 
are is also pending applications for further expansion which could contribution a further 90,000 new machines to 
the market. 
   
Asia remains buoyant and Macau is now the largest gambling market in the world and has undergone major 
growth over the last few years.  Across the 35 casinos in Macau gross gaming revenues amounted to around 
$303bn in 2012 which represented a growth of 14% on the previous year.  There is also expectation that the 
Taiwanese government will legislate to open the first casino in 2019 to compete with Macau, Singapore and the 
Philippines.   
 
Casinos are currently banned in Japan, but Japanese lawmakers from the ruling Liberal Democratic Party 
submitted a bill to parliament in December 2013 to legalize casinos.  If this bill is passed, it would result in the 
opening of what is estimated to be the world’s second largest gaming market. 
 
Italy is Europe’s biggest gaming market with around 370,000 AWP and 51,000 VLT machines installed. The 
Italian authorities are currently drafting a new law which, once effective, will require all existing AWP machines 
to be replaced over time.  
 
Quixant expects the number of gaming machines globally to increase in 2014 which is in addition to the 
replacement market which we expect to account for the largest overall volume. 
Global locations 
 
When considering the geographic markets for Quixant the location of the slot manufacturers is not necessarily 
where the gaming takes place. The major manufacturers tend to be located in regions that have had long 
established regulated gaming, although in recent years there has been an increase in new locations, particularly 
Macau and Singapore. Quixant believes that its four locations in the UK, USA, Taiwan and Italy are well 
positioned to cover the global gaming machine manufacturing base.  
 
The US has a long heritage in gaming and many of the global Tier 1 manufacturers have headquarters or major 
operations in Las Vegas.  We made the decision to establish Quixant USA in 2010 as a key strategic location and 
towards the end of 2013 we significantly expanded our US operation to reflect the importance of the market for 
Quixant.  We are the only computer platform manufacturer with their US Headquarters in Las Vegas.  Our US 
operation is responsible for sales, logistics as well as local technical support and training for North American 
customers.   
   
 
9 
 
Quixant USA office 
 
We established our Taiwan branch in 2007 and since then the operations there have expanded significantly to 
currently employing over 40 people.  All of Quixant’s products are procured, manufactured and undergo rigorous 
testing under the management of our Taiwan operations.  A majority of the electronic hardware design work is 
also undertaken by the engineering team in Taiwan. Quixant procures all components directly from suppliers for 
cost and control reasons and we utilise sub-contract manufacturing for the assembly of the printed circuit boards.  
This arrangement has a high degree of scalability and flexibility. 
 
Quixant Italia is the Group’s software development, gaming technology innovation and main customer support 
centre.  All our platforms are supplied with comprehensive software and drivers which accelerate the time taken 
for customers to adopt our platforms and integrate them into the rest of their machines.  The software developed 
by Quixant in Italy forms a key part of our product proposition and reduces the resources the customer has to 
expend developing software which does not contribute to game success. 
 
Quixant UK Ltd is the Group’s sales and marketing arm and is responsible for all sales outside North America.  
All marketing efforts globally are coordinated from Quixant UK Ltd to ensure a consistent, strong brand image. 
Marketing 
 
We believe we have developed a strong brand in Quixant.  It is our belief that the Quixant name can be developed 
to be synonymous with computer gaming platforms for driving pay-to-play gaming machines.  We have spent 
considerable time in developing the brand in terms of product styling and presentation, marketing collateral and 
high quality, high profile presence at exhibitions globally.   
 
In 2013, we made significant investments in our presence at the two major global trade events: ICE Totally 
Gaming in London and G2E in Las Vegas with very positive results.   
 
   
 
10 
 
G2E 2013 Exhibition Stand 
Current Trading Outlook 
 
Quixant has grown strongly over the year but we still have a very small percentage of the total available market.  
Our confidence in the business model, the strength of our products and our scope to grow has meant we have 
always taken a long-term approach to the business.  We believe by investing in being the leading supplier of 
computer platforms for gaming we will achieve much greater penetration in all tiers of customer on a global basis.  
Whilst there are cycles in individual markets there is no doubting the strength of the demand for gaming globally 
and the need of governments to collect taxes on gaming revenues.  This combination ensures the long-term future 
of gaming.  We shipped around 21,800 boards in 2013, up from around 18,500 in 2012.  We believe there have 
typically been around 450,000-500,000 new or replacement machines installed in the market in recent years so 
we maintain less than a 5% market share. 
 
The new financial year has started in line with expectations with volume sales commencing from one of our new 
Tier 2 customers.  Our current order book is strong and as of the end of March 2014 was over double that as at 
end of March last year.  We look forward to another year of strong growth.   
 
11 
Financial Review 
Revenue 
 
Revenues in 2013 grew to $24.2m (2012: $21.6m), with continued progress made in broadening our customer 
base.  The greatest contribution to this growth was the commencement of volume shipments to the two Tier 2 
customers which each represented around 5% of total 2013 revenue.  Sales to Ainsworth remained strong in the 
year, but the revenues developed from the Tier 2 customers resulted in Ainsworth contribution to total revenue 
falling to 72%.  The year followed our typical trend of being second half revenue weighted. 
 
 
Revenue Bridge 
Profit 
 
Adjusted EBITDA increased 25% to $6.4 million (2012: $5.1 million) and profit before tax increased 20% to $6.0 
million (2012: $5.0 million
2
) over 2013.  
 
Whilst we invested in our people over 2013, increasing out headcount from 50 to 63, we successfully leveraged 
our resources to deliver profit growth in excess of revenues.  We remain committed to continued investment in 
the business, and over 17% of the gross profit developed by our sales was reinvested into product development 
expenses, which we believe is vital to ensure we maintain a market leading product portfolio.  Of the development 
costs, $871,000 (2012 $410,000) was capitalised.  
 
There was a tax charge for the year of $1.22m (2012: $1.20m).  The Group takes advantage of tax reliefs available 
in respect of research and development expenditure.  Deferred tax has been provided at 20% which is the expected 
rate applicable when these liabilities will crystallise. 
Cash flow 
 
Our business is cash generative and in 2013 we netted $2.5m of cash from operating activities (2012: $1.9m).  
Combined with the cash raised from new share issuance as part of the Company’s flotation, we have a healthy 
cash balance of in excess of $7m with net cash of $4.9m.  Our borrowings are low and primarily comprise 
mortgages on properties which house our operations. 
 
21.6
24.2
+1.1
+1.3
+0.3
20
20.5
21
21.5
22
22.5
23
23.5
24
24.5
25
2012 Tier 2 Customer #1 Tier 2 Customer #2 Other Customers 2013
Revenue $m  
 
12 
The Group spent $1.9m on investing activities (2012: $1.0m), which was composed largely of our investment into 
an expanded and improved facility in North America, and development expenditure ($0.9m), which the Group 
sees as a major driver to continued growth. 
 
The Group continues to generate significant amounts of operating cash. This, coupled with a strong bank balance 
and low borrowings, provides the liquidity and opportunity to grow. 
Balance Sheet 
 
The Group’s balance sheet has further strengthened over the year with net assets increasing to $15.5m (2012: 
$5.9m), assisted by the injection of cash as part of the flotation.  
 
Non-current assets comprise the Group’s investment in property, plant and equipment and internally generated 
research and development.  In the second half of 2013, the Group invested in expanded facilities in Las Vegas, 
including the purchase of a property.  We also own premises in Taiwan and the UK, out of which we operate. 
The Group’s current assets have increased to $15.6m (2012 $8.6m).  Inventory and debtor balances have increased 
as a result of increased trading.  As at end December, over 90% of the trade debtors were within agreed payment 
terms. 
 
Principal liabilities were trade and other payables, short and long term debt and corporation tax payable.  All 
liabilities are within the Group’s payment profile.  In 2012, creditors included the expected costs of the IPO which 
was concluded in May 2013. 
Dividend 
 
The board proposes a full year dividend of 1.0p per share payable on 16 May 2014 to all shareholders on the 
register as at 2 May 2014.  The corresponding ex-dividend date is 30 April 2014. 
 
 
 
    
 
13 
Corporate Governance 
 
The Directors recognise the value and importance of high standards of corporate governance. 
Since admission to AIM in May 2013, the Board has been designed to voluntarily comply, where applicable, with 
selected key provisions of the UK corporate governance code.  The Company does not currently claim full 
compliance with the requirements of the code. 
The Company also follows the recommendations on corporate governance from the Quoted Companies Alliance 
for companies with shares traded on AIM. 
Given the size of the company and the constitution of the Board, the following is a brief summary of the main 
aspects of corporate governance currently in place. 
With effect from the admission to the AIM market, the Board has established an Audit Committee and a 
Remuneration Committee with formally delegated responsibilities. 
The Remuneration Committee is chaired by Michael Peagram.  Its other member is Guy Van Zwanenberg.   This 
committee reviews the performance of the executive directors and makes recommendations to the Board on 
matters relating to their remuneration and terms of employment. 
The Audit Committee is chaired by Guy van Zwanenberg.  Its other member is Michael Peagram.  The Committee 
determines the terms of engagement of the Group’s auditors and, in consultation with them, the scope of the audit.  
It receives and reviews reports from management and the Group’s auditors relating to the interim and annual 
financial statements and the accounting and internal control systems in use by the Group.  The Audit Committee 
has unrestricted access to the Group’s auditors.  Under its terms of reference, the Audit Committee monitors, 
amongst other matters, the integrity of the Group’s financial statements.  The Committee is responsible for 
monitoring the effectiveness of the external audit process and making recommendations to the Board in relation 
to the re-appointment of the external auditors.  It is responsible for ensuring that an appropriate business 
relationship is maintained between the Group and the external auditors, including reviewing non-audit services 
and fees.  The Committee meets with Executive Directors and management as well as meeting privately with the 
external auditors. 
As the Board is small, there is not a separate Nominations Committee and the Board as a whole considers 
recommendations for appointments to the Board. 
The Directors follow the guidance set out by Rule 21 of the AIM Rules relating to dealings by Directors in the 
Company’s securities and, to this end, the Company has adopted an appropriate share dealing code. 
Going concern 
Under Company Law, the Company’s Directors are required to consider whether it is appropriate to prepare 
financial statements on the basis that the Group and Company are a going concern.  As part of the normal business 
practice the Group prepares annual and two year plans and, in reviewing this information, the Company’s 
Directors are satisfied that the Group and the Company have reasonable resources and future cash flows to enable 
them to continue in business for the foreseeable future.  For this reason, the Company and Group continue to adopt 
the going concern basis in preparing the financial statements. 
    
 
14 
Strategic Report 
 
The Directors present their Annual Report and accounts for the year ended 31 December 2013. 
 
Principal activities and results 
The principal activity of the Group is the development and supply of computer systems. The profits for the year 
after taxation amounted to $4,750,000 (2012: $3,791,000) and the directors continue to be satisfied with the 
overall performance of the Group. 
Further comments on the development of the business are included in the Chairman’s Review, Operational Review 
and financial Review on pages 4 to 12. 
Key Performance Indicators 
The primary financial key performance indicator of the group is adjusted EBITDA, on which it reports monthly.  
Adjusted EBITDA for the year was $6,382,000 (2012: $5,081,000).  The Group also monitors its order pipeline 
and cash balances. 
 
Principal risks relating to the business of the Group 
The group faces competitive and strategic risks that are inherent in a rapidly growing and changing market.  The 
Board of the company and its management review future strategy and risks to the business regularly.  Where 
possible, processes are in place to monitor and mitigate the identified risks. 
Financial and trading risks are discussed in Note 18 of the consolidated financial statements.  The key business 
risks affecting the group are set out below: 
Regulation risk 
It is possible that additional laws and regulations may be enacted with respect to the gaming industry, covering 
issues such as law enforcement, pricing, taxation, and quality of products and services. 
Technological risks 
The company’s business is dependent upon technology which could be superseded by superior technology, more 
competitively priced technology or a shift in working practices which could affect both the potential profitability 
and saleability of the Group’s product offering. 
Key persons 
The Company’s success will depend to a significant extent upon the experience of the Company’s executive 
officers. They are subject to long-term contracts of employment and the Board has put in place a succession plan.  
Key customer Dependency 
The Group currently generates a significant portion of its revenue from certain customers.  In 2013, the Group’s 
top customer accounted for a significant majority of total revenue. 
Intellectual property protection 
The Group may be unable to successfully establish and protect its intellectual property which may be significant 
to the Group’s competitive position.  The Group’s current or future intellectual property rights may or may not 
have priority over other their parties’ claims to the same intellectual property. 
 
    
 
15 
By order of the board on 24 March 2014 
 
 
 
Miss A C Preddy Aisle Barn 
100 High Street 
Director Balsham 
Cambridge 
CB21 4EP 
   
 
16 
Directors’ Report 
 
Statutory information 
Quixant PLC is a Public Limited Company incorporated in the United Kingdom (Registration number: 4316977).  
On 15 May 2013, the company issued an admission document and from 21 May 2013 the Company’s ordinary 
shares are traded on the Alternative Investment Market of the London Stock Exchange (AIM). 
On 29 April, the company changed its name from Quixant Limited to Quixant Plc. The company has a branch, 
located in Taiwan, whose operations and results are included in the standalone financial statements of the 
company. 
Details of the share capital of the company, including shares issued during the year, are set out in note 19 of the 
consolidated financial statements. 
 
Annual General Meeting 
The date and other details of the next Annual General Meeting of the Company are contained within the notice of 
this meeting, which accompanies this report. The directors propose a dividend of 1.0p per share (2012: nil), to be 
approved at the Annual General Meeting. 
 
Substantial shareholdings 
On 24 March 2014 the company had been notified of the following significant interests in its share capital: 
 Shares held 
Ordinary shares of £0.001 each 
% of issued share 
capital 
 
 
 
NCL Jarmany and his wife  24,862,270 38.47%  
GP Mullins and his wife  7,200,814 11.14%  
C-T Lin and his wife  6,811,581 10.54%  
MJ Mullins  4,865,415 7.53%  
 
Directors 
The Directors who served during the year and their interests in the share capital of the Company were as follows: 
 
 Shares held 
Ordinary shares of 
Options 
granted 
Exercise 
price 
 £0.05 each 
2012 
£0.001 each 
2013 
£0.001 each 
2013 
 
NCL Jarmany 139,000 24,862,270 -  
GP Mullins 37,000 7,200,814 -  
C-T Lin 30,000 6,811,581 -  
AC Preddy - - 79,000 £0.49 
MJ Peagram (appointed 1 
February 2013) 
- 152,174 -  
G van Zwanenberg (appointed 1 
March 2013) 
- 26,087 -  
There has been no change in the interests set out above between 31
st
 December 2013 and 21
st
 March 2014.   
 
17 
Directors’ Indemnity arrangements 
The Group has made qualifying third party indemnity provisions for the benefit of its Directors which were made 
during the year and remain in force at the date of this report.  The Group has purchased and maintained throughout 
the year Directors’ and Officers’ liability insurance in respect of itself and its Directors. 
Research and development (R&D) 
The Group continues to invest in R&D, spending $1,919,000 in its R&D and customer support programmes in 
the year, of which $871,000 was capitalised.  The Group undertakes R&D to develop and enhance its products 
and the Group will continue to commit a significant level of resource and expenditure as appropriate to R&D. 
Use of financial instruments 
Information on both the Group’s financial risk management objectives and the Group’s policies on exposure to 
relevant risks in respect of financial instruments are set out in note 18 of the consolidated financial statements. 
Disclosure of information to auditors  
The directors who held office at the date of approval of this directors’ report confirm that, so far as they are each 
aware, there is no relevant audit information of which the Company’s auditors are unaware; and each director has 
taken all the steps that he ought to have taken as a director to make himself aware of any relevant audit information 
and to establish that the Company’s auditors are aware of that information.  
Auditors 
Pursuant to Section 487 of the Companies Act 2006, the auditors KPMG LLP will be deemed to be reappointed 
and will therefore continue in office. 
 
By order of the board on 24 March 2014 
 
 
 
Miss A C Preddy Aisle Barn 
100 High Street 
Director Balsham 
Cambridge 
CB21 4EP 
 
    
 
18 
Statement of directors’ responsibilities in respect of the Directors’ Report 
and the financial statements   
 
The directors are responsible for preparing the Annual Report and the group and parent company financial 
statements in accordance with applicable law and regulations. 
 
Company law requires the directors to prepare group and parent company financial statements for each financial 
year. As required by the AIM Rules of the London Stock Exchange they are required to prepare the group financial 
statements in accordance with IFRSs as adopted by the EU and applicable law and have elected to prepare the 
parent company financial statements in accordance with UK Accounting Standards and applicable law (UK 
Generally Accepted Accounting Practice). 
 
Under company law the directors must not approve the financial statements unless they are satisfied that they give 
a true and fair view of the state of affairs of the group and parent company and of their profit or loss for that 
period. In preparing each of the group and parent company financial statements, the directors are required to: 
 
 select suitable accounting policies and then apply them consistently; 
 make judgements and estimates that are reasonable and prudent; 
 for the group financial statements, state whether they have been prepared in accordance with IFRSs as adopted 
by the EU; 
 for the parent company financial statements, state whether applicable UK Accounting Standards have been 
followed, subject to any material departures disclosed and explained in the financial statements; and 
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 
and the parent company will continue in business. 
 
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the 
parent company and enable them to ensure that its financial statements comply with the Companies Act 2006. 
They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of 
the group and to prevent and detect fraud and other irregularities. 
 
The directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the company’s website.  Legislation in the UK governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.  
 
 
 
 
 KPMG LLP 
 Botanic House 
 100 Hills Road 
 Cambridge 
 CB2 1AR 
 
 
Independent Auditor’s report to the members of Quixant Plc 
 
  
We have audited the financial statements of Quixant Plc for the year ended 31 December 2013 which 
comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the 
Consolidated Statement of Financial Position, the Consolidated Statement of Changes in Equity, the 
Consolidated Cash Flow Statement, the Company Balance Sheet and the related notes. The financial 
reporting framework that has been applied in the preparation of the group financial statements is 
applicable law and International Financial Reporting Standards (IFRSs) as adopted by the EU.  The 
financial reporting framework that has been applied in the preparation of the parent company financial 
statements is applicable law and UK Accounting Standards (UK Generally Accepted Accounting 
Practice). 
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 
of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the company’s 
members those matters we are required to state to them in an auditor’s report and for no other purpose. To 
the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 
company and the company’s members, as a body, for our audit work, for this report, or for the opinions we 
have formed. 
 
Respective responsibilities of directors and auditor 
 
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view. Our 
responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable 
law and International Standards on Auditing (UK and Ireland).  Those standards require us to comply with 
the Auditing Practices Board’s Ethical Standards for Auditors.   
 
Scope of the audit of the financial statements   
 
A description of the scope of an audit of financial statements is provided on the Financial Reporting 
Council’s website at www.frc.org.uk/auditscopeukprivate. 
 
Opinion on financial statements 
 
In our opinion: 
 the financial statements give a true and fair view of the state of the group’s and of the parent company’s 
affairs as at 31 December 2013 and of the group’s profit for the year then ended; 
 the group financial statements have been properly prepared in accordance with IFRSs as adopted by the 
EU; 
 the parent company financial statements have been properly prepared in accordance with UK Generally 
Accepted Accounting Practice; 
 the financial statements have been prepared in accordance with the requirements of the Companies Act 
2006. 
 
Opinion on other matter prescribed by the Companies Act 2006 
In our opinion the information given in the Strategic Report and the Directors’ Report for the financial year 
for which the financial statements are prepared is consistent with the financial statements. 
   
20 
Matters on which we are required to report by exception 
 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to 
report to you if, in our opinion: 
 adequate accounting records have not been kept by the parent company, or returns adequate for our 
audit have not been received from branches not visited by us; or   
 the parent company financial statements are not in agreement with the accounting records and returns; 
or   
 certain disclosures of directors’ remuneration specified by law are not made; or   
 we have not received all the information and explanations we require for our audit.   
 
 
 
 
Charles le Strange Meakin (Senior Statutory Auditor)  
for and on behalf of KPMG LLP, Statutory Auditor 
Chartered Accountants 
Botanic House 
100 Hills Road  
Cambridge  
CB2 1AR 
 
24 March 2014  Quixant PLC 
Annual Report and Accounts 
 
 
21 
Consolidated income statement 
for the years ended 31 December 2013 and 2012 
 
      
  Note  2013 2012 
    $000 $000 
      
Revenue  1,2  24,235 21,577 
      
Operating expenses  3,4  (18,200) (16,535) 
                                  
Operating Profit    6,035 5,042 
Financial expenses  5  (61) (59) 
Other income    - 7 
                                  
Profit before tax    5,974 4,990 
Taxation  6  (1,224) (1,199) 
                                  
Profit for the year    4,750 3,791 
                                  
Basic earnings per share  7      $0.0777   $0.0687 
Fully diluted earnings per share  7      $0.0762   $0.0687 
      
      
 
Consolidated statement of comprehensive income 
for the years ended 31 December 2013 and 2012 
 
      
    2013 2012 
    $000 $000 
      
Profit for the year    4,750 3,791 
      
Foreign currency translation differences    (29) 77 
                                  
Total comprehensive income for the year    4,721 3,868 
                                  
 
All items of other comprehensive income may be reclassified to profit and loss in future periods. 
 
  Quixant PLC 
Annual Report and Accounts 
 
 
22 
Consolidated statements of financial position 
as at 31 December 2013 and 2012 
 
      
  Note  2013 2012 
    $000 $000 
Non current assets      
Property, plant and equipment  8  4,554 3,800 
Intangible assets – research and development  9  1,253 502 
                                  
Total non-current assets    5,807 4,302 
                                  
      
Current assets      
Inventories  12  2,631 2,419 
Trade and other receivables  13  5,939 4,370 
Cash and cash equivalents  14  7,021 1,803 
                                  
Total current assets    15,591 8,592 
                                  
      
Total assets    21,398 12,894 
                                  
      
Current liabilities      
      
Other financial liabilities  15  (173) (92) 
Trade and other payables  16  (2,677) (3,675) 
Corporation tax payable  17  (805) (913) 
                                  
Total current liabilities    (3,655) (4,680) 
                                  
      
Non-current liabilities      
Other financial liabilities  15  (1,986) (2,187) 
Deferred tax liability  11  (281) (138) 
                                  
Total non-current liabilities    (2,267) (2,325) 
                                  
      
Total liabilities    (5,922) (7,005) 
                                  
Net assets    15,476 5,889 
                                  
Equity      
Share capital  19  104 27 
Share based payments reserve  19  113 - 
Share premium    5,181 505 
Retained earnings    10,035 5,285 
Translation reserve    43 72 
                                  
Total equity    15,476 5,889 
                                   Quixant PLC 
Annual Report and Accounts 
 
 
23 
 
 
The financial statements were approved and authorised for issue by the Board of Directors on 24 March 2014 
 
And were signed on behalf of the Board by 
 
Miss A C Preddy 
Director 
 
Company registered number: 4316977 
  Quixant PLC 
Annual Report and Accounts 
 
 
24 
Consolidated statements of changes in equity 
for the years ended 31 December  2013 and 2012  
 
       Total 
  Share Share Based Share Retained  Translation Shareholders 
  Capital Payments Premium Earnings Reserve Funds 
  $000 $000 $000 $000 $000 $000 
        
        
At 1 January 2012  27 - 505 1,494 (5) 2,021 
        
Comprehensive income        
Profit for the year  -  - 3,791 - 3,791 
Other comprehensive income  -  - - 77 77 
                                                                                  
At 31 December 2012 and 1 January 2013  27 - 505 5,285 72 5,889 
        
Comprehensive income        
Profit for the year  - - - 4,750 - 4,750 
Other comprehensive income  - - - - (29) (29) 
                                                                                            
  27 - 505 10,035 43 10,610 
Transactions with equity holders        
Share bonus issue  63 - (63) - - - 
Issue of shares  14 - 5,873 - - 5,887 
Share issue expenses  - - (1,134) - - (1,134) 
Share based payments  - 113 - - - 113 
                                                                                            
At 31 December 2013  104 113 5,181 10,035 43 15,476 
                                                                                           
        
        
 
   Quixant PLC 
Annual Report and Accounts 
 
 
25 
Consolidated cash flow statements 
for the years ended 31 December 2013 and 2012 
  
      
  Note  2013 2012 
    $000 $000 
Cash flows from operating activities      
Profit for the year    4,750 3,791 
Adjustments for:      
Depreciation  8  227 212 
Amortisation  9  120 18 
(Profits) on disposal  3  - (198) 
Financial expenses  5  61 59 
Taxation expense  6  1,224 1,199 
Share based payments expense    113 - 
                                  
    6,495 5,081 
(Increase) in trade and other receivables    (1,568) (3,956) 
(Increase) in inventories    (212) (787) 
Increase/(decrease) in trade and other payables    (984) 2,007 
                                  
    3,731 2,345 
Interest paid    (61) (59) 
Tax paid    (1,190) (380) 
                                  
Net cash from operating activities    2,480 1,906 
                                  
      
Cash flows from investing activities      
Acquisition of property, plant and equipment  8  (1,024) (1,521) 
Development expenditure  9  (871) (410) 
Proceeds from sale of property, plant and equipment    - 941 
                                  
Net cash from investing activities    (1,895) (990) 
      
Cash flows from financing activities      
Proceeds from borrowings    - 760 
Repayment of borrowings    (120) (824) 
Proceeds on issue of shares    5,887 - 
Share issue expenses    (1,134) - 
                                  
Net cash from financing activities    4,633 (64) 
                                  
      
Net increase in cash and cash equivalents    5,218 852 
Cash and cash equivalents at 1 January    1,803 951 
                                  
Cash and cash equivalents at 31 December  14  7,021 1,803 
                                   Quixant PLC 
Annual Report and Accounts 
 
 
Notes  
 
26 
General Information and Reporting entity 
 
Quixant PLC (“Quixant”) develops and supplies specialist computer systems. The company is domiciled in the UK. 
The address of the company’s registered office is Aisle Barn, 100 High Street, Balsham, Cambridge, CB21 4EP. This 
consolidated financial information for the Quixant Group comprises the company, its branch in Taiwan and its 
subsidiaries as detailed in note 10. 
 
1. Principal Accounting Policies 
 
The principal accounting policies applied in the preparation of these financial statements are set out below. These 
policies have been consistently applied to all years presented. 
 
Basis of preparation 
The Quixant Group financial information has been prepared in accordance with International Financial Reporting 
Standards as adopted by the European Union (“IFRS as adopted by the EU”) as applied by the Quixant Group. This 
financial information has been prepared under the historical cost convention.  The presentation currency adopted by 
the Quixant Group is US$ as this is the trading currency of the Group. 
 
The preparation of financial information in conformity with IFRS as adopted by the EU requires the use of certain 
critical accounting estimates. It also requires management to exercise its judgement in the process of applying the 
Quixant Group accounting policies. The areas involving a higher degree of judgement and complexity, or areas where 
assumptions and estimates are significant to the consolidated financial information are disclosed within this note under 
the heading “significant- accounting estimate and judgements, by assumptions and estimates”.  
 
Basis of consolidation 
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. 
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control and 
continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are 
prepared for the same reporting period as the parent Company, using consistent accounting policies. All intra-group 
balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated 
in full. 
 
The Italian subsidiary, Quixant Italia srl, is 99% owned by the group. The comprehensive income and equity 
attributable to the non-controlling interests in this subsidiary are not material. 
 
Going concern 
The Directors have prepared trading and cash flow forecasts for the Group covering the period to 31 December 2015. 
After making enquiries and considering the impact of risks and opportunities on expected cashflows, the Directors 
have a reasonable expectation that the Group has adequate cash to continue in operational existence for the foreseeable 
future. For this reason they have adopted the going concern basis in preparing the financial statements. 
 
Changes in accounting policies: new standards, interpretations and amendments effective in 2013 adopted by the 
Group and published standards not yet effective 
The IASB and the International Financial Reporting Committee (IFRIC) have issued the following standards and 
interpretations with an effective date after the date of these accounts: 
 
IFRS 7 (revised) Financial Instruments: Disclosures 
IFRS 10 Consolidated Financial Statements  
IFRS 11 Joint Arrangements 
IFRS 12 Disclosure of Interest in Other Entities 
IAS 24 (revised) Related Party Disclosures 
IAS 27 (revised)  Consolidated and Separate Financial Statements 
IAS 28 (revised) Investments in Associates 
Various Improvements to IFRSs – minor amendments 
 
The Directors consider that the adoption of these standards and interpretations on the Group’s financial statements 
will not be material.  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
27 
 
1. Principal Accounting Policies (continued) 
 
Revenue recognition 
Revenue represents amounts chargeable, net of value added tax, in respect of the sale of goods to customers.  Revenue 
is recognised at the point that risk is transferred to the customer as determined by the terms agreed in the contract. 
 
In most circumstances this will result in revenue being recognised on despatch by the Group’s Taiwanese branch.  
Where invoicing takes place in advance of revenue recognition, the amounts invoiced, net of value added tax, are 
recorded as deferred revenue. 
 
Property, plant and equipment 
Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment. 
Depreciation is provided on all property, plant and equipment at rates calculated to write off the cost less estimated 
residual value of each asset on a straight-line basis over its expected useful economic life, as follows: 
 
Freehold Buildings   50 years 
Plant and machinery   between 3 and 5 years 
 
No depreciation is provided on freehold land. 
 
The carrying value of property, plant and equipment is reviewed for impairment if events or changes in circumstances 
indicate the carrying value may not be recoverable. 
 
Intangible assets – Development costs 
The Quixant Group incurs significant expenditure on the research and development of new computer products and 
enhancements. The internally generated intangible asset arising from the Company’s development is recognised only 
if the Company can demonstrate all of the following conditions: 
 
 The technical feasibility of completing the intangible asset so that it will be available for use or sale; 
 The intention to complete the intangible asset and use or sell it; 
 The ability to use or sell the intangible asset; 
 The probability that the asset created will generate future economic benefits; 
 The availability of adequate technical, financial and other resources to complete the development; and 
 The ability to measure reliably the expenditure attributable to the intangible asset during its development. 
 
Development costs not meeting these criteria and all research costs are expensed in the statement of comprehensive 
income as incurred.  Capitalised development costs are amortised on a straight line basis over their expected useful 
economic lives of 5 years once the related software product or enhancement is available for use. 
 
Dividends 
Final dividends proposed by the Board of Directors and unpaid at the year end are not recognised in the financial 
statements until they have been approved by the shareholders at the Annual General Meeting. Interim dividends, which 
do not require shareholder approval, are recognised when paid. 
 
Inventories 
Inventories, which comprise goods held for resale, are stated at the lower of cost and net realisable value. Cost includes 
all costs in acquiring the inventories and bringing each product to its present location and condition. Net realisable 
value represents the estimated selling price and costs to be incurred in marketing, selling and distribution. 
 
Finance income and costs 
Finance income and costs are recognised on an accruals basis. 
 
Leases 
Rentals paid under operating leases are charged to income on a straight-line basis over the term of the lease.  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
28 
 
1. Principal Accounting Policies (continued) 
Foreign currencies 
Transactions denominated in foreign currencies are translated into the functional currency of the relevant operation at 
the rates ruling at the dates of transactions. Monetary assets and liabilities denominated in foreign currencies at the 
balance sheet date are translated at the rates ruling at that date. Non-monetary assets and liabilities that are measured 
in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. 
 
On consolidation, results of overseas subsidiaries are translated using the average exchange rate for the period, unless 
exchange rates fluctuate significantly. The balance sheets of overseas subsidiaries are translated to the Group’s 
presentational currency, US Dollars, using the closing period-end rate.  Exchange differences arising, if any, are taken 
to a translation reserve. Such translation differences would be reclassified to profit and loss in the period in which the 
operation is disposed of. 
 
Income tax 
The charge for current income tax is based on the results for the year as adjusted for items which are not taxed or 
disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the reporting date. 
 
Deferred income tax is accounted for using the liability method in respect of temporary differences arising from 
differences between the tax bases of certain assets and liabilities and their carrying amounts in the financial statements. 
 
In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are 
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary 
differences can be utilised. Such assets and liabilities are not recognised if the temporary difference is due to goodwill 
arising on a business combination or from an asset or liability, the initial recognition of which does not affect either 
taxable or accounting income. 
 
Deferred tax is charged or credited in the Income Statement or in Other Comprehensive Income, except when it relates 
to items credited or charged directly to Shareholders' equity, in which case the deferred tax is also dealt with in 
Shareholders' equity. 
 
Financial assets 
The Group's financial assets fall into the categories discussed below, with the allocation depending to an extent on the 
purpose for which the asset was acquired. Unless otherwise indicated, the carrying amounts of the Group's financial 
assets are a reasonable approximation of their fair values.   
 
 Trade receivables: - Trade receivables do not carry interest and are stated at their nominal value as reduced by 
allowances for estimated irrecoverable amounts. 
 Cash and cash equivalents: - Cash and cash equivalents in the Statement of Financial Position comprise cash at 
bank and in hand, short-term deposits and other short-term liquid investments. 
In the Cash Flow" Statement, cash and cash equivalents comprise cash and cash equivalents as defined above, 
net of bank overdrafts. 
 
Financial liabilities 
All of the Group's financial liabilities are classified as financial liabilities carried at amortised cost. The Group does 
not use derivative financial instruments or hedge account for any transactions. 
Unless otherwise indicated, the carrying amounts of the Group's financial liabilities are a reasonable approximation 
of their fair values. 
 
Financial liabilities include the following items: 
 
 Trade payables and other short-term monetary liabilities, which are recognised at their nominal value. 
 
 
  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
29 
1.   Principal Accounting Policies (continued) 
 
 Bank borrowings, which are initially, recognised at fair value net of any transaction costs directly attributable 
to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost 
using the effective interest rate method, which ensures that any interest expense over the period to repayment is 
at a constant rate on the balance of the liability carried in the consolidated Statement of Financial Position. 
Interest expense in this context includes initial transaction costs and premiums payable on redemption, as well 
as any interest or coupon payable while the liability is outstanding. 
 
Share capital 
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition 
of a financial liability. The Group’s ordinary shares are classified as equity instruments. 
 
Pension 
The Group operates a defined contribution scheme to the benefit of its employees. Contributions payable are changed 
to income in the year they are payable. 
 
Determination and presentation of operating segments 
The Quixant Group determines and presents operating segments based on the information that internally is provided 
to the executive management team, the body which is considered to be the Quixant Group’s Chief Operating Decision 
Maker (“CODM”). 
 
An operating segment is a component of the Quixant Group that engages in business activities from which it may earn 
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Quixant 
Group’s other components.  The operating segment’s operating results are reviewed regularly by the CODM to make 
decisions about resources to be allocated to the segment to assess its performance, and for which discrete financial 
information is available 
Segmental analysis 
The Quixant Group has determined that it only has one operating and reportable segment. The Quixant Group assesses 
the performance of that segment based on a measure of revenue, and profit/(loss) before interest, taxation, depreciation 
and amortisation (EBITDA). All significant assets and liabilities are located within the UK, Taiwan and USA. 
 
EBITDA reconciliation 
 
EBITDA for the current and prior years have been derived as follows: 
 
$000 2013 2012 
   
Profit after tax 4,750 3,791 
Adding back:   
Tax expense 1,224 1,199 
Financial expenses 61 59 
Depreciation expense 227 212 
Amortisation expense 120 18 
 1,632 1,488 
EBITDA 6,382 5,279 
Deducting:   
Profit on disposal - (198) 
Adjusted EBITDA 6,382 5,081 
 
 
The segmental information is therefore presented in the income statement and statement of financial position and has 
not been reproduced here.  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
30 
1.   Principal Accounting Policies (continued) 
 
A single customer accounted for 72 per cent of reported revenues for the year ended 31 December 2013 (2012: 79%). 
 
Share based payments 
The grant date fair value of share-based payments awards granted to employees is recognised as an employee expense, 
with a corresponding increase in equity, over the period in which employees become unconditionally entitled to the 
awards.  The fair value of the awards granted is measured using an option valuation model, taking into account the 
terms and conditions upon which the awards were granted.  The amount recognised as an expense is adjusted to reflect 
the actual number of awards for which the related service and non-market vesting conditions are expected to be met, 
such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related 
service and non-market performance conditions at the vesting date.  For share-based payment awards with non-vesting 
conditions, the grant date for fair value of the share-based payment is measured to reflect such conditions and there is 
no true-up for differences between expected and actual outcomes. 
 
2. Analysis of turnover 
      
    2013 2012 
    $000 $000 
By geographical market      
      
Asia    293 405 
Australia    12,161 10,516 
Europe    3,406 2,254 
North America    8,307 8,384 
Other    68 18 
                                  
    24,235 21,577 
                                  
 
3. Operating costs 
      
    2013 2012 
    $000 $000 
Employee costs      
Wages and salaries    2,975 1,974 
Social security    286 204 
Other pension costs    64 56 
Share based payments (see note 19)    113 - 
                                  
    3,438 2,234 
      
Depreciation – owned assets    227 212 
Amortisation of development expenditure    120 18 
Profit on disposal of freehold property    - (198) 
                                  
    347 32 
Other operating expenses      
Cost of sales    13,042 11,677 
Administrative expenses    1,373 2,592 
                                  
    14,415 14,269 
                                  
Total operating expenses    18,200 16,535 
                                  
 
Disclosures relating to the remuneration of directors are set out in note 4.  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
31 
 
3.      Operating costs (continued) 
 
Other operating expenses include: 
      
    2013 2012 
    $000 $000 
      
Operating leases – Land and buildings    63 118 
      
Auditors remuneration      
Statutory audit of the consolidated financial statements    86 40 
Non audit services    - 164 
Gain on foreign exchange transactions    110 87 
 
 
                                  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
32 
4. Average staff numbers 
 
The average number of employees including directors was as follows: 
      
    2013 2012 
    Number Number 
      
Production and manufacturing    40 28 
Research and customer service    8 7 
Sales and marketing    6 5 
Administrative    5 5 
                                  
    59 45 
                                  
 
  Fee/Salary Share based 
payments 
Total Total 
  2013 2013 2013 2012 
  $000 $000 $000 $000 
Directors emoluments      
Executive directors      
N C L Jarmany  231 - 231 178 
G P Mullins  231 - 231 147 
C-T Lin  231 - 231 135 
A C Preddy  94 4 98 29 
                                                      
Executive directors  787 4 791 489 
               ………      ……… ………                
Non-Executive Directors      
M J Peagram  47 - 47 - 
G van Zwanenberg  29 - 29 - 
             …… …… …… 
Non-Executive directors  76 - 76 - 
                                                              
Aggregate emoluments  863 4 867 489 
                                                              
There were no share options exercised during the year by directors (2012:None) 
 
5. Finance expense 
 
      
    2013 2012 
    $000 $000 
      
Loan interest payable    61 59 
                                  
  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
33 
6. Taxation 
      
    2013 2012 
    $000 $000 
      
Analysis of charge in periods      
Current tax      
UK corporation tax    1,061 1,072 
Foreign tax    20 45 
Deferred tax (see note 11)    143 82 
                                  
Tax expense    1,224 1,199 
                                  
      
      
      
      
Reconciliation of effective tax rate 
 
     
      
Profit for the year    4,750 3,791 
Total tax expense    1,224 1,199 
                                  
Profit excluding taxation    5,974 4,990 
                                  
Tax using the UK corporation tax rate of 23.25% 
(2012: 24.5%) 
  
 1,389 1,223 
Non-deductible expenses    13 35 
Capital allowances in excess of depreciation    (3) (30) 
Enhanced research and development claim    (173) (145) 
Under/(over) provided in prior years    - - 
Marginal rate relief    (14) - 
Reduction in deferred tax rate to 20%    (27) - 
Overseas tax in excess of standard UK rate    20 - 
Unrelieved overseas losses    19 116 
                                  
Total tax expense    1,224 1,199 
                                  
 
Factors that may affect future tax charges 
Reductions in the UK corporation tax rate from 26% to 24% (effective from 1 April 2012) and to 23% (effective 1 
April 2013) were substantively enacted on 26 March 2012, and 3 July 2012 respectively. Further reductions to 21% 
(effective from 1 April 2014) and 20% (effective 1 April 2015) were substantively enacted on 2 July 2013.  This will 
reduce the Company's future current tax charge accordingly.  The deferred tax liability 31 December 2013 has been 
calculated based on the rates of 20% and 21% subsequently enacted at the balance sheet date.  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
34 
7. Earnings per ordinary share EPS 
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted 
average number of shares outstanding during the period.  The weighted average number of fully paid ordinary shares 
as at 31 December 2012 has been restated for the bonus issue and share subdivision described in note 19. 
 
   
 
Year ended 31 
December 2013  
  
 
Year ended 31 
December 2012  
  $000 
 
$000  
Earnings 
 
Earnings for the purposes of basic and 
diluted EPS being net profit attributable to 
equity shareholders 
 
Number of shares 
 
Weighted average number of ordinary 
shares for the purpose of basic EPS 
 
  
 
 
4,750 
                 
 
 
 
3,791 
                
 
Number of shares  61,154,496 55,200,000  
 
Effect of dilutive potential ordinary shares: 
 
    
- Share options  1,163,082 -  
     
Weighted number of ordinary shares 
for the purpose of diluted EPS 
 
62,317,578 55,200,000  
     
     
Basic earnings per share        $0.0777   $0.0687 
Fully diluted earnings per share             $0.0762   $0.0687 
     
     
      Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
35 
8. Property, plant and equipment 
      
   Freehold land 
and building 
Plant and 
Machinery 
Total 
   $000 $000 $000 
Cost      
      
At 1 January 2012   2,900 529 3,429 
Additions   1,238 283 1,521 
Foreign exchange   131 2 133 
Disposals   (760) - (760) 
                                                
Balance at 31 December 2012   3,509 814 4,323 
                                                
      
At 1 January 2013   3,509 814 4,323 
Additions   713 311 1,024 
Foreign exchange   (43) - (43) 
                                                
Balance at 31 December 2013   4,179 1,125 5,304 
                                                
Depreciation      
      
At 1 January 2012   22 305 327 
Depreciation charge for the year   36 176 212 
Foreign exchange   1 - 1 
Disposals   (17) - (17) 
                                                
Balance at 31 December 2012   42 481 523 
                                                
      
At 1 January 2013   42 481 523 
Depreciation charge for the year   48 179 227 
Foreign exchange   1 (1) - 
                                                
Balance at 31 December 2013   91 659 750 
                                                
Carrying value      
At 31 December 2013   4,088 466 4,554 
                                                
At 31 December 2012   3,467 333 3,800 
                                                
At 1 January 2012   2,878 224 3,102 
                                                 Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
36 
9. Intangible assets 
     
    Capitalised 
Development 
Costs 
    $000 
Internally generated development costs     
     
Cost at 1 January 2012    114 
Additions    410 
                   
Balance at 31 December 2012    524 
                   
     
Cost at 1 January 2013    524 
Additions    871 
                   
Balance at 31 December 2013    1,395 
                   
Amortisation     
     
At 1 January 2012    4 
Amortisation charge for the year    18 
                   
Balance at 31 December 2012    22 
                   
     
At 1 January 2013    22 
Amortisation charge for the year    120 
                   
Balance at 31 December 2013    142 
                   
Carrying value     
At 31 December 2013    1,253 
                   
At 31 December 2012    502 
                   
At 1 January 2012    110 
                   
  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
37 
10. Subsidiary undertakings 
 
 
At 31 December 2013 Quixant’s subsidiary undertakings were 
 
     
 Nature of operation Percentage 
holding 
Country of 
incorporaton 
Class of share 
capital  held 
     
Quixant Italia srl Research and development 99% Italy Ordinary 
Quixant USA Inc Sales and marketing 100% USA Ordinary 
Quixant UK limited Sales and marketing 100% UK Ordinary 
 
Quixant Italia srl was incorporated on 27 May 2008 
 
Quixant USA Inc was incorporated on 1 August 2011 
 
Quixant UK Limited was incorporated on 31 January 2013 
 
These subsidiary undertakings have been consolidated in the Quixant’s Group financial information. 
 
Quixant Italia srl has net assets of $31,000 as at 31 December 2013 (31 December 2012: $20,000). In addition, its 
results for the years then ended were loss $18,000, profit $4,000 respectively. The Directors do not consider the 
disclosure of the 1% minority interest to be material to these financial statements and have accordingly excluded 
minority interests from the primary statements.  
Quixant USA Inc has net liabilities of $482,000 as at 31 December 2013 (31 December 2012: $499,000). In addition, 
its results for the years then ended were $16,000, and $(409,000) respectively. 
 
On 31 January 2013 the Company formed a wholly owned subsidiary Quixant UK Limited and transferred its existing 
UK trade to Quixant UK Limited with effect from 1 April 2013. The Company retained the trading activities related 
to its branch located in Taiwan.  At 31 December 2013, Quixant UK Limited had net assets of $3,253,000 and its 
profit for the period was $3,253,000. 
  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
38 
11. Deferred tax assets and liabilities 
Recognised deferred tax assets and liabilities 
Deferred tax assets and liabilities are attributable to the following: 
 Assets Liabilities 
  2013 2012  2013 2012 
  $000 $000  $000 $000 
       
Property plant and equipment  - -  30 15 
Capitalised development costs  - -  251 123 
                                                               
Net tax liabilities  - -  281 138 
                                                               
Movement in deferred tax during the years ended 31 December 2013 and 2012 
    Liability Charge/(Credit 
 to income) 
    $000 $000 
      
    $000 $000 
2012      
Accelerated capital allowances    15 (14) 
Capitalised development costs    123 96 
                                  
    138 82 
                                  
      
    $000 $000 
2013      
Accelerated capital allowances    30 15 
Capitalised development costs    251 128 
                                  
    281 143 
                                  
 
12. Inventories 
      
     2013 2012 
    $000 $000 
      
Raw materials and consumables    1,570 1,376 
Work in progress    490 261 
Finished goods    571 782 
                                  
Inventories    2,631 2,419 
                                  
The total value of inventories recorded within cost of sales during the year was $13,254,000 (2012: $12,464,000).  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
39 
13. Trade and other receivables 
      
     2013 2012 
    $000 $000 
      
Trade receivables    5,454 3,606 
Other receivables    485 764 
                                  
    5,939 4,370 
                                  
 
A provision of $Nil has been provided in respect of potential doubtful debts as at 31 December 2013 (31 December 
2012: $171,120) 
 
As at 31 December the following sets out the trade receivable that were past due but not impaired. These relate to 
customers where there is no evidence of unwillingness or of an inability to settle the debt. The ageing of these 
receivables is as follows. 
      
     2013 2012 
    $000 $000 
      
Not past due    5,072 3,560 
30-60 days    378 30 
60-90 days    12 19 
>90 days    (8) (3) 
                                  
Carrying value at 31 December     5,454 3,606 
                                  
14. Cash and cash equivalents 
      
     2013 2012 
    $000 $000 
      
Cash at bank and on hand    7,021 1,803 
                                  
15. Other financial liabilities 
      
     2013 2012 
    $000 $000 
      
Within one year    173 92 
Greater than one year    1,986 2,187 
                                  
    2,159 2,279 
                                  
Other financial liabilities relate to loans secured on the Group’s freehold properties in the UK and Taiwan. 
 
The loan secured on the Taiwanese property is repayable over 15 years and bears an annual interest rate of 1.80%. A further 
loan secured on the UK property was repaid in January 2014 and carried an interest rate of 3.25%.  
 
 
  
    Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
40 
16. Trade and other payables 
      
     2013 2012 
    $000 $000 
      
Trade payables    1,832 2,040 
Other tax and social security payables    31 36 
Other payables and accruals    814 1,599 
                                  
    2,677 3,675 
                                  
17. Corporation tax 
      
     2013 2012 
    $000 $000 
      
Corporation tax due    805 913 
                                  
18. Financial instruments 
This note presents information about the Group’s exposure risk, the Group’s objectives, policies and processes for 
measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included 
throughout these consolidated financial statements.  
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management 
framework.  
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set 
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and 
systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through 
its training and management standards and procedures, aims to develop a disciplined and constructive control 
environment in which all employees understand their roles and obligations.  
Financial risks 
The Group’s activities expose it to a number of financial risks including credit risk, cash flow risk and exchange rate 
risk:  
Credit risk 
The Group’s principal financial assets are bank balances and cash, trade and other receivables. The Group’s credit 
risk is primarily attributable to its trade receivables, which are concentrated in a small number of high value customer 
accounts. In addition, operations in emerging or new markets may have a higher than average risk of political or 
economic instability, and may carry increased credit risk. In each case the risk to the Group is the recoverability of 
the cash flows.  
Credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by 
international credit rating agencies. The credit risk on trade and other receivables is managed by agreeing appropriate 
payment terms with customers, obtaining credit agency ratings of all potential customers; by requiring wherever 
possible payment for goods in advance or upon delivery; and by closely monitoring customers balances due, to ensure 
they do not become overdue. In addition careful consideration is given to operations in emerging or new markets 
before the Group enters that market.   Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
41 
18.  Financial instruments (continued) 
Cash flow risk 
The Group’s activities expose it primarily to the financial impact of changes in interest rates. Interest bearing assets 
and liabilities are held, wherever possible, at a fixed rate to ensure certainty of cash flows. Group cash balances and 
expected cash flow are monitored on a daily basis to ensure the Group has sufficient available funds to meet its needs. 
 
Exchange rate risk 
Group exposure to exchange rate risk includes the measurement of overseas operations at the relevant exchange rate 
and changes in trade payables and receivables as a result of exchange rate movements. Daily exchange rate movements 
are monitored and any losses or gains incurred are taken to the income statement and reported in the Group’s internal 
management information. Before agreeing any overseas transactions consideration is given to utilising financial 
instruments such as hedging and forward purchase contracts.  
 
Liquidity risk 
Group policy is to maintain a strong capital base so as to enhance investor, creditor and market confidence. Surplus 
funds are placed on deposits, with cash balances available for immediate withdrawal if required.  
 
Capital management 
The Group’s capital management policy is to maintain a strong capital base so as to enhance investor, creditor and 
market confidence. The Board’s objective is to safeguard the Group’s ability to continue as a going concern, to sustain 
the future development of the business and to provide returns for shareholders, whilst controlling the cost of capital. 
 
The Group monitors capital on the basis of the carrying amount of equity, less cash and cash equivalents as presented 
on the face of the balance sheet. 
 
In order to maintain or adjust the capital structure the Group may adjust the amount of dividends paid to shareholder, 
issue new shares or sell assets. 
 
There were no changes in the Group’s approach to capital management during the period. Neither the Company nor 
any of its subsidiaries are subject to externally imposed capital requirements. 
      
     2013 2012 
    $000 $000 
      
Total equity    15,476 5,889 
Cash and cash equivalents    (7,021) (1,803) 
                                  
Capital    8,455 4,086 
                                  
      
    2013 2012 
    $000 $000 
      
Total equity    15,476 5,889 
Other financial liabilities    2,159 2,279 
                                  
Total financing    17,635 8,168 
                                  
      
      
 
   Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
42 
18. Financial instruments (continued) 
Financial assets and liabilities 
The Group’s activities are financed by cash at bank and borrowings. 
 
Credit risk 
Exposure to credit 
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit 
risk at the reporting date was: 
    2013 2012 
    $000 $000 
      
Cash and cash equivalents    7,021 1,803 
Trade and other receivables excluding prepayments    5,454 3,606 
   
                               
   
 12,475 5,409 
                                  
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was: 
    2013 2012 
    $000 $000 
      
Australia   
 2,575 1,066 
USA   
 2,397 2,099 
Europe   
 477 435 
Asia   
 5 5 
Rest of world   
 - 1 
   
                               
   
 5,454 3,606 
                                  
  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
43 
18. Financial instruments (continued) 
Liquidity risk 
The following are the contractual maturities of financial liabilities, including interest payments and excluding the 
impact of netting agreements: 
   
 
Trade and 
other payables 
Other financial 
liabilities 
Total 
   $000 $000 $000 
31 December 2013      
Carrying amount   2,677 2,159 4,836 
      
Contractual cash flows      
6 months or less   2,615 109 2,724 
6 to 12 months   62 109 171 
More than 12 months   - 2,181 2,181 
                                                
   2,677 2,399 5,076 
                                                
31 December 2012      
Carrying amount   3,675 2,279 5,954 
      
Contractual cash flows      
6 months or less   3,383 58 3,441 
6 to 12 months   292 84 376 
More than 12 months   - 2,433 2,433 
                                                
   3,675 2,575 6,250 
                                                
      
 
  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
44 
18. Financial instruments (continued) 
The carrying amounts of the Group’s financial assets and liabilities may also be categorised as follows: 
    2013 2012 
    $000 $000 
      
Current assets      
Cash and cash equivalents    7,021 1,803 
Trade and other receivables excluding prepayments    5,454 3,606 
                                  
    12,475 5,409 
   
                               
All of the above relate to the IAS 39 category ‘loans and receivables’ and are measured at amortised cost.    
      
      
Current liabilities      
      
Trade and other payables    (2,677) (3,675) 
Other financial liabilities    (173) (92) 
                                  
    (2,850) (3,767) 
                                  
Non-current liabilities      
Other financial liabilities    (1,986) (2,187) 
                                  
    (4,836) (5,954) 
                                  
All of the above relate to the IAS 39 category ‘other financial liabilities’ and are measured at amortised cost. 
 
Liquidity needs are managed by regular review of the timing of expected receivables and the maintenance of cash on 
deposit. 
 
Interest rate risk 
The Group is exposed to changes in market interest rates through its bank borrowings, which are subject to variable 
interest rates, however this is not a material risk to the business. 
 
Currency risk 
The Group has a limited element of currency risk as it buys materials, some services, parts and equipment from 
overseas manufacturers. However, foreign currency risk is not significant. 
 
Interest rate and currency profile 
The Group’s financial assets comprise cash at bank.  At 31 December 2013 the average interest rate earned on the 
temporary closing balances was nil% (2012: nil%,). 
 
Sensitivity analysis 
The Group’s sensitivity to interest rates and currency exchange rates are considered immaterial. 
 
Fair values versus carrying amounts 
The Directors consider that there is no material difference between fair values and carrying amounts of financial assets 
and liabilities.  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
45 
19. Share capital 
 
On 4 February 2013 a bonus issue of three shares for every one share held was awarded to the shareholders by a transfer from the 
share premium account to the share capital of £41,400.  In March 2013, a further issue of 20,000 ordinary shares was subscribed. 
 
On 25 April 2013, the Company subdivided the existing 5p ordinary shares into 56,200,000 ordinary shares of £0.001 each. 
On 21 May 2013 the Company was listed on the AIM market and issued an additional 8,434,782 ordinary shares of 0.1p for an 
aggregate consideration of £3,880,000 ($5,887,000).  Share issue expenses totalling $1,134,000 were deducted from the share 
premium account. 
 
Share based payments 
During the year the Company issued share options to employees.  To be able to exercise these options, employees are required to 
be employed by the Company for a period of three years from the grant date.  In addition exercise is conditional on the Company 
achieving a minimum level of EPS growth over the vesting period. 
Options have been issued over 1,895,200 shares, with an exercise price of £0.49.  Options issued under the scheme expire 10 years 
from grant date. 
The fair value of employee share options is measured using a Black Scholes model.  Measurement inputs and assumptions are as 
follows: 
 
    31 December 2013 31 December 2012 
Fair value at grant date    £0.19 - 
      
Share price    0.46p - 
Exercise price    0.49p - 
Expected volatility    50% - 
Expected option life    5 years - 
Risk-free interest rate    0.9% - 
 
The fair value at grant date of £0.19 was converted at the exchange rate on the grant date to give a fair value of $0.29 per option.  
The total expense recognised in the period in respect of share options is $113,000. 
 
  
 
 
2013 
 
2012 
  
No.  
  
$000 
  
No.  
  
$000 
 
At beginning of the year 
 
 
  
 
  
 
  
 
 
Ordinary shares of 5p each 
 
276,000 
  
27 
  
276,000 
  
27 
 
Bonus issue of 828,000 shares of 5p each 
 
828,000 
  
63 
  
- 
  
- 
 
20,000 shares of 5p each issued 
 
20,000 
  
1 
  
- 
  
- 
 
 
 
               
  
 
  
 
  
 
 
 
 
1,124,000 
  
 
  
 
  
 
 
 
 
               
  
 
  
 
  
 
 
Share sub-division into 56,200,000 shares of 
0.1p each  
 
 
56,200,000 
  
 
  
 
  
 
 
8,434,782 ordinary shares of 0.1p issued 
 
8,434,782 
  
13 
  
- 
  
- 
 
 
 
               
 
 
  
           
 
 
  
           
 
 
  
           
 
 
 
At 31 December 
 
64,634,782 
  
104 
  
276,000 
  
27 
 
 
 
                  
  
             
  
             
  
             
  Quixant PLC 
Annual Report and Accounts 
 
 
Notes (continued) 
 
46 
20. Financial commitments 
At 31 December the Group had annual commitments under non cancellable operating leases as follows: 
   Land and Buildings 
    2013 2012 
    $000 $000 
Expiry date:      
Between two and five years    25 25 
                                  
    25 25 
                                  
21. Pension and other post retirement benefit commitments 
The Quixant Group operates a defined contribution pension plan. The contribution payables by the Group for the years 
ended 31 December 2013 and 2012 are set out below. There were no outstanding contributions as at 31 December 
2013 and 2012. 
    2013 2012 
    $000 $000 
      
Contributions payable    - - 
                                  
      
22. Post balance sheet events 
There have been no significant events affecting the Company since the end of the year. 
 
23. Related party transactions 
There were no related party transactions other than transactions with Key Management Personnel, which are the 
directors disclosed in note 4, above.  Quixant PLC 
Annual Report and Accounts 
 
 
 
47 
Company balance sheet 
as at 31 December 2013 and 2012 (UK GAAP) 
 
      
  Note  2013 2012 
    $000 $000 
Non current assets      
Property, plant and equipment  2  3,704 3,757 
Investments  3  109 18 
                                  
Total non-current assets    3,813 3,775 
                                  
      
Current assets      
Inventories  4  2,041 2,419 
Trade and other receivables  5  3,422 4,921 
Cash and cash equivalents    6,870 1,665 
                                  
Total current assets    12,333 9,005 
                                  
      
Total assets    16,146 12,780 
                                  
      
Current liabilities      
Creditors: amounts falling due within one year  6  (2,350) (4,438) 
                                  
      
Non-current liabilities      
Other financial liabilities  7  (1,986) (2,187) 
Deferred tax liability  8  (30) (139) 
                                  
Total non-current liabilities    (2,016) (2,326) 
                                  
      
Total liabilities    (4,366) (6,764) 
                                  
Net assets    11,780 6,016 
                                  
      
Share capital  9  104 27 
Share based payments reserve  9  113 - 
Share Premium  10  5,181 505 
Retained earnings  10  6,337 5,409 
Translation reserve  10  45 75 
                                  
Total equity    11,780 6,016 
                                  
 
   Quixant PLC 
Annual Report and Accounts 
 
Company Balance Sheet (continued) 
 
 
48 
These financial statements were approved by the board of Directors on 24 March 2014 and were signed on its behalf 
by: 
 
 
Miss A C Preddy 
Director 
Company registered number: 4316977  Quixant PLC 
Annual Report and Accounts 
 
 
 
49 
Notes to the Company Balance Sheet 
(forming part of the financial statements) 
1 Accounting policies 
The following accounting policies have been applied consistently in dealing with items which are considered material 
in relation to the financial statements, except as noted below. 
Basis of preparation 
The financial statements have been prepared under the historical cost convention and in accordance with applicable 
UK accounting standards. Under Section 408 of the Companies Act 2006 the Company is exempt from the requirement 
to present its own profit and loss account. Under FRS 1 the Company is exempt from the requirement to prepare a 
cash flow statement on the grounds that this information is included in the company’s published consolidated financial 
statements. 
These financial statements present information about the Company as an individual undertaking and not about its 
Group. 
As the Company has three wholly owned subsidiaries, Quixant USA Inc, Quixant Italia srl and Quixant UK Limited, 
the Company has taken advantage of the exemption contained in FRS 8 and has therefore not disclosed transactions 
or balances with wholly owned subsidiaries which form part of the group. 
The Company is incorporated in the United Kingdom, and has a branch based in Taiwan. During the year, the UK 
trading operations of the Company were transferred to a newly incorporated subsidiary, Quixant UK Limited, in 
consideration of an intra-group receivable. The transfer took place at the book value of the assets and liabilities 
transferred. 
Going concern 
The Directors have prepared trading and cash flow forecasts for the Company covering the period to 31 December 
2015. After making enquiries and considering the impact of risks and opportunities on expected cashflows, the 
Directors have a reasonable expectation that the Company has adequate cash to continue in operational existence for 
the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial 
statements. 
Tangible fixed assets and depreciation 
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual 
value, over their expected useful economic life as follows: 
 
Asset class Depreciation method and rate 
Plant and machinery Straight line over 3 years 
Freehold buildings Straight line over 50 years 
No depreciation is provided on freehold land. 
Foreign currencies 
Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary 
assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. 
All exchange differences are included in the profit and loss account, apart from those relating to the retranslation of 
the results of the Taiwan branch, which are recorded as a movement on reserves in accordance with SSAP 20. 
Currency of the financial statements 
The financial statements have been presented in US Dollars as this is the Company’s functional currency. Quixant PLC 
Annual Report and Accounts 
 
 
Notes to the Company Balance Sheet (continued) 
 
50 
1 Accounting policies (continued) 
 
Leases 
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease 
term. 
Research and development expenditure 
Research and development expenditure incurred on individual projects is written off as incurred. 
Stocks 
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net 
realisable value is based on selling price less anticipated costs to completion and selling costs. 
Investments 
Investments in subsidiary undertakings, associates and joint ventures are stated at cost less amounts written off. 
Taxation 
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing 
differences between the treatment of certain items for taxation and accounting purposes. 
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain 
items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as 
otherwise required by FRS 19. 
Turnover 
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to 
customers. 
Turnover which represents sales of goods is recognised at the point that risk is transferred to the customer as 
determined by the terms agreed in the contract. 
In most circumstances this will result in revenue being recognised on despatch by the Company’s Taiwanese branch. 
Where invoicing takes place in advance of revenue recognition, the amounts invoiced, net of value added tax, are 
recorded as deferred revenue. 
Trade debtors 
Trade debtors are stated at the amount of unpaid customer invoices (including VAT where applicable) less provision 
for doubtful debts.  Provision is made for doubtful debts when the recovery of a customer balance appears doubtful. 
 
Share based payments 
 
The grant date fair value of share-based payments awards granted to employees is recognised as an employee expense, 
with a corresponding increase in equity, over the period in which employees become unconditionally entitled to the 
awards.  The fair value of the awards granted is measured using an option valuation model, taking into account the 
terms and conditions upon which the awards were granted.  The amount recognised as an expense is adjusted to reflect 
the actual number of awards for which the related service and non-market vesting conditions are expected to be met, 
such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related 
service and non-market performance conditions at the vesting date.  For share-based payment awards with non-vesting 
conditions, the grant date for fair value of the share-based payment is measured to reflect such conditions and there is 
no true-up for differences between expected and actual outcomes. 
 
 
  Quixant PLC 
Annual Report and Accounts 
 
Notes to the Company Balance Sheet (continued) 
 
 
51 
2   Tangible fixed assets 
   Freehold land 
and buildings 
Plant and 
machinery 
 
Total 
      
   $000 $000 $000 
Cost       
      
At 1 January 2013   3,509 721 4,230 
Additions   54 135 189 
Foreign exchange   (43) (4) (47) 
                                                
At 31 December 2013   3,520 852 4,372 
                                                
Depreciation      
      
At 1 January 2013   42 431 473 
Depreciation charge for the year   48 145 193 
Foreign exchange   1 1 2 
                                                
At 31 December 2013   91 577 668 
                                                
Carrying  value      
At 31 December 2013   3,429 275 3,704 
                                                
At 31 December 2012   3,467 290 3,757 
                                                
  Quixant PLC 
Annual Report and Accounts 
 
Notes to the Company Balance Sheet (continued) 
 
 
52 
3  Fixed asset investments 
 
 
  Subsidiary 
undertakings 
 
 
   $000  
     
Cost      
At beginning of the year   18  
Additions – group settled share based payments   53  
Additions – conversion of loans              38  
At end of year   109  
                   
Net book value     
At 31 December 2013   109  
                   
At 31 December 2012   18  
                   
 
 
 
 
Details of undertakings 
Details of the investments in which the Company holds 20% or more of the nominal value of any class of share capital are as 
follows: 
Undertaking Holding Proportion of voting rights 
and shares held 
Principal activity 
Subsidiary undertakings 
Quixant Italia srl 
Italy 
Ordinary shares of EUR 1 99% Provision of engineering and 
support services 
Quixant USA Inc Common Stock 100% Sales and marketing 
Quixant UK Limited Ordinary shares of £1 100% Sales and marketing 
The loss for the financial period of Quixant Italia srl was $18,000 and the aggregate amount of capital and reserves at the end of 
the period was $31,000. 
The profit for the financial period of Quixant USA Inc was $16,000 and the aggregate amount of capital and reserves at the end of 
the period was ($482,000). 
 
On 31 January 2013 the Company formed a wholly owned subsidiary Quixant UK Limited and transferred its existing 
trade to Quixant UK Limited with effect from 1 April 2013.  At 31 December 2013, Quixant UK Limited had net 
assets of $3,253,000 and its profit for the period was $3,253,000. 
 
 
 
   Quixant PLC 
Annual Report and Accounts 
 
Notes to the Company Balance Sheet (continued) 
 
 
53 
4   Stocks 
  
2013 
 
2012 
 $000 $000 
   
Raw materials and consumables 917 1,376 
Work in progress 490 261 
Finished goods and goods for resale 634 782 
                               
 2,041 2,419 
                               
5   Debtors 
  
2013 
 
2012 
 $000 $000 
   
Trade debtors - 3,606 
Amounts receivable from subsidiary undertakings 2,971 589 
Other debtors 451 726 
                               
 3,422 4,921 
                               
 
 
6  Creditors: amounts falling due within one year 
  
2013 
 
2012 
 $000 $000 
   
   
Bank loans 173 92 
Trade creditors 1,595 1,981 
Amounts owing to subsidiaries - - 
Corporation tax - 913 
Other taxes and social security - 33 
Accruals and deferred income 582 1,418 
                               
 2,350 4,437 
                               
7  Creditors: amounts falling due after more than one year 
  
2013 
 
2012 
 $000 $000 
   
Bank loans 1,986 2,187 
                               
  Quixant PLC 
Annual Report and Accounts 
 
Notes to the Company Balance Sheet (continued) 
 
 
54 
7  Creditors: amounts falling due after more than one year (continued) 
 
 
The bank loans are secured by a charge over the Company's freehold land and buildings and the personal guarantee of a director. 
The maturity analysis of bank loans is as follows: 
 2013 2012 
 $000 $000 
   
Within one year 173 92 
In the second to fifth years 1,046 1,029 
Over five years 940 1,158 
                               
 2,159 2,279 
                               
The interest rates and repayment terms of loans payable in more than 5 years are shown below: 
Loan Repayment terms Interest 
rate 
2013 2012 
   $000 $000 
     
     
Property loan 2 year interest-only period, then repayable over 13 years 1.80% 940 1,158 
                                 
   940 1,158 
                                 
 
 
8  Provisions for liabilities 
 Provision for 
warranty costs 
Deferred 
taxation 
 $000 $000 
   
At beginning of year 124 15 
Transfer to Quixant UK Limited (124) - 
Charge to the profit and loss for the year - 15 
                
 
               
At end of year - 30 
 
 
 
                              
Analysis of deferred tax  
2013 
 
2012 
 $000 $000 
   
Difference between accumulated depreciation and amortisation and capital allowances 30 15 
                               
 
   Quixant PLC 
Annual Report and Accounts 
 
Notes to the Company Balance Sheet (continued) 
 
 
55 
9  Called up share capital 
Allotted, called up and fully paid shares 
 
On 4 February 2013 a bonus issue of three shares for every one share held was awarded to the shareholders by a transfer from the 
share premium account to the share capital of £41,400.  In March 2013, a further issue of 20,000 ordinary shares was subscribed. 
 
On 25 April 2013, the Company subdivided the existing 5p ordinary shares into 56,200,000 ordinary shares of £0.001 each. 
On 21 May 2013 the Company was listed on the AIM market and issued an additional 8,434,782 ordinary shares of 0.1p for an 
aggregate consideration of £3,880,000 ($5,887,000).  Share issue expenses totalling $1,134,000 were deducted from the share 
premium account. 
 
Share based payments 
During the year the Company issued share options to employees.  To be able to exercise these options, employees are required to 
be employed by the Company for a period of three years from the grant date.  In addition exercise is conditional on the Company 
achieving a minimum level of EPS growth over the vesting period. 
Options have been issued over 1,895,200 shares, with an exercise price of £0.49.  Options issued under the scheme expire 10 years 
from grant date. 
The fair value of employee share options is measured using a Black Scholes model.  Measurement inputs and assumptions are as 
follows: 
 
    31 December 2013 31 December 2012 
Fair value at grant date    £0.19 - 
      
Share price    0.46p - 
Exercise price    0.49p - 
Expected volatility    50% - 
Expected option life    5 years - 
Risk-free interest rate    0.9% - 
 
 
The fair value at grant date of £0.19 was converted at the exchange rate on the grant date to give a fair value of $0.29 per option.  
The total amount recognised in the period in respect of share options is $113,000. Of this, $53,000 relates to options granted to 
employees of subsidiary companies as has been capitalised within the cost of investment as shown in note 3. The remaining element 
 
 
2013 
 
2012 
  
No.  
  
$000 
  
No.  
  
$000 
 
At beginning of the year 
 
 
  
 
  
 
  
 
 
Ordinary shares of 5p each 
 
276,000 
  
27 
  
276,000 
  
27 
 
Bonus issue of 828,000 shares of 5p each 
 
828,000 
  
63 
  
- 
  
- 
 
20,000 shares of 5p each issued 
 
20,000 
  
1 
  
- 
  
- 
 
 
 
               
  
 
  
 
  
 
 
 
 
1,124,000 
  
 
  
 
  
 
 
 
 
               
  
 
  
 
  
 
 
Share sub-division into 56,200,000 shares of 
0.1p each  
 
 
56,200,000 
  
 
  
 
  
 
 
8,434,782 ordinary shares of 0.1p issued 
 
8,434,782 
  
13 
  
- 
  
- 
 
 
 
               
 
 
  
           
 
 
  
           
 
 
  
           
 
 
 
At 31 December 
 
64,634,782 
  
104 
  
276,000 
  
27 
 
 
 
                  
  
             
  
             
  
             
  Quixant PLC 
Annual Report and Accounts 
 
Notes to the Company Balance Sheet (continued) 
 
 
56 
of $60,000 has been recognised as an expense. These is no arrangement is place to recharge the cost of group share based payment 
arrangements between entities. 
 
10  Share capital, share premium and reserves 
 
 
 
       Total 
  Share Share Based Share Profit and   Translation Shareholders 
  Capital Payments Premium Loss account Reserve Funds 
  $000 $000 $000 $000 $000 $000 
        
        
At 31 December 2012 and 1 January 2013  27 - 505 5,409 75 6,016 
Profit for the year  - - - 928 - 928 
Share bonus issue  63 - (63) - - - 
Issue of new shares  14 - 5,873 - - 5,887 
Share issue expenses  - - (1,134) - - (1,134) 
Share based payments  - 113 - - - 113 
Total other comprehensive income  - - - - (30) (30) 
                                                                                            
At 31 December 2013  104 113 5,181 6,337 45 11,780 
                                                                                           
        
 
 
 
 
 
 
 
 
      
 
   Quixant PLC 
Annual Report and Accounts 
 
Notes to the Company Balance Sheet (continued) 
 
 
57 
11    Commitments 
Annual commitments under non-cancellable operating leases are as follows: 
 
 
 
 
12    Related party disclosures 
In the year the Company paid Quixant Italia srl Italy, a subsidiary, Euro 495,000, $681,998 (2012: $554,810) in respect of Research 
& Development services. The outstanding balance at the year end was $nil. (2012 debtor $28,778). 
 
On 1 April, the Company transferred its trade and trading assets and liabilities to its wholly owned subsidiary Quixant UK Limited.  
The Company has made a management charge of $1,915,000 to Quixant UK Limited in respect of group services.  The balance 
owed by Quixant UK Limited to the company at 31 December 2013 was $1,028,000. 
 
 
13    Control 
There is no overall controlling party of the company. 
 
    
2013 
 
2012 
Land and buildings   $000 $000 
Operating leases which expire:     
In the second to fifth years inclusive   - 1 
                              Quixant PLC 
Annual Report and Accounts 
 
 
58 
Company information 
 
 
Directors NCL Jarmany 
GP Mullins 
C-T Lin 
M J Peagram 
Miss A C Preddy FCA 
G van Zwanenberg FCA 
 
 
 
Company secretary A R Milne FCIS 
 
Registered office Aisle Barn 
100 High Street 
Balsham 
Cambridge 
CB21 4EP 
 
 
Auditor KPMG LLP 
Botanic House 
100 Hills Road 
Cambridge 
CB2 1AR 
 
Nominated advisor 
and Broker 
finnCap 
60 New Broad Street 
London 
EC2M 1JJ 
 
 
Bankers Barclays Bank PLC 
 
 
Registered number 4316977