Interim Results

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RNS Number : 7972Z
Oxford Metrics PLC
26 May 2021
 

26th May 2021

Oxford Metrics plc

 

("Oxford Metrics", the "Company" or the "Group")

Interim Results for the six months ended 31 March 2021

 

- Resilient business with continued strong cash generation -

- Improving demand in important North American marketplace -

- Strong financial platform to innovate and drive inorganic growth -

 

Oxford Metrics plc (LSE: OMG), the international software company servicing infrastructure, life sciences, entertainment and engineering markets, announces interim results for the six months ended 31 March 2021.

 

 

H1 FY21

H1 FY20

Revenue

£15.3m

£15.0m

Annualised Recurring Revenue

£7.1m

£6.8m

Adjusted Profit before Tax*

£1.3m

£0.3m

Adjusted* Basic Earnings per Share

1.08p

0.17p

Statutory Profit/(Loss) before Tax

£1.0m

(£0.1m)

Statutory Basic Earnings per Share

0.81p

(0.17p)

Net Cash

£15.9m

£10.8m

Operating Cashflow

£4.2m

£1.0m

Cash as at 25 May 2021

£19.1m

-

* 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:

"Oxford Metrics has traded well in the first half delivering both revenue and profit improvements, with key metrics tracking ahead. Strong cash generation has continued providing the Group with a resilient platform to operate through the challenging environment.

The pandemic has accelerated positive market drivers in both of our businesses which we are well placed to capitalise on.  With a broader range of motion measurement applications continuing to emerge, including taking virtual production to new heights, Vicon has continued to innovatively push boundaries and the need for Yotta's software solutions continues as customers look to digitally transform and seamlessly manage their public assets remotely.

While restrictions continue to vary in many of the countries we serve, we have been encouraged by the return to more normal levels for Vicon's markets, particularly in the USA, and, for Yotta, we expect a return to more normal trading conditions in the second half.

The Group enters the second half with strong fundamentals and a robust balance sheet to drive both organic and inorganic growth. We do expect to be second-half weighted in terms of revenue as has historically been the case, and given the promising sales pipeline for both of our businesses and this solid first half performance, the Board remains confident the business is in-line with achieving its full year expectations."

Financial Highlights

·   

Headline Group revenue of £15.3m, up 2.1% (H1 FY20: £15.0m), on a constant currency basis underlying growth was 3.8%

·   

The Group reported an adjusted profit before tax £1.3m (H1 FY20: £0.3m)

·   

Adjusted earnings per share 1.08p (H1 FY20: 0.17p)

·   

Continued cash generation with operating cashflow of £4.2m (H1 FY20: £1.0m)

·   

Strong balance sheet with no debt and cash of £15.9m as at 31 March 2021 (H1 FY20: £10.8m). Cash position at 25th May 2021 £19.1m

 

Operational Highlights

 

Strategy for Vicon: strengthen and grow profitable market leader

·     

Demand in the USA returned in the second quarter with solid performance in other geographies

·     

Continued traction in engineering: NASA's Vicon-equipped Jet Propulsion Lab developed the Ingenuity Mars Helicopter which performed its first flight on Mars on 19th April 2021

·     

Opportunity in virtual production has increased demand for Vicon tracking systems

Our partnership with industry leader Industrial Light & Magic (ILM) has taken virtual production to a new level in the most recent season of The Mandalorian, the highly successful new Star Wars production

Partnership with the University of Portsmouth to support ground-breaking innovation in virtual, augmented and extended realties at their all-new Centre for Creative and Immersive Extended Reality (CCIXR)

·     

Vicon's motion measurement technology continues to expand the range of measurement methods available launching a new integrated markerless capability powered by partner, Theia

·     

Return to more normal levels of market activity in Location-based Virtual Reality (LBVR) and Elite Sports

Emerging opportunity for LBVR systems in Enterprise

Secured renewals with MLB, NBA and NRL teams and new wins including a key European football club

       

 

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

·     

Yotta software revenues up 11.1% to £4.1m (H1 FY20: £3.7m), as we continue to see customer interest to digitally transform the management of public assets

·     

Growth initiatives yielding results - improved visibility as Annualised Recurring Revenues ('ARR') grew 4.7% to £7.1m (H1 FY20: £6.8m)

·     

97.5% (H1 FY20: 95.8%) retention of growing SaaS customer base

·     

Trend to seamlessly manage remote working helped secure sales wins at both larger and smaller Local Authorities including:

Devon County Council and SSE to manage their street lighting

A highly competitive open tender Alloy win with Halton Borough Council

·     

Record number of "go-lives" for Alloy with implementations at Ubico, Bristol Waste and Hackney

·     

Partner-centric approach gaining momentum with wins at four cities across Australia for Horizons

     

 

Outlook and Guidance

·   

Sales pipelines in both Vicon and Yotta are promising and, together with these interim results, the business is trading in-line with the Board's full year expectations

·   

While Vicon is experiencing some extended lead-times on certain components due to global conditions, actions are being taken to avoid disruption to shipments in the second half

·   

ARR growth in the first half has been slowed by the UK national lockdown but additions at Yotta are expected to improve in the second half as trading conditions normalise

·   

Strong balance sheet puts the Group in a good position to adapt, innovate and navigate any further challenges that arise whilst driving organic and inorganic growth

 

 

For further information please contact:

 

Oxford Metrics

+44 (0)1865 261860

Nick Bolton, CEO

 

David Deacon, CFO

 

 

 

Numis Securities Limited

+44 (0)20 7260 1000

Simon Willis / Hugo Rubinstein / Matthew O'Dowd

 

 

 

FTI Consulting

+44 (0)20 3727 1021

Matt Dixon / Emma Hall / Jamille Smith / Greg Hynes

 

 

 

About Oxford Metrics

 

Oxford Metrics develops and markets analytics software for motion measurement and infrastructure asset management to customers in over 70 countries worldwide. Our list of clients across the globe is as diverse as the markets we operate in; we help highways authorities manage and maintain their road networks, hospitals and clinicians decide therapeutic strategies and Hollywood studios create stunning visual effects. And the diversity of applications is growing all the time.

 

The Group trades through two subsidiaries: Vicon and Yotta. Vicon is the world's leader in high precision motion measurement analysis to thousands of customers worldwide, including Guy's Hospital, EA Sports, MIT and NASA and our software is used in an ever-expanding range of applications. Yotta provides cloud-based infrastructure asset management software, enabling central and local government agencies and other infrastructure owners to seamlessly manage their assets remotely. Yotta has a large number of high-profile clients including Highways England, over 160 local authorities across the UK, VicRoads in Australia and Auckland Motorway System in New Zealand.

Founded in 1984 our Group is headquartered in Oxford with offices in Leamington Spa, Gloucester, Los Angeles, Denver and Auckland. Since 2001, Oxford Metrics (LSE: OMG), has been a quoted company listed on AIM, a market operated by the London Stock Exchange.

 

For more information about Oxford Metrics, visit www.oxfordmetrics.com

Chairman and Chief Executive's Statement

 

KPI

Revenue

PBT

Adjusted PBT*

 

H1 FY21

H1 FY20

H1 FY21

H1 FY20

H1 FY21

H1 FY20

Group

£15.3m

£15.0m

£1.0m

(£0.1m)

£1.3m

£0.3m

 

Despite the on-going restrictions associated with the pandemic continuing during the half, the Group has traded well, reporting total revenues of £15.3m (H1 FY20: £15.0m), up 2.1% at a headline level on last year's first half and up 3.8% on a constant currency basis.

 

The Group also reports an improvement in Adjusted PBT* to £1.3m (H1 FY20: £0.3m) reflecting the additional gross margin from higher revenues and a number of pandemic-related cost savings.

In line with our "amplify the core" strategic plan to increase the visibility of revenues and profits, the Group increased Annual Recurring Revenues ('ARR') by 4.7% year-on-year to £7.1m (H1 FY20: £6.8m).

The cash position, having paid a final dividend of £2.3m in the first half, finished at £15.9m as at 31 March 2021 (H1 FY20: £10.8m). Cash generated from operations during the first half was £4.2m (H1 FY20: £1.0m).  

Asset management division - Yotta

KPI

Revenue

Adjusted PBT*

 

H1 FY21

H1 FY20

H1 FY21

H1 FY20

H1 FY21

H1 FY20

Yotta

£4.1m

£3.7m

(£0.3m)

(£1.2m)

£0.4m

(£0.5m)

 

Yotta reported software revenues up 11.1% to £4.1m (H1 FY20: £3.7m). Annualised Recurring Revenues ('ARR') as at 31 March 2021 grew 4.7% year-on-year to £7.1m (H1 FY20: £6.8m). The retention rate also improved to 97.5% (H1 FY20: 95.8%).

We can also report that additions in the first half of £0.5m are contracted, on average, for two years with a Total Contract Value over this period of £0.9m. The first half included new wins across UK local and central government, although in the second quarter we started to see additions to ARR impacted by the UK national lockdown with procurement processes taking longer, which has resulted in sales pipeline opportunity moving into the second half. Assuming a return to more normal trading conditions in H2 we expect Yotta to report improved additions in the second half.

An Adjusted PBT of £0.4m (H1 FY20 Loss: £0.5m) is reported, the improvement reflects our strategy of ARR growth leveraging the existing cost base. Notwithstanding challenges that may arise from the pandemic, Yotta is well placed to deliver a full year of profitability.

Through the first half, we continued to experience growing customer interest in using Yotta software to drive digital transformation projects in the management of public assets. The pandemic has accelerated remote working and management for asset maintenance and service teams across the UK - whether that is for assigning jobs, reporting inspections or managing waste collection.

This on-going trend has accelerated the need for tools like Yotta's to help seamlessly manage remote working and has helped us secure contract wins at both large and smaller Local Authorities. For example, Devon County Council and SSE adopted our solution to manage their street lighting and Halton Borough Council added our arboreal management capability within Alloy following a highly competitive open tender. We also experienced further migrations from Mayrise to Alloy including at Kier for Highways England Areas 3 and 4, at the London Borough of Newham, at Isle of Anglesey County Council and at Walsall Council. Furthermore, through this migration process a number of these customers expanded their use of our software within their organisations. Finally, we also saw a number of good wins for Horizons in the UK at Northumberland County Council and Calderdale MBC.

Partnerships continue to be an important organic growth channel for us to both broaden our solution in our existing markets as we build out our network of carefully selected partners. This partner-centric approach also provides a channel to take us into geographies and vertical markets we do not currently serve directly to expand our customer footprint. One such existing channel partner, PMS in Australia, saw growing momentum for Horizons with wins at four cities across Australia.

We also strengthened our combined solution capabilities with a number of new partnerships in the period with Society Works, which runs the popular street issue reporting site, FixMyStreet Pro, and with smart city technology solution providers CIMCON Lighting, New Zealand-based PiP IoT and Australia-based Blue IoT.

Our professional services team continued to provide valuable implementation and consultancy services. As a result, the first half also saw a record number of "go-lives" for Alloy, including implementations at Ubico, Bristol Waste and Hackney. The professional services team also delivered a series of successful consulting engagements. These included an impact analysis relating to HS2 for Warwickshire, where we created a bespoke historical analysis model that assessed the accelerated deterioration caused by HS2 construction sites. We also enabled Northumberland to make use of their automated road survey data by linking it with Alloy operational data for improved scheme selection.

Motion measurement division - Vicon

KPI

Revenue

Adjusted PBT*

 

H1 FY21

H1 FY20

H1 FY21

H1 FY20

H1 FY21

H1 FY20

Vicon

£11.2m

£11.3m

£1.1m

£0.9m

£2.2m

£2.0m

 

Vicon reported revenues of £11.2m (H1 FY20: £11.3m), representing a slight year-on-year reduction of 0.9% at a headline level. On a constant currency basis underlying growth of 1.4% was achieved. The trading trends in Vicon seen in the second half of last fiscal year continued into the first quarter of FY21, with weaker market conditions in the USA but with a stronger performance in the Asia Pacific region.

We are pleased to report that demand in the USA returned in the second quarter and, coupled with continued strong performance in other geographical markets, means Vicon achieved its internal revenue targets and reported an Adjusted PBT* of £2.2m (H1 FY20: £2.0m) and an unadjusted profit before tax of £1.1m (H1 FY20: £0.9m).

While Vicon reported a slight decline in gross margin at 73.3% (H1 FY20: 73.8%) in the first half driven by revenue mix, together with pandemic-related cost savings led to an improvement in profitability year-on-year.

The move of motion measurement into mainstream, everyday life is the overarching structural trend supporting Vicon's growth prospects. New applications for our technologies are regularly emerging due to the continued innovation within our business, from our customers and across the broader market. Our engineering customers have delivered some impressive results through the first half. Firstly, Bell Innovation used their Vicon system to act as an indoor GPS system as they develop their mobility-as-a-service strategy, which includes the Bell APT delivery drone and their air taxi, the Bell Nexus 4EX. Bell have created some exciting results and demonstrated their capabilities with the Vicon system live at CES in 2020, flying six drones for 33 consecutive hours during the show in over 4,000 flights and 400 battery changes. Secondly, Vicon customer NASA's Jet Propulsion Lab have achieved astounding success with the Ingenuity Mars Helicopter. Developed and tested in a Vicon-equipped chamber which mimicked the lower atmospheric density it would find on Mars, this amazing piece of engineering successfully performed its first flight on Mars on April 19th and as it continues to explore it will undoubtedly make further headlines.

In the entertainment market, we experienced increased demand for our tracking systems to enable in-camera visual effects (ICVFX) in virtual production environments. In its simplest form virtual production is the merger of physical and digital worlds, enabling creators to view near-final-quality shots live on set - rather than having to wait until post-production. These production techniques offer logistical, cost and creative benefits. In the first half, we announced our continuing partnership with industry leader ILM, who have taken virtual production to a new level in the most recent season of The Mandalorian, the highly successful new Star Wars production. We also announced in the first half the partnership with the University of Portsmouth to support ground-breaking innovation in virtual, augmented and extended realties at their all-new Centre for Creative and Immersive Extended Reality (CCIXR). Moreover, their capabilities were put to almost immediate use to support the Royal Shakespeare Company's production, Dream. Using A Midsummer Night's Dream as its inspiration, this highly creative production brought together live theatre and cutting-edge digital technology, and then live streamed the production to a global audience.

The first half also saw Vicon expand the range of measurement methods available, and thus expand our market opportunity by broadening the range of applications where Vicon can be used. Adding to the existing optical and inertial methods of measurement, Vicon launched an integrated markerless capability powered by partner, Theia. In this video-based free sensing method, the subject is measured from video camera images, without the need to place any sensor or other element on the subject. Regardless of the method of measurement, the data can still be analysed and further processed in Vicon's broad range of existing software.

Following a slower period in our adjacent markets of Location-based Virtual Reality (LBVR) and Elite Sports due to pandemic-related lockdowns in 2020, we saw a return to more normal levels of market activity in 2021. In our Elite Sports business, we saw a series of customers renew across the world including teams from the MLB, NBA and NRL. We also won a number of new deals including university sports programme customers and a key European football club following an in-depth trial.

Outlook

The Group continues to operate successfully and has fully adapted to the pandemic-affected environment. The pandemic remains ongoing so there may be unforeseen challenges ahead, but we are cautiously optimistic that the Group will now resume the growth trajectory we have previously enjoyed. Sales pipelines in both Vicon and Yotta are promising, giving the Board confidence for the second half, which is typically the Group's more active trading period.

At Vicon, the impact of the pandemic has been felt more acutely, particularly in the USA, where purchasing decisions were deferred. Based on our FY21 second quarter performance and an encouraging sales pipeline for H2 we expect to see a stronger H2 compared to H1 which has historically always been the case pre-pandemic.

At Yotta, the business is well placed as revenues are largely pre-contracted with government customers delivering fully hosted cloud software, so forecast variability relates only to whether the business can sign new software contracts. While additions to ARR were slower in H1 due to UK national lockdowns, sales pipeline opportunity has simply moved into H2. Assuming a return to more normal trading conditions in H2, we expect Yotta to report improved additions in the second half.

While Vicon is experiencing some extended lead-times on certain components due to global semiconductor conditions, actions are being taken to avoid any disruption to shipments in the second half.

Our strong balance sheet puts the Group in a robust position to adapt, innovate and navigate any further challenges that arise whilst driving organic growth and providing scope to execute acquisitions to accelerate our strategy. From a cost perspective, across the Group we will continue to take prudent actions as needed and expect to realise further pandemic related cost savings in H2 though assuming a return to normal trading conditions these will be considerably lower as marketing and other activities resume.

Both businesses continue to see an acceleration in favourable market dynamics and we enter the second half with promising sales pipelines in both Vicon and Yotta. Given this first half performance and the outlook described the Board remain confident that the business is in-line with achieving its full year expectations.

* 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.

 

CONDENSED CONSOLIDATED INCOME STATEMENT

 

 

 

 

 

All operations are continuing

 

Six months ended

31 March

2021

Six months ended

 31 March

2020

Year

ended

 30 September 2020

 

 

 

(unaudited)

(unaudited)

(audited)

 

 

Note

£'000

£'000

£'000

 

Revenue

2

15,324

15,016

30,298

 

Cost of sales

 

(4,596)

(4,491)

(9,400)

 

Gross profit

 

10,728

10,525

20,898

 

Sales, support and marketing costs

 

(3,707)

(4,186)

(7,341)

 

Research and development

 

(2,183)

(2,196)

(4,213)

 

Administrative expenses

 

(3,797)

(4,258)

(7,813)

 

Other operating income

 

-

58

163

 

Operating profit/(loss)

 

1,041

(57)

1,694

 

Finance income

 

3

13

20

 

Finance expense

 

(50)

(49)

(103)

Share of post-tax loss of equity accounted associate

 

-

(18)

(29)

 

Profit/(loss) before taxation

 

994

(111)

1,582

 

Taxation

 

26

(94)

22

 

Profit/(loss) for the period attributable to

owners of the parent during the period

 

 

1,020

 

(205)

 

1,604

 

 

 

 

 

 

 

Earnings per share for profit on operations attributable to owners of the parent during the year

 

 

 

 

 

Basic earnings/(loss) per share (pence)

6

0.81p

(0.17p)

1.28p

 

Diluted earnings/(loss) per share (pence)

6

0.80p

(0.17p)

1.26p

           

  

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

Six months ended

31 March

2021

Six months ended

 31 March

2020

Year

ended

 30 September 2020

 

 

(unaudited)

(unaudited)

(audited)

 

 

£'000

£'000

£'000

Net profit/(loss) for the period

 

1,020

(205)

1,604

Other comprehensive income

 

 

 

 

Items that will or may be reclassified to profit or loss

 

 

 

 

Exchange differences on retranslation of overseas subsidiaries

 

(351)

171

(353)

Total other comprehensive (expense)/income

 

(351)

171

(353)

Total comprehensive income/(expense) for the period attributable to the owners of the parent

 

669

(34)

1,251

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

 

31 March

2021

31 March

2020

30 September

2020

 

 

(unaudited)

(unaudited)

(audited)

 

Note

£'000

£'000

£'000

Non-current assets

 

 

 

 

Goodwill and intangible assets

 

12,524

12,420

12,551

Property, plant and equipment

 

1,728

2,218

1,937

Right of use assets

 

2,061

2,013

2,182

Financial asset - investments

 

305

317

305

Deferred tax asset

 

1,155

664

974

 

 

17,773

17,632

17,949

Current assets

 

 

 

 

Inventories

 

3,220

3,684

3,439

Trade and other receivables

 

8,627

11,412

9,224

Current tax debtor

 

102

300

82

Cash and cash equivalents

 

15,867

10,848

14,940

 

 

27,816

26,244

27,685

Current liabilities

 

 

 

 

Trade and other payables

 

(10,978)

(9,905)

(9,931)

Lease liabilities

 

(496)

(469)

(426)

 

 

(11,474)

(10,374)

(10,357)

 

 

 

 

 

Net current assets

 

16,342

15,870

17,328

Total assets less current liabilities

 

34,115

33,502

35,277

 

Non-current liabilities

 

 

 

 

Other liabilities

 

(687)

(369)

(609)

Lease liabilities

 

(1,719)

(1,794)

(1,909)

Provisions

 

(28)

(20)

(24)

Deferred tax liability

 

(1,972)

(2,001)

(1,994)

 

 

(4,406)

(4,184)

(4,536)

 

 

 

 

 

Net assets

 

29,709

29,318

30,741

 

 

 

 

 

Capital and reserves attributable to the owners of the parent

 

 

 

 

Share capital

7

316

314

314

Shares to be issued

 

65

65

65

Share premium account

 

18,184

17,707

17,763

Retained earnings

 

11,333

10,546

12,437

Foreign currency translation reserve

 

(189)

686

162

Total equity shareholders' funds

 

29,709

29,318

30,741

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS

 

 

 

 

All cash flows are from continuing operations

 

Six months

ended

31 March

2021

Six months ended

31 March

2020

Year

ended

30 September 2020

 

 

(unaudited)

(unaudited)

(audited)

 

 

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Group operating profit/(loss)

 

1,041

(57)

1,694

Depreciation and amortisation

 

1,711

1,787

3,448

Impairment of intangible assets

 

-

-

72

Share based payments

 

72

71

160

Exchange adjustments

 

(254)

174

(200)

Decrease/(increase) in inventories

 

176

(448)

(225)

Decrease in receivables

 

440

261

2,248

Increase/(decrease) in payables

 

1,017

(802)

(771)

Cash generated from operating activities

 

4,203

986

6,426

Tax paid

 

(87)

(190)

(157)

Net cash from operating activities

 

4,116

796

6,269

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(78)

(251)

(310)

Purchase of intangible assets

 

(1,191)

(1,183)

(2,511)

Purchase of investment

 

-

(236)

(236)

Proceeds on disposal of property, plant and equipment

 

4

11

33

Acquisition of subsidiary undertaking net of cash acquired

 

-

 

(128)

(128)

Interest received

 

3

13

20

Interest Paid

 

(50)

(49)

(103)

Net cash used in investing activities

 

(1,312)

(1,823)

(3,235)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Issue of ordinary shares

 

387

291

322

Equity dividends paid

 

(2,264)

(2,253)

(2,253)

Net cash used in financing activities

 

(1,877)

(1,962)

(1,931)

Net increase/(decrease) in cash and cash equivalents

 

927

(2,989)

1,103

Cash and cash equivalents at beginning of the period

 

14,940

13,837

13,837

 

 

 

 

 

Cash and cash equivalents at end of the period

 

15,867

10,848

14,940

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY

 

 

 

 

Share

Capital

 

Shares

to be

issued

 

Share premium account

 

 

Retained earnings

Foreign currency translation reserve

 

 

 

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance as at 30 September 2020

314

65

17,763

12,437

162

30,741

Net profit for the period

-

-

-

1,020

-

1,020

Exchange difference on retranslation of overseas subsidiaries

-

-

-

-

(351)

(351)

Transactions with owners:

 

 

 

 

 

 

Tax recognised directly in equity in relation to employee share option schemes

-

-

-

104

-

104

Dividends

-

-

-

(2,264)

-

(2,264)

Issue of share capital

2

-

421

-

-

423

Share based payment charge

-

-

-

36

-

36

Balance as at 31 March 2021

316

65

18,184

11,333

(189)

29,709

 

 

 

 

 

 

 

Balance as at 30 September 2019

313

65

17,417

12,851

515

31,161

Net profit for the period

-

-

-

(205)

-

(205)

Exchange differences on retranslation of overseas subsidiaries

-

-

-

-

171

171

Transactions with owners:

 

 

 

 

 

 

Tax recognised directly in equity in relation to employee share option schemes

-

-

-

82

-

82

Dividends

-

-

-

(2,253)

-

(2,253)

Issue of share capital

1

-

290

-

-

291

Share based payment charge

-

-

-

71

-

71

Balance as at 31 March 2020

314

65

17,707

10,546

686

29,318

 

 

 

 

 

 

 

Balance as at 30 September 2019

313

65

17,417

12,851

515

31,161

Net profit for the period

-

-

-

1,604

-

1,604

Exchange differences on retranslation of overseas subsidiaries

-

-

-

-

(353)

(353)

Transactions with owners:

 

 

 

 

 

 

Tax recognised directly in equity in relation to employee share option schemes

-

-

-

100

-

100

Dividends

-

-

-

(2,253)

-

(2,253)

Issue of share capital

1

-

346

-

-

347

Share based payment charge

-

-

-

135

-

135

Balance as at 30 September 2020

314

65

17,763

12,437

162

30,741

 

 

The accompanying notes are an integral part of this interim financial information.

 

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM STATEMENTS

 

1.  Basis of preparation

 

Oxford Metrics Plc, (the "Company") is a company domiciled in England.  The condensed consolidated interim financial statements of the Company for the six months ended 31 March 2021 comprise the Company and its subsidiaries (together referred to as the "Group").

 

The condensed consolidated interim financial statements have been prepared using accounting policies consistent with those of the annual financial statements for the year ended 30 September 2020.  They are in accordance with IAS 34.  Other new and amended standards and interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the Group as they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.

 

The interim financial statements have not been audited or reviewed and the financial information contained in this report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the year ended 30 September 2020 are not the statutory accounts but have been extracted from the Group's 2020 financial statements which have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified did not contain references to any matters to which the auditors drew attention without qualifying the report and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. 

 

2.  Revenue from contracts with customers

 

All revenue is from continuing operations

 

 

Six months ended

31 March

 2021

Six months ended

31 March

 2020

Year

 ended

30 September

2020

 

(unaudited)

(unaudited)

(audited)

Revenue

£'000

£'000

£'000

Vicon UK

7,389

7,068

13,540

Vicon USA

3,836

4,260

9,228

Vicon Group

11,225

11,328

22,768

 

 

 

 

Yotta

4,099

3,688

7,530

Oxford Metrics Group

15,324

15,016

30,298

 

 

 

 

Six months ended 31 March 2021 (unaudited)

 

Vicon UK

Vicon USA

Yotta

Total

 

£'000

£'000

£'000

£'000

Timing of the transfer of goods and services

 

 

 

 

Point in time

6,612

2,973

981

10,566

Over time

777

863

3,118

4,758

 

7,389

3,836

4,099

15,324

 

 

 

 

 

Contract Counterparties

 

 

 

 

 

Direct to consumers

1,796

3,484

3,299

8,579

Third party distributor

5,593

352

800

6,745

 

7,389

3,836

4,099

15,324

 

 

 

 

 

By destination

 

 

 

 

 

UK

1,361

-

3,914

5,275

Germany

694

-

-

694

Italy

247

-

-

247

Netherlands

284

-

10

294

France

101

-

-

101

Switzerland

64

-

-

64

Rest of Europe

555

-

-

555

Canada

-

195

-

195

USA

2

3,550

-

3,552

Rest of North America

-

43

-

43

Australia

177

-

168

345

Hong Kong

1,390

-

-

1,390

Japan

1,591

-

-

1,591

Korea

569

-

-

569

Rest of Asia Pacific

354

-

-

354

Other

-

48

7

55

Oxford Metrics Group

7,389

3,836

4,099

15,324

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 31 March 2020 (unaudited)

 

Vicon UK

Vicon USA

Yotta

Total

 

£'000

£'000

£'000

£'000

Timing of the transfer of goods and services

 

 

 

 

Point in time

6,404

3,201

859

10,464

Over time

664

1,059

2,829

4,552

Oxford Metrics Group

7,068

4,260

3,688

15,016

 

 

 

 

 

Contract Counterparties

 

 

 

 

 

Direct to consumers

1,637

3,870

3,616

9,123

Third party distributor

5,431

390

72

5,893

Oxford Metrics Group

7,068

4,260

3,688

15,016

 

 

 

 

 

By destination

 

 

 

 

 

UK

1,314

-

3,547

4,861

Germany

295

-

-

295

Italy

134

-

-

134

Netherlands

192

-

22

214

France

57

-

-

57

Switzerland

77

-

-

77

Rest of Europe

1,017

-

2

1,019

Canada

-

335

-

335

USA

-

3,652

-

3,652

Rest of North America

3

104

-

107

Australia

335

-

103

438

Hong Kong

1,462

-

-

1,462

Japan

1,904

-

-

1,904

Korea

152

-

-

152

Rest of Asia Pacific

126

-

-

126

Other

-

169

14

183

Oxford Metrics Group

7,068

4,260

3,688

15,016

 

 

 

 

 

 

 

 

 

Year ended 30 September 2020 (audited)

 

Vicon UK

Vicon USA

Yotta

Total

 

£'000

£'000

£'000

£'000

Timing of the transfer of goods and services

 

 

 

 

Point in time

12,240

7,231

1,775

21,246

Over time

1,300

1,997

5,755

9,052

Oxford Metrics Group

13,540

9,228

7,530

30,298

 

 

 

 

 

Contract Counterparties

 

 

 

 

Direct to consumers

2,831

8,617

6,420

17,868

Third party distributor

10,709

611

1,110

12,430

Oxford Metrics Group

13,540

9,228

7,530

30,298

 

 

 

 

 

By destination

 

 

 

 

UK

2,248

-

7,227

9,475

Germany

613

-

-

613

Italy

231

-

-

231

Netherlands

449

-

29

478

France

189

-

-

189

Switzerland

294

-

-

294

Russia

350

-

-

350

Rest of Europe

1,003

-

2

1,005

Canada

-

1,006

-

1,006

USA

1

7,706

-

7,707

Rest of North America

6

227

-

233

Australia

1,307

-

256

1,563

Hong Kong

3,205

-

-

3,205

Japan

3,061

-

-

3,061

South Korea

323

-

-

323

Rest of Asia Pacific

260

-

-

260

Other

-

289

16

305

Oxford Metrics Group

13,540

9,228

7,530

30,298

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

31 March

 2021

Six months ended

31 March

 2020

Year

 ended

30 September

2020

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Vicon revenue by market

 

 

 

Engineering

2,472

1,948

4,139

Entertainment

4,022

3,170

6,732

Life sciences

4,179

5,454

10,117

Established markets

10,673

10,572

20,988

 

 

 

 

Adjacent verticals

552

756

1,780

Vicon Group*

11,225

11,328

22,768

 

 

Yotta revenue by type

 

 

 

Software and related services

4,099

3,688

7,530

Yotta Group

4,099

3,688

7,530

 

 

 

Group revenue by type

 

 

 

Sale of hardware

9,104

8,917

18,221

Sale of software

3,779

2,293

4,494

Rendering of services

2,441

3,806

7,583

Oxford Metrics Group

15,324

15,016

30,298

 

 

Group revenue by origin

 

 

 

UK

11,320

10,653

20,796

North America

3,836

4,259

9,228

Asia Pacific

168

104

274

Oxford Metrics Group

15,324

15,016

30,298

 

 

*This additional information is provided to the Chief Operating Decision Maker.  Further analysis by market is not available.

  

 

 

3.  Segmental Analysis

Segment information is presented in the condensed consolidated interim financial statements in respect of the Group's business segments, which are reported to the Chief Operating Decision Maker (CODM). The Group has identified the Board of Directors of Oxford Metrics plc, ("the Board") as the CODM. The business segment reporting reflects the Group's management and internal reporting structure.

 

The Group comprises the following business segments:

 

Vicon Group:  This is the development, production and sale of computer software and equipment for the entertainment, engineering and life science markets; and

 

Yotta Group:  This is the provision of software and services for the management of infrastructure assets for Government Agencies, Local Government and major infrastructure contractors.

 

Other unallocated costs represent head office expenses not recharged to subsidiary companies.

 

 

Business segments are analysed below:

 

 

 

 

 

Segment depreciation and amortisation

 

Six months ended

31 March

 2021

Six months ended

31 March

 2020

Year

 ended

30 September

2020

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Vicon UK

1,071

1,168

2,263

Vicon USA

105

101

208

Vicon Group

1,176

1,269

2,471

 

 

 

 

Yotta

526

509

1,031

Unallocated

9

9

18

Oxford Metrics Group

1,711

1,787

3,520

 

Six months ended 31 March 2021 (unaudited)

Six months ended 31 March 2020 (unaudited)

Year ended 30 September 2020 (audited)

 

Adjusted profit/(loss) before tax

 

Adjusting items

Group recharges

Profit/(loss) before tax

Adjusted profit/(loss) before tax

Adjusting items

Group recharges

Profit/(loss) before tax

Adjusted profit/(loss) before tax

Adjusting items

Group recharges

Profit/(loss) before tax

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

Vicon UK

1,244

(135)

(6)

1,103

689

(136)

188

741

1,571

(275)

393

1,689

Vicon USA

965

-

(930)

35

1,261

-

(1,080)

181

3,277

-

(2,218)

1,059

Vicon Group

2,209

(135)

(936)

1,138

1,950

(136)

(892)

922

4,848

(275)

(1,825)

2,748

 

 

 

 

 

 

 

 

 

 

 

 

 

Yotta

380

(187)

(452)

(259)

(464)

(229)

(479)

(1,172)

(115)

(398)

(758)

(1,271)

Unallocated

(1,252)

(21)

1,388

115

(1,171)

(61)

1,371

139

(2,174)

(304)

2,583

105

 

 

 

 

 

 

 

 

 

 

Oxford Metrics Group

 

1,337

 

(343)

 

-

 

994

 

315

 

(426)

 

-

 

(111)

 

2,559

 

(977)

 

-

 

1,582

 

 

Non-current assets

Additions to non-current assets

Carrying amount of segment assets

Carrying amount of segment liabilities

 

Six months ended 31 March 2021 (unaudited)

Six months  ended 31 March 2020 (unaudited)

Year ended 30 September 2020   (audited)

Six months ended 31 March 2021 (unaudited)

Six months  ended 31 March 2020 (unaudited)

Year ended 30 September 2020   (audited)

Six months ended 31 March 2021 (unaudited)

Six months  ended 31 March 2020 (unaudited)

Year ended 30 September 2020   (audited)

Six months ended 31 March 2021 (unaudited)

Six months  ended 31 March 2020 (unaudited)

Year ended 30 September 2020   (audited)

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

Vicon UK

9,537

9,771

9,581

1,022

996

3,221

25,009

25,296

23,320

(6,974)

(6,057)

(5,827)

Vicon USA

917

1,420

1,071

15

23

317

6,237

6,351

5,938

(3,246)

(3,083)

(2,802)

Vicon Group

10,454

11,191

10,652

1,037

1,019

3,538

31,246

31,647

29,258

(10,220)

(9,140)

(8,629)

 

 

 

 

 

 

 

 

 

 

 

 

 

Yotta Group

6,637

5,802

6,664

377

410

1,806

13,754

14,573

16,511

(5,321)

(5,072)

(5,856)

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated

682

639

633

3

241

247

6,641

3,708

5,917

(339)

(346)

(408)

OMG Life Group*

 

-

 

-

 

-

 

-

 

-

 

-

 

(6,052)

 

(6,052)

 

(6,052)

 

-

 

-

 

-

Oxford Metrics Group

 

17,773

 

17,632

 

17,949

 

1,417

 

1,670

 

5,591

 

45,589

 

43,876

 

45,634

 

(15,880)

 

(14,558)

 

(14,893)

 

*The negative balance within segment assets represents a cash overdraft which is part of the Group's cash offset facility. 

4.  Reconciliation of adjusted profit/(loss) before tax

 

 

Six months ended

31 March

 2021

Six months ended

31 March

 2020

Year

 ended

30 September

2020

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Profit/(loss) before tax

994

(111)

1,582

Share option charges

36

71

135

Amortisation of intangibles arising on acquisition

270

270

541

Redundancy costs

37

67

74

Aborted transaction costs

-

-

198

Share of post-tax loss of equity accounted associate

-

18

29

Adjusted profit before tax

1,337

315

2,559

 

 

 

 

 

Adjusted earnings per share for profit on operations attributable to owners of the parent during the year

 

 

 

Basic earnings per share (pence)

1.08p

0.17p

2.05p

Diluted earnings per share (pence)

1.07p

0.17p

2.02p

 

 

 

 

 

The adjusted profit before tax for the Vicon and Yotta business segments is shown in detail below;

 

 

 

Vicon Group

 

 

Six months ended

31 March

 2021

Six months ended

31 March

 2020

Year

 ended

30 September

2020

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Profit before tax

1,138

922

2,748

Share option charges

9

15

33

Amortisation of intangibles arising on acquisition

121

121

242

Restructuring costs

5

-

-

Reapportion Group overheads

936

892

1,825

Adjusted profit before tax

2,209

1,950

4,848

 

 

 

 

 

 

 

 

 

Yotta Group

 

 

Six months ended

31 March

 2021

Six months ended

31 March

 2020

Year

 ended

30 September

2020

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Loss before tax

(259)

(1,172)

(1,271)

Share option charges

6

13

25

Amortisation of intangibles arising on acquisition

149

149

299

Redundancy costs

32

67

74

Reapportion Group overheads

452

479

758

Adjusted profit/(loss) before tax

380

(464)

(115)

 

 

 

 

 

 

 

5.  Taxation

 

The Group's consolidated effective tax rate for the six months ended 31 March 2021 was 2.6% (for the six months ended 31 March 2020: 84%; for the year ended 30 September 2020: 1.4%).

 

In accordance with IAS 34 the tax charge for the half year is calculated on the basis of the estimated full year tax rate.

 

 

6.  Earnings per share

 

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.  The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares on the assumed conversion of all dilutive options.

 

 

 

31 March 2021 (unaudited)

31 March 2020 (unaudited)

30 September 2020 (audited)

 

Earnings

Weighted average number of shares

Per share amount

Loss

Weighted average number of shares

Per share amount

Earnings

Weighted average number of shares

Per share amount

 

£'000

'000

(pence)

£'000

'000

(pence)

£'000

'000

(pence)

 

 

 

 

 

 

 

 

 

 

Basic earnings/(loss) per share

 

 

 

 

 

 

 

 

 

Earnings/(loss) attributable to ordinary shareholders

 

1,020

 

126,145

 

0.81

 

(205)

 

125,434

 

(0.17)

 

1,604

 

125,568

 

1.28

Dilutive effect of employee share options

 

-

 

1,441

 

(0.01)

 

-

 

2,581

 

-

 

-

 

2,083

 

(0.02)

Diluted earnings/(loss) per share

1,020

127,586

0.80

(205)

128,015

(0.17)

1,604

127,651

1.26

  

7.  Share capital

 

 

31 March

31 March

30 September

 

2021

2020

2020

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Allotted, called up and fully paid

 

 

 

126,430,168 shares of 0.25p (31 March 2020: 125,639,658 shares of 0.25p and 30 September 2020: 125,734,658 shares of 0.25p)

316

314

314

 

During the six month period ended 31 March 2021 there were 656,000 shares issued relating to share options that were exercised.  There were 473,279 shares issued in respect of share options exercised during the six months ended 31 March 2020 (year ended 30 September 2020: 568,279).

 

In addition, 27,777 shares were issued to the non-executive Chairman, Roger Parry, in satisfaction of salary and 11,733 shares were issued to the non-executive Director, Naomi Climer, in satisfaction of salary.

 

 

8.  Dividends

 

The following dividends were recognised as distributions to equity holders in the period:

 

 

31 March

31 March

30 September

 

2021

2020

2020

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Final dividend for 2019 paid in 2020 - 1.80 pence per share

-

2,253

2,253

Final dividend for 2020 paid in 2021 - 1.80 pence per share

2,264

-

-

 

2,264

2,253

2,253

 

The final dividend for 2020 was paid to shareholders on 5 March 2021 at 1.80 pence per share, a total of £2,264,000. 

 

 

9.  Copies of the interim statement

 

Copies of the interim statement will be available from the Company's registered office at 6 Oxford Industrial Park, Yarnton, Oxfordshire OX5 1QU, and from the Company's website: www.oxfordmetrics.com.

 

 

 

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IR FLFFDEVIEFIL