REG - Oxford Metrics PLC - Interim Results
11/06/2024 07:00
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RNS Number : 8772R Oxford Metrics PLC 11 June 2024
11(th) 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
(https://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
(https://oxfordmetrics.com/news/2024-04-25/capital-markets-day-2024) .
● 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
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 Six months ended Year
31 March 31 March ended
2024 2023 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 Six months ended Year
31 March 31 March ended
2024 2023 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 1,377 2,875 5,546
parent
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 31 March 30 September
2024 2023 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 Six months Year
ended ended ended
31 March 31 March 30 September 2023
2024 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
Foreign currency translation reserve
Shares Share premium account
Share to be Merger Retained earnings
Capital issued 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 Six months ended Year
31 March 31 March ended
2024 2023 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 Six months ended Year
31 March 31 March ended
2024 2023 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 Six months ended Year
31 March 31 March ended
2024 2023 restated 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 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
Adjusting items
£'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 507 (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 Year ended 30 September 2023 (audited) Six months ended 31 March 2024 (unaudited) Six months ended 31 March 2023 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)
(unaudited) (unaudited)
£'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 Six months ended Year
31 March 31 March ended
2024 2023 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 Six months ended Year
31 March 31 March ended
2024 2023 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 30 329 325 326
September 2023: 130,420,276 shares of 0.25p)
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
(http://www.oxfordmetrics.com) .
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