Oxford Metrics (OMG) H2 2024 earnings summary

Executive summary

• Fiscal 2024 revenue was £41.5m, down from £44.2m in FY23, reflecting market headwinds and order book depletion.

• Gross margin improved to 66.6%, up 1.6% year-over-year, driven by lower product costs.

• Adjusted PBT fell to £3.7m from £7.5m, due to lower sales and increased operational costs, including acquisitions and investments.

• Cash position at year-end was just under £47m after acquisitions and share buybacks, supporting ongoing M&A, R&D, and dividends.

• Dividend increased by 18% to 3.25p per share, maintaining a progressive policy.

Financial highlights

• Earnings per share dropped to 2.96p from 5.29p year-over-year.

• R&D capitalization increased to £3.1m, mainly for Markerless technology.

• Inventory reduced to £7.7m by year-end.

• Net assets stood at £79.1m at year-end.

• Statutory PBT at £2.8m.

Outlook and guidance

• Trading in early FY2025 aligns with expectations and pre-COVID buying patterns.

• Markerless technology launch and new Vicon products expected to drive ARR and product revenues in FY2025.

• Integration of IVS and Sempre underway to drive synergies and growth.

• Continued focus on cost control, efficiency, and targeted M&A.