4 December 2018 - Oxford Metrics plc (LSE: OMG), the international software company servicing government, life sciences, entertainment and engineering markets, announces preliminary results for the financial year ended 30 September 2018.

* Profit Before Tax before group recharges adjusted for share based payments, amortisation of intangibles arising on acquisition, fair value adjustments to IMeasureU consideration, impairment of Pimloc investment and exceptional costs

Financial Highlights

• Headline Group revenue of £31.7m, up 8.6% (FY17: £29.2m) – record performance, on track with strategic plan (up 10.7% on a constant currency basis)
• Adjusted profit before tax up 32.0% to £5.2m (FY17: £3.9m)
• Cash generated from operations (before paying interest and tax) increased by 20.4% to £6.7m (FY17: £5.6m)
• Net cash balance of £12.2m (FY17: £9.2m)
• Recommended Ordinary Dividend increased by 25% to 1.5p per share (FY17: 1.2p per share)
• Special Dividend of 1.0p per share (FY17: Nil)
• Growth initiatives at Yotta yielding results:
  • Annualised Recurring Revenue (‘ARR’) up 16.5% year-on-year
  • 95.3% retention of growing SaaS customer base
• Headline Vicon revenue up 8.3% year-on-year (11.0% at constant currency) – shipped more systems to more customers than ever before.

Operational Highlights

• Good progress in Year Two of five-year strategic growth plan: leveraging FY17 investments to amplify growth of recurring revenues and profitability.
• Strategy for Yotta: develop cloud-based software products, expand internationally and grow recurring revenues. That growth is driven through three different routes:
  
  • Direct: wins at Glasgow, Cambridgeshire and at Auckland Motorways in New Zealand, driving ARR growth;
  • Resellers: wins in Columbia, Germany and Netherlands, taking international customers to 28 (FY17:14); and
  • OEM: signed two OEM partners, Pavement Management Services (PMS) in Australia and Tvilight in the Netherlands.
  • Alloy has been updated throughout the year which incorporated additional functionality in Highways, Streetlighting and Green Spaces
  • Completed disposal of Yotta Surveying activities in line with the Group’s strategy.
• Strategy for Vicon: strengthen and protect profitable market leader
  • Location-based Virtual Reality (‘LBVR’) solution launched in August 2018 and gained immediate traction already contributing to revenues
  • Integration of IMeasureU sensor technology into Vicon Nexus software, broadening motion capture applications and enabling optical and inertial data to be collected together
  • IMU Step, SaaS solution for elite sports, starting to build momentum with new customer wins at Hospital for Special Surgery, University of Memphis and New South Wales Institute of Sport (NSWIS)
  • Vicon technology used in recent films including Ready Player One, The Nutcracker and the Four Realms and upcoming release, Mowgli: Legend of the Jungle

Commenting on the results Nick Bolton, Chief Executive Officer said:
“We have made strong operational and financial progress during the year and remain firmly on track with our five-year plan. Following a period of investment, we have grown profits significantly and driven double digit revenue growth on a constant currency basis in line with market expectations.

2018 has also been a year of significant strategic development. In Vicon, we have a global market leader, which continues to break new ground in its industry. However, we have seen a material change in the market recently. Motion measurement is going mainstream and is being applied to a broader range of markets than ever before. We now see an opportunity to make targeted investments in new markets such as Location-based Virtual Reality and Elite Sports to drive growth and returns. At Yotta, whilst pleasing overall, our Annualised Recurring Revenue (‘ARR’) growth was mildly impacted by slower than expected international conversion. Ahead of the next Alloy release, we have focused investment on our Indirect and OEM channels and now expect ARR momentum to build.

Looking ahead, both Vicon and Yotta are well positioned in their markets and have clear, well-funded strategies to drive growth. We have made an excellent start to the year and our pipeline continues to build, which gives us confidence in our prospects for the year ahead.”

For the full Preliminary Results click here.

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