Oxford Metrics (OMG) H2 2025 earnings summary

Executive summary

• Achieved 8% year-on-year revenue growth to £44.8m and 29% increase in adjusted EBIT to £2.2m, driven by both organic and inorganic expansion, with robust operational cash generation and improved working capital.

• Order intake surged 45% for the group, reflecting strong demand in core and new markets.

• Launched next-generation AI-powered Markerless technology and expanded product portfolio, extending addressable markets.

• Strengthened leadership with new managing directors and merged Sempre & IVS for greater synergy and improved EBIT.

Financial highlights

• Revenue rose from £41.5m to £44.8m year-on-year; adjusted EBIT up 29% to £2.2m.

• Gross margin at 64.7%, with Smart Manufacturing gross margin estimated mid-50s.

• Cash at year-end was £37.3m after funding buybacks, dividends, R&D, and acquisitions.

• Operational cash generated before tax was £6.7m, up from £300k last year.

• Dividend maintained at 3.25p per share, total outlay £4.2m.

Outlook and guidance

• Entering FY 2026 in line with management expectations, with a focus on execution and leveraging a strong balance sheet.

• Strategy refinement underway, with a three-year framework and capital allocation plan to be presented at an investor event in H1 FY 2026.

• Continued investment in R&D, product innovation, and disciplined bolt-on M&A to drive growth.

• Integration of IVS & Sempre to drive EBIT growth and operational synergies.

• Markerless technology expected to catalyze higher recurring software revenues.