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 242 million 2012 216 million  
 adjusted ebitda increased 25 to 64 million 2012 51 million 
 profit before tax increased 20 to 60 million 2012 50 million
1
 
 fully diluted eps of 00762 per share 2012 00687 per share 
 proposed full year dividend of 10p per share 
 net cash from operating activities of 25 million 2012 19 million 
 total cash of 70 million at period end 31 december 2012 18 million 
1
 – includes a oneoff profit on the disposal of a property of 0198 million 
 
operational highlights 
 
 successful admission to aim with oversubscribed placing raising gross proceeds of 59 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 – qxi300 
 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 multibillion 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 10p 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 216m to 242m adjusted ebitda by 25 from 51m to 
64m and our profit before tax by 20 from 50m to 60m  we have remained strongly cash generative and 
during the year our operations generated cash of 25m which combined with proceeds from the issuance of new 
share capital at ipo of 59m 48m after expenses left the company with a healthy net cash balance of 49m 
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 paytoplay 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 inhouse 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 rd 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 inhouse 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 25000 machines per annum  “tier 2” typically produce 
between 5000 and 25000 machines per annum and “tier 3” typically produce less than 5000 machines per 
annum  we completed the “designin” 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 designin process with another tier 2 customer in europe 
and delivered first product samples in early 2014  the designin 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 designin 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 classleading 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 rd expenditure and over 40 of our employees are involved 
in rd 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
10000
100000
1000000  
 
7 
 
through our position as the only amd embedded elite partner we benefit from early access to new upcoming 
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 qxi300 a compatible update of the successful qxi200 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 qxi306 which has been designed to meet the needs of the 
upcoming italian comma 6a law change a variant of the qxi306 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 qx50 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 qx50 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 qxi200 product submitted applications for a 
further four patents and were granted a design right for the enclosure design used in the new qxi306  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 typesclass 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 
priceperformance points values of complete machines range from €2000 for a european awp machine up to 
25000 for highend 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 90000 new slot machine being installed over the next three years  there 
are is also pending applications for further expansion which could contribution a further 90000 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 370000 awp and 51000 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 subcontract 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 paytoplay 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 longterm 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 longterm future 
of gaming  we shipped around 21800 boards in 2013 up from around 18500 in 2012  we believe there have 
typically been around 450000500000 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 242m 2012 216m 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 64 million 2012 51 million and profit before tax increased 20 to 60 
million 2012 50 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 871000 2012 410000 was capitalised  
 
there was a tax charge for the year of 122m 2012 120m  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 25m of cash from operating activities 2012 19m  
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 49m  our borrowings are low and primarily comprise 
mortgages on properties which house our operations 
 
216
242
11
13
03
20
205
21
215
22
225
23
235
24
245
25
2012 tier 2 customer 1 tier 2 customer 2 other customers 2013
revenue m  
 
12 
the group spent 19m on investing activities 2012 10m which was composed largely of our investment into 
an expanded and improved facility in north america and development expenditure 09m 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 155m 2012 
59m assisted by the injection of cash as part of the flotation  
 
noncurrent 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 156m 2012 86m  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 10p per share payable on 16 may 2014 to all shareholders on the 
register as at 2 may 2014  the corresponding exdividend 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 reappointment 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 nonaudit 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 4750000 2012 3791000 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 6382000 2012 5081000  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 longterm 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 10p 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 £0001 each 
 of issued share 
capital 
 
 
 
ncl jarmany and his wife  24862270 3847  
gp mullins and his wife  7200814 1114  
ct lin and his wife  6811581 1054  
mj mullins  4865415 753  
 
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 
 £005 each 
2012 
£0001 each 
2013 
£0001 each 
2013 
 
ncl jarmany 139000 24862270   
gp mullins 37000 7200814   
ct lin 30000 6811581   
ac preddy   79000 £049 
mj peagram appointed 1 
february 2013 
 152174   
g van zwanenberg appointed 1 
march 2013 
 26087   
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 rd 
the group continues to invest in rd spending 1919000 in its rd and customer support programmes in 
the year of which 871000 was capitalised  the group undertakes rd to develop and enhance its products 
and the group will continue to commit a significant level of resource and expenditure as appropriate to rd 
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 wwwfrcorgukauditscopeukprivate 
 
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  12  24235 21577 
      
operating expenses  34  18200 16535 
                                  
operating profit    6035 5042 
financial expenses  5  61 59 
other income     7 
                                  
profit before tax    5974 4990 
taxation  6  1224 1199 
                                  
profit for the year    4750 3791 
                                  
basic earnings per share  7      00777   00687 
fully diluted earnings per share  7      00762   00687 
      
      
 
consolidated statement of comprehensive income 
for the years ended 31 december 2013 and 2012 
 
      
    2013 2012 
    000 000 
      
profit for the year    4750 3791 
      
foreign currency translation differences    29 77 
                                  
total comprehensive income for the year    4721 3868 
                                  
 
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  4554 3800 
intangible assets – research and development  9  1253 502 
                                  
total noncurrent assets    5807 4302 
                                  
      
current assets      
inventories  12  2631 2419 
trade and other receivables  13  5939 4370 
cash and cash equivalents  14  7021 1803 
                                  
total current assets    15591 8592 
                                  
      
total assets    21398 12894 
                                  
      
current liabilities      
      
other financial liabilities  15  173 92 
trade and other payables  16  2677 3675 
corporation tax payable  17  805 913 
                                  
total current liabilities    3655 4680 
                                  
      
noncurrent liabilities      
other financial liabilities  15  1986 2187 
deferred tax liability  11  281 138 
                                  
total noncurrent liabilities    2267 2325 
                                  
      
total liabilities    5922 7005 
                                  
net assets    15476 5889 
                                  
equity      
share capital  19  104 27 
share based payments reserve  19  113  
share premium    5181 505 
retained earnings    10035 5285 
translation reserve    43 72 
                                  
total equity    15476 5889 
                                   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 1494 5 2021 
        
comprehensive income        
profit for the year     3791  3791 
other comprehensive income      77 77 
                                                                                  
at 31 december 2012 and 1 january 2013  27  505 5285 72 5889 
        
comprehensive income        
profit for the year     4750  4750 
other comprehensive income      29 29 
                                                                                            
  27  505 10035 43 10610 
transactions with equity holders        
share bonus issue  63  63    
issue of shares  14  5873   5887 
share issue expenses    1134   1134 
share based payments   113    113 
                                                                                            
at 31 december 2013  104 113 5181 10035 43 15476 
                                                                                           
        
        
 
   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    4750 3791 
adjustments for      
depreciation  8  227 212 
amortisation  9  120 18 
profits on disposal  3   198 
financial expenses  5  61 59 
taxation expense  6  1224 1199 
share based payments expense    113  
                                  
    6495 5081 
increase in trade and other receivables    1568 3956 
increase in inventories    212 787 
increasedecrease in trade and other payables    984 2007 
                                  
    3731 2345 
interest paid    61 59 
tax paid    1190 380 
                                  
net cash from operating activities    2480 1906 
                                  
      
cash flows from investing activities      
acquisition of property plant and equipment  8  1024 1521 
development expenditure  9  871 410 
proceeds from sale of property plant and equipment     941 
                                  
net cash from investing activities    1895 990 
      
cash flows from financing activities      
proceeds from borrowings     760 
repayment of borrowings    120 824 
proceeds on issue of shares    5887  
share issue expenses    1134  
                                  
net cash from financing activities    4633 64 
                                  
      
net increase in cash and cash equivalents    5218 852 
cash and cash equivalents at 1 january    1803 951 
                                  
cash and cash equivalents at 31 december  14  7021 1803 
                                   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 intragroup 
balances transactions unrealised gains and losses resulting from intragroup 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 noncontrolling 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 straightline 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 straightline 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 nonmonetary 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 periodend 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 groups 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 groups 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 shortterm deposits and other shortterm 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 groups 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 groups financial liabilities are a reasonable approximation 
of their fair values 
 
financial liabilities include the following items 
 
 trade payables and other shortterm 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 profitloss 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 4750 3791 
adding back   
tax expense 1224 1199 
financial expenses 61 59 
depreciation expense 227 212 
amortisation expense 120 18 
 1632 1488 
ebitda 6382 5279 
deducting   
profit on disposal  198 
adjusted ebitda 6382 5081 
 
 
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 sharebased 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 nonmarket 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 nonmarket performance conditions at the vesting date  for sharebased payment awards with nonvesting 
conditions the grant date for fair value of the sharebased payment is measured to reflect such conditions and there is 
no trueup for differences between expected and actual outcomes 
 
2 analysis of turnover 
      
    2013 2012 
    000 000 
by geographical market      
      
asia    293 405 
australia    12161 10516 
europe    3406 2254 
north america    8307 8384 
other    68 18 
                                  
    24235 21577 
                                  
 
3 operating costs 
      
    2013 2012 
    000 000 
employee costs      
wages and salaries    2975 1974 
social security    286 204 
other pension costs    64 56 
share based payments see note 19    113  
                                  
    3438 2234 
      
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    13042 11677 
administrative expenses    1373 2592 
                                  
    14415 14269 
                                  
total operating expenses    18200 16535 
                                  
 
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 
                                  
 
  feesalary 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 
ct lin  231  231 135 
a c preddy  94 4 98 29 
                                                      
executive directors  787 4 791 489 
               ………      ……… ………                
nonexecutive directors      
m j peagram  47  47  
g van zwanenberg  29  29  
             …… …… …… 
nonexecutive directors  76  76  
                                                              
aggregate emoluments  863 4 867 489 
                                                              
there were no share options exercised during the year by directors 2012none 
 
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    1061 1072 
foreign tax    20 45 
deferred tax see note 11    143 82 
                                  
tax expense    1224 1199 
                                  
      
      
      
      
reconciliation of effective tax rate 
 
     
      
profit for the year    4750 3791 
total tax expense    1224 1199 
                                  
profit excluding taxation    5974 4990 
                                  
tax using the uk corporation tax rate of 2325 
2012 245 
  
 1389 1223 
nondeductible expenses    13 35 
capital allowances in excess of depreciation    3 30 
enhanced research and development claim    173 145 
underover 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    1224 1199 
                                  
 
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 companys 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 
 
  
 
 
4750 
                 
 
 
 
3791 
                
 
number of shares  61154496 55200000  
 
effect of dilutive potential ordinary shares 
 
    
 share options  1163082   
     
weighted number of ordinary shares 
for the purpose of diluted eps 
 
62317578 55200000  
     
     
basic earnings per share        00777   00687 
fully diluted earnings per share             00762   00687 
     
     
      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   2900 529 3429 
additions   1238 283 1521 
foreign exchange   131 2 133 
disposals   760  760 
                                                
balance at 31 december 2012   3509 814 4323 
                                                
      
at 1 january 2013   3509 814 4323 
additions   713 311 1024 
foreign exchange   43  43 
                                                
balance at 31 december 2013   4179 1125 5304 
                                                
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   4088 466 4554 
                                                
at 31 december 2012   3467 333 3800 
                                                
at 1 january 2012   2878 224 3102 
                                                 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    1395 
                   
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    1253 
                   
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 31000 as at 31 december 2013 31 december 2012 20000 in addition its 
results for the years then ended were loss 18000 profit 4000 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 482000 as at 31 december 2013 31 december 2012 499000 in addition 
its results for the years then ended were 16000 and 409000 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 3253000 and its 
profit for the period was 3253000 
  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 chargecredit 
 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    1570 1376 
work in progress    490 261 
finished goods    571 782 
                                  
inventories    2631 2419 
                                  
the total value of inventories recorded within cost of sales during the year was 13254000 2012 12464000  quixant plc 
annual report and accounts 
 
 
notes continued 
 
39 
13 trade and other receivables 
      
     2013 2012 
    000 000 
      
trade receivables    5454 3606 
other receivables    485 764 
                                  
    5939 4370 
                                  
 
a provision of nil has been provided in respect of potential doubtful debts as at 31 december 2013 31 december 
2012 171120 
 
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    5072 3560 
3060 days    378 30 
6090 days    12 19 
90 days    8 3 
                                  
carrying value at 31 december     5454 3606 
                                  
14 cash and cash equivalents 
      
     2013 2012 
    000 000 
      
cash at bank and on hand    7021 1803 
                                  
15 other financial liabilities 
      
     2013 2012 
    000 000 
      
within one year    173 92 
greater than one year    1986 2187 
                                  
    2159 2279 
                                  
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 180 a further 
loan secured on the uk property was repaid in january 2014 and carried an interest rate of 325  
 
 
  
    quixant plc 
annual report and accounts 
 
 
notes continued 
 
40 
16 trade and other payables 
      
     2013 2012 
    000 000 
      
trade payables    1832 2040 
other tax and social security payables    31 36 
other payables and accruals    814 1599 
                                  
    2677 3675 
                                  
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    15476 5889 
cash and cash equivalents    7021 1803 
                                  
capital    8455 4086 
                                  
      
    2013 2012 
    000 000 
      
total equity    15476 5889 
other financial liabilities    2159 2279 
                                  
total financing    17635 8168 
                                  
      
      
 
   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    7021 1803 
trade and other receivables excluding prepayments    5454 3606 
   
                               
   
 12475 5409 
                                  
the maximum exposure to credit risk for trade receivables at the reporting date by geographic region was 
    2013 2012 
    000 000 
      
australia   
 2575 1066 
usa   
 2397 2099 
europe   
 477 435 
asia   
 5 5 
rest of world   
  1 
   
                               
   
 5454 3606 
                                  
  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   2677 2159 4836 
      
contractual cash flows      
6 months or less   2615 109 2724 
6 to 12 months   62 109 171 
more than 12 months    2181 2181 
                                                
   2677 2399 5076 
                                                
31 december 2012      
carrying amount   3675 2279 5954 
      
contractual cash flows      
6 months or less   3383 58 3441 
6 to 12 months   292 84 376 
more than 12 months    2433 2433 
                                                
   3675 2575 6250 
                                                
      
 
  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    7021 1803 
trade and other receivables excluding prepayments    5454 3606 
                                  
    12475 5409 
   
                               
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    2677 3675 
other financial liabilities    173 92 
                                  
    2850 3767 
                                  
noncurrent liabilities      
other financial liabilities    1986 2187 
                                  
    4836 5954 
                                  
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 £41400  in march 2013 a further issue of 20000 ordinary shares was subscribed 
 
on 25 april 2013 the company subdivided the existing 5p ordinary shares into 56200000 ordinary shares of £0001 each 
on 21 may 2013 the company was listed on the aim market and issued an additional 8434782 ordinary shares of 01p for an 
aggregate consideration of £3880000 5887000  share issue expenses totalling 1134000 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 1895200 shares with an exercise price of £049  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    £019  
      
share price    046p  
exercise price    049p  
expected volatility    50  
expected option life    5 years  
riskfree interest rate    09  
 
the fair value at grant date of £019 was converted at the exchange rate on the grant date to give a fair value of 029 per option  
the total expense recognised in the period in respect of share options is 113000 
 
  
 
 
2013 
 
2012 
  
no  
  
000 
  
no  
  
000 
 
at beginning of the year 
 
 
  
 
  
 
  
 
 
ordinary shares of 5p each 
 
276000 
  
27 
  
276000 
  
27 
 
bonus issue of 828000 shares of 5p each 
 
828000 
  
63 
  
 
  
 
 
20000 shares of 5p each issued 
 
20000 
  
1 
  
 
  
 
 
 
 
               
  
 
  
 
  
 
 
 
 
1124000 
  
 
  
 
  
 
 
 
 
               
  
 
  
 
  
 
 
share subdivision into 56200000 shares of 
01p each  
 
 
56200000 
  
 
  
 
  
 
 
8434782 ordinary shares of 01p issued 
 
8434782 
  
13 
  
 
  
 
 
 
 
               
 
 
  
           
 
 
  
           
 
 
  
           
 
 
 
at 31 december 
 
64634782 
  
104 
  
276000 
  
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  3704 3757 
investments  3  109 18 
                                  
total noncurrent assets    3813 3775 
                                  
      
current assets      
inventories  4  2041 2419 
trade and other receivables  5  3422 4921 
cash and cash equivalents    6870 1665 
                                  
total current assets    12333 9005 
                                  
      
total assets    16146 12780 
                                  
      
current liabilities      
creditors amounts falling due within one year  6  2350 4438 
                                  
      
noncurrent liabilities      
other financial liabilities  7  1986 2187 
deferred tax liability  8  30 139 
                                  
total noncurrent liabilities    2016 2326 
                                  
      
total liabilities    4366 6764 
                                  
net assets    11780 6016 
                                  
      
share capital  9  104 27 
share based payments reserve  9  113  
share premium  10  5181 505 
retained earnings  10  6337 5409 
translation reserve  10  45 75 
                                  
total equity    11780 6016 
                                  
 
   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 intragroup 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 sharebased 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 nonmarket 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 nonmarket performance conditions at the vesting date  for sharebased payment awards with nonvesting 
conditions the grant date for fair value of the sharebased payment is measured to reflect such conditions and there is 
no trueup 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   3509 721 4230 
additions   54 135 189 
foreign exchange   43 4 47 
                                                
at 31 december 2013   3520 852 4372 
                                                
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   3429 275 3704 
                                                
at 31 december 2012   3467 290 3757 
                                                
  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 18000 and the aggregate amount of capital and reserves at the end of 
the period was 31000 
the profit for the financial period of quixant usa inc was 16000 and the aggregate amount of capital and reserves at the end of 
the period was 482000 
 
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 3253000 and its profit for the period was 3253000 
 
 
 
   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 1376 
work in progress 490 261 
finished goods and goods for resale 634 782 
                               
 2041 2419 
                               
5   debtors 
  
2013 
 
2012 
 000 000 
   
trade debtors  3606 
amounts receivable from subsidiary undertakings 2971 589 
other debtors 451 726 
                               
 3422 4921 
                               
 
 
6  creditors amounts falling due within one year 
  
2013 
 
2012 
 000 000 
   
   
bank loans 173 92 
trade creditors 1595 1981 
amounts owing to subsidiaries   
corporation tax  913 
other taxes and social security  33 
accruals and deferred income 582 1418 
                               
 2350 4437 
                               
7  creditors amounts falling due after more than one year 
  
2013 
 
2012 
 000 000 
   
bank loans 1986 2187 
                               
  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 companys 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 1046 1029 
over five years 940 1158 
                               
 2159 2279 
                               
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 interestonly period then repayable over 13 years 180 940 1158 
                                 
   940 1158 
                                 
 
 
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 £41400  in march 2013 a further issue of 20000 ordinary shares was subscribed 
 
on 25 april 2013 the company subdivided the existing 5p ordinary shares into 56200000 ordinary shares of £0001 each 
on 21 may 2013 the company was listed on the aim market and issued an additional 8434782 ordinary shares of 01p for an 
aggregate consideration of £3880000 5887000  share issue expenses totalling 1134000 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 1895200 shares with an exercise price of £049  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    £019  
      
share price    046p  
exercise price    049p  
expected volatility    50  
expected option life    5 years  
riskfree interest rate    09  
 
 
the fair value at grant date of £019 was converted at the exchange rate on the grant date to give a fair value of 029 per option  
the total amount recognised in the period in respect of share options is 113000 of this 53000 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 
 
276000 
  
27 
  
276000 
  
27 
 
bonus issue of 828000 shares of 5p each 
 
828000 
  
63 
  
 
  
 
 
20000 shares of 5p each issued 
 
20000 
  
1 
  
 
  
 
 
 
 
               
  
 
  
 
  
 
 
 
 
1124000 
  
 
  
 
  
 
 
 
 
               
  
 
  
 
  
 
 
share subdivision into 56200000 shares of 
01p each  
 
 
56200000 
  
 
  
 
  
 
 
8434782 ordinary shares of 01p issued 
 
8434782 
  
13 
  
 
  
 
 
 
 
               
 
 
  
           
 
 
  
           
 
 
  
           
 
 
 
at 31 december 
 
64634782 
  
104 
  
276000 
  
27 
 
 
 
                  
  
             
  
             
  
             
  quixant plc 
annual report and accounts 
 
notes to the company balance sheet continued 
 
 
56 
of 60000 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 5409 75 6016 
profit for the year     928  928 
share bonus issue  63  63    
issue of new shares  14  5873   5887 
share issue expenses    1134   1134 
share based payments   113    113 
total other comprehensive income      30 30 
                                                                                            
at 31 december 2013  104 113 5181 6337 45 11780 
                                                                                           
        
 
 
 
 
 
 
 
 
      
 
   quixant plc 
annual report and accounts 
 
notes to the company balance sheet continued 
 
 
57 
11    commitments 
annual commitments under noncancellable operating leases are as follows 
 
 
 
 
12    related party disclosures 
in the year the company paid quixant italia srl italy a subsidiary euro 495000 681998 2012 554810 in respect of research 
 development services the outstanding balance at the year end was nil 2012 debtor 28778 
 
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 1915000 to quixant uk limited in respect of group services  the balance 
owed by quixant uk limited to the company at 31 december 2013 was 1028000 
 
 
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 
ct 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 
 
 


Summary:
  
 
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 216m to 242m adjusted ebitda by 25 from 51m to 
64m and our profit before tax by 20 from 50m to 60m  we have remained strongly cash generative and 
during the year our operations generated cash of 25m which combined with proceeds from the issuance of new 
share capital at ipo of 59m 48m after expenses left the company with a healthy net cash balance of 49m 
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 paytoplay 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 inhouse 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 rd 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 inhouse 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 25000 machines per annum  “tier 2” typically produce 
between 5000 and 25000 machines per annum and “tier 3” typically produce less than 5000 machines per 
annum  we completed the “designin” 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 designin process with another tier 2 customer in europe 
and delivered first product samples in early 2014  the designin 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 designin 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 classleading 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 rd expenditure and over 40 of our employees are involved 
in rd 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
10000
100000
1000000  
 
7 
 
through our position as the only amd embedded elite partner we benefit from early access to new upcoming 
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 qxi300 a compatible update of the successful qxi200 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 qxi306 which has been designed to meet the needs of the 
upcoming italian comma 6a law change a variant of the qxi306 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 qx50 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 qx50 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 qxi200 product submitted applications for a 
further four patents and were granted a design right for the enclosure design used in the new qxi306  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 typesclass 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 
priceperformance points values of complete machines range from €2000 for a european awp machine up to 
25000 for highend 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 90000 new slot machine being installed over the next three years  there 
are is also pending applications for further expansion which could contribution a further 90000 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 370000 awp and 51000 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 subcontract 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 paytoplay 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 longterm 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 longterm future 
of gaming  we shipped around 21800 boards in 2013 up from around 18500 in 2012  we believe there have 
typically been around 450000500000 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