- Record Revenue and Adjusted PBT performance, ahead of market expectations
- Continued innovation unveiling our new markerless technology at Siggraph 2023
- In FY23 Vicon manufactured more camera systems than ever before
- Enter FY24 with strong order book and visibility on over half of revenue expectations

5th December 2023 - Oxford Metrics plc (LSE: OMG), the smart sensing and software company servicing life sciences, entertainment and engineering markets, announces preliminary results for the financial year ended 30 September 2023.

_{* Profit Before Tax before Group recharges adjusted for share-based payments, amortisation and impairment of intangibles arising on acquisition and additional Contemplas consideration deemed remuneration.
** Including Fixed Term Deposits and Bank overdraft.}

Financial Highlights

• Record headline revenue of £44.2m (FY22: £28.8m), (up 53.5%, up 52.4% on a constant currency basis), driven by demand for our new flagship system, Valkyrie
• Gross Profit of 65.0% (FY22: 67.5%), reflecting the use of higher cost components acquired during the supply chain challenge of the last few years and changes in product mix
• Adjusted Profit Before Tax* at £6.5m (FY22: £2.6m), up 151.9% year on year, reflecting the strong revenue performance as well as a planned increase in R&D to deliver the five-year plan and the benefit of increased interest income
• Strong balance sheet with net cash position of £64.8m (FY22: £67.7m), well placed to pursue M&A aspect of the five-year plan
• Board proposes increased final dividend to 2.75p per share (FY22: 2.50p), up 10.0% year on year

Operational highlights 

Strong execution of orders and continued buyout demand drives revenue growth

• Order book as of 30^th September 2023 of £11.5m (FY22: £24.0m), reflecting the more normalised buying cycles following the global supply chain challenges now largely abated
• Strong demand across all our market segments
• Entertainment: Buoyant demand continued, with revenue up 82%, accounting for 43% of orders in hand
  • Contract wins for major Valkyrie Stages at Cover Japan, Dimension Studio & PUBG Madison.
• Engineering: revenues up 56% year on year, accounting for 22% of orders in hand
  • Contract wins with ITESM, University of Arizona and University of Manitoba
• Life Sciences: revenues grew 40%, accounting for 29% of the orders in hand
  • Notable deals include Hospital Israelita Albert Einstein (HIAE), University of Padova, Victoria University and University of Rochester Medical Centre
• Location-based Entertainment (LBE): reported a slight decline year on year of 5% following exceptional growth, accounts for 6% of orders in hand
  • Sandbox VR announced their 45^th location and Immersive Gamebox opened their 30^th location in the year, all powered by Vicon technology
• Valkyrie, Vicon’s flagship system, continued to drive revenues and orders in the year
• Markerless technology demonstrated at Siggraph 2023 was well-received
  • Technology demonstration of markerless technology follows over four years of R&D focussing on the integration of machine learning and AI into markerless motion capture
  • Established our Pioneer Programme, working closely with both customers and prospects to help refine the product as we start to commercialise markerless
• Imogen Moorhouse appointed Group CEO 1 October 2023

Extending smart sensing capabilities via M&A – Industrial Vision Systems (IVS)

• Post period end on 1^st November 2023, acquired Industrial Vision Systems Ltd (“IVS”) adding smart manufacturing to our market-leading portfolio
  • Brings specialised machine learning AI technology for automated quality control, meeting companies' requirements for a “right first time” solution
  • IVS adds IP rich, hard-to-replicate vision software and machine technology, bringing over 23 years of experience in smart vision technology
  • IVS’ systems spot patterns and anomalies in real-time manufacturing quality control, ensuring precise and repeatable solutions that continuously learn based on image data

Outlook

• With encouraging demand, Vicon enters the new financial year with over £11.5m orders in hand and a strong and executable pipeline
• Trading in the first months of the financial year has been in line with our expectations
• Over half of revenue expectations for the full year is underpinned by orders in hand and a strong sales pipeline.
• FY2024 will see the beginning of the commercialisation of our new markerless technology
• Modest expectations for new markerless technology expected in FY24 ahead of contributing more material revenues in FY25
• Following the successful acquisition of IVS in November 2023 the Group will continue to pursue M&A opportunities in known markets possessing hard-to-replicate, deep Intellectual Property in integrated smart sensing with attractive financial metrics

 Commenting on the results Imogen Moorhouse, Chief Executive said:

 “I am delighted to report my first set of results as CEO of Oxford Metrics. Two years into our five-year strategy, we are reporting record revenue and adjusted PBT performance for FY23. This result builds on from our strongest-ever first half as Vicon executed against orders and continued demand for our smart sensing technology continued, driven by positive uptake of our new system, Valkyrie.

Our team this year has continued to innovate, manufacturing more advanced camera systems than ever before. At our industry conference Siggraph 2023, we showed the world our new markerless technology. This technological advancement represents a pivotal moment and is expected to drive growth once commercialised in FY24.

We continue to pursue M&A opportunities to unlock growth and new market opportunities. Post period end, we successfully delivered on our promise of acquisition activity adding smart manufacturing to our market-leading portfolio with Industrial Vision Systems.

Vicon enters the new financial year with well over half of revenue expectations underpinned by orders in hand and a strong sales pipeline. With an energised team, a clear roadmap and continued market demand, the Board looks forward to the new financial year which is set to see further underlying growth in our existing markets whilst laying the foundations for future growth including the commercialisation of markerless technology.”

Click here for the full Preliminary Results 2022/23.

Contact us.