Oxford Metrics (OMG) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was £20.1m–£20.4m, down from £23.5m in H1 FY24, reflecting normalization after a record prior year order book and major contract fulfillment.

• Adjusted EBIT for H1 FY25 was a loss of £0.4m, compared to a profit of £3.0m in H1 FY24, due to lower sales and higher operational costs.

• Vicon Markerless, a next-generation motion capture solution, launched in March 2025, with positive initial feedback and global demos underway.

• Two acquisitions (Sempre Group and Amber Optix) completed to strengthen the smart manufacturing division, with new leadership appointed.

• Cash position at 31 March 2025 was £39.9m, post-acquisition and share buyback, with the group remaining debt-free.

Financial highlights

• Gross margin for H1 FY25 was 65.5%, down from 66.8% in H1 FY24, mainly due to a higher sales mix from lower-margin smart manufacturing.

• Basic loss per share for H1 FY25 was (0.63)p, compared to earnings of 2.34p in H1 FY24.

• Operational cash generation improved to £2.8m from £2.2m year-over-year, reflecting improved working capital management.

• Dividend payout increased to £4.2m (vs. £3.6m prior year), with a progressive dividend policy and share buyback extension announced.

• Group revenue by geography: UK revenue rose 49%, while North America, Europe, and Asia Pacific saw declines of 37.5%, 18%, and 19% respectively.

Outlook and guidance

• H2 trading started in line with previous years, with typical seasonal patterns and motion capture pipeline activity.

• Modest revenues expected from new markerless products in FY25, with growth into FY26 as commercialisation progresses.

• Smart manufacturing division has strong order book visibility and pipeline extending beyond the current fiscal year.

• Full-year adjusted EBIT anticipated to be in line with Board expectations, assuming historical pipeline conversion rates.

• US institutional and academic markets face headwinds from policy-driven funding reductions, impacting pipeline opportunities.