company

Interim Results for the six months ended 31 March 2020

May 21, 2020

21 May 2020 - 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 2020.

 

H1 FY20

H1 FY19

Revenue

£15.0m

£16.1m

Annualised Recurring Revenue

£6.8m

£5.9m

Adjusted Profit before Tax*

£0.3m

£1.7m

 

   

Statutory Profit/(Loss) before Tax 

(£0.1m)

£1.2m

Net Cash 

£10.8m

£10.9m 

Cash as at 20 May 2020

£14.2m

 -

* Profit/(loss) Before Tax from continuing operations before Group recharges adjusted for share-based payments, amortisation of intangibles arising on acquisition, change in fair value of deferred consideration payable and unwinding of associated discount factor, Pimloc and exceptional costs

Commenting on the results Nick Bolton, Chief Executive said:

“The Group had a strong start to FY20, recording our second highest ever first half revenue performance. COVID-19 forced lockdowns in March caused a delay in shipment of Vicon orders during the final two weeks of the period which meant we carried orders into the second half. Post period end, these have now been largely shipped to customers.

This first half performance owes much to the hard work of our people whom I would like to thank for adapting brilliantly to this new working environment and for their ongoing efforts to service our global customer base.

The strategic progress we have been seeking to maintain around growing our recurring revenue base and developing our credentials in Yotta as a true SaaS business has continued.
Our business, like any other, is not immune to the effects of COVID-19 and we continue to monitor the evolving situation closely. The Group’s fundamentals remain strong and our robust balance sheet will help Oxford Metrics to navigate the current challenges, whilst continuing to drive innovation.”


Financial Highlights

  • Strong performance until last two weeks of March as a result of the government imposed restrictions and shutdowns in response to COVID-19
  • Headline Group revenue of £15.0m, down 6.5% (H1 FY19: £16.1m), as unable to fulfil £1.1m of Vicon orders during last two weeks of the first half due to global operational shutdowns. These orders have now been largely shipped to customers and will be recognised in the second half of the year. This delay in shipments had a £0.9m impact on profitability
  • The Group reported an adjusted profit before tax £0.3m (H1 FY19: £1.7m)
  • Adjusted earnings per share 0.17p (H1 FY19: 1.18p)
  • Cash generated from operations (before paying interest and tax) £1.0m (H1 FY19: £3.3m)
  • Strong balance sheet with no debt and cash of £10.8m as at 31 March 2020 (H1 FY19: £10.9m) after the payment of a final dividend. Cash position at 20th May £14.2m
  • Growth initiatives at Yotta yielding results:
    • Improved visibility with Annualised Recurring Revenue (‘ARR’) up 14.6% year-on-year
    • 95.8% (FY19: 93.2%) retention of growing SaaS customer base

Operational Highlights

Strategy for Vicon: strengthen and protect profitable market leader

  • Notable wins with game companies Konami in Japan together with Tencent and miHoYo in China
  • Continued innovation to enhance Capture.U app for iPhone/iPad, allowing physiotherapists and sports scientists to analyse motion on the go and see human skeletal movement and inertial measurements overlaid onto live video in real-time
  • IMU Step, the SaaS solution for our Elite Sports offering, continues to gain traction with new wins in the NBA, NFL, MLB, NRL and AFL as well as with a number of collegiate athletic and health science programmes including University of Kentucky, University of Montana and Harvard Medical School

Strategy for Yotta: develop cloud-based software products and grow recurring revenue

  • Strong sales performance for our Connected Asset Management Software-as-a-Service (SaaS), Alloy
  • New wins across the UK, including: Warwickshire, South Gloucestershire, City of York, Somerset, Worcestershire and at waste services contractor, Ubico
  • Notable international activity in Australasia with Alloy roll-outs at Auckland System Management and a new win in Australia at City of Parramatta
  • New flagship partnerships secured:
    • Panasonic to run Alloy on their in-cab devices in waste collection vehicles
    • Telensa, the UK's largest provider of smart IoT streetlights, to provide a seamless lighting solution and control groups of streetlights
    • bbits as part of their "Love Clean Streets" initiative

Outlook and Guidance

  • We are currently not experiencing any supply chain issues but will continue to take prudent actions as needed
  • The Group is mindful of the current unprecedented macro-economic environment therefore has elected for the time being to withdraw market guidance for the full year
  • Clear guidance will be reinstated at such time as when visibility improves
  • Our strong fundamentals provide confidence that the Group can navigate the current challenges

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For the full Interim Results 2019/20 click here.