6th December 2017 - Oxford Metrics (OMG plc LSE: OMG), the international software company servicing government, life sciences, entertainment and engineering markets, announces preliminary results for the financial year ended 30 September 2017.

Financial Key Points

• Group Revenue from continuing operations increased 10.7% to £29.2m (FY16: £26.3m), up 7.6% at constant currency.
  • Yotta revenue up 12.3% to £6.6m (FY16: £5.9m). Adjusted PBT* £0.7m (FY16: £1.4m) reflecting planned investment.
  • Vicon revenue up 10.3% to £22.5m (FY16: £20.4m). Adjusted PBT* £5.6m (FY16: £5.9m) reflecting lower Grant Income.
• Group Adjusted PBT* of £3.9m (FY16: £5.1m), ahead of market expectations following planned investment in Yotta.
• Strong net cash balance at 30 September 2017 of £9.8m (FY16: £8.3m), of which £0.6m is disclosed in Assets held for sale.
• Proposed dividend increased by 20% to 1.20p per share (FY16:1.00p), in line with our stated progressive dividend policy and dividend cover objective.

Operational Key Points

• Strategy for Yotta: develop cloud-based software products, expand internationally and grow recurring revenues.
  • Successful launch of Alloy, the cloud-based asset management platform for the digital future.
  • Secured 6 new Alloy licences in September – 3 in Australia and 3 in the UK.
  • Expansion of international channel presence in FY17 to 5 distributors (FY16: 2) which now enables Yotta to reach 23 countries (FY16: 4).
  • 76 (FY16: 63) customers now use Horizons worldwide, up 20%, with a quarter of customers located outside the UK.
  • Process ongoing to dispose of the surveying business. Completion expected in the first half of FY18.
• Strategy for Vicon: strengthen and protect a profitable market leader.
  • Organic expansion with the launch of three new products:
    • Vicon Vertex, new measurement system tapping into Virtual Reality applications.
    • Cara Lite, new lighter weight head-mounted facial capture system.
    • Vicon Shogun, new software for the film and video game market.
  • Acquisition of IMeasureU which broadens addressable market and provides opportunity to build meaningful SaaS-based recurring revenue stream.
  • Vicon’s motion measurement products used on films including Kingsman: Golden Circle and Blade Runner 2049.

Strategy Progress

• Five-year strategic growth plan launched in December 2016 with two key financial objectives: by 2021, we aim to double Group profit and to triple recurring revenues.
• FY17: Year One marked the start of the investment phase and progress has been strong so far:
  • Annualised Recurring Revenues (ARR) strengthened by 22% to £4.9m at 30 September 2017 (FY16: £4.0m).
  • Profitability ahead of market expectations.
• FY18: Year Two to amplify growth of our recurring revenues and growth in profitability.

* Profit Before Tax from continuing operations before Group recharges adjusted for share based payments, amortisation of intangibles arising on acquisition, acquisition related costs, Pimloc and redundancy costs. The statutory equivalents and reconciliation of the adjusted numbers shown in this statement are disclosed in notes 3 and 5.

Commenting on the results Nick Bolton, Chief Executive Officer, Oxford Metrics said:

“I’m delighted with the strong performance this year. Following the launch of our strategy last year we have driven double-digit revenue growth across Yotta and Vicon. Annualised Recurring Revenues, a key metric for our five year plan, has improved 22% as Yotta transformed into a pure-play software and services business. This performance came as the Group made a number of strategic investments to drive future revenue growth.

At Vicon we have launched new products to strengthen our position as a profitable market leader and acquired IMeasureU which adds a further growth dimension to the business. At Yotta, we have invested in our international distribution channels and launched our new cloud-based asset management platform Alloy. We move into Year Two of our plan as a stronger business and have confidence in our growth prospects for the year ahead.”

For the full Preliminary Results click here.

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