Interim Results

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RNS Number : 8744P
Oxford Metrics PLC
23 June 2022
 

23rd June 2022

Oxford Metrics plc

 

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

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

 

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

Revenue

£12.5m

£11.2m

Adjusted Profit before Tax*

£0.3m

£1.0m

Adjusted* Basic Earnings per Share

0.41p

0.69p

Statutory Profit/(Loss) before Tax

£0.6m

£1.3m

Statutory Basic Earnings per Share

0.65p

0.92p

Net Cash

£19.6m

£15.9m

Operating Cashflow

£3.2m

£4.5m

Cash as at 22 June 2022

£67.7m

-

Order book

£12.9m

£0.7m

* 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."

Financial Highlights

·   

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

 

Operational Highlights

 

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 further information please contact:

 

Oxford Metrics

+44 (0)1865 261860

Nick Bolton, CEO

 

David Deacon, CFO

 


 

Numis Securities Limited

+44 (0)20 7260 1000

Simon Willis / Hugo Rubinstein / Tejas Padalkar

 

 

 

FTI Consulting

+44 (0)20 3727 1000

Matt Dixon / Jamille Smith / Jemima Gurney

 


 

About Oxford Metrics

 

Oxford Metrics develops software that enables the interface between the real world and its virtual twin. Our smart sensing software 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®, then moved into defence and engineering. We have a 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. Vicon is a world leader in motion measurement analysis to thousands of customers worldwide, including Guy's Hospital, Industrial Light & Magic, MIT and NASA.

 

The Group is headquartered in Oxford with offices in California, Colorado, and Auckland. Since 2001, Oxford Metrics (LSE: OMG), has been a quoted company listed on AIM, a market operated by the London Stock Exchange. For more information about Oxford Metrics, visit www.oxfordmetrics.com

 

Chairman and Chief Executive's Statement

The first half was a period of important development for the Group. Firstly, in October 2021, we announced our new five-year plan, through which we aim, by the end of plan, to both grow revenues by 2.5x and deliver adjusted PBT margins of 15%. Secondly, we traded successfully in the first half with headline revenues growing 11.8% whilst still holding an unprecedented level of orders-in-hand of £12.9m (H1FY21: £0.7m) into the second half driven by buoyant demand. In May 2022, we announced the disposal of our Yotta business at a highly attractive valuation. The disposal has resulted in a company which is now more focussed and with greater financial firepower to deliver on its growing set of organic and inorganic opportunities.

 

Yotta sale

 

Given the significance of the sale of Yotta to both these reported figures and to the go-forward growth opportunities for the Group, let us start here. On 30th May 2022, we announced the sale of Yotta, our infrastructure asset management software division, to Causeway Technologies for a cash consideration of £52.0 million. First and foremost, the transaction makes clear financial sense. The consideration was paid fully in cash and represents attractive revenue and profit multiples.

 

The second point to note is that, whilst Yotta had been growing steadily in scale, particularly in growing recurring revenue and achieving full year adjusted profitability, it shared no overlap with Vicon - the much larger part of our Group and higher-growth division. This meant driving synergy benefits to scale Yotta would be difficult to achieve under our ownership. Whereas, 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.

 

Although the sale closed after period end, these Interim Results have been restated accordingly to reflect the sale. This means Yotta is disclosed as a discontinued operation in the Income Statement and as an Asset Held for Sale on the Statement of Financial Position. The disposal is expected to generate a profit on disposal net of costs of £44.3m which will not be subject to tax given the transaction qualifies under the Finance Act 2002 Substantial Shareholder Exemption as amended. From a net cash perspective the transaction is expected to add £47.4m.

 

First half trading (from continuing operations)

 

KPI

Revenue

PBT

Adjusted PBT*


H1 FY22

H1 FY21

H1 FY22

H1 FY21

H1 FY22

H1 FY21

Group

£12.5m

£11.2m

£0.6m

£1.3m

£0.3m

£1.0m

 

Removing Yotta from the trading figures, the reported revenues of the remaining Group have improved to £12.5m (H1 FY21: £11.2m), up 11.8% at a headline level and up 11.1% on a constant currency basis. However, this does not fully reflect the underlying strength of the business when orders-in-hand are taken into account. We have continued to see strong demand across all Vicon's vertical markets, although delivering on this demand has been subject to well publicised supply chain constraints. We have had success in navigating these challenges in the first half and continue to actively manage the situation. As we enter the second half of the financial year, we carry an unprecedented level of orders-in-hand of £12.9m (H1 FY21: £0.7m) driven by buoyant demand. Whilst some supply chain constraints continue, the overall picture continues to improve gradually.

 

The Group also reports an Adjusted PBT* of £0.3m (H1 FY21: £1.0m), largely reflecting an increase in R&D investment announced at the Preliminary Results for FY21,

All vertical market segments have performed well and reported growth through the first half.

 

Engineering

 

Engineering reported revenue growth of 8.3%. During the period the Centre for Autonomous and Cyberphysical Systems, at Cranfield University, purchased a system to be used in the research and study of Aeronautical Systems, Autonomous Systems, Flight Physics and Off-Road Vehicle Engineering. While ICAI Madrid, in Spain, is using Vicon to understand the potential risks of reclined seating postures intended for autonomous cars as the current design of seat belts and airbags has never considered installation in autonomous vehicles.

 

Entertainment

 

Entertainment reported revenues were broadly flat year-on-year, following a strong performance in the first of last year. However, over half of the order backlog is accounted for by Entertainment which continues to see buoyant growth in Virtual Production and Animation. In the half the Institute of American Indian Arts purchased a system to help to preserve the heritage of the Native American. Illfonic Games and Monkey Chow also added Vicon to their Games and VFX business, and our long-term customer Industrial Light and Magic launched the "ABBA: Voyage" show which used Vicon technology to help animate the band members to widespread critical acclaim.

 

Life Sciences

 

Life Sciences reported revenues were up 11.0% and accounts for over a quarter of the order backlog. During the period Manchester Metropolitan University Institute of Sport invested in a new system, which is an integral part of the brand new £26m Institute of Sport Building (Centre of Sporting Excellence) at the University, opening in 2022. While a system purchased by the JOiiNT LAB in Bergamo, Italy is being used for robot control (navigation and manipulation), ergonomic studies, and biomechanical studies to technically evaluate a novel prosthetic foot for lower-limb amputees, a by no means unique combination of Life Sciences and Engineering studies being conducted on the same system. As part of the same research consortium another system installed at IIT Genoa will be used for robot teleoperation, as well as for technically evaluating upper-limb and lower-limb prostheses. Tonal, a home gym and personal training company purchased system to help assess their sports science product range.

 

LBE

Our Location-based Entertainment (LBE) market continues to recover reporting year-on-year growth of 131.3% and also has an encouraging order backlog. This performance was driven by all of our market partners restarting their experiences as the pandemic rules were relaxed. Significant expansions, previously planned prior to COVID-19 are now in progress, and we were able to sign a new market partner up in the latter part of the first half.

Overall, Vicon reported a gross margin at 70.7% (H1 FY21: 73.3%) in the first half. The decline 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.

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 £1.8m (H1 FY21: £2.2m) and an unadjusted profit before tax of £0.6m (H1 FY21: £1.1m).

The cash position, having paid a final dividend of £2.5m in the first half, finished at £19.6m as at 31 March 2021 (H1 FY21: £15.9m). Cash generated from operations during the first half was £3.2m (H1 FY21: £4.5m). The Group cash position on the eve of these Interims Results stood at £67.7m.

Five-year plan - a reminder

 

The successful sale of Yotta changes nothing about our ambition for our five-year plan but it does provide an increased opportunity as to how fast and how hard we drive it. Our plan recognised something fundamental was changing in our markets and in our opportunity. This change was driven by the arrival of the Augmented Age - an era where humans partner with machines to achieve what neither can alone. For this augmented partnership to thrive, we need technologies which have the ability to perceive us and our surroundings. They must be able to capture and understand every dimension of our world in real-time - humans, objects, movements, environments.

 

This requires smart sensing systems, where cameras and other sensors are deeply coupled with powerful software to enable machines to transparently enhance our lives. Such smart sensing capability has always been our core technology - from imagery to insight; from pixel to purpose; and from sensing to sense-making. Indeed, it provided the seed for Yotta's creation, growth and eventual sale. Today, we are seeing it can be applied to a growing set of domains and applications.

 

Our plan looks to capitalise on exactly this expanded opportunity by focussing on driving each of the three elements of smart sensing - sense, analyse and apply.

 

1.  

Extend the sensing capabilities our integrated smart sensing systems through R&D, M&A and fostering key supplier partnerships. Currently, our solutions utilise a wide range of sensors - including optical, video, inertial, force plates among others - some we own and some we integrate with. These existing sensing mechanisms can be improved, and we can also add other sensing mechanisms to broaden the applicability of our integrated solutions.


2.  

Enhance the analysis we can undertake to broaden the range of applications to which our systems can be applied. Our most recent acquisition, Contemplas, completed in August 2021 is a great example of this.


3.  

Embed our Intellectual Property (IP) in other firms' solutions by opening up our technology through R&D, M&A and investing in dedicated embedding sales and support resources. Here we will expand the ability to integrate our sensing and analysis IP to specific application domains, such as our existing partners in the Location-based Entertainment (LBE) market.

 

 

Greater focus. Greater resources.

 

Following the sale of Yotta, the entirety of the five-year plan still holds. The contexts of market and technology developments still hold. The validity of our three-initiative approach through the constituent elements of sense, analyse and apply still hold. Now we will pursue this plan through the focussed lens of our market-leading global Vicon business and technology, and with the increased resources the sale of Yotta has provided to our balance sheet. Our aim is to build a larger, more connected enterprise. This means adding the following adaptations to our sense, analyse, apply initiatives:

 

·   

Focus on a single integrated core technology stack. We already lead in a variety of markets through a range of sensing and analysis technologies. We now have to the opportunity to add to this core through both organic development and M&A. In all cases the additional technologies must augment and/or amplify our existing capabilities. Although the end market application may be new, there will always be a tie back to this central capability of integrated smart sensing systems.


·   

Extract greater operational leverage across markets and the organisation. Closer markets, technologies and customers enable us to extract greater operational leverage across initiatives. For example, a single technology innovation which can be applied to all our markets or driving out economies of scale in our marketing or our production. We are seeking coherence across the organisation and the end markets we target.


·   

Pursue larger scale transactions. With a stronger balance sheet, we have the opportunity to accelerate our pace of growth through lifting our ambition to complete a number of larger transactions. We already have an exciting pipeline of M&A opportunities which fit well within this new, more cohesive plan. We will remain disciplined on price and we continue to look for IP-rich, hard-to-replicate technology companies with attractive actual or potential cashflow metrics, good-to-high revenue visibility or a dominant position in a niche market, proven market acceptance of their technology, and able management teams who share our cultural values.

 

Outlook

The Vicon business has more than recovered from the pandemic-affected years, which is evidenced by the unprecedented level of orders-in-hand driven by ongoing buoyant demand.

The overall cost base in the second half is expected to rise as costs continue to normalise following the pandemic and we continue with our investment plans to augment our ability to sense, analyse and apply.

Our ability to deliver on the buoyant demand has hitherto been impacted by supply chain constraints but looking forward, the situation is gradually improving and the Board believe Oxford Metrics will deliver a performance for the full year in line with achieving market expectations.

With growing market demand, a newly focussed, more connected enterprise and now with more financial firepower, we believe Oxford Metrics is well positioned to realise its ever-visible, longstanding growth potential.

* 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.

CONDENSED CONSOLIDATED INCOME STATEMENT

 

 

 

 

 

Six months ended

31 March

2022

Six months ended

 31 March

2021

Year

ended

 30 September 2021


 

(unaudited)

(unaudited)

(audited)


Note

£'000

£'000

£'000

Revenue

2

12,547

11,225

27,571

Cost of sales

 

(4,099)

(3,525)

(8,589)

Gross profit

 

8,448

7,700

18,982

Sales, support and marketing costs

 

(3,099)

(2,569)

(5,336)

Research and development

 

(1,676)

(1,374)

(3,511)

Administrative expenses

 

(3,038)

(2,473)

(6,438)

Operating profit

 

635

1,284

3,697

Finance income

 

1

3

4

Finance expense

 

(32)

(34)

(67)

Profit before taxation

 

604

1,253

3,634

Taxation

 

228

(88)

(574)

Profit from continuing operations

 

832

1,165

3,060

Loss from discontinued operations, net of tax

 

(206)

(145)

(125)

Profit for the period attributable to

owners of the parent during the period

 

 

626

 

1,020

 

2,935


 

 



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

 

 



Basic earnings per share (pence)

6

0.65p

0.92p

2.42p

Diluted earnings per share (pence)

6

0.65p

0.91p

2.40p

 

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

 

 



Basic earnings per share (pence)

6

0.49p

0.81p

2.32p

Diluted earnings per share (pence)

6

0.49p

0.80p

2.30p

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


 

Six months ended

31 March

2022

Six months ended

 31 March

2021

Year

ended

 30 September 2021


 

(unaudited)

(unaudited)

(audited)


 

£'000

£'000

£'000

Net profit for the period

 

626

1,020

2,935

Other comprehensive income

 

 



Items that will or may be reclassified to profit or loss

 

 

 

 

Exchange differences on retranslation of overseas subsidiaries

 

85

(351)

(129)

Total other comprehensive income/(expense)

 

85

(351)

(129)

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

 

711

669

2,806

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 



31 March

2022

31 March

2021

30 September

2021



(unaudited)

(unaudited)

(audited)


Note

£'000

£'000

£'000

Non-current assets

 

 



Goodwill and intangible assets

 

8,984

12,524

13,543

Property, plant and equipment

 

1,548

1,728

1,756

Right of use assets

 

1,022

2,061

1,978

Financial asset - investments

 

236

305

236

Deferred tax asset

 

898

1,155

1,877

 

 

12,688

17,773

19,390

Current assets

 

 



Inventories

 

2,769

3,220

2,494

Trade and other receivables

 

3,406

8,627

6,099

Current tax debtor

 

32

102

118

Cash and cash equivalents

 

19,614

15,867

22,957


 

25,821

27,816

31,668

 

 

 

 

 

Assets classified as held for sale

 

12,001

-

-


 

 



Current liabilities

 

 



Trade and other payables


(8,358)

(10,978)

(12,504)

Current tax liability


(154)

-

-

Lease liabilities

 

(356)

(496)

(582)

 

 

(8,868)

(11,474)

(13,086)

 

 

 



Liabilities directly associated with assets classified as held for sale

 

(6,968)

-

-

 

 

 



Net current assets

 

21,986

16,342

18,582

Total assets less current liabilities

 

34,674

34,115

37,972

 

Non-current liabilities

 

 



Other liabilities


(762)

(687)

(883)

Lease liabilities

 

(839)

(1,719)

(1,563)

Provisions


(36)

(28)

(32)

Deferred tax liability

 

(2,186)

(1,972)

(3,058)

 

 

(3,823)

(4,406)

(5,536)


 

 



Net assets

 

30,851

29,709

32,436

 

 

 



Capital and reserves attributable to the owners of the parent

 

 



Share capital

7

318

316

317

Shares to be issued

 

65

65

65

Share premium account

 

18,742

18,184

18,483

Retained earnings

 

11,608

11,333

13,538

Foreign currency translation reserve

 

118

(189)

33

Total equity shareholders' funds

 

30,851

29,709

32,436

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS

 

 

 

 

 

 

Six months

ended

31 March

2022

Six months ended

31 March

2021

Year

ended

30 September 2021


 

(unaudited)

(unaudited)

(audited)


 

£'000

£'000

£'000

Cash flows from operating activities

 

 



Operating profit from continuing operations


635

1,284

3,697

Operating loss from discontinued operations


(102)

(243)

(374)

Group operating profit

 

533

1,041

3,323


 

 



Depreciation and amortisation

 

1,432

1,711

3,339

Impairment of intangible assets

 

-

-

1,341

Increase in fair value of investment

 

-

-

(68)

Share based payments

 

122

72

98

Exchange adjustments


96

(254)

(69)

(Increase)/decrease in inventories


(266)

176

1,144

Decrease in receivables


47

440

3,126

Increase in payables


1,200

1,265

2,223

Cash generated from operating activities

 

3,164

4,451

14,457

Tax received/(paid)

 

16

(87)

(102)

Net cash from operating activities

 

3,180

4,364

14,355

 

 

 



Cash flows from investing activities

 

 



Purchase of property, plant and equipment

 

(340)

(78)

(239)

Purchase of intangible assets

 

(1,688)

(1,191)

(2,778)

Proceeds on disposal of property, plant and equipment

 

30

4

11

Acquisition of subsidiary undertaking net of cash acquired

 

-

-

(1,149)

Interest received

 

1

3

4

Net cash used in investing activities

 

(1,997)

(1,262)

(4,151)

 

 

 



Cash flows from financing activities

 

 



Principal paid on lease liabilities


(230)

(248)

(504)

Interest paid on lease liabilities


(45)

(50)

(105)

Interest paid


(4)

-

(1)

Issue of ordinary shares

 

225

387

687

Equity dividends paid


(2,542)

(2,264)

(2,264)

Net cash used in financing activities

 

(2,596)

(2,175)

(2,187)

Net (decrease)/increase in cash and cash equivalents

 

(1,413)

927

8,017

Cash and cash equivalents at beginning of the period

 

22,957

14,940

14,940

Cash and cash equivalents at end of the period

 

21,544

15,867

22,957

Amount included in cash and cash equivalents

 

19,614

15,867

22,957

Amount included in assets classified as held for sale

 

1,930

-

-

Total cash and cash equivalents at end of the period

 

21,544

15,867

22,957

 


CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY

 

 

 

 

Share

Capital

 

Shares

to be

issued

 

Share premium account

 

 

Retained earnings

Foreign currency translation reserve

 

 

 

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance as at 30 September 2021

317

65

18,483

13,538

33

32,436

Net profit for the period

 

-

-

-

626

-

626

Exchange difference on retranslation of overseas subsidiaries

-

-

-

-

85

85

Transactions with owners:

 

 

 

 

 

 

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

-

-

-

(100)

-

(100)

Dividends

-

-

-

(2,542)

-

(2,542)

Issue of share capital

1

-

259

-

-

260

Share based payment charge

-

-

-

86

-

86

Balance as at 31 March 2022

318

65

18,742

11,608

118

30,851








Balance as at 30 September 2020

314

65

17,763

12,437

162

30,741

Net profit for the period

-

-

-

1,020

-

1,020

Exchange differences on retranslation of overseas subsidiaries

-

-

-

-

(351)

(351)

Transactions with owners:







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

-

-

-

104

-

104

Dividends

-

-

-

(2,264)

-

(2,264)

Issue of share capital

2

-

421

-

-

423

Share based payment charge

-

-

-

36

-

36

Balance as at 31 March 2021

316

65

18,184

11,333

(189)

29,709








Balance as at 30 September 2020

314

65

17,763

12,437

162

30,741

Net profit for the period

-

-

-

2,935

-

2,935

Exchange differences on retranslation of overseas subsidiaries

-

-

-

-

(129)

(129)

Transactions with owners:







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

-

-

-

368

-

368

Dividends

-

-

-

(2,264)

-

(2,264)

Issue of share capital

3

-

720

-

-

723

Share based payment charge

-

-

-

62

-

62

Balance as at 30 September 2021

317

65

18,483

13,538

33

32,436

 

 

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 2022 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 2021.  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 2021 are not the statutory accounts but have been extracted from the Group's 2021 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

 

 

 


Six months ended

31 March

 2022

Six months ended

31 March

 2021

Year

 ended

30 September

2021


(unaudited)

(unaudited)

(audited)

Revenue

£'000

£'000

£'000

Continuing operations




Vicon UK

7,523

7,389

17,260

Vicon USA

5,024

3,836

10,311

Vicon Group

12,547

11,225

27,571


 



Discontinued operations

 



Yotta Group

4,256

4,099

8,056


 



Total operations

 



Oxford Metrics Group

16,803

15,324

35,627

 

 

 

 

 

 

 

 

Six months ended 31 March 2022 (unaudited)

 

Continuing

Vicon UK

Continuing

Vicon USA

Total Continuing

operations

Discontinued

Yotta

Total

Group

 

£'000

£'000

£'000

£'000

£'000

Timing of the transfer of goods and services

 

 

 

 

 

Point in time

6,556

3,933

10,489

732

11,221

Over time

967

1,091

2,058

3,524

5,582


7,523

5,024

12,547

4,256

16,803


 

 

 

 

 

Contract Counterparties

 

 

 

 

 

 

Direct to consumers

1,893

4,433

6,326

3,576

9,902

Third party distributor

5,630

591

6,221

680

6,901


7,523

5,024

12,547

4,256

16,803


 

 

 

 

 

By destination

 

 

 

 

 

 

UK

1,035

-

1,035

4,072

5,107

Germany

1,346

-

1,346

-

1,346

Italy

169

-

169

-

169

Greece

67

-

67

41

108

Netherlands

228

-

228

26

254

France

278

-

278

-

278

Spain

146

-

146

-

146

Rest of Europe

423

-

423

-

423

Canada

11

720

731

-

731

USA

13

4,193

4,206

-

4,206

Rest of North America

-

104

104

-

104

Australia

429

-

429

107

536

Hong Kong

1,948

-

1,948

-

1,948

Japan

637

-

637

-

637

Korea

509

-

509

-

509

Rest of Asia Pacific

249

-

249

-

249

Other

35

7

42

10

52

Oxford Metrics Group

7,523

5,024

12,547

4,256

16,803


 

 

 

 

 

 


 


 

 

 

 

 



Six months ended 31 March 2021 (unaudited)

 

Continuing

Vicon UK

Continuing

Vicon USA

Total Continuing

operations

Discontinued

Yotta

Total

Group

 

£'000

£'000

£'000

£'000

£'000

Timing of the transfer of goods and services






Point in time

6,612

2,973

9,585

981

10,566

Over time

777

863

1,640

3,118

4,758

Oxford Metrics Group

7,389

3,836

11,225

4,099

15,324







Contract Counterparties

 






Direct to consumers

1,796

3,484

5,280

3,299

8,579

Third party distributor

5,593

352

5,945

800

6,745

Oxford Metrics Group

7,389

3,836

11,225

4,099

15,324







By destination

 






UK

1,361

-

1,361

3,914

5,275

Germany

694

-

694

-

694

Italy

247

-

247

-

247

Netherlands

284

-

284

10

294

France

101

-

101

-

101

Switzerland

64

-

64

-

64

Rest of Europe

555

-

555

-

555

Canada

-

195

195

-

195

USA

2

3,550

3,552

-

3,552

Rest of North America

-

43

43

-

43

Australia

177

-

177

168

345

Hong Kong

1,390

-

1,390

-

1,390

Japan

1,591

-

1,591

-

1,591

Korea

569

-

569

-

569

Rest of Asia Pacific

354

-

354

-

354

Other

-

48

48

7

55

Oxford Metrics Group

7,389

3,836

11,225

4,099

15,324







 


 



Year ended 30 September 2021 (audited)

 

Continuing

Vicon UK

Continuing

Vicon USA

Total Continuing

operations

Discontinued

Yotta

Total

Group

 

£'000

£'000

£'000

£'000

£'000

Timing of the transfer of goods and services






Point in time

15,606

8,353

23,959

1,747

25,706

Over time

1,654

1,958

3,612

6,309

9,921

Oxford Metrics Group

17,260

10,311

27,571

8,056

35,627







Contract Counterparties






Direct to consumers

4,750

9,265

14,015

6,773

20,788

Third party distributor

12,510

1,046

13,556

1,283

14,839

Oxford Metrics Group

17,260

10,311

27,571

8,056

35,627







By destination






UK

3,519

-

3,519

7,741

11,260

Germany

1,591

-

1,591

-

1,591

Italy

484

-

484

-

484

Netherlands

435

-

435

22

457

France

220

-

220

-

220

Poland

355

-

355

-

355

Rest of Europe

1,601

-

1,601

6

1,607

Canada

-

1,221

1,221

-

1,221

USA

-

8,920

8,920

-

8,920

Rest of North America

2

104

106

-

106

Australia

530

-

530

269

799

Hong Kong

1,277

-

1,277

-

1,277

Japan

3,290

-

3,290

-

3,290

South Korea

1,364

-

1,364

-

1,364

China

2,254

-

2,254

-

2,254

Rest of Asia Pacific

338

-

338

-

338

Other

-

66

66

18

84

Oxford Metrics Group

17,260

10,311

27,571

8,056

35,627


 

 

 

 

 


 

 

 

 

 

 
 

 

 

Six months ended

31 March

 2022

Six months ended

31 March

 2021

Year

 ended

30 September

2021

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Vicon revenue by market (continuing operations)

 



Engineering

2,678

2,472

5,763

Entertainment

3,955

4,022

11,884

Life sciences

4,637

4,179

9,106

Location based entertainment

1,277

552

818

Vicon Group*

12,547

11,225

27,571

 

  

 

Group revenue by type

 



Continuing operations

 



Sale of hardware

9,512

8,910

22,496

Sale of software

1,070

768

1,662

Rendering of services

1,269

1,115

2,485

SaaS

96

65

141

Support

600

367

787

Total continuing operations

12,547

11,225

27,571


 



Discontinued operations

 



Sale of software

-

3

4

Rendering of services

886

1,130

2,057

SaaS

1,969

1,558

3,164

Support

1,401

1,408

2,831

Total discontinued operations

4,256

4,099

8,056


 



Oxford Metrics Group

16,803

15,324

35,627

 

 

Group revenue by origin

 



Continuing operations

 



UK

6,778

7,389

17,000

Europe

745

-

238

North America

5,024

3,836

10,311

Asia Pacific

-

-

22

Total continuing operations

12,547

11,225

27,571


 



Discontinued operations

 

 

 

UK

4,148

3,931

7,786

Asia Pacific

108

168

270

Total discontinued operations

4,256

4,099

8,056


 



Oxford Metrics Group

16,803

15,324

35,627

 

 

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

  

 

3.   Segmental Analysis

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

 

The Group comprises the following business segments:

 

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

 

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

 

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

 

Business segments are analysed below:

    

 


Segment depreciation and amortisation


Six months ended

31 March

 2022

Six months ended

31 March

 2021

Year

 ended

30 September

2021


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Continuing operations

 

 

 

Vicon UK

944

1,071

3,436

Vicon USA

89

105

208

Vicon Group

1,033

1,176

3,644


 



Unallocated

30

9

38

Total continuing operations

1,063

1,185

3,682


 



Discontinued operations

 


 

Yotta

369

526

998


 



Oxford Metrics Group

1,432

1,711

4,680


Six months ended 31 March 2022 (unaudited)

Six months ended 31 March 2021 (unaudited)

Year ended 30 September 2021 (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

299

(134)

418

583

1,244

(135)

(6)

1,103

3,229

(1,344)

1,130

3,015

Vicon USA

1,490

-

(1,443)

47

965

-

(930)

35

3,562

-

(3,065)

497

Vicon Group

(134)

(1,025)

630

2,209

(135)

1,138

6,791

(1,344)

(1,935)

3,512


 

 

 

 









Unallocated

(1,490)

(82)

1,546

(26)

(1,252)

(21)

1,388

115

(2,763)

30

2,855

122

Total continuing operations

 

299

 

(216)

 

521

 

604

 

957

 

(156)

 

452

 

1,253

 

4,028

 

(1,314)

 

920

 

3,634


 

 

 

 









Discontinued operations

 

 

 

 









Yotta

495

(93)

(521)

(119)

380

(187)

(452)

(259)

793

(286)

(920)

(413)

 

 

 

 

 









Oxford Metrics Group

794

(309)

-

485

1,337

(343)

-

994

4,821

(1,600)

-

3,221

 

 

Non-current assets

Additions to non-current assets

Carrying amount of segment assets

Carrying amount of segment liabilities

 

Six months ended 31 March 2022 (unaudited)

Six months  ended 31 March 2021 (unaudited)

Year ended 30 September 2021   (audited)

Six months ended 31 March 2022 (unaudited)

Six months  ended 31 March 2021 (unaudited)

Year ended 30 September 2021   (audited)

Six months ended 31 March 2022 (unaudited)

Six months  ended 31 March 2021 (unaudited)

Year ended 30 September 2021   (audited)

Six months ended 31 March 2022 (unaudited)

Six months  ended 31 March 2021 (unaudited)

Year ended 30 September 2021   (audited)

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Vicon UK

10,982

9,537

10,324

1,510

1,022

2,137

24,148

25,009

22,962

(8,698)

(6,974)

(8,702)

Vicon USA

897

917

941

25

15

33

5,925

6,237

6,971

(3,360)

(3,246)

(2,989)

Vicon Group

11,879

10,454

11,265

1,535

1,037

2,170

30,073

31,246

29,933

(12,058)

(10,220)

(11,691)


 



 



 



 



Unallocated

809

682

863

7

3

94

11,254

6,641

13,984

(633)

(339)

(979)


 



 



 



 



Yotta Group

-

6,637

7,262

-

377

1,078

15,235

13,754

13,193

(6,968)

(5,321)

(5,952)


 



 



 



 



OMG Life Group*

 

-

 

-

 

-

 

-

 

-

 

-

 

(6,052)

 

(6,052)

 

(6,052)

 

-

 

-

 

-

Oxford Metrics Group

 

12,688

 

17,773

 

19,390

 

1,542

 

1,417

 

3,342

 

50,510

 

45,589

 

51,058

 

(19,659)

 

(15,880)

 

(18,622)

 

*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

 2022

Six months ended

31 March

 2021

Year

 ended

30 September

2021


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Profit before tax - continuing operations

604

1,253

3,634

Share option charges

86

30

51

Amortisation of intangibles arising on acquisition

130

121

258

Impairment of intangibles arising on acquisition

-

-

981

Reorganisation costs

-

5

6

Costs associated with acquisition of Contemplas

-

-

86

Adjustment to fair value of investment

-

-

(68)

Reapportion Group overheads

(521)

(452)

(920)

Adjusted profit before tax - continuing operations

299

957

4,028


 



Loss before tax - discontinued operations

(119)

(259)

(413)

Share option charges

-

6

11

Amortisation of intangibles arising on acquisition

-

149

249

Reorganisation costs

93

32

26

Reapportion Group overheads

521

452

920

Adjusted profit before tax - discontinued operations

495

380

793


 



Total adjusted profit before tax - all operations

794

1,337

4,821

 

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

 



Basic earnings per share (pence)

0.41p

0.69p

2.73p

Diluted earnings per share (pence)

0.41p

0.68p

2.71p


 



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

 



Basic earnings per share (pence)

0.73p

1.08p

3.59p

Diluted earnings per share (pence)

0.73p

1.07p

3.56p


 



 



 

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

 

 

 

Vicon Group

 


Six months ended

31 March

 2022

Six months ended

31 March

 2021

Year

 ended

30 September

2021


(unaudited)

(unaudited)

(audited)

Continuing operations

£'000

£'000

£'000

Profit before tax

630

1,138

3,512

Share option charges

4

9

13

Amortisation of intangibles arising on acquisition

130

121

258

Impairment of intangible arising on acquisition

-

-

981

Reorganisation costs

-

5

6

Costs associated with the acquisition of Contemplas

-

-

86

Reapportion Group overheads

1,025

936

1,935

Adjusted profit before tax

1,789

2,209

6,791


 



 

 

 

 

 

 

Yotta Group

 


Six months ended

31 March

 2022

Six months ended

31 March

 2021

Year

 ended

30 September

2021


(unaudited)

(unaudited)

(audited)

Discontinued operations

£'000

£'000

£'000

Loss before tax

(119)

(259)

(413)

Share option charges

-

6

11

Amortisation of intangibles arising on acquisition

-

149

249

Reorganisation costs

93

32

26

Reapportion Group overheads

521

452

920

Adjusted profit before tax

495

380

793


 



 

 

 

5.   Taxation

 

The Group's consolidated effective tax rate for the six months ended 31 March 2022 was 29.5% (for the six months ended 31 March 2021: 2.6%; for the year ended 30 September 2021: 8.9%).

 

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 2022 (unaudited)

31 March 2021 (unaudited)

30 September 2021 (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

832

127,165

0.65

1,165

126,145

0.92

3,060

126,437

2.42

Dilutive effect of employee share options

-

1,510

-

-

1,441

(0.01)

-

993

(0.02)

Diluted earnings per share

832

128,675

0.65

1,165

127,586

0.91

3,060

127,430

2.40

Discontinued operations

 

 

 







Basic loss per share

 

 

 







Earnings attributable to ordinary shareholders

(206)

 

127,165

 

(0.16)

 

(145)

 

126,145

(0.12)

 

(125)

 

126,437

(0.10)

 

Dilutive effect of employee share options

-

1,510

-

-

1,441

-

-

993

-

Diluted loss per share

(206)

128,675

(0.16)

(145)

127,586

(0.12)

(125)

127,430

(0.10)

Total operations

 

 

 







Basic earnings per share

 

 

 







Loss attributable to ordinary shareholders

626

127,165

0.49

1,020

126,145

0.81

2,935

126,437

2.32

Dilutive effect of employee share options

-

1,510

-

-

1,441

(0.01)

-

993

(0.02)

Diluted earnings per share

626

128,675

0.49

1,020

127,586

0.80

2,935

127,430

2.30

  

7.   Share capital

 


31 March

31 March

30 September


2022

2021

2021


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Allotted, called up and fully paid

 



127,358,390 shares of 0.25p (31 March 2021: 126,430,168 shares of 0.25p and 30 September 2021: 126,937,668 shares of 0.25p)

318

316

317

 

During the six month period ended 31 March 2022 there were 392,500 shares issued relating to share options that were exercised.  There were 656,000 shares issued in respect of share options exercised during the six months ended 31 March 2021 (year ended 30 September 2021: 1,163,500).

 

In addition, 19,841 shares (2021: 27,777 shares) were issued to the non-executive Chairman, Roger Parry, in satisfaction of salary and 8,381 shares (2021: 11,733 shares) were issued to the non-executive Director, Naomi Climer, in satisfaction of salary.

 

 

8.   Dividends

 

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

 


31 March

31 March

30 September


2022

2021

2021


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

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

-

2,264

2,264

Final dividend for 2021 paid in 2022 - 2.00 pence per share

2,542

-

-


2,542

2,264

2,264

 

The final dividend for 2021 was paid to shareholders on 23 February 2022 at 2.00 pence per share, a total of £2,542,000. 

 

 

9.   Copies of the interim statement

 

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

 

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Oxford Metrics