REG - OMG PLC - Interim Results <Origin Href="QuoteRef">OMG1.L</Origin> - Part 1

Oxford MetricsAnnouncement

17/05/2016 07:06

RNS Number : 4018Y
OMG PLC
17 May 2016
17 May 2016
OMG plc
("Oxford Metrics" or "OMG" or the "Group")
Interim Results for the six months ended 31 March 2016
OMG plc (LSE: OMG), the technology group providing Computer Vision products and services for the entertainment, life science, engineering industries and consumer electronics markets, announces interim results for the six months ended 31 March 2016.
Financial Key Points from continuing operations
 Group Revenue of 12.2m, up 8% (H1 FY15: 11.3m) - record first half performance
 Return to H1 profitability, with adjusted* PBT of 0.9m (H1 FY15: adjusted* loss before tax of 0.7m) 
 Group cash position stands at 5.8m (31 March 2015: 8.6m) 
 4.5m returned to shareholders in the period via a Special Dividend of 3.75p per share
 Final Ordinary Dividend of 0.65p per share paid on 9th March 2016
 Vicon revenue up 8% year-on-year, with 26% year-on-year increase in adjusted* PBT
 Yotta revenue up 8% year-on-year, with annual recurring revenues increasing by 26% and adjusted* PBT by 10% on the same period last year
Operational Key Points
 Increased traction for Vicon Vantage - systems to new and existing customers including Industrial Light and Magic, Duke University, CD Projekt in Poland, Autodesk, Children's Hospital Colorado and Teleton in Uruguay
 Vicon technology used on chart topping video games, including NBA 2K16, WWE 2K16, EA Sports FIFA 16 and UFC 2
 New strategic partnership with Vizrt opens new market opportunities in real-time broadcast space
 Released next-generation software for mobile Yotta users, based upon the Android platform
 Further wins for Mayrise and Horizons, in particular; 
o Mayrise contracts with Gateshead Council, Telford and Wrekin Council, North East Lincolnshire Council, East Sussex Council and Wigan Council 
o Horizons installations with Bolton Council, London Borough of Harrow, Hampshire County Council and De Jong (Netherlands)
 Two engineering engagements continue to make encouraging progress, with our Capture IP implemented on a variety of platforms, devices and operating systems 
 Intention to spin out additional early stage IP, relating to Machine Learning-based imagery classification, into a new company in exchange for an expected 35% equity stake
o Previously unexploited IP provides additive opportunity for Group to realise value without undue and additional capital risk
* Profit before tax from continuing operations before group recharges adjusted for share based payments, amortisation of intangibles arising on acquisition, fair value adjustment to contingent consideration, unwinding of discount on contingent consideration, acquisition costs and redundancy costs.
Commenting on the results Nick Bolton, Chief Executive Officer said:
"This has been a very encouraging first half for our Group, with solid increases in revenue and a return to first half profitability underpinning the Board's confidence in the Group delivering its expectations for the full year as a whole. The core products, around which our Group is now centred, both in Vicon and in Yotta, have continued to see strong sales traction and we continue to explore new platforms and potential to sustain this growth going forward. It is also particularly exciting to announce our IP spin-out intentions today, which represents an opportunity for us to realise additional value from a currently nascent piece of IP in our portfolio, without assuming the full capital and investment risk inside our Group. We believe there is meaningful potential for the team to monetise the opportunity in front of them and we wish them well in that endeavour."
For further information please contact:
OMG plc
+44 (0) 1865 261800
Nick Bolton, CEO

David Deacon, CFO



FTI Consulting
+44 (0) 20 3727 1000
Matt Dixon / Emma Appleton / Harry Staight



N+1 Singer (NOMAD to OMG)
+44 (0) 20 3205 7500
Shaun Dobson / Jen Boorer

About OMG plc
OMG plc (Oxford Metrics Group. LSE: OMG) is a group of technology companies producing Computer Vision products and services for the entertainment, life science, engineering industries and consumer electronics markets.
The Group's technology is used globally to capture the movements of actors (for the movie industry), sportsmen and women (for video games or improving team performance), and children with cerebral palsy, rehab patients and animals (for medical, life science and research industries). The technology is also used for the management of highways and other forms of distributed infrastructure assets, such as lighting systems and other street furniture. Through this diverse offering the Group has earned its strong international reputation for precision from pixels and its unique expertise in imaging technology.
Founded in 1984, the Group is headquartered in Oxford, UK, and has two offices in the US and four in the UK. It has customers in over 65 countries and is a quoted company listed on AIM, a market operated by the London Stock Exchange. The Group trades through three subsidiaries: Vicon, the world's largest motion capture and movement analysis company, Yotta, a provider of software and services for infrastructure asset management and OMG Life, our IP licensing business, which is focused on unlocking latent value in OMG's IP.
The Group's global clients spanning the worlds of science, medicine, sport, engineering, gaming, film and broadcast include: major hospitals and research facilities such as Guy's Hospital, Nuffield Orthopedic Centre, Headley Court and Loughborough University, engineering industry leaders including: Ford Motor Company, BMW, Toyota and European Space Agency and in the entertainment sector; The Imaginarium, Sony, Industrial Light and Magic, Sega, Nintendo, UbiSoft, EA and Square Enix. In infrastructure asset management, clients include Highways England, Amey, Fulton Hogan, Northumberland, Norfolk, Lancashire, Hampshire, Cheshire East and West, Kent as well as many others.
Chairman and Chief Executive's Statement
Our Group has made a positive start to 2016. Group revenues are up 8% year-on-year at 12.2m: the highest ever H1 revenue performance achieved by the Group on a continuing operations basis. This has been made possible by the good progress we have seen across all our operations. Compared to the same period last year, Vicon has delivered an improved first half revenue and profit; Yotta has also recorded improved revenues and profits driven by the continued success of its software business; and OMG Life has reported a substantially lower loss and is progressing key milestones with its engineering engagements and licensing discussions.
In addition to operational progress in the first half, we have also made some strategic steps forward. As we continue to pursue our central purpose of maximising the value inherent in our Intellectual Property (IP) to generate further shareholder value, the Group is pleased to announce its intention to spin-out some nascent, currently unexploited Group IP into a new company. The technology, which relates to Machine Learning-based imagery classification, is not used in any of the Group's existing products or services nor is it part of the on-going licensing discussions currently being pursued by OMG Life (and therefore will have no impact on these on-going discussions). Instead, it represents IP that would otherwise remain unexploited within the Group's current operational plans as it is too early stage to be considered consistent with the Group's strategy and therefore the value of it would, thereby, be unrealised. By spinning it out from the Group, the aim of which is to commercialise the IP, we believe it provides us with an additional value creation opportunity for the Group without any expansion of our own capital or Group risk.
It is anticipated Dr Julian Morris, founder of Oxford Metrics, will become involved in this new venture in due course, and, on successful completion of this transaction, move to become a Non-Executive Director of OMG plc, given this new focus. Seed capital for the new business has been informally committed from a small number of early stage angel investors, which additionally includes a number of OMG plc Directors and employees. 
In exchange for the spin out, OMG's equity stake in the new venture is expected to be c.35% reflecting 0.5m expensed by the Group in total research costs in this early stage IP. The fair value of the Group's minority interest will be subject to an independent valuation in due course. Subject to the necessary funding being procured the new venture is expected to be operational by the end of July 2016.
The new venture will aim to change the ways in which we search, discover and manage images, by enabling the user to find people, objects and scenes from the image content alone. This removes the need for manual tagging or manual sorting. While this represents a significant technical and marketing challenge, the new company believes, with additional resources and further development around the transferred IP, this is a realisable, but high-risk goal. Spinning out the IP enables the Group to pursue a high growth opportunity in a low risk manner and, if successful, be rewarded for its early involvement. A number of OMG Life employees are expected to transfer over to the venture further reducing the costs of this division in line with our strategy.
Finally, as first announced at the time of our Preliminary Results, the Group returned a further 5.3m to shareholders by way of a Special Dividend of 3.75p per share and a final Ordinary Dividend of 0.65p per share during the period.
Financial Summary 
KPI
H1 FY16
H1 FY15
Change
Group Revenue
12.2m
11.3m
+0.9m
Group Cash Position
5.8m
8.6m
-2.8m
Group Adjusted* Profit/(Loss) before Tax
0.9m
(0.7m)
+1.6m
During the first half, Group revenue increased year-on-year by 8% to 12.2m (H1 FY15: 11.3m). Accordingly the Group reports an improved adjusted* profit of 0.9m (H1 FY15: loss before tax of 0.7m). 
Group cash position as at 31 March 2016 stood at 5.8m (H1 FY15: 8.6m), largely reflecting inventory investment to satisfy the strong sales pipeline, an increase in cash receipts due from customers and the absence of a cash contribution from 2d3 following the disposal. The Group remains debt-free.
OMG Vicon

Revenue
PBT
Adjusted* PBT

H1 FY16
H1 FY15
H1 FY16
H1 FY15
H1 FY16
H1 FY15
Vicon UK / ROW
4.4m
4.6m
1.2m
1.3m
0.9m
1.0m
Vicon US
3.9m
3.1m
0.4m
0.1m
1.4m
0.8m
Total Vicon
8.3m
7.7m
1.6m
1.4m
2.3m
1.8m
Vicon reported an encouraging start to FY16 with revenues improving 8% as the business benefited from a full six month sales cycle with the new Vantage camera as well as a strong US performance. Vicon reported an adjusted* profit before tax of 2.3m (H1 FY15: 1.8m) which reflects higher revenues and a slightly improved gross margin percentage on revenues achieved.
Sales of the new Vicon Vantage camera continue to gather momentum, recently winning a StudioDaily Prime Award in the Best Production Tools category. Vicon made a wide variety of sales to both new and existing customers including; Industrial Light and Magic for both their London and San Francisco locations, Duke University within their Human Performance Lab, CD Projekt in Poland, Autodesk, Children's Hospital Colorado and Teleton in Uruguay. The system with Teleton is the first sale to a large charitable group that will support children's rehabilitation centres across South America.
There was also positive sales news closer to home driven by the newly introduced Vantage camera range, where the company saw notable UK wins, including systems as universities in Roehampton and Derby. The University of Roehampton, a Vicon customer of 20 years, purchased its fifth system, upgrading to a Vantage system with Nexus software. Vicon also signed a deal with Derby University to supply a Vantage system along with Nexus software, which has been installed in the University's new Sports Performance Centre. Vicon also continues to be used on chart topping video games including NBA 2K16, WWE 2K16, EA Sports FIFA 16 and UFC 2.
In February 2016, Vicon signed a strategic partnership with Vizrt, a world leader in virtual sets for the broadcast market, to use Vicon's tracking system to quickly deploy virtual sets with low latency, reliable, accurate Vicon tracking. This opens up new market opportunities for Vicon in the real-time broadcast space. 
Significant technological progress has also been made in the Innovate UK funded project and we are now moving into a focused exploitation phase of the research. This covers how the technology developed thus far will be integrated into the company's existing and future products. 
Vicon's sales pipeline is promising and, in line with previous years, revenue is expected to be second half weighted giving us confidence the business will deliver on expectations for the full year. 
OMG Yotta

Revenue
PBT
Adjusted* PBT

H1 FY16
H1 FY15
H1 FY16
H1 FY15
H1 FY16
H1 FY15
Yotta
3.9m
3.6m
(0.1m)
(0.1m)
0.6m
0.5m
Yotta reported revenues up 8% compared to the same period last year at 3.9m (H1 FY15: 3.6m). This increase has been achieved through the growth of the software and consulting services parts of the business. The combined software and services business now has annual recurring revenues of 3.9m (H1 FY15: 3.1m). Software and related revenues accounted for 69% of revenues in the first half (H1 FY15: 61%).
Yotta reported an adjusted* profit before tax of 0.6m (H1 FY15: 0.5m).
In the Preliminary Results we outlined Yotta's multiple vectors of growth - the opportunity to expand its UK market share, to grow its international business and to realise growth through its increasing range of important partnerships. We are pleased to report progress on all three growth vectors. 
Yotta's Horizons product, its SaaS Visualised Asset Management system, continued to show strong growth. There are now 62 (H1 FY15: 46) Horizons' customers globally, and new installations for Horizons in this period include Bolton Council, London Borough of Harrow, Hampshire County Council and De Jong (Netherlands). Yotta continued its international investment in the first half and now has nine new international customers (H1 FY15: 0) across The Netherlands and Australia. To focus on the continued growth in this region, Yotta has appointed a European Partner Sales Manager. Lastly, Yotta continues to develop strong relationships with its strategic partners to drive further growth. 
There were also further wins for its Mayrise software. New installations took place at customers including Gateshead Council, Telford and Wrekin Council, North East Lincolnshire Council, East Sussex Council and Wigan Council. During this period, Yotta also announced the release of its new next-generation software for mobile workers. This release, based upon the Android platform, has already seen encouraging sales and will be further enhanced with new functionality during the next period.
The continued success of the Horizons and Mayrise product lines has seen increased demand for our consulting, training and project management services, leading to a 67% growth in year-on-year revenues. The period also saw Yotta invest in a new hosting service for its Mayrise Online customers to cope with the increased demand for cloud-based delivery of its software, which continues to constitute the majority of new sales.
The surveying activities also saw success. Notable wins included all eight authorities of the West Yorkshire Consortium, East Riding of Yorkshire, London Borough of Hackney, London Borough of Newham and Telford and Wrekin Council.
Yotta continues to make progress through its focus on software activities, evidenced by further growth in its recurring revenues. The outlook for the second half is encouraging for Yotta and the division remains on track to deliver on expectations.
OMG Life

Revenue
PBT
Adjusted* PBT

H1 FY16
H1 FY15
H1 FY16
H1 FY15
H1 FY16
H1 FY15
Life
0.0m
0.0m
(1.0m)
(2.7m)
(0.8m)
(1.7m)
The reported adjusted* loss for OMG Life of 0.8m (H1: FY15 loss: 1.7m includes the impairment of previously capitalised R&D of 0.85m). The Balance Sheet now includes capitalised R&D of 1.5m (H1 FY15: 1.3m) relating to image capture IP.
OMG Life's two engineering engagements, announced in December last year, continue to make encouraging progress. A number of important delivery milestones have been met during the first half with the capture IP being implemented on a variety of platforms, including smartphones and tablets and involving both Android and Windows operating systems. The IP enables these devices to take clear, well exposed, sharp images in a wide variety of lighting conditions regardless of whether the camera is being held still or not. These engagements are with international technology businesses. The nature of working with such large companies is that there is always risk as to whether we can commercially execute, but if the technology is adopted the rewards of scale are evident. We look forward to updating the market as these licensing activities progress through the second half.
It is also worth noting, as detailed earlier, should the new venture for the Classification IP be successful a number of the OMG Life staff will move into this entity. This transfer would reduce the OMG Life annual cost base by 0.4m with a modest benefit expected in this financial year. This transfer of staff is not expected to impact any on-going licensing activities or engineering engagements.
Outlook
As we enter the second half, the focus for the Group remains unchanged - we look to improve revenue predictability, profitability and cash generation. Vicon's Vantage camera range has clearly stimulated market interest, and sales pipelines for a successful full year result look promising. OMG Life will continue to exploit its current engagements to maximise return, and, in light of the expected spin-out of the Classification IP, will further reduce costs. Yotta's SaaS focus continues to deliver quality revenue and profit growth and is expected to progress further in the second half. 
Notwithstanding macro-economic uncertainty, the Board is confident that, with the expected performance across the business, the Group is on track to meet current market expectations for the year as a whole.
CONDENSED CONSOLIDATED INCOME STATEMENT


Six months ended
31 March 
2016
Six months ended
31 March 
2015
Year 
ended
30 September 2015


(unaudited)
(unaudited)
(audited)

Note
'000
'000
'000
Revenue
2
12,217
11,316
25,765
Cost of sales

(4,318)
(4,276)
(9,479)
Gross profit

7,899
7,040
16,286
Sales, support and marketing costs

(2,252)
(2,465)
(4,479)
Research and development

(2,208)
(2,323)
(4,141)
Administrative expenses

(3,372)
(3,650)
(6,921)
Other operating income 

502
33
601
Operating profit/(loss)

569
(1,365)
1,346
Finance income

13
17
40
Finance expense

-
(5)
(7)
Profit/(loss) before taxation
2,3
582
(1,353)
1,379
Taxation
4
(359)
775
(144)
Profit/(loss) from continuing operations

223
(578)
1,235
(Loss)/profit from discontinued operations, net of tax

-
(1,389)
6,807
Profit/(loss) for the period attributable to
owners of the parent during the period

223
(1,967)
8,042





Earnings per share for profit/(loss) on continuing operations attributable to owners of the parent during the year




Basic earnings/(loss) per share (pence)
5
0.19p
(0.51)p
1.08p
Diluted earnings/(loss) per share (pence)
5
0.18p
(0.51)p
1.05p





Earnings per share for profit/(loss) on total operations attributable to owners of the parent during the year




Basic earnings/(loss) per share (pence)
5
0.19p
(1.73)p
7.02p
Diluted earnings/(loss) per share (pence)
5
0.18p
(1.73)p
6.85p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


Six months ended
31 March 
2016
Six months ended
31 March 
2015
Year 
ended
30 September 2015


(unaudited)
(unaudited)
(audited)


'000
'000
'000
Net profit/(loss) for the period

223
(1,967)
8,042
Other comprehensive income




Exchange differences on retranslation of overseas subsidiaries

95
471
336
Tax recognised directly in equity

35
221
336
Total other comprehensive income

130
692
672
Total comprehensive income for the period attributable to the owners of the parent

353
(1,275)
8,714

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION


31 March
2016
31 March
2015
30 September
2015


(unaudited)
(unaudited)
(audited)

Note
'000
'000
'000
Non-current assets




Goodwill and intangible assets

12,823
12,255
12,838
Property, plant and equipment

982
1,184
984
Financial asset - investment

69
69
69
Deferred consideration receivable

213
319
1,971
Deferred tax asset

503
985
632


14,590
14,812
16,494
Current assets




Inventories

2,424
1,683
1,876
Trade and other receivables

11,715
7,976
9,631
Cash and cash equivalents

5,808
8,563
11,738


19,947
18,222
23,245





Assets classified as held for sale

-
5,528
-





Current liabilities




Trade and other payables

(7,385)
(6,237)
(8,013)
Current tax liabilities

(358)
(8)
(497)


(7,743)
(6,245)
(8,510)





Liabilities directly associated with assets classified as held for sale

-
(1,634)
-





Net current assets

12,204
15,871
14,735
Total assets less current liabilities

26,794
30,683
31,229
Non-current liabilities




Deferred tax liability

(2,218)
(1,578)
(2,174)





Net assets

24,576
29,105
29,055





Capital and reserves attributable to the owners of the parent




Share capital
6
302
283
294
Shares to be issued

65
65
65
Share premium account

16,732
15,443
16,326
Merger reserve

-
6,589
-
Retained earnings

7,327
6,309
12,315
Foreign currency translation reserve

150
416
55
Total equity shareholders' funds

24,576
29,105
29,055
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS


Six months
ended 
31 March 
2016
Six months ended 
31 March 
2015
Year 
ended 
30 September 2015


(unaudited)
(unaudited)
(audited)


'000
'000
'000
Cash flows from operating activities




Operating profit/(loss)

569
(1,365)
1,346
Depreciation and amortisation

982
1,470
2,438
Impairment of intangibles

-
415
415
Profit on sale of property, plant and equipment

(2)
(69)
(71)
Share based payments

58
114
154
Exchange adjustments

124
124
55
(Increase)/decrease in inventories

(527)
50
(85)
(Increase)/decrease in receivables

(297)
1,173
(513)
(Decrease)/increase in payables

(677)
(327)
1,296
Cash generated from continuing operations

230
1,585
5,035
Discontinued operations

-
1,415
1,277
Cash generated from operating activities

230
3,000
6,312
Tax (paid)/received

(354)
12
(1,530)
Net cash from operating activities

(124)
3,012
4,782





Cash flows from investing activities




Purchase of property, plant and equipment

(252)
(321)
(626)
Purchase of intangible assets

(722)
(1,289)
(2,514)
Proceeds on disposal of property, plant and equipment

45
181
346
Proceeds from the sale of discontinued operations net of cash disposed

-
255
12,790
Interest received

13
12
40
Net cash used in investing activities

(916)
(1,162)
10,036





Cash flows from financing activities




Payment of finance lease liabilities

-
(45)
(51)
Interest element of finance lease repayments

-
(5)
(6)
Bank interest paid

-
(3)
(4)
Issue of ordinary shares

414
-
894
Equity dividends paid

(5,304)
(567)
(11,541)
Net cash used in financing activities

(4,890)
(620)
(10,708)





Net (decrease)/increase in cash and cash equivalents

(5,930)
1,230
4,110
Cash and cash equivalents at beginning of the period 

11,738
7,628
7,628
Cash and cash equivalents at end of the period

5,808
8,858
11,738





Amount included in cash and cash equivalents

5,808
8,563
11,738
Amount included in assets classified as held for sale

-
295
-
Total cash and cash equivalents at end of the period

5,808
8,858
11,738
CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY

Share
Capital
Shares
to be 
issued
Share premium account
Merger reserve
Retained earnings
Foreign currency translation reserve
Total

'000
'000
'000
'000
'000
'000
'000
Balance as at 1 October 2015
294
65
16,326
-
12,315
55
29,055
Net profit for the period
-
-
-
-
223
-
223
Exchange differences on retranslation of overseas subsidiaries
-
-
-
-
-
95
95
Tax recognised directly in equity
-
-
-
-
35
-
35
Transactions with owners:







Dividends
-
-
-
-
(5,304)
-
(5,304)
Issue of share capital
8
-
406
-
-
-
414
Movement in relation to share based payments
-
-
-
-
58
-
58
Balance as at 31 March 2016
302
65
16,732
-
7,327
150
24,576








Balance as at 1 October 2014
283
65
15,443
6,589
8,493
(55)
30,818
Net loss for the period
-
-
-
-
(1,967)
-
(1,967)
Exchange differences on retranslation of overseas subsidiaries
-
-
-
-
-
471
471
Tax recognised directly in equity
-
-
-
-
221
-
221
Transactions with owners:







Dividends
-
-
-
-
(567)
-
(567)
Movement in relation to share based payments
-
-
-
-
129
-
129
Balance as at 31 March 2015
283
65
15,443
6,589
6,309
416
29,105









Share
Capital
Shares
to be 
issued
Share premium account
Merger reserve
Retained earnings
Foreign currency translation reserve
Total

'000
'000
'000
'000
'000
'000
'000
Balance as at 1 October 2014
283
65
15,443
6,589
8,493
(55)
30,818
Net loss for the year
-
-
-
-
8,042
-
8,042
Exchange differences on retranslation of overseas subsidiaries
-
-
-
-
-
336
336
Transfer between reserves
-
-
-
(6,589)
6,815
(226)
-
Tax recognised directly in equity
-
-
-
-
336
-
336
Transactions with owners:







Dividends
-
-
-
-
(11,541)
-
(11,541)
Issue of share capital
11
-
883
-
-
-
894
Movement in relation to share based payments
-
-
-
-
170
-
170
Balance as at 30 September 2015
294
65
16,326
-
12,315
55
29,055








The accompanying notes are an integral part of this interim financial information
NOTES TO THE CONDENSED CONSOLIDATED INTERIM STATEMENTS
1. Basis of preparation
OMG Plc (the "Company") is a company domiciled in England. The condensed consolidated interim financial statements of the Company for the six months ended 31 March 2016 comprise the Company and its subsidiaries (together referred to as the "Group").
The following IFRIC amendments and IASs have been issued by the IASB, but are applicable to future periods. They are not expected to have any material impact on the Group's reporting:
 IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations'
 IFRS 9 'Financial Instruments'
 IFRS 10 'Consolidated Financial Statements'
 IFRS 12 'Disclosure of Interests in Other Entities'
 IFRS 15 'Revenue from contracts with customers'
 IAS 24 'Related Party Disclosures' (revised)
 IAS 27 'Separate Financial Statements' (revised)
 Amendment to IAS 32 'Financial Instruments: Presentation'
 Amendment to IAS 36 'Impairment of Assets'
Otherwise, the condensed consolidated interim financial statements have been prepared using accounting policies consistent with those of the annual financial statements for the year ended 30 September 2015. They are in accordance with IAS 34.
The interim financial statements have not been audited or reviewed and the financial information contained in this report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the year ended 30 September 2015 are not the statutory accounts but have been extracted from the Group's 2015 financial statements which have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified did not contain references to any matters to which the auditors drew attention without qualifying the report and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
2. Segmental reporting
Segment information is presented in the condensed consolidated interim financial statements in respect of the Group's business segments, which are reported to the Chief Operating Decision Maker (CODM). The Group has identified the Board of Directors of OMG plc ("the Board") as the CODM. The business segment reporting reflects the Group's management and internal reporting structure.
The Group comprises the following business segments:
Vicon Group: This is the development, production and sale of computer software and equipment for the entertainment, engineering and life science markets;
Yotta Group: This is services for the management of infrastructure and taxation, highway surveying and associated software development;
2d3 Group: This is the development and sale of computer software for the defence market;
OMG Life: This is the consumer electronics segment. 
Other unallocated costs represent head office expenses not recharged to subsidiary companies.
Business segments are analysed below:
Revenue

Six months ended
31 March 2016
(unaudited)
Six months ended
31 March 2015
(unaudited)
Year ended 
30 September 2015
(audited)

'000
'000
'000




Vicon UK
4,397
4,547
9,458
Vicon USA
3,909
3,108
7,637
Vicon Group
8,306
7,655
17,095




Yotta UK
2,395
2,321
5,708
Yotta Mayrise
1,509
1,302
2,930
Yotta Group
3,904
3,623
8,638




OMG Life Group
7
38
32




Continuing operations
12,217
11,316
25,765




House of Moves
-
38
38




2d3 UK
-
379
380
2d3 USA 
-
1,611
1,580
2d3 Group
-
1,990
1,960




Discontinued operations
-
2,028
1,998




OMG Group
12,217
13,344
27,763

Revenue

Six months ended
31 March 2016
(unaudited)
Six months ended
31 March 2015
(unaudited)
Year ended
30 September 2015
(audited)

'000
'000
'000
By destination



UK
4,794
4,400
10,421
Europe
1,637
1,203
2,549
North America
3,740
2,921
7,271
Asia Pacific
1,805
2,499
4,869
Other
241
293
655
Continuing operations
12,217
11,316
25,765




UK
-
238
239
Europe
-
143
144
North America
-
1,647
1,615
Discontinued operations
-
2,028
1,998




OMG Group
12,217
13,344
27,763




By origin



UK
8,302
6,941
18,163
North America
3,915
4,375
7,602
Continuing operations
12,217
11,316
25,765




UK
-
379
380
North America
-
1,649
1,618
Discontinued operations
-
2,028
1,998




OMG Group
12,217
13,344
27,763
Six months ended
31 March 2016
(unaudited)
Six months ended
31 March 2015
(unaudited)
Year ended 
30 September 2015
(audited)

'000
'000
'000
Vicon revenue by market



Engineering
1,991
2,075
3,605
Entertainment
2,099
1,939
4,595
Life sciences
4,216
3,641
8,895
Vicon Group
8,306
7,655
17,095
This additional information is provided to the Chief Operating Decision Maker. Further analysis by market is not available.


Six months ended 31 March 2016 (unaudited)
Six months ended 31 March 2015 (unaudited)
Year ended 30 September 2015 (audited)

Adjusted*
profit/(loss)
before tax
Adjusting
items
Group
recharges
Profit/(loss)
before tax
Adjusted*
profit/(loss)
before tax
Adjusting
items
Group
recharges
Profit/(loss)
before tax
Adjusted*
profit/(loss)
before tax
Adjusting
items
Group
recharges
Profit/(loss)
before tax

'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000













Vicon UK
879
(1)
288
1,166
973
(30)
313
1,256
2,489
(76)
791
3,204
Vicon USA
1,383
-
(905)
478
816
-
(672)
144
2,769
(5)
(1,796)
968
Vicon Group
2,262
(1)
(617)
1,644
1,789
(30)
(359)
1,400
5,258
(81)
(1,005)
4,172













Yotta UK
(439)
-
(92)
(531)
(247)
(60)
(155)
(462)
560
(107)
(424)
29
Yotta Mayrise
984
(212)
(346)
426
744
(212)
(150)
382
1,475
(424)
(298)
753
Yotta Group
545
(212)
(438)
(105)
497
(272)
(305)
(80)
2,035
(531)
(722)
782













OMG Life Group
(798)
(25)
(139)
(962)
(1,732)
(628)
(352)
(2,712)
(2,497)
(657)
(238)
(3,392)













Unallocated
(1,157)
(32)
1,194
5
(1,217)
(88)
1,344
39
(2,404)
(87)
2,308
(183)













Continuing operations
852
(270)
-
582
(663)
(1,018)
328
(1,353)
2,392
(1,356)
343
1,379













House of Moves
-
-
-
-
(93)
-
-
(93)
(93)
(175)
-
(268)













2d3 UK
-
-
-
-
60
(7)
(198)
(145)
2,693
(8)
(208)
2,477
2d3 USA
-
-
-
-
(1,005)
(127)
(130)
(1,262)
(3,819)
10,840
(135)
6,886
2d3 Group
-
-
-
-
(945)
(134)
(328)
(1,407)
(1,126)
10,832
(343)
9,363













Discontinued operations
-
-
-
-
(1,038)
(134)
(328)
(1,500)
(1,219)
10,657
(343)
9,095













OMG Group
852
(270)
-
582
(1,701)
(1,152)
-
(2,853)
1,173
9,301
-
10,474
















Non-current assets
Additions to non-current assets
Carrying amount of segment assets
Carrying amount of segment liabilities
Segment depreciation and amortisation

Six months ended 31 March 2016 (unaudited)
Six months ended 31 March 2015 (unaudited)
Year ended 30 September 2015 (audited)
Six months ended 31 March 2016 (unaudited)
Six months ended 31 March 2015 (unaudited)
Year ended 30 September 2015 (audited)
Six months ended 31 March 2016 (unaudited)
Six months ended 31 March 2015 (unaudited)
Year ended 30 September 2015 (audited)
Six months ended 31 March 2016 (unaudited)
Six months ended 31 March 2015 (unaudited)
Year ended 30 September 2015 (audited)
Six months ended 31 March 2016 (unaudited)
Six months ended 31 March 2015 (unaudited)
Year ended 30 September 2015 (audited)

'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
















Vicon UK
3,707
2,960
3,501
704
743
1,752
10,945
12,179
16,262
(3,424)
(2,409)
(3,229)
483
440
797
Vicon USA
806
1,190
885
1
8
330
5,147
4,211
4,772
(1,543)
(1,032)
(1,332)
7
13
84
Vicon Group
4,513
4,150
4,386
705
751
2,082
16,092
16,390
21,034
(4,967)
(3,441)
(4,561)
490
453
881
















Yotta UK
4,218
4,489
4,288
181
245
458
9,321
11,172
9,076
(2,161)
(1,892)
(2,531)
250
319
611
Yotta Mayrise
4,031
4,361
4,197
54
6
66
11,226
9,834
10,967
(1,317)
(1,603)
(1,757)
224
226
448
Yotta Group
8,249
8,850
8,485
235
251
524
20,547
21,006
20,043
(3,478)
(3,495)
(4,288)
474
545
1,059
















OMG Life Group
1,537
1,308
1,532
-
543
776
(4,074)
(3,706)
(3,864)
(443)
(468)
(520)
4
461
893
















Unallocated
291
504
2,091
34
24
32
1,943
(684)
2,498
(1,068)
(414)
(1,310)
14
11
21
















Continuing operations
14,590
14,812
16,494
974
1,569
3,414
34,508
33,006
39,711
(9,956)
(7,818)
(10,679)
982
1,470
2,854
















Yotta USA
-
-
-
-
-
-
29
28
28
(5)
(5)
(5)
-
-
-
















House of Moves
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
















2d3 UK
-
-
-
-
-
23
-
297
-
-
(126)
-
-
3
3
2d3 USA
-
-
-
-
-
18
-
5,231
-
-
(1,508)
-
-
244
255
2d3 Group
-
-
-
-
-
41
-
5,528
-
-
(1,634)
-
-
247
258
















Discontinued operations
-
-
-
-
-
41
29
5,556
28
(5)
(1,639)
(5)
-
247
258
















OMG Group
14,590
14,812
16,494
974
1,569
3,455
34,537
38,562
39,739
(9,961)
(9,457)
(10,684)
982
1,717
3,112

3. Reconciliation of adjusted (loss)/profit before tax

Six months ended
31 March
2016
Six months
ended
31 March
2015
Year
ended
30September
2015
(unaudited)
(unaudited)
(audited)
'000
'000
'000
Profit/(loss) before tax - continuing operations
582
(1,353)
1,379
Share based payments - equity settled
58
112
154
Amortisation of intangibles arising on acquisition
212
258
502
Compensation to contractor manufacturer and Autographer inventory write off
-
540
540
Redundancy costs
-
108
160
Reapportion Group overheads 
-
(328)
(343)
Adjusted profit/(loss) before tax - continuing operations
852
(663)
2,392




(Loss)/profit before tax - discontinued operations
-
(1,500)
9,095
Share based payments - equity settled
-
15
16
Amortisation of intangibles arising on acquisition
-
119
124
Profit on disposal of House of Moves and 2d3 Group
-
-
(10,797)
Reapportion Group overheads
-
328
343
Adjusted loss before tax - discontinued operations
-
(1,038)
(1,219)




Total adjusted profit/(loss) before tax - all operations
852
(1,701)
1,173
Redundancy costs in the year ended 30 September 2015 relate to the restructuring of the Vicon, Yotta and OMG Life business segments. 
The compensation to contract manufacturer and Autographer inventory write off relates to the cost of terminating the contract with our manufacturer in OMG Life Limited.
4. Taxation
The Group's consolidated effective tax rate for the six months ended 31 March 2016 was 61.7% (for the six months ended 31 March 2015: 31.1%; for the year ended 30 September 2015: 23.2%).
In accordance with IAS 34 the tax charge for the half year is calculated on the basis of the estimated full year tax rate.

5. Loss per share
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares on the assumed conversion of all dilutive options.

31 March 2016 (unaudited)
31 March 2015 (unaudited)
30 September 2015 (audited)

Earnings/(loss)
Weighted average number of shares
Per share amount
Earnings/(loss)
Weighted average number of shares
Per share amount
Earnings/(loss)
Weighted average number of shares
Per share amount

'000
'000
(pence)
'000
'000
(pence)
'000
'000
(pence)
Continuing operations









Basic earnings/(loss) per share









Earnings attributable to ordinary shareholders
223
119,511
0.19
(578)
113,357,814
(0.51)
1,235
114,626
1,08
Dilutive effect of employee share options
-
2,473
(0.01)
-
-
-
-
2,789
(0.03)
Diluted earnings/(loss) per share
223
121,984
0.18
(578)
113,357,814
(0.51)
1,235
117,415
1.05
Discontinued operations









Basic earnings/(loss) per share









Earnings attributable to ordinary shareholders
-
-
-
(1,389)
113,357,814
(1.22)
6,807
114,626
5.94
Dilutive effect of employee share options
-
-
-
-
-
-
-
2,789
(0.14)
Diluted earnings/(loss) per share
-
-
-
(1,389)
113,357,814
(1.22)
6,807
117,415
5.80
Total operations









Basic earnings/(loss) per share









Loss attributable to ordinary shareholders
223
119,511
0.19
(1,967)
113,357,814
(1.73)
8,042
114,626
7.02
Dilutive effect of employee share options
-
2,473
(0.01)
-
-
-
-
2,789
(0.17)
Diluted earnings/(loss) per share
223
121,984
0.18
(1,967)
113,357,814
(1.73)
8,042
117,415
6.85

6. Share capital

31March
31 March
30 September

2016
2015
2015

(unaudited)
(unaudited)
(audited)

'000
'000
'000
Allotted, called up and fully paid 



120,951,475 shares of 0.25p (31 March 2015: 113,357,814 shares of 0.25p and 30 September 2015: 117,434,799 shares of 0.25p)
302
283
294
During the six month period ended 31 March 2016 3,516,676 shares were issued relating to share options that were exercised. 
There were no shares issued in respect of share options exercised during the six months ended 31 March 2015 (year ended 30 September 2015: 4,076,985).
7. Dividends
The following dividends were recognised as distributions to equity holders in the period:

31 March
31 March
30 September

2016
2015
2015

(unaudited)
(unaudited)
(audited)

'000
'000
'000
Final dividend for 2015 paid in 2016 - 0.65 pence per share
784
-
-
Final dividend for 2014 paid in 2015 - 0.50 pence per share
-
567
567
Special paid in 2016 (3.75 pence per share)
4,520
-

Special paid in 2015 (4.50 pence per share)
-
-
5,102
Special paid in 2015 (5.00 pence per share)
-
-
5,872

5,304
567
11,541
The final dividend for 2015 was paid to shareholders on 9 March 2016 at 0.65 pence per share, a total of 784,000.
8. Copies of the interim statement
Copies of the interim statement will be sent to shareholders. Further copies will be available from the Company's registered office at 14 Minns Business Park, West Way, Oxford OX2 0JB, and from the Company's website: www.omgplc.com.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
IR AKADPFBKDOPD