23 September 2024 - Oxford Metrics (LSE: OMG), the smart sensing software company, servicing life sciences, entertainment, engineering and smart manufacturing markets, today provides the following update on trading for the financial year ending 30 September 2024.

While the Group continues to have a healthy pipeline, the trend of more extended buying cycles has developed in the second half against a strong prior year comparative. Globally, we are seeing customers across our markets exercising greater caution and purchasing decisions are taking longer to conclude. A number of opportunities in the pipeline have now shifted into the new financial year.

On a segmental basis, in Vicon, Engineering and Life Sciences are expected to be slightly behind the prior year and Entertainment has been impacted by the ongoing slowdown in the global games industry and subsequent content creation contraction.

Markerless remains on track for commercial delivery in FY25. Our team continues to work hard to set the gold standard for our industry’s future - markerless technology. Following positive feedback and demand for this next generation technology, we have secured three more blue chip partners to enter the beta programme taking the total to 10 cornerstone customers.

The Group now expects to report revenues in the range of £40-£42million and is expected to result in Adjusted PBT* materially below current market expectations* for the financial year.

The Group continues to have high gross margins and remains in a strong financial position with a robust current net cash position of c. £50 million, enabling the business to continue its active pursuit of a number of M&A opportunities within the smart manufacturing space to enhance our recent acquisition of Industrial Vision Systems (“IVS”). We are excited about the opportunities open to us to drive more applications into the smart manufacturing space to build the Group’s position in this important market.

More detail will be provided when Oxford Metrics announces its Preliminary Results for the financial year ended 30 September 2024 which is expected on Tuesday, 3 December 2024.

_{*Oxford Metrics’ compiled market consensus as at 20 September 2024 is as follows: FY24 Revenue £48.6m / FY Adjusted PBT £7.8m.}