RNS Number : 8772R
Oxford Metrics PLC
11 June 2024
 

11th June 2024

Oxford Metrics plc

 

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

 

Interim Results for the six months ended 31 March 2024

 

On track first half revenues, driven by strong execution

Vicon secures seven markerless cornerstone customers to redefine future of motion capture

Industrial Vision Systems, performing well, opening up smart manufacturing opportunities

>90% full year revenue visibility, a growing pipeline and resources for targeted M&A

Oxford Metrics plc (LSE: OMG), the smart sensing and software company, servicing life sciences, entertainment and engineering markets, announces unaudited interim results for the six months ended 31 March 2024.

 

Commenting on the results Imogen Moorhouse, Chief Executive, said: "Now over halfway into delivering our five-year plan, our teams are in full execution mode. I'm pleased to announce that we are making clear progress both operationally and financially towards our goals, as we report on track first half revenues, demonstrating strong Vicon execution.

 

Our recent acquisition of Industrial Vision Systems has been a successful move, it's performing well and we are excited about the opportunity to drive yet more applications into the smart manufacturing space. We have the financial resources to do so and are working on a number of interesting M&A opportunities to build out our presence in this growing vertical.

 

As Vicon works towards commercialising markerless, which enables 3D motion capture without the need to wear motion capture suits or markers, we are working with seven cornerstone customers to make the product the gold standard.

 

Looking ahead, Oxford Metrics enters the second half with >90% visibility of full year revenues and with a growing pipeline, the Board believes the Group is well placed to deliver results in line with current market expectations."

 

Continuing Operations

H1 FY24

H1 FY23

%

Revenue

£23.5m

£21.3m

+10.5%

Adjusted Profit before Tax*

£4.0m

£4.5m

-9.4%

Adjusted* Basic Earnings per Share

2.63p

2.94p

-10.5%

Statutory Profit/(Loss) before Tax

£2.8m

£3.4m

-17.0%

Statutory Basic Earnings per Share

2.13p

2.59p

-17.8%

Dividend paid

£3.6m

£3.2m

+9.0%

Net Cash

£54.8m

£63.6m

-13.9%

 

 

 

H1 FY24

FY23

H1 FY23

Order Book**

£3.0m

£11.3m

£21.9m

 

 

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

** FY23 comparative restated at $1.25/£ exchange rate

 

Financial Highlights

Headline Group revenue of £23.5m, up 10.5% (H1 FY23: £21.3m).

Group adjusted profit before tax of £4.0m (H1 FY23: £4.5m), reflecting planned investment in the five-year plan to develop and commercialise markerless.

Order book of £3.0m (FY23: £11.3m / H1 FY23**: £21.9m), reflecting normalisation of customer buying behaviour post supply chain challenges.


Strong sales pipeline with >90% visibility on full year revenue.

Adjusted earnings per share 2.63p (H1 FY23: 2.94p).

Strong balance sheet with net cash position of £54.8m as at 31 March 2024 (H1 FY23: £63.6m), providing considerable resources to continue pursuing targeted M&A.

Cash generated by operations of £2.2m (H1 FY23: £0.4m) with cash deployed for working capital purposes to augment inventory and underpin second half performance.

 

Operational Highlights

 

First half revenue driven by strong execution

Vicon's revenue grew 2.2%, at a headline level, to £21.8m (H1 FY23: £21.3m), (on a constant currency basis underlying growth was 3.3%), driven by Vicon's strong execution.

Order book returns to more normal levels:


Vicon customer buying behaviour normalising - a trend we expect to continue.


Total Order in-take in H1 of £15.0m (H1 FY23: £19.8m).


Total Orders-in-hand as at 31 March 2024 of £3.0m (FY23: £11.3m / H1 FY23: £21.9m).

Engineering revenues of £4.8m, up 56.6%.


Contracts secured for automotive, aerospace and metrology sectors.


Satellite Applications Catapult is using Vicon to track robots and simulate orbital environments.

Life Sciences revenues of £8.0m, up 38.3%.


Valkyrie accreditation with UK Conformity Assessment (UKCA) medical device mark, enabling systems to be delivered to hospitals around the world including:

 

 

New customers: Hong Kong Children's Hospital, Yamagata University Hospital (Japan), Vinmec International Hospital (Vietnam);

 

 

Long-standing customers: Guy's & St Thomas' (UK), Shriners Children's Hospital (USA); and



The Nuffield Orthopaedic Centre in Oxford, one of Vicon's first-ever customers.


New Valkyrie customer, University of Sydney



Using system for research into head injuries with Rugby League and Rugby Union.



Aim to reduce players concussions in the sport.

Entertainment revenues of £8.5m, down 22.8%, following a very strong FY23 APAC performance that is now seeing delayed effects from the global games industry contraction.


Valkyrie delivered, through partner Lux Machina, to London College of Fashion and MyWorld, a new global centre of creative technology.


Paper Games, in China, added an additional large Valkyrie system to add realism to their female-focused games and their VTuber, Nikki.

Location-based Entertainment (LBE) revenues of £0.4m, down 73.7%, due to delayed partner rollouts that we expect to deliver in H2 FY24.


Sandbox VR, now operating in over 46 locations in multiple countries.


New partnership with Apparel Group:



Plan to open 25 new locations by 2028;



Across the UAE, Kingdom of Saudi Arabia, Qatar, Kuwait, Bahrain and Oman. 


Immersive Gamebox trialling experiences across Merlin Entertainment sites following multi-million pound and multi-territory agreement.

Markerless becoming a reality and presents a significant opportunity


Vicon has now partnered with seven cornerstone customers.


Together we are further developing and testing the technology for commercialisation.


Cutting-edge advancements will redefine motion capture and content production.

With our focus firmly on markerless - where we see the largest growth opportunity - we have taken a strategic decision to discontinue IMeasureU (IMU) New Zealand operations.


Actively engaged in planned discussions to sell the IP.

 

Smart manufacturing 

 

Acquisition of Industrial Vision Systems ("IVS") completed and is performing well.

Delivered revenues of £1.8m in the first half and an orderbook of £1.0m.

Brings new niche market strength in smart manufacturing.

High precision, automated quality control used across numerous industries.

Multiple new contracts secured as demand continues for automated inspection and quality control.

IVS goes into the second half with a healthy sales pipeline and clear growth opportunities as part of Oxford Metrics.

 

Outlook

 

>90% visibility of full year revenues and a growing sales pipeline ahead of this time last year.

Deploying resources to actively pursue M&A to build out smart manufacturing and IVS.

Encouraged by feedback of markerless advancements as our teams and partners work hard to commercialise the offering, optimising the future of motion capture.

Going forward we do not expect to maintain a significant order book with the return to customer trading patterns consistent with those seen pre-pandemic.

New CFO designate, Zoe Fox to be appointed Group CFO effective 1 July 2024. 

The Board believes Oxford Metrics is well placed to deliver full year results in line with current market expectations.

 

 

For further information please contact:

 

Oxford Metrics

+44 (0)1865 261860

Imogen Moorhouse, CEO

 

David Deacon, CFO

 


 

Deutsche Numis

+44 (0)20 7260 1000

Simon Willis / Hugo Rubinstein / Tejas Padalkar

 

 

 

FTI Consulting

+44 (0)20 3727 1000

Matt Dixon / Emma Hall / Jamille Smith / Jemima Gurney

 


 

About Oxford Metrics

 

Oxford Metrics is a smart sensing and software company that enables the interface between the real world and its virtual twin. Our smart sensing technology helps over 10,000 customers in more than 70 countries, including all of the world's top 10 games companies and all of the top 20 universities worldwide. Founded in 1984, we started our journey in healthcare, expanded into entertainment, winning an OSCAR® and an Emmy®, moved into defence, engineering and smart manufacturing. We have a strong track record of creating value by incubating, growing and then augmenting through acquisition, unique technology businesses.

The Group trades through its market-leading division Vicon and, recently acquired, Industrial Vision Systems, adding niche market strength in smart manufacturing. Vicon is a world leader in motion measurement analysis to thousands of customers worldwide, including Red Bull, Imperial College London, Dreamscape Immersive, Industrial Light & Magic, and NASA. Industrial Vision Systems is a specialist in machine vision software and technology for high precision, automated quality control systems trusted by blue-chip, smart manufacturing companies across the globe including BD, DePuy, Jaguar Land Rover, Johnson & Johnson, Zytronic and Alkegen.

The Group is headquartered in Oxford with offices in California, Colorado, Auckland, and Kempten. 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 



Chief Executive's Statement

Now in year three and just over halfway into delivering our five-year plan, the team is in full execution mode, and we are making clear progress towards our goals. Today, we report an on track first half revenue performance, driven by strong Vicon execution.

 

During the half, we welcomed Industrial Vision Systems into the Group. An earnings enhancing acquisition taking us into a new market - smart manufacturing. We are excited about the opportunities this move brings to extend into yet more applications.

 

Our team at Vicon has been making good progress commercialising markerless. Markerless will be a key part of the future of our industry, enabling 3D motion capture without the need to wear motion capture suits or markers, using the latest machine learning and AI techniques to process video imagery to create 3D visualisations. As part of our Pioneer Programme to further develop and test the markerless technology, Vicon has now partnered with seven cornerstone customers to get the delivery and commercialisation right and set the gold standard.

 

In March, after 15 years as our CFO, David Deacon announced his desire to move away from a full-time executive role with these Interims being his last. I would like to take the opportunity to thank David for his years of service. David will remain with the business for a period of time to ensure a smooth handover to our CFO designate, Zoe Fox, who will be appointed as the Group's CFO from 1 July 2024.

 

As expected, the Vicon business has returned to pre-pandemic trading patterns. Our order book has returned to more normal levels as customer demand and buying behaviours have normalised post the pandemic disruption and the well-documented global supply chain challenges throughout that time. This continues the trend we saw in the second half of FY23 which saw us close the year with orders-in-hand of £11.3m.

 

As our teams focus their attention and innovation efforts on commercialising markerless - where we see clear growth opportunities - we have taken a strategic decision to discontinue IMeasureU (IMU), our New Zealand operation and are actively engaged in discussions to sell the IP.  

 

On target first half trading

 

KPI

Revenue

PBT

Adjusted PBT*


H1 FY24

H1 FY23

H1 FY24

H1 FY23

H1 FY24

H1 FY23

Vicon

£21.7m

£21.3m

£1.9m

£3.4m

£4.3m

£5.4m

IVS

£1.8m

-

£0.3m

-

£0.5m

-

Group

-

-

£1.2m

£0.6m

(£0.8m)

(£0.9m)

Continuing

£23.5m

£21.3m

£3.4m

£4.0m

£4.0m

£4.5m

Discontinued

£0.0m

£0.0m

(£1.4m)

(£0.1m)

(£0.5m)

(£0.4m)

Group

£23.5m

£21.3m

£2.0m

£3.9m

£3.5m

£4.1m

 

The Group reports revenues of £23.5m (H1 FY23: £21.3m), up 10.5% at a headline level. The Group also reports an Adjusted PBT* of £4.0m (H1 FY23: £4.5m), which largely reflects the net effect of increased revenues less planned investment in the five-year plan to develop markerless technology, additional Vicon Sales & Marketing investment, increased property related costs and some inflationary related increases.

 

Vicon successfully stepped-up volume again, delivering most of the opening order book whilst at the same time booking new orders in the first half of £14.0m. The current Vicon orderbook stands at £2.0m and we expect this to be delivered in the second half.

 

Our acquisition of IVS was completed and is performing well, reporting revenues of £1.8m and an Adjusted profit of £0.5m in the first half; further, the business has an orderbook of £1.0m and a healthy sales pipeline.

 

Vertical market segments performance was as follows:

 

Engineering

 

Engineering reported revenues of £4.9m (H1 FY23: £3.1m) representing growth of 56.6%.

 

Common applications for Vicon solutions in the Engineering market include Unmanned Aerial Vehicle (UAV) and robot tracking, robotics development and evaluating product designs in manufacturing, ergonomics and research. Contracts were secured from automotive, aerospace and metrology sectors. Of note is the work being carried out at Satellite Applications Catapult. Catapult added cameras to their existing Vicon system which they use to help them track robots and simulate orbital environments to prepare for servicing, refuelling and assembly operations in space.

 

Life Sciences

 

Life Sciences reported revenues of £8.1m (H1 FY23: £5.8m) representing growth of 38.3%. Valkyrie successfully achieved the UK Conformity Assessment (UKCA) medical device mark accreditation, a new and more stringent classification on patient safety and device performance, part of the UK Medical Device Regulations (MDR). This accreditation enabled Valkyrie systems to be delivered to hospitals around the world including:

 

New customers, Hong Kong Children's Hospital, Yamagata University Hospital (Japan), Vinmec International Hospital (Vietnam);

Long-standing customers Guy's & St Thomas's Hospital (UK), Shriners Children's Hospital (USA); and

The Nuffield Orthopaedic Centre, (UK) one of Vicon's first-ever customers.

 

Our new customer, University of Sydney, invested in a Valkyrie solution for research into head injuries with Rugby League and Rugby Union players with the aim of studying safer tackling techniques that could reduce the risk of concussions in sport.

 

Entertainment

 

Entertainment reported revenues of £8.5m (H1 FY23 £11.0m) representing a decline of 22.8%. This follows a very strong FY23 performance in APAC that is now seeing delayed effects from the global games industry contraction.

 

Through our customer and partner, Lux Machina, Valkyrie solutions were delivered to London College of Fashion and MyWorld, a new global centre of creative technology. Most recently, Paper Games in China added an additional large Valkyrie system to their existing Valkyrie solution to add realism to their female-focused games and their VTuber, Nikki, who live streams weekly.

 

Location-based Entertainment (LBE)

 

LBE reported revenues of £0.4m (H1 FY23: £1.4m) representing a decline of 73.7% due to delayed partner rollouts that we expect to deliver throughout the rest of FY24.


Our partner, Sandbox VR, is now operating in 46 locations in multiple countries and continues to expand. Sandbox VR recently announced it is partnering with Apparel Group and plans on opening 25 new locations across the UAE, Kingdom of Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman by 2028. Elsewhere, our partner Immersive Gamebox is trialling experiences across Merlin Entertainment sites, following its multi-million pound and multi-territory agreement.

 

Smart manufacturing

 

Encouragingly, multiple new contracts have been secured in the first half as demand continues for automated inspection and quality control. The medical sector saw the largest growth in the first half, including:

 

A leading London hospital invested in a semi-automatic inspection system to verify if particulates are present in fluid filled glass containers that would otherwise contaminate the chemical-based product.

 

A new medical client invested in six inspection systems, three units for integration within existing production lines and three high-speed standalone pellet inspection machines.

 

Multiple contracts were secured worldwide for inspection systems for high-speed contact lens production lines including an automated inspection system for a new Spanish-based contact lens manufacturer. A new automotive client invested in an automated battery verification end of line solution and a US owned, UK-based aerospace manufacturer invested in our market leading industry 5.0 smart workbench solution for its assembly line.

 

Overall, Vicon reported a gross margin at 68.7% (H1 FY23: 69.1%) in the first half as anticipated and is attributed to the mix of revenues arising from both the specific geographic spread of revenues and the various margin contributions of each product line. As the residual supply chain costs begin to normalise, together with other initiatives, we expect gross margin to show improvement in the second half.

 

Given the above revenue and gross margin performance coupled with a rise in the underlying cost base, before Group costs, Vicon reported an Adjusted PBT* of £4.3m (H1 FY23: £5.3m) and an unadjusted profit before tax of £1.9m (H1 FY23: £3.4m) and IVS reported an Adjusted Profit of £0.5m.

 

Returning to the Balance Sheet, the cash position, having paid a final dividend of £3.6m and deployed £6.2m on the acquisition of IVS in the first half, finished at £54.8m as at 31 March 2024 (H1 FY23: £63.6m). Cash generated by operations during the first half was £2.2m compared with £0.4m in the first half of last year.

 

Vicon inventory at £9.0m (H1 FY23: £6.4m) is higher than typical due to a planned increase which is largely for operational reasons and is expected to be reduced to around £7.0m by the end of the financial year.

 

Sense. Analyse. Apply - Five-year plan progress

 

During the half, we continued to make good progress against our five-year plan, which aims to increase FY21 revenues 2.5x and deliver an adjusted profit before tax margin of 15% by the end of FY26. The plan is all about extending our sensing capabilities, enhancing analysis modes and embedding our IP in other areas. This is being achieved through a measured approach with both organic and inorganic investment.

 

At our recent Capital Markets Day in April 2024 the progress made through our investment efforts were on display. Now past the halfway point of the five-year plan, we have made clear progress, including:

 

Showcasing our markerless technology in action used in Dreamscape's 'The Clockwork Forest' VR experience and seeing how IVS is a great new addition - with positive feedback from those who were able to experience the demos first-hand. To see more on this watch our videos of the day here.

In November 2023 we acquired IVS, an earnings enhancing acquisition taking us into smart manufacturing, opening up new opportunities for growth and adding even more great names to our strong client roster.

In August 2023, we unveiled the new markerless technology to extend our sensing capabilities.

In July 2022, Vicon launched the premium Valkyrie camera to drive organic motion capture growth.

Successful sale of Yotta to Causeway Technologies for £52m in May 2022 - at a premium valuation that provided a strong cash balance to pursue our growth ambition.

 

Having started the five-year plan in 2021 with continuing revenues of £27.5m, all from our motion capture business Vicon, we are aiming for £70m revenues by the end of FY26.

 

Five-year plan investment

 

Markerless - now a reality

 

Since unveiling our markerless technology at Siggraph 2023, Vicon has partnered with seven cornerstone customers as part of their Pioneer Program to further develop and test the markerless technology. These cornerstone partners include some of the leading brands in game and film industries and have been carefully selected for their groundbreaking innovations in animation and virtual production. Feedback so far has been encouraging as our teams and partners work hard to commercialise the offering, optimising the future of motion capture and setting the gold standard.

 

M&A

 

We continue to actively pursue M&A that aligns with our strict criteria. We are primarily targeting between £3-9m in revenues in smart manufacturing, as we aim to build out from the IVS acquisition. We are actively working on a number of opportunities within the smart manufacturing space that deliver this goal and have discovered a broad and diverse range of opportunities.



 

 

Quadrants of growth

A diagram of a company's company Description automatically generated

Outlook

 

We enter the second half with a growing sales pipeline well ahead of this time last year and >90% visibility of full year revenues.  

 

We continue to deploy internal and external resources into M&A to deliver on the inorganic component of the five-year strategic plan. Whilst we recognise the Group has considerable cash resources, the Board remain resolute that every acquisition we make will be the right one, for the right reasons and at the right price.

 

Given the first half performance and visibility of the second half, the Board believe Oxford Metrics are well placed to deliver a performance for the full year in line with current market expectations.

 

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



 

CONDENSED CONSOLIDATED INCOME STATEMENT

 

 

 

 

 

Six months ended

31 March

2024

Six months ended

 31 March

2023

Year

ended

 30 September 2023


 

(unaudited)

(unaudited)

(audited)


Note

£'000

£'000

£'000

Revenue

2

23,523

21,285

44,240

Cost of sales

 

(7,806)

(7,132)

(15,497)

Gross profit

 

15,717

14,153

28,743

Sales, support and marketing costs

 

(4,531)

(3,609)

(8,169)

Research and development

 

(2,971)

(3,358)

(6,599)

Administrative expenses

 

(5,890)

(3,671)

(8,786)

Operating profit

 

2,325

3,515

5,189

Finance income

 

1,199

547

1,561

Finance expense

 

(132)

(48)

(163)

Profit before taxation

 

3,392

4,014

6,587

Taxation

 

(598)

(648)

(611)

Profit from continuing operations

 

2,794

3,366

5,976

Loss from discontinued operations, net of tax

 

(1,382)

(123)

(320)

Profit for the period attributable to

owners of the parent during the period

 

 

1,412

 

3,243

 

5,656


 

 



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

 

 



Basic earnings per share (pence)

6

2.13p

2.59p

4.59p

Diluted earnings per share (pence)

6

2.10p

2.55p

4.56p

 

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

 

 



Basic earnings per share (pence)

6

1.08p

2.49p

4.35p

Diluted earnings per share (pence)

6

1.05p

2.46p

4.32p

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


 

Six months ended

31 March

2024

Six months ended

 31 March

2023

Year

ended

 30 September 2023


 

(unaudited)

(unaudited)

(audited)


 

£'000

£'000

£'000

Net profit for the period

 

1,412

3,243

5,656

Other comprehensive income

 

 



Items that will or may be reclassified to profit or loss

 

 

 

 

Exchange differences on retranslation of overseas subsidiaries

 

(35)

(368)

(110)

Total other comprehensive expense

 

(35)

(368)

(110)

Total comprehensive income for the period attributable to the owners of the parent

 

1,377

2,875

5,546

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 



31 March

2024

31 March

2023

30 September

2023



(unaudited)

(unaudited)

(audited)


Note

£'000

£'000

£'000

Non-current assets

 

 



Goodwill and intangible assets

 

17,242

9,798

10,203

Property, plant and equipment

 

3,191

1,791

2,480

Right of use assets

 

4,120

1,856

3,135

Financial asset - investments

 

236

236

236

 

 

24,789

13,681

16,054

Current assets

 

 



Inventories

 

9,032

6,415

7,240

Trade and other receivables

 

8,019

8,121

9,907

Current tax debtor

 

-

63

-

Fixed term deposits

 

44,000

52,000

42,000

Cash and cash equivalents

 

10,754

11,613

23,965


 

71,805

78,212

83,112

Assets classified as held for sale

 

407

-

-


 

 



Current liabilities

 

 



Trade and other payables


(9,217)

(8,653)

(11,304)

Current tax liability


(371)

-

(275)

Bank overdraft


-

-

(1.174)

Lease liabilities

 

(1,214)

(407)

(724)

 

 

(10,802)

(9,060)

(13,477)

Liabilities directly associated with assets classified as held for sale

 

(70)

-

-

 

 

 



Net current assets

 

61,340

69,152

69,635

Total assets less current liabilities

 

86,129

82,833

85,689

 

Non-current liabilities

 

 



Other liabilities


(1,302)

(1,320)

(820)

Lease liabilities

 

(3,177)

(1,577)

(2,498)

Provisions


(52)

(44)

(48)

Deferred tax liability

 

(1,652)

(1,468)

(1,118)

 

 

(6,183)

(4,409)

(4,484)

Net assets

 

79,946

78,424

81,205

 

 

 



Capital and reserves attributable to the owners of the parent

 

 



Share capital

7

329

325

326

Shares to be issued

 

65

65

65

Share premium account

 

19,494

19,355

19,487

Merger reserve

 

870

-

-

Retained earnings

 

58,347

58,061

60,451

Foreign currency translation reserve

 

841

618

876

Total equity shareholders' funds

 

79,946

78,424

81,205

 

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS

 

 

 

 

 

 

Six months

ended

31 March

2024

Six months

ended

31 March

2023

Year

ended

30 September 2023


 

(unaudited)

(unaudited)

(audited)


 

£'000

£'000

£'000

Cash flows from operating activities

 

 



Profit for the year

 

1,412

3,243

5,656

Income tax expense

 

598

638

594

Finance income

 

(1,199)

(547)

(1,561)

Finance expense

 

132

48

163

Depreciation and amortisation

 

1,862

1,380

2,898

Impairment of intangible assets

 

1,076

217

217

Profit on sale of property, plant and equipment

 

-

(8)

(8)

Share based payments

 

66

62

59

Increase in inventories


(1,541)

(1,976)

(2,799)

Decrease/(increase) in receivables


2,597

(531)

(2,274)

(Decrease)/increase in payables


(2,509)

(2,326)

205

Cash generated from operating activities

 

2,494

200

3,150

Tax (paid)/received

 

(305)

179

209

Net cash from operating activities

 

2,189

379

3,359

 

 

 



Cash flows from investing activities

 

 



Purchase of property, plant and equipment

 

(969)

(467)

(1,499)

Purchase of intangible assets

 

(1,420)

(868)

(2,127)

Proceeds on disposal of property, plant and equipment

 

9

7

8

Purchase of fixed asset investments net of cash acquired

 

(6,231)

-

-

Cash placed on fixed term deposit

 

(22,968)

(37,000)

(67,000)

Fixed term deposits maturing

 

20,968

40,000

80,000

Interest received

 

650

442

1,219

Net cash used in investing activities

 

(9,961)

2,114

10,601

 

 

 



Cash flows from financing activities

 

 



Principal paid on lease liabilities


(313)

(229)

(579)

Interest paid on lease liabilities


(132)

(40)

(159)

Interest paid


-

(8)

(4)

Issue of ordinary shares

 

7

262

370

Equity dividends paid


(3,615)

(3,246)

(3,246)

Net cash used in financing activities

 

(4,053)

(3,261)

(3,618)

Net (decrease)/increase in cash and cash equivalents

 

(11,825)

(768)

10,342

Cash and cash equivalents at beginning of the period

 

22,791

12,679

12,679

Exchange loss on cash and cash equivalents

 

(129)

(298)

(230)

 

 

10,837

11,613

22,791

Cash and cash equivalents included in current assets

 

10,754

11,613

23,965

Bank overdraft included in current liabilities

 

-

-

(1,174)

Amount included in assets classified as held for sale

 

83

-

-

 

 

10,837

11,613

22,791


CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY

 

 

 

 

Share

Capital

 

Shares

to be

issued

 

Share premium account

 

 

Merger

reserve

 

 

Retained earnings

Foreign currency translation reserve

 

 

 

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance as at 30 September 2023

326

65

19,487

-

60,451

876

81,205

Net profit for the period

 

-

-

-

-

1,412

-

1,412

Exchange difference on retranslation of overseas subsidiaries

-

-

-

-

-

(35)

(35)

Transactions with owners:

 

 

 

 

 

 

 

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

-

-

-

-

33

-

33

Dividends

-

-

-

-

(3,615)

-

(3,615)

Issue of share capital

3

-

7

870

-

-

880

Share based payment charge

-

-

-

-

66

-

66

Balance as at 31 March 2024

329

65

19,494

870

58,347

841

79,946









Balance as at 30 September 2022

324

65

19,094

-

57,917

986

78,386

Net profit for the period

-

-

-

-

3,243

-

3,243

Exchange differences on retranslation of overseas subsidiaries

-

-

-

 

-

-

(368)

(368)

Transactions with owners:








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

-

-

-

-

85

-

85

Dividends

-

-

-

-

(3,246)

-

(3,246)

Issue of share capital

1

-

261

-

-

-

262

Share based payment charge

-

-

-

-

62

-

62

Balance as at 31 March 2023

325

65

19,355

-

58,061

618

78,424









Balance as at 30 September 2022

324

65

19,094

-

57,917

986

78,386

Net profit for the period

-

-

-

-

5,656

-

5,656

Exchange differences on retranslation of overseas subsidiaries

-

-

-

 

-

-

(110)

(110)

Transactions with owners:








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

-

-

-

-

 

90

-

90

Dividends

-

-

-

-

(3,246)

-

(3,246)

Issue of share capital

2

-

393

-

-

-

395

Share based payment charge

-

-

-

-

34

-

34

Balance as at 30 September 2023

326

65

19,487

-

60,451

876

81,205















 

 

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 2024 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 2023.  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 2023 are not the statutory accounts but have been extracted from the Group's 2023 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 shown within note 2 relates to continuing operations.


 


Six months ended

31 March

 2024

Six months ended

31 March

 2023

Year

 ended

30 September

2023

 


(unaudited)

(unaudited)

(audited)

 

Revenue

£'000

£'000

£'000

 

Vicon UK

11,841

13,765

25,545

 

Vicon USA

9,918

7,520

18,695

 

Vicon Group

21,759

21,285

44,240

 


 



 

Industrial Vision Systems

1,764

-

-

 

Oxford Metrics Group

23,523

21,285

44,240

 


 



 

 

 

 

 

 

 

 

 

 

Six months ended 31 March 2024 (unaudited)

 

 

 

Vicon UK

 

Vicon USA

 

Total Vicon Group

 

Industrial Vision Systems

 

Total Group

 

 

£'000

£'000

£'000

£'000

£'000

 

Timing of the transfer of goods and services

 

 

 

 

 

 

Point in time

10,884

8,349

19,233

-

19,233

 

Over time

957

1,569

2,526

1,764

4,290

 


11,841

9,918

21,759

1,764

23,523

 


 

 

 

 

 

 

Contract Counterparties

 

 

 

 

 

 

 

Direct to consumers

3,875

9,335

13,210

1,764

14,974

 

Third party distributor

7,966

583

8,549

-

8,549

 


11,841

9,918

21,759

1,764

23,523

 


 

 

 

 

 

 

By destination

 

 

 

 

 

 

 

UK

1,878

-

1,878

822

2,700

 


 

 

 

 

 

 

Germany

1,230

-

1,230

-

1,230

 

Italy

263

-

263

-

263

 

Spain

51

-

51

172

223

 

Netherlands

256

-

256

-

256

 

France

234

-

234

3

237

 

Rest of Europe

1,566

-

1,566

135

1,701

 

Total Europe

3,600

-

3,600

310

3,910

 


 

 

 

 

 

 

Canada

3

665

668

480

1,148

 

Mexico

-

10

10

-

10

 

USA

29

9,199

9,228

3

9,231

 

Rest of North America

-

2

2

44

46

 

Total North America

32

9,876

9,908

527

10,435

 


 

 

 

 

 

 

Australia

901

4

905

-

905

 

Hong Kong

545

-

545

-

545

 

Japan

2,272

-

2,272

-

2,272

 

Korea

552

-

552

11

563

 

China

1,481

-

1,481

-

1,481

 

India

185

-

185

-

185

 

Rest of Asia Pacific

308

-

308

94

402

 

Total Asia Pacific

6,244

4

6,248

105

6,353

 


 

 

 

 

 

 

Other

87

38

125

-

125

 

Oxford Metrics Group

11,841

9,918

21,759

1,764

23,523

 


 

 

 

 

 

 

 








Six months ended 31 March 2023 (unaudited)

 


 

Vicon UK

 

Vicon USA

 

Total

 


£'000

£'000

£'000

 

Timing of the transfer of goods and services




 

Point in time

12,883

6,322

19,205

 

Over time

882

1,198

2,080

 


13,765

7,520

21,285

 





 

Contract Counterparties

 




 

Direct to consumers

2,600

7,210

9,810

 

Third party distributor

11,165

310

11,475

 


13,765

7,520

21,285

 





 

By destination

 




 

UK

1,182

-

1,182

 





 

Germany

1,143

-

1,143

 

Italy

424

-

424

 

Greece

59

-

59

 

Netherlands

258

-

258

 

France

621

-

621

 

Spain

68

-

68

 

Poland

105

-

105

 

Rest of Europe

628

-

628

 

Total Europe

3,306

-

3,306

 





 

Canada

-

1,518

1,518

 

USA

-

5,889

5,889

 

Total North America

-

7,407

7,407

 





 

Australia

345

7

352

 

Hong Kong

1,212

-

1,212

 

Japan

3,896

-

3,896

 

Korea

1,234

-

1,234

 

China

2,240

-

2,240

 

Rest of Asia Pacific

298

-

298

 

Total Asia Pacific

9,225

7

9,232

 





 

Other

52

106

158

 

Oxford Metrics Group

13,765

7,520

21,285

 





 

 

 

 

 



Year ended 30 September 2023 (audited)

 

 

 

Vicon UK

 

Vicon USA

 

Total

 

 

£'000

£'000

£'000

 

Timing of the transfer of goods and services




 

Point in time

23,714

16,032

39,746

 

Over time

1,831

2,663

4,494

 

Oxford Metrics Group

25,545

18,695

44,240

 





 

Contract Counterparties




 

Direct to consumers

5,341

17,673

23,014

 

Third party distributor

20,204

1,022

21,226

 

Oxford Metrics Group

25,545

18,695

44,240

 





 

By destination




 

UK

3,176

-

3,176

 





 

Germany

1,973

-

1,973

 

Italy

633

-

633

 

Netherlands

646

-

646

 

France

155

-

155

 

Poland

178

-

178

 

Spain

88

-

88

 

Ireland

565

-

565

 

Rest of Europe

1,087

-

1,087

 

Total Europe

5,325

-

5,325

 





 

Canada

9

1,878

1,887

 

USA

12

16,533

16,545

 

Total North America

21

18,411

18,432

 





 

Australia

939

13

952

 

Hong Kong

2,517

-

2,517

 

Japan

5,680

-

5,680

 

South Korea

2,835

-

2,835

 

China

3,957

-

3,957

 

India

574

-

574

 

Rest of Asia Pacific

397

-

397

 

Total Asia Pacific

16,899

13

16,912

 





 

Other

124

271

395

 

Total

25,545

18,695

44,240

 


 

 

 

 

 


 

 

 

 

 

 



 

 

Six months ended

31 March

 2024

Six months ended

31 March

 2023

Year

 ended

30 September

2023

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Group revenue by market

 



Engineering

4,855

3,101

8,708

Entertainment

8,494

11,001

18,193

Life sciences

8,051

5,820

14,841

Location based entertainment

359

1,363

2,498

Smart manufacturing

1,764

-

-

Total

23,523

21,285

44,240

 

 

Group revenue by type

 



Sale of hardware

19,332

18,076

36,158

Sale of software

917

1,269

1,974

Rendering of services

2,649

1,503

5,209

Support

625

437

899

Total

23,523

21,285

44,240

 

 

Group revenue by origin

 



UK

12,915

12,906

23,690

Europe

690

859

1,852

North America

9,918

7,520

18,695

Asia Pacific

-

-

3

Total

23,523

21,285

44,240

 

 

 

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

 

Industrial Vision Systems:  This is the development, production and sale of smart manufacturing systems.

 

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

 2024

Six months ended

31 March

 2023 restated

Year

 ended

30 September

2023 restated


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Continuing operations

 

 

 

Vicon UK

1,456

1,336

2,606

Vicon USA

192

158

341

Vicon Group

1,648

1,494

2,947


 



Industrial Vision Systems

129

-

-


 



Unallocated

11

29

45

Total continuing operations

1,788

1,523

2,992


 




Six months ended 31 March 2024 (unaudited)

Six months ended 31 March 2023 (unaudited)

Year ended 30 September 2023 (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

Continuing operations

 



 









Vicon UK

463

(108)

1,384

1,739

2,658

(108)

807

3,357

2,648

(216)

2,163

4,595

Vicon USA

3,859

-

(3,685)

174

2,683

-

(2,636)

47

6,542

-

(6,162)

380

Vicon Group

4,322

(108)

(2,301)

1,913

5,341

(108)

(1,829)

3,404

9,190

(216)

(3,999)

4,975


 

 

 








Industrial Vision Systems

(37)

(152)

318









 

 

 








Unallocated

(783)

(232)

2,176

1,161

(874)

(49)

1,533

610

(1,690)

(8)

3,310

1,612

Total

4,046

(377)

(277)

3,392

4,467

(157)

(296)

4,014

7,500

(224)

(689)

6,587


 

 

 

 









Discontinued operations

 

 

 

 









Vicon UK - IMU

(546)

(1,112)

277

(1,381)

(393)

(36)

296

(133)

(955)

(72)

689

(338)


 

 

 

 









Oxford Metrics Group

3,500

(1,489)

-

2,011

4,074

(193)

-

3,881

6,545

(296)

-

6,249

 

 

 

Non-current assets

Additions to non-current assets

Carrying amount of segment assets

Carrying amount of segment liabilities

 

Six months ended 31 March 2024 (unaudited)

Six months  ended 31 March 2023 (unaudited)

Year ended 30 September 2023   (audited)

Six months ended 31 March 2024 (unaudited)

Six months  ended 31 March 2023 (unaudited)

Year ended 30 September 2023   (audited)

Six months ended 31 March 2024 (unaudited)

Six months  ended 31 March 2023 (unaudited)

Year ended 30 September 2023   (audited)

Six months ended 31 March 2024 (unaudited)

Six months  ended 31 March 2023 (unaudited)

Year ended 30 September 2023   (audited)

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Vicon UK

13,313

12,623

12,763

3,438

1,828

3,885

28,156

31,154

28,161

(9,789)

(9,751)

(10,717)

Vicon USA

2,777

1,454

3,010

60

170

1,998

10,797

5,933

13,107

(5,061)

(4,245)

(6,116)

Vicon Group

16,090

14,077

15,773

3,498

1,998

5,883

38,953

37,087

41,268

(14,850)

(13,996)

(16,833)


 



 



 



 



Industrial Vision Systems

 

8,425

 

-

 

-

 

6

 

-

 

-

 

10,017

 

-

 

-

 

(878)

 

-

 

-


 



 



 



 



Unallocated

274

581

281

5

55

55

54,083

61,835

63,950

(1,327)

(450)

(1,128)


 



 



 



 



OMG Life Group*

 

-

 

-

 

-

 

-

 

-

 

-

 

(6,052)

 

(6,052)

 

(6,052)

 

-

 

-

 

-

Oxford Metrics Group

 

24,789

 

14,658

 

16,054

 

3,509

 

2,053

 

5,938

 

97,001

 

92,870

 

99,166

 

(17,055)

 

(14,446)

 

(17,961)

 

\* 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 before tax

 


Six months ended

31 March

 2024

Six months ended

31 March

 2023  

Year

 ended

30 September

2023  


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Profit before tax - continuing operations

3,392

4,014

6,587

Share option charges

66

62

34

Amortisation of intangibles arising on acquisition

132

95

190

Costs associated with acquisition of Industrial Vision Systems Ltd

179

-

-

Reapportion Group overheads

277

296

689

Adjusted profit before tax - continuing operations

4,046

4,467

7,500


 



Profit before tax - discontinued operations

(1,381)

(133)

(338)

Amortisation of intangibles arising on acquisition

36

36

72

Impairment of goodwill

1,076

-

-

Reapportion Group overheads

(277)

(296)

(689)

Adjusted profit before tax - discontinued operations

(546)

(393)

(955)

Adjusted profit before tax - total operations

3,500

4,074

6,545


 



 

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

 



Basic earnings per share (pence)

2.63p

2.94p

5.29p

Diluted earnings per share (pence)

2.59p

2.91p

5.26p


 




 



 

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

 

 

 

Vicon Group

 


Six months ended

31 March

 2024

Six months ended

31 March

 2023  

Year

 ended

30 September

2023  


(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Profit before tax - continuing operations

1,913

3,404

4,975

Share option charges

13

13

26

Amortisation of intangibles arising on acquisition

95

95

190

Reapportion Group overheads

2,301

1,829

3,999

Adjusted profit before tax - continuing operations

4,322

5,341

9,190


 



 

 

 

5.   Taxation

 

The Group's consolidated effective tax rate for the six months ended 31 March 2024 was 29.5% (for the six months ended 31 March 2023: 16.3%; for the year ended 30 September 2023: 9.5%.

 

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 2024 (unaudited)

31 March 2023 (unaudited)

30 September 2023 (audited)

 

Earnings/(loss)

Weighted average number of shares

Per share amount

Earnings/(loss)

Weighted average number of shares

Per share amount

Earnings/(loss)

Weighted average number of shares

Per share amount


£'000

'000

(pence)

£'000

'000

(pence)

£'000

'000

(pence)

Continuing operations

 

 

 







Basic earnings per share

 

 

 







Earnings attributable to ordinary shareholders

2,794

131,236

2.13

3,367

129,975

2.59

5,976

130,162

4.59

Dilutive effect of employee share options

-

1,793

(0.03)

-

1,876

(0.03)

-

904

(0.03)

Diluted earnings per share

2,794

133,029

2.10

3,367

131,851

2.56

5,976

131,066

4.56

Discontinued operations

 

 

 







Basic loss per share

 

 

 







Earnings attributable to ordinary shareholders

(1,382)

 

131,236

(1.05)

 

(124)

 

129,975

(0.10)

 

(320)

 

130,162

(0.24)

 

Dilutive effect of employee share options

-

1,793

-

-

1,876

-

-

904

-

Diluted loss per share

(1,382)

133,029

(1.05)

(124)

131,851

(0.10)

(320)

131,066

(0.24)

Total operations

 

 

 







Basic earnings per share

 

 

 







Loss attributable to ordinary shareholders

1,412

131,236

1.08

3,243

129,975

2.49

5,656

130,162

4.35

Dilutive effect of employee share options

-

1,793

(0.03)

-

1,876

(0.03)

-

904

(0.03)

Diluted earnings per share

1,412

133,029

1.05

3,243

131,851

2.46

5,656

131,066

4.32

 

 

7.   Share capital

 


31 March

31 March

30 September


2024

2023

2023


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Allotted, called up and fully paid

 



131,439,635 shares of 0.25p (31 March 2023: 130,239,276 shares of 0.25p and 30 September 2023: 130,420,276 shares of 0.25p)

329

325

326

 

During the six months ended 31 March 2024 there were 12,000 shares issued relating to share options that were exercised.  There were 444,000 shares issued in respect of share options exercised during the six months ended 31 March 2023 (year ended 30 September 2023: 625,000).

 

In addition, during the six months ended 31 March 2024 there were 1,007,000 shares issued as consideration for the acquisition of Industrial Vision Systems Limited. 

 

There were no shares (six months ended 31 March 2023: 27,624 shares) issued to the non-executive Chairman, Roger Parry, 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


2024

2023

2023


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Final dividend for 2022 paid in 2023 - 2.50 pence per share

-

3,246

3,246

Final dividend for 2023 paid in 2024 - 2.75 pence per share

3,615

-

-


3,615

3,246

3,246

 

The final dividend for 2023 was paid to shareholders on 14 February 2024 at 2.75 pence per share, a total of £3,615,000. 

 

 

9.   Business combinations

 

The Group acquired 100% of the share capital of Industrial Vision Systems Limited on 31 October 2023 for a total provisional consideration of £8.1m, 10% of which has been funded though the issue of share capital with the balance coming from existing cash resources.

 

A provisional valuation of the assets acquired and resulting goodwill has been performed and included within these results.  Further detail will be provided in the full Annual Report for the year ending 30 September 2024.

 

10. Copies of the interim statement

 

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

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR SFSESSELSELM