30 May 2018 - Oxford Metrics plc (LSE: OMG), the international software company servicing government, life sciences, entertainment and engineering markets, announces interim results for the six months ended 31 March 2018.

Financial Key Points

• Headline Group Revenue of £14.3m, up 10.9% (H1 FY17: £12.9m) – record first half performance, on track with strategic plan.
• Adjusted PBT* of £1.5m (H1 FY17: £1.6m), in line with our expectations.
• Group cash stands at £9.2m (H1 FY17: £11.1m) following purchase of IMeasureU and dividend payments balanced by continued strong cash generation.
• Growth initiatives at Yotta yielding results:
  • Annualised Recurring Revenue (‘ARR’) up 22.5% year-on-year.
  • 100% retention of growing SaaS customer base during first half.
  • As at 29th May 2018, ARR stood at £5.6m (H1 FY17: £4.3m)
• Headline Vicon revenue up 14% year-on-year (21% at constant currency) – extended product range gaining traction and driving growth.

Strategic Progress

• Five-year strategic growth plan launched in 2016 with two key financial objectives: by 2021, aim to double Group profit and triple recurring revenues.
• Good progress towards objective for Year Two to leverage FY17 investments to amplify growth of recurring revenues and profitability.

Operational Key Points

• Strategy for Yotta: develop cloud-based software products, expand internationally and grow recurring revenues. That growth is driven through three different routes:
  • Direct: new customer wins for both Horizons (Abertis Chile and Itineris) and Alloy (Stockton and Cambridgeshire Districts).
  • Resellers: international indirect channel expanded to 8 resellers (H1 FY17: 3).
  • OEM: partnerships with Tvilight and Pavement Management Services with Alloy and Horizons powering their respective software platforms and helping the Group establish foothold in new geographies.
  • Post period end completed process to dispose of Yotta Surveying activities.
• Strategy for Vicon: strengthen and protect profitable market leader.
  • Launched Shōgun 1.2 to maintain leadership in Entertainment market – software update aimed at meeting the growing demands of game, film and Virtual Reality (VR) production.
  • Integration of IMeasureU sensor technology into Vicon Nexus software, broadening motion capture applications and enabling optical and inertial data to be collected together.
  • Launched SaaS solution for elite sports – IMU Step – to analyse and optimise an athlete’s training programme.
  • Traction in Virtual Reality market with Vicon partnering with Epic Games, Cubic Motion & 3Lateral to create Siren demonstration at GDC 2018, making the virtual ever more real.
  •  Vicon technology used in recent films Ready Player One, Star Wars: The Last Jedi and 2018 Visual Effects Academy Award winner, Blade Runner 2049.

Commenting on the results Nick Bolton, Chief Executive Officer said:

“This has been an encouraging start to the year. We have delivered double-digit revenue growth as the targeted investments in our development teams and sales channels begin to pay off. Vicon has secured its position as a profitable market leader and continues to deliver excellent performances half-on-half. At Yotta, strong strategic foundations have been built as we continue to expand internationally through new partners and gain sales momentum.

Our aim for this second year of our five-year plan was to amplify profits and recurring revenues. We are delivering against those goals and continue to track in-line with our long term objectives. As we enter the second half, the sales pipelines remain strong - all of which underpins our confidence in delivering in line with current market expectations for the full year as well as on our long term growth prospects.”

For the Full Interim Results 2018 click here.

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