Oxford Metrics (OMG) H1 2026 earnings summary

Executive summary

• Revenue grew 3% year-over-year to £20.7m for the six months ended 31 March 2026, driven by strong Motion Capture performance and international contract wins.

• The group is focused on transforming into a higher quality, more predictable business by shifting Vicon from hardware-led sales to a platform model with recurring revenue, and IVMS from bespoke projects to repeatable products, both targeting significant market growth and operational leverage.

• Strategic priorities advanced, including the integration of Sempre and IVS into IVMS, ongoing cost optimisation initiatives, and a focus on growth, efficiency, and value.

• Both divisions are leveraging AI and proprietary data to maintain competitive advantages, with Vicon emphasizing Markerless technology and IVMS focusing on automation and real-time quality assurance in manufacturing.

• The company aims to double revenue to approximately £90 million, increase recurring revenue to 25% of the total, and achieve mid-teen EBIT margins through organic growth, M&A, and operational efficiencies.

Financial highlights

• H1 2024 revenue was £20.7 million, up 3% year-on-year, with gross profit at 66% and adjusted EBIT improving by 50% to negative £0.2 million.

• Motion Capture revenue rose 10% to £16.3m, while Vision Metrology declined 17% to £4.4m due to project timing.

• Gross margin increased to 66.0% from 65.5% year-over-year.

• Cash and fixed term deposits stood at £31.7m after £3.7m dividend and £1.3m share buybacks.

• Adjusted EPS turned positive at 0.38p (prior period: -0.16p).

Outlook and guidance

• Medium-term ambition is to double revenue, reach 25% recurring revenue, and achieve mid-teen EBIT margins.

• FY26 revenue for the 15-month period expected at approximately £56m, with some Vision Metrology revenue delayed to Q4.

• Recurring revenue and productization strategies are expected to improve revenue quality, predictability, and margin expansion.

• Cost optimisation and restructuring are underway, with annualised savings of £800,000 already delivered and up to £2 million targeted over the next two years, and further £1.0–1.6m annualised savings from FY27.

• Management maintains a positive outlook, supported by a strong Motion Capture pipeline and improved Vision Metrology visibility.