Preliminary Results for the financial year ended 30 September 2019

3 December 2019 - 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 2019.

* Adjusted PBT* for continuing operations has been determined after adding back non-cash moving items such as share-based payments, amortisation of intangibles arising on acquisition, fair value adjustments to IMeasureU purchase consideration, impairment of Pimloc investment and exceptional costs.

Financial Highlights

• Headline Group revenue increased 11.7% year-on-year (10.0% at constant currency) to £35.3m (FY18: £31.7m) – driven by a strong performance from Vicon
• Adjusted profit before tax up 5.7% to £5.5m (FY18: 5.2m)
• IFRS15 adverse impact on Revenue and Adjusted PBT £0.3m
• Strong cash generation from operations (before paying interest and tax) increased by 13.9% to £7.7m (FY18: £6.7m)
• Net cash balance of £13.8m (FY18: £12.2m)
• Recommended Ordinary Dividend increased by 20% to 1.80p per share (FY18: 1.50p per share)
• Our motion measurement division, Vicon recorded record revenues for the fourth consecutive year with headline revenue up 16.2% year-on-year (13.9% at constant currency)
• Our Asset Management Division, Yotta reported its highest ever Annualised Recurring Revenue (‘ARR’) up 8.8% year-on-year to £6.2m as of 30 September 2019 (FY18: £5.7m)

Operational Highlights

• Good progress against five-year strategic plan to ‘amplify the core’: leveraging investments to drive organic growth
• Strategy for Vicon: strengthen and protect profitable market leader
  
  • Established Markets revenue grew by 12.3% with a particularly strong performance from the Engineering Segment following new contracts with European Space Agency, Northrup Grumman and NASA’s Jet Propulsion Lab.
  • Clear traction in adjacent verticals with 125.2% growth - our Location-based Virtual Reality (‘LBVR’) business now has nine partners using our systems, including Sandbox VR and VR Arcade, with opportunity to scale.
  • Added ViperX to dedicated LBVR line, enabling operators to run multiple groups of customers through the same environment, achieving greater throughput.
  • IMU Step, a SaaS solution for elite sports, continued to grow recurring revenue base with multiple new customer wins, including elite teams in basketball, football and baseball.
  • Motion measurement is truly breaking into the mainstream with a broader range of applications continuing to emerge and clear demand from customers using our software in more new application areas
• Strategy for Yotta: develop cloud-based software products and grow recurring revenues:
  • Transition to SaaS model now complete. Momentum in customer implementations post-period end with ARR progressing to £6.5m as of 2 December 2019.
  • Delivered significant improvements in Horizons and Alloy. Upgrades to the Alloy Workflow system and the launch of new Domestic Waste and Street Cleansing modules directly led to wins at Chorley, Hillingdon and Barnsley.
  • Notable international win in New Zealand at Auckland System Management.
  • Developed Major Accounts function to expand important relationships with high profile clients.
  • Divisional fixed costs now 79% covered by recurring revenue

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

“This has been a year of real strategic progress - a year where the investments we have been making across the business are beginning to bear fruit.

In our motion measurement division, including Vicon, we have invested in sales & marketing bolstered our position as market leader and enter entirely new markets in Elite Sports and LBVR, where we now have a significant opportunity to scale. This puts Vicon in a strong position to capitalise on the trend of motion measurement, which continues to break into every aspect of our daily lives, whether that be through smartphones, fitness trackers or virtual reality. In our asset management division, while we had a slower start to the year, the transition to SaaS is now complete and following investment in our product and our people, momentum is building.

Both businesses have started the year well and operate in growing global markets. Cash generation remains strong, and our pipelines continue to grow, all of which gives the Board confidence in our prospects for the year ahead and beyond.”

For the full Preliminary Results click here.

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