Oxford Metrics (OMG) H1 2024 earnings summary

Executive summary

• Revenue rose 10.5% year-on-year to £23.5m, driven by strong execution and IVS integration, with Vicon up 2% and IVS contributing £1.8m.

• Adjusted profit before tax was £4.0m, down from £4.5m, reflecting planned investments and increased operational costs.

• Cash position remains strong at £54.8m after dividend and IVS acquisition outflows.

• Over 90% visibility on full-year revenues, supported by a robust sales pipeline.

• Strategic focus on organic growth, markerless technology, and M&A in smart manufacturing.

Financial highlights

• Statutory profit after tax was £2.8m, down from £3.4m year-on-year.

• Adjusted EPS was 2.63p, down from 2.94p.

• Inventory rose to £9.0m due to ERP implementation, expected to normalize by year-end.

• Investment in new IP increased to £1.4m from £0.9m.

• Cash generated by operations was £2.2m (H1 FY23: £0.4m).

Outlook and guidance

• On track to deliver five-year plan, targeting £70m revenue and 15% adjusted PBT margin by FY 2026.

• Markerless technology revenues expected to begin in FY 2025, with a potential subscription model.

• M&A remains a priority, with several active opportunities in smart manufacturing.

• Well-placed to meet full-year market expectations.

• No expectation to maintain a significant order book as customer buying patterns normalise.