Interim Results for the six months ended 31 March 2023

- Strongest ever half year revenue performance
- Healthy order book provides confidence for the second half
- Investing organically whilst actively pursuing the right acquisitions
- Well placed to deliver full year performance above current market expectations

6th June 2023 - Oxford Metrics plc (LSE: OMG), the smart sensing software company, servicing life sciences, entertainment and engineering markets, announces unaudited interim results for the six months ended 31 March 2023.

* Profit/(loss) Before Tax from continuing operations before Group recharges adjusted for share-based payments, amortisation of intangibles arising on acquisition and exceptional costs

** FY22 comparative restated at $1.23/£ exchange rate

Commenting on the results Nick Bolton, Chief Executive said:

“I am delighted to announce that Oxford Metrics is reporting its strongest ever half year trading performance, driven by the buoyant demand in all our market segments and supported by a healthy order book of £22.0m as we move into the second half.

We are on a mission to create a Group focussed on expanding market opportunities in smart sensing. In year two of delivering our five-year plan, the Group has continued to make progress to scale us towards our goals, with continued organic investment in our current product offering and new products that are well-positioned to deliver growth in the future. We continue to actively pursue M&A to find the right acquisitions, for the right reasons, at the right price.

Given the Group’s performance, coupled with an encouraging sales pipeline and forward visibility of second half revenues, the Board believes that Oxford Metrics is well placed to deliver on our promise of FY23 being a year of opportunity and growth.”

Financial Highlights

• Record first half with headline Group revenue of £21.3m, up 69.6% (H1 FY22: £12.5m). On a constant currency basis underlying growth was 62.5%, benefitting from buoyant order demand at Vicon
• Group adjusted profit before tax of £4.1m (H1 FY22: £0.30m)
• Adjusted earnings per share of 2.64p (H1 FY22: 0.41p)
• Clear visibility with order book of £22.0m (H1 FY22**: £13.1m)
• Strong balance sheet with net cash position of £63.6m as at 31 March 2023 (H1 FY22: £19.6m)
• Cash generated by operations of £0.4m (H1 FY22: £3.1m) with cash deployed for working capital purposes to augment inventory and underpin second half performance

Operational Highlights

With stepped-up production, Vicon delivers strong revenue and profit performance 

• Vicon’s revenue grew 69.6%, at a headline level, to £21.3m (H1 FY22: £12.5m)
• Buoyant demand continues:
  • Order in-take in H1 of £19.8m
  • Orders-in-hand as at 31 March 2023 of £22.0m
• Vicon secured its largest ever deal for its recently released Valkyrie system
• Strong revenue performance across all market segments:
  Entertainment revenue up 178.2% to £11.0m as demand across film, TV and video games continued through the half
  • Cover, a new state-of-the-art studio in Tokyo, is now hosting 200 Valkyrie cameras for a wide range of content production
  • Segment benefitted from £3.5m of orders deferred from FY22 and fulfilled in H1
• Life Sciences revenue grew by 25.5% to £5.8m with strong orders in hand of £6.1m
  • Victoria University, in Melbourne Australia, added a 40 camera Valkyrie system to an already large Vicon system capability
  • Our tracking capability is aiding Victoria University to become the first university in the world to be an official FIFA Research Institute for Football Technology
• Engineering grew 15.8% to £3.1m with continued use of Vicon systems for the development of robots and robotic capabilities
• Location-based Entertainment (LBE) grew 6.7% to £1.4m with partners continuing to roll-out Vicon tracking systems with future promising opportunities
  • Sandbox VR announced the opening of its 37th facility in Kentucky; and
  • Immersive Gamebox expect to be running 46 active facilities by the end of this year

Outlook 

• Vicon has full visibility of second half revenues. Whilst being mindful of the production schedule and customer delivery requirements, we expect to see revenue growth in H2 2023 year-on-year
• Overall cost base in the second half is expected to rise, as costs continue to normalise following the pandemic and we continue with our investment plans to augment our ability to sense, analyse and apply
• We continue to actively pursue M&A to find the right acquisitions, for the right reasons, at the right price
• Considering the current order book, the expected rise in the cost base and with supply chain challenges diminished, the Board believes that Oxford Metrics is well placed to deliver full year results ahead of current market expectations.

Click here for the full Interim Results.

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