Interim Results for the six months ended 31 March 2022
- Oxford Metrics trades successfully in important development period for the Group
- Vicon revenue grows despite supply chain constraints
- Unprecedented level of orders-in-hand going into the second half
- Strong financial platform, further strengthened by sale of Yotta, to accelerate M&A and planned organic investments
23 June 2022 - Oxford Metrics plc (LSE: OMG), the smart sensing software company, servicing life sciences, entertainment and engineering markets, announces unaudited interim results for the six months ended 31 March 2022.
|H1 FY22||H1 FY21|
|Adjusted Profit before Tax*||£0.3m||£1.0m|
|Adjusted* Basic Earnings per Share||0.41p||0.69p|
|Statutory Profit/(Loss) before Tax||0.65p||0.92p|
|Cash as at 22 June 2022||£67.7m||-|
* Profit/(loss) Before Tax from continuing operations before Group recharges adjusted for share-based payments, amortisation of intangibles arising on acquisition, change in fair value of deferred consideration payable and unwinding of associated discount factor and exceptional costs
Commenting on the results Nick Bolton, Chief Executive said:
“Oxford Metrics has traded successfully in an important development period for the Group. Firstly, in October last year we announced our new five-year plan to both grow revenues by 2.5x and to deliver Adjusted PBT margins of 15% by the end of the plan.
Secondly, the Group’s trading during the first half of FY22 saw Vicon reporting strong revenue growth of 11.8% despite supply chain constraints, but this does not fully reflect the underlying strength of the business.
More recently, the Group announced the disposal of Yotta to Causeway Technologies for a cash consideration of £52.0m. The sale means we have increased financial firepower to make strategic organic and inorganic investments through the lens of Vicon and its core technology.
The Group enters the second half with Vicon having more than recovered from the pandemic-impacted years with an unprecedented level of orders-in-hand driven by buoyant demand continuing. Although our ability to deliver has been impacted by supply chain constraints, the situation is gradually improving and the Board remains confident that Oxford Metrics is in-line with achieving its full year expectations. The Group also has significant cash resources and is actively seeking out M&A opportunities to enhance our capabilities and scale towards our five-year goals.”
- Headline Group revenue of £12.5m, up 11.8% (H1 FY21: £11.2m), on a constant currency basis underlying growth was 11.1%
- The Group reported an adjusted profit before tax £0.3m (H1 FY21: £1.0m) reflecting a planned increase in R&D investment, together with operating costs returning to more normal levels
- Adjusted earnings per share 0.41p (H1 FY21: 0.69p)
- Order book of £12.9m (H1 FY21: £0.7m)
- Continued cash generation with operating cashflow of £3.2m (H1 FY21: £4.5m)
- Strong balance sheet with no debt and cash of £19.6m as at 31 March 2022 (H1 FY21: £15.9m)
- Cash position as at 22nd June 2022 £67.7m, reflecting Yotta sale proceeds
Vicon delivers strong revenue growth, despite supply chain constraints
- Vicon’s revenue grew 11.8%, at a headline level, to £12.5m (H1 FY21: £11.2m) despite some supply chain constraints.
- Strong demand across all vertical markets despite being subject to supply chain constraints, with an unprecedented level of orders-in-hand of £12.9m.
- Location-based Entertainment (LBE) market recovery continues with growth of 131.3%, as all market partners restart their experiences.
- Life Sciences revenue grew by 11.0%, and accounts for a quarter of the orders-in-hand.
- Engineering grew 8.3% with good wins at Cranfield University and ICAI Madrid.
- Entertainment revenue was flat although buoyant Virtual Production and Animation growth continues, with Entertainment accounting for half of the orders-in-hand.
- Before Group costs, Vicon reported an Adjusted PBT* of £1.8m (H1 FY21: £2.2m) reflecting a change in product mix and some increases to operating costs.
Yotta sale is an enabler of growth
- Yotta was sold to Causeway Technologies on 30th May 2022 for a cash consideration of £52.0 million, in a sale that makes sense on multiple fronts:
- The transaction represents attractive revenue and profit multiples.
- While Yotta has been growing steadily in scale, growing recurring revenue and achieving full year adjusted profitability, it shared no overlap with Vicon - the much larger and higher growth part of the Group.
- In joining with Causeway, a well-established leader of software solutions to the construction industry, we believe this newly combined business is much better positioned to continue both Yotta’s growth and innovation.
- The proceeds from the sale have provided the Group with significant near-term financial firepower to accelerate M&A and planned organic investments.
Outlook and Guidance
- Vicon has more than recovered from the pandemic-affected years which is evidenced by the unprecedented level of orders-in-hand arising from ongoing buoyant demand.
- The overall cost base in the second half is expected to rise compared to the first half as costs continue to normalise following the pandemic and we continue with our investment plans to augment our ability to sense, analyse and apply.
- Having considered the current order book, the expected rise in the cost base and given that supply chain constraints are gradually improving, the Board remains confident that Oxford Metrics is in-line with achieving its full year expectations.
- Following the sale of Yotta, the Group has significant cash resources and is actively seeking out M&A opportunities to enhance capabilities.
- The Company is now a more focussed business, well placed to deliver on the targets set out in our five-year plan.
For the full Interim Results click here.
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