REG - Oxford Metrics PLC - Audited Preliminary Results
05/12/2024 16:45
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RNS Number : 0354P Oxford Metrics PLC 05 December 2024
5 December 2024
Oxford Metrics plc
("Oxford Metrics", the "Company" or the "Group")
Audited Results for the financial year ended 30 September 2024
- Established presence in smart manufacturing - taking us into new markets and
applications
- Markerless technology ready to commercialise and new Vicon products to
stimulate growth
- Delayed purchase decisions impacted H2 performance against exceptional FY23
comparative
- Well placed to build out smart manufacturing offering via M&A with healthy
pipeline of opportunities
- Positioning for future success with trading in line in the first months of the
new financial year
Note: The following minor amendments have been made to the Unaudited
Preliminary Results announcement released on 3 December at 7am under RNS No
5198O:
● Under Board changes in the Chair statement confirmation that Ian Wilcock is a
member of the audit and remuneration committees (rather than Chair of the
Remuneration Committee)
● In the group performance table in the Financial and Segmental review, the
adjusted PBT allocated to PLC has been corrected to -£1.4m (rather than
£1.4m)
All other details remain unchanged. The full amended text is shown below.
Oxford Metrics plc (LSE: OMG), the smart sensing and software company,
servicing life sciences, entertainment, engineering and smart manufacturing
markets, announces audited results for the financial year ended 30 September
2024.
Commenting on the results Imogen O'Connor, Chief Executive said: "Against an
exceptionally strong prior year comparator where our teams delivered more
camera systems than ever before, the trend of extended buying really developed
in September - historically our busiest month - impacting the overall result
today. While conversion rates in the final month of the year were below
historical levels, our Entertainment segment was affected most, reflecting the
slowdown in the global games industry and subsequent content creation
contraction. Geographically, UK and Europe tracked ahead with North America
and APAC behind FY23.
Our teams have been working hard as we look to commercialise markerless - the
future of our industry with Vicon setting the gold standard. Commercial
delivery is in final stages and set to contribute modest revenue including
annual recurring revenue in FY25.
Positioning the business for future success we have also extended our
capabilities into a new growth area this year, establishing a presence in
smart manufacturing. Having secured Industrial Vision Systems our first
acquisition, we were delighted to welcome measurement specialists, Sempre into
Oxford Metrics, post period end. With a strong balance sheet, we're well
placed to capture more of this growth market as inspection automation becomes
mainstream and smart manufacturing becomes the standard.
FY25 trading has started in line with management expectations with a
continuation of the normalised buying behaviour and trading patterns seen in
the latter part of FY24. With a continued focus on cost, efficiency and
reallocating resources to high-impact areas, we are positioning the business
for success in 2025 and beyond."
Continuing Operations FY24 % Change FY23
Revenue £41.5m -6% £44.2m
Adjusted Profit Before Tax* £3.7m -51% £7.5m
Adjusted* Basic Earnings per Share 2.96p -44% 5.29p
Ordinary Dividend per Share 3.25p 18% 2.75p
Statutory Profit Before Tax* £2.8m -62% £7.3m
Net Cash** £50.7m -22% £64.8m
* Profit Before Tax adjusted for share-based payments, acquisition costs and
amortisation of intangibles arising on acquisition
** Including Fixed Term Deposits.
Financial and strategic highlights
● Revenue of £41.5m (FY23: £44.2m), as pipeline conversion in Vicon fell below
expectations in September, typically our busiest month
● Geographically for Vicon, the UK (up 34%) and Europe (up 11%) tracked ahead,
with North America (down 7%) and APAC (down 35%) behind FY23
● As expected, gross margin improved to 66.6% (FY23: 65.0%), up 1.6 percentage
points on prior year
● Adjusted Profit Before Tax* at £3.7m (FY23: £7.5m) as delayed purchase
decisions impacted H2 performance against an exceptional FY23 comparative
● Strong balance sheet with net cash at £50.7m (FY23: £64.8m) to build out
smart manufacturing via M&A, drive growth marketing initiative and invest
in R&D
● Board proposes to maintain a progressive final dividend of 3.25p (FY23: 2.75p
per share), up 18% in line with our progressive dividend policy
● Zoe Fox appointed Group CFO 1 July 2024
Markerless - the future of our industry with commercialisation in final stages
● Our teams are working hard optimising the future of motion capture, setting
the gold standard
○ Secured three more blue chip partners to enter our beta programme, taking
total to 10 (H1 FY24: 7)
○ Set to be deployed in the Entertainment and Location-based Entertainment
markets first
● On track for commercial delivery in FY25 and modest revenue contribution
Established our smart manufacturing presence, extending our capabilities in a
new growth market
● Acquired Industrial Vision Systems Ltd ("IVS") adding smart manufacturing to
our market-leading portfolio
○ Brands today require right first-time error-proof production
○ Manufacturers are revolutionising processes, replacing inspection methods with
smart manufacturing
○ Revenue contribution of £2.9m, with good order intake throughout the year
● Post period end, acquired The Sempre Group ("Sempre"), measurement specialists
solving manufacturing challenges
○ Sempre helps manufacturers be more efficient and improve quality - saving time
and money
○ Immediately earnings enhancing Sempre has clear synergies with IVS
○ Adds strength to existing and exposure to new markets and new customers
Outlook
● Trading in the first months of the financial year has started in line with
management's expectations
● Continuation of normalised trading patterns and buying behaviour seen in
latter part of FY24
● Strong balance sheet with £46.7m cash at close of business 30 November 2024
provides capital allocation flexibility
● Continued focus on cost and efficiency, actively reallocating resources to
high-impact areas
● Getting markerless ready and establishing new growth area, smart manufacturing
positions us for future growth
● Well positioned to capitalise on growth opportunities for success in FY25 and
beyond
Vicon has started FY25 well with:
● A good spread of opportunities across all markets
● New products in the pipeline to stimulate growth
● Markerless now in final stages of commercialisation, ready to realise revenues
in FY25
Smart manufacturing has made a strong start entering FY25 with:
● A healthy pipeline and orderbook
● £1.3m already secured for IVS contributing to its healthy order book
● Good pipeline for Sempre and already seeing sales synergies with IVS
opportunities
● Well placed to build out smart manufacturing via M&A programme with
healthy pipeline of opportunities
For further information please contact:
Oxford Metrics +44 (0) 1865 261860
Imogen O'Connor, CEO
Zoe Fox, CFO
Emma Colven, Head of Communications
Deutsche Numis +44 (0)20 7260 1000
Simon Willis / Hugo Rubinstein / Tejas Padalkar
FTI Consulting +44 (0)20 3727 1000
Matt Dixon / Emma Hall / Jamille Smith / Jemima Gurney
About Oxford Metrics
Oxford Metrics is a smart sensing and software company that enables the
interface between the real world and its virtual twin. Our smart sensing
technology helps over 10,000 customers in more than 70 countries, including
all of the world's top 10 games companies and all of the top 20 universities
worldwide. Founded in 1984, we started our journey in healthcare, expanded
into entertainment, winning an OSCAR® and an Emmy®, moved into defence,
engineering and smart manufacturing. We have a strong track record of creating
value by incubating, growing and then augmenting through acquisition, unique
technology businesses.
The Group trades through its market-leading division Vicon, Industrial Vision
Systems, and recently acquired, The Sempre Group. Vicon
(https://www.vicon.com/) is a world leader in motion measurement analysis to
thousands of customers worldwide, including Red Bull, Imperial College London,
Dreamscape Immersive, Industrial Light & Magic, and NASA. Industrial
Vision Systems (https://www.industrialvision.co.uk/) is a specialist in
machine vision software and technology for high precision, automated quality
control systems trusted by blue-chip, smart manufacturing companies across the
globe including BD, DePuy, Jaguar Land Rover, Johnson & Johnson, Zytronic
and Alkegen. Sempre (https://www.thesempregroup.com/) is a measurement
specialist solving manufacturing challenges across multiple industries.
Through their expert in-house consultants and partnerships with over 25
well-known manufacturers including Jenoptik, Renishaw and Micro-Vu, Sempre
offers an extensive range of products and software to customers in aerospace,
automotive, medical, energy and precision engineering.
The Group is headquartered in Oxford with offices in the United Kingdom,
United States and Germany. Since 2001, Oxford Metrics (LSE: OMG), has been a
quoted company listed on AIM, a market operated by the London Stock Exchange.
For more information about Oxford Metrics, visit www.oxfordmetrics.com
(http://www.oxfordmetrics.com) .
Chair statement
Following a solid first half performance driven by strong Vicon execution the
Group entered the second half of the year with a growing pipeline. However, as
we moved towards the end of the financial year, we saw customers across our
markets exercising greater caution with purchasing decisions taking longer to
conclude.
This has resulted in the Group reporting revenues of £41.5m (FY23: £44.2m),
below initial expectations, and an Adjusted PBT* of £3.7m (FY23: £7.5m),
reflecting the trend of extended buying cycles which developed in H2 against
an exceptional FY23 comparative.
It is important to note that historically, September has always been the
Group's busiest trading month. FY23 was also an exceptionally strong year
following the well-documented global supply chain challenges and with the team
successfully delivering on pent-up demand post-pandemic.
The Entertainment segment was impacted most reflecting the widely reported
slowdown in the global games industry and subsequent content creation
contraction along with delays in academic funding in both the Engineering and
Life Sciences segments. The Group is taking a prudent approach to optimising
the cost base, increasing efficiencies and reallocating resources to
high-impact areas in order to drive growth.
While the closing months produced a disappointing result overall for Oxford
Metrics, this year the Group has made clear operational progress - getting
markerless ready for launch and establishing our new growth area, smart
manufacturing and positioning the business for future success.
Since its inception, Oxford Metrics has provided a bridge between the physical
and digital world. We have always said our technology has many use cases
across multiple industries and in November 2023, we made the move to establish
a presence in smart manufacturing with the acquisition of Industrial Vision
Systems ("IVS"). IVS brings specialised machine learning AI technology for
automated quality control to the Group.
Post period end, we were pleased to announce the acquisition of the Sempre
Group ("Sempre"), a measurement specialist solving manufacturing challenges
across multiple industries. Immediately earnings enhancing, Sempre is a good
strategic fit for the Group. It strengthens our smart manufacturing division,
has clear commercial and technical synergies with IVS and brings us a deep
pool of industry knowledge, an established sales and services organisation
plus access to new customers, partners and products as well as taking us into
new markets.
Looking ahead, with a strong balance sheet Oxford Metrics is well placed to
capture much more of this new growth area.
Staying ahead of the curve, we revealed the fruits of our innovation efforts
over the past few years to unveil our new markerless technology which is now a
reality. With great feedback from blue chip partners, we remain on track for
commercial delivery in FY25. We believe markerless provides the Group with new
market opportunities and existing customers with the next generation motion
capture technology.
With a continued focus on cost and efficiency the Group is actively
reallocating resources to high-impact areas. Markerless will soon be in our
customers hands and new Vicon products are in the pipeline to stimulate
growth. In smart manufacturing we are well positioned with a healthy cash
position to execute on our M&A ambitions to build out this growth
opportunity in addition to the clear synergies we are already seeing with the
latest Sempre acquisition.
Dividend
The Board remains committed to our progressive dividend policy and proposes a
18.2% increase to our final dividend to 3.25p per share (FY23 final dividend
£2.75p) this year.
Share buyback programme
Post period end, we were pleased to announce a return of up to £6m of cash to
shareholders through the means of an on-market share buyback programme. Given
the Group's cash balance, the Board believes this will deliver further value
for shareholders, while maintaining its ability to pursue future
opportunities. As of 29th November 2024, the total number of voting rights in
ordinary shares of 0.25 pence per share of Oxford Metrics was 129,791,684. The
Board will keep under review the possibility of further buybacks.
Board changes
On behalf of the board, colleagues and our shareholders, I want to thank our
former CFO, David Deacon. David did an outstanding job helping the Group grow
and prosper throughout his 15-year tenure and we wish him well in his future
endeavors. We are delighted to have appointed Zoe Fox as new CFO of Oxford
Metrics who joins us at a pivotal moment in our five-year plan. Having worked
as an AIM CFO and with a global corporation, Zoe brings invaluable experience
and has the right skill set, financial rigour and tenacity that will drive us
forward on our growth plan.
Post period end, David Quantrell retired from the board as Senior Independent
Non-Executive Director. We would like to thank David for his valuable input
over the past six years and wish him well for the future. Naomi Climer is now
our Senior Independent Non-Executive Director.
We welcomed Dr Ian Wilcock as Non-Executive Director and member of the Audit
and Remuneration Committees. Ian brings over 30 years' experience, has a
proven track record of growing businesses organically and through acquisition
and held senior positions at smart sensor businesses that delivered ambitious
growth plans.
Sustainability
We are committed to working ethically and in an environmentally and socially
responsible way, and believe sustainable working practices are an important
enabler of our growth strategy. In the last twelve months we have focused on
aligning IVS onto our sustainability model as appropriate for its size and
operations. We have also taken steps to strengthening our understanding of ESG
risks in our supply chain across the Group. Our Environmental, Social and
Governance initiatives are available here oxfordmetrics.com/sustainability
(https://oxfordmetrics.com/sustainability) and progress is updated throughout
the year.
Lastly, I want to thank everyone involved in supporting our business, our
customers, shareholders, partners and employees. A special thanks to our
brilliant teams across the world who have worked tirelessly throughout the
year and are playing a valuable role in positioning the Group for future
success.
Roger Parry
Chair
CEO statement
Trend of more extended buying cycles developed in H2 against an exceptional
FY23 comparative
In my report this time last year, I talked about it being a year of 'powering
up' with our Vicon division delivering a record performance as the Group
secured its highest-ever order, and our teams delivered more advanced camera
systems than ever before.
At the half year, with post-pandemic disruption, subsequent pent-up demand and
supply chain challenges largely behind us, we outlined that Vicon had returned
to pre-pandemic trading patterns. Our order book had returned to more normal
levels, a trend which continued into the second half. With a consistent
pipeline throughout the year, we started to see pipeline movement with
extended buying cycles really developing during September - historically the
Group's busiest month with large contributions achieved.
As the Group moved into September, the pipeline conversion into revenue did
not happen at the rate expected to deliver the full year number.
Globally, we saw customers across our markets exercising greater caution and
purchasing decisions taking longer to conclude. Entertainment was impacted
most by the widely reported and ongoing slowdown in the global games industry
and subsequent content creation contraction, with some projects cancelled.
Both Engineering and Life Sciences, as expected, reported slightly behind the
prior year, having been subject to academic funding delays.
As detailed in the above segmental overview, a number of factors contributed
to this shortfall. More detail can be found in the financial and segmental
review.
Below outlines Vicon performance in the period by geography. Geographically,
the UK (up 34%) and Europe (up 11%) tracked ahead, with North America (down
7%) and APAC (down 35%) behind FY23.
Oxford Metrics today
Markerless is on track for commercial delivery with revenues expected in
FY25. We intend to be the gold standard as we are in marker based, winning
more market share alongside our existing customer base and building a quality
software and services revenue stream on top of the marker-based business.
This year, we have successfully extended our sensing capabilities into a new
growth area and market - smart manufacturing - acquiring Industrial Vision
Systems ("IVS"). IVS has integrated well into Oxford Metrics, adding an
impressive client roster to our well-established, international customer base.
Our plan is to build out our smart manufacturing offering via a targeted
M&A programme, so we were delighted to welcome measurement specialists,
Sempre into the fold post period end, helping us to capture more of this
important growth market.
After 15 years' service David Deacon stepped down as CFO with the half year
being his last. I would like to thank David for everything over the years and
for a smooth handover with our new CFO, Zoe Fox, who joined us on 1 July and
culturally is a fantastic fit with the financial rigour to take this business
forward.
Well positioned to capitalise on growth opportunities ahead
As part of our sense, analyze and apply strategy, we continue to make progress
across the Group to extend our sensing capabilities, enhance the analysis we
can perform and apply our IP by embedding into other companies' solutions.
Markerless
At our Capital Market's Day in April, attendees got to experience first-hand
our markerless technology in action, showcased in Dreamscape's 'The Clockwork
Forest' VR experience and in a smart manufacturing demo. You can watch the
positive reactions to the demos here
(https://oxfordmetrics.com/news/2024-04-25/capital-markets-day-2024) .
(https://oxfordmetrics.com/news/2024-04-25/capital-markets-day-2024)
Extending our sensing capabilities, our team continues to work hard optimising
the future of motion capture, setting the gold standard. Following positive
feedback and demand for this next generation technology, we have secured three
more blue chip partners to enter the beta programme, taking the total to 10
cornerstone customers. Taking into consideration invaluable feedback from our
dedicated partners on the beta program, eight updates have been released so
far to improve and optimize the technology.
The beta programme is progressing well with customers looking forward to the
first iteration of this next generation technology.
M&A - focused on building out our smart manufacturing presence
Having acquired IVS in November 2023, we said we would develop a meaningful
presence in the smart manufacturing market and strengthen our offering via a
targeted M&A programme.
During the year, we continued to actively pursue M&A opportunities in
smart manufacturing and post period end announced the acquisition of the
Sempre Group. Sempre, a measurement specialist, helps well known, blue-chip
manufacturers improve their productivity and efficiencies in aerospace,
automotive, medical and precision engineering industries.
Immediately earnings enhancing, Sempre has clear commercial and technical
synergies with IVS, and with a proven management team not only strengthens our
offering, it emboldens our growing sales bench with its established sales and
services organisation. We are excited about the opportunities as highly
accurate, error-proof production is mission critical and our measurement
solutions solves manufacturing challenges across a range of industries - both
existing and new to us.
Oxford Metrics has a disciplined and consistent approach to M&A. We are
actively pursuing a number of M&A opportunities to drive more applications
into the smart manufacturing space, building the Group's position in this
important market and growth area. With a healthy pipeline, we will continue to
pursue opportunities that align with our strict criteria and mantra; to find
the right acquisitions, at the right price, for the right reasons.
Alongside our markerless development throughout the year, FY24 saw the release
of software updates across all of our existing markets. Regular software
updates ensure solutions stay relevant for our customers applications,
ensuring the best experience.
AI
At Oxford Metrics we have always provided a bridge between the physical and
digital world. Computer vision and machine learning is simply an application
of AI - enabling continued learning and improving.
Across the Group, machine learning has for many years played a role and
continues to as we make technological advancements.
For example, Markerless uses the latest machine learning and AI techniques to
process video imagery to create 3D visualisations. In smart manufacturing IVS
brings specialised machine learning AI technology for automated quality
control to the Group. With an ongoing commitment to efficiency and quality
control, IVS is using AI to test and develop AI-powered automated inspection
for the contact lens industry. These advancements could soon support
large-scale rollouts, furthering quality control and precision in vision care.
Across Vicon and smart manufacturing, our teams continue to develop specialist
machine learning programs resulting in faster deployment and greater
productivity.
Current Trading and Outlook
Trading in the first months of the financial year has started in line with
management expectations with a continuation of the normalised trading patterns
and buying behaviour seen in the latter part of FY24.
Our Vicon division has started the year with a good spread of opportunities
across all main markets and a pipeline of new products, in addition to
markerless being released throughout the year.
Our smart manufacturing division made a strong start to the year. IVS closed a
number of large deals in excess of £1.3m, contributing to its healthy order
book. Sempre has a good pipeline and we are already seeing sales synergies
with IVS opportunities.
The Group has made clear operational progress in FY24 - getting markerless
ready for launch and establishing our new growth area, smart manufacturing -
positioning the business for future success.
Markerless is now in the final stages of commercialisation, ready to realise
modest revenues within the new financial year.
The Group enters FY25 with a strong balance sheet with a cash position of
£46.7m at close of business 30 November 2024. This provides the flexibility
needed to build out our smart manufacturing division via a targeted M&A
programme as we seek to extend our capabilities into yet more areas and
capture more of this important growth market.
With a continued focus on cost and efficiency, actively reallocating resources
to high-impact areas, we are well positioned to capitalise on the growth
opportunities, setting the business up for success in 2025 and beyond.
Imogen O'Connor
CEO
* Profit Before Tax adjusted for share-based payments, acquisition costs and
amortisation of intangibles arising on acquisition
FINANCIAL AND SEGMENTAL REVIEW
Group performance
FY24 FY23
Revenue PBT Adj PBT Revenue PBT Adj PBT
Vicon 38.6 1.1 4.9 44.2 5.7 9.2
IVS 2.9 (0.3) 0.3 - - -
Plc - 2.0 (1.4) - 1.5 (1.7)
Total Group Continued Operations 41.5 2.8 3.7 44.2 7.2 7.5
Discontinued Operations - (2.2) (0.9) - (1.0) (0.9)
Total Group Including Discontinued Operations 41.5 0.6 2.8 44.2 6.2 6.6
Income Statement
As we moved towards the end of the financial year, we saw customers across our
markets exercising greater caution with purchasing decisions taking longer to
conclude. The Group has reported revenues of £41.5m (FY23: £44.2m), a
decrease of 6% and below expectations.
The Group reports an Adjusted PBT* from continuing operations of £3.7m (FY23:
£7.5m), reflecting the trend of extended buying cycles which developed in H2
against an exceptional FY23 comparative. Historically, September has always
been the Group's busiest trading month. FY23 was an exceptionally strong year
following the well-documented global supply chain challenges and with the team
successfully delivering on pent-up demand post-pandemic.
The year-on-year FX effects were modest: on the average FY24 USD to GBP
exchange rate of 1.27 vs average FY23 USD to GBP exchange rate of 1.23 the
revenues decreased by 1.6% for the Group.
Vicon reported revenues of £38.6m (FY23: £44.2m) a decrease of 13% year on
year (FY23: increase of 53%), based off a very strong prior year comparator.
Having acquired IVS in November 2023 to establish our smart manufacturing
offering, it delivered revenues of £2.9m for the 11 months under our
ownership. Whilst revenues were behind expectation IVS exited the year with a
strong order book which has continued to grow in Q1 FY25.
From a geographical perspective, Asia Pacific had a weaker year based off a
very strong comparative year with a decline of 35% (FY23: increase 75%). UK
and Europe both saw growth of 91% and 20% respectively (FY23: UK 33% and
Europe 7%). The UK increased 91% which included the contribution of our smart
manufacturing division and acquisition of IVS plus our largest UK Vicon order
in history. Excluding smart manufacturing the UK growth was 36% (FY23: 33%
Vicon only) and Europe growth was 11% (FY23: 7%).
Gross margin improved to 66.6% (FY23: 65.0%), up 1.6 percentage points on
prior year, reflecting the utilisation of the higher cost components acquired
during the supply chain challenge of the last few years and a return to more
normal supply.
The gross profit for the Group was £27.6m (FY23: £28.7m), a decrease of
£1.1m.
As we explained in our FY24 interim results, the decision was taken to
discontinue IMeasureU (IMU), our New Zealand operation, to focus on growth
areas of the business such as building out our smart manufacturing division
and working hard to commercialise markerless. This has resulted in
discontinued losses of £2.2m including the write off of goodwill and IP of
£1.3m.
At a divisional level, vertical market segments performance and operational
progress was as follows:
Vicon
Life Sciences
Life Sciences reported revenues of £14.6m (FY23: £14.8m) representing a
slight decline of 1%, as expected, due to an academic slowdown and reduced
government funding.
Several customers of note upgraded to our premier Valkyrie system in the year,
including:
· Long-standing customer, PING, one of the world's leading golf
club manufacturers. Our Valkyrie system is aiding their club fitting process,
helping to improve golfers' performance. Watch PING in action
(https://www.vicon.com/resources/case-studies/ping/) .
· Liverpool John Moores University's School of Sport and Exercise
Sciences upgraded, enabling students, researchers and partners to use
state-of-the-art equipment to enhance their understanding of the science
behind human performance and behaviour.
New customer, Center for Childhood Deafness, Language and Learning at Boys
Town National Research Hospital invested in a Vicon system to look into how
toddlers and preschoolers develop their language and speech motor skills
required for language production.
Entertainment
Entertainment (which now includes Location-based Entertainment) reported
revenues of £15.9m (FY23: £20.7m), representing a 23% decline, largely due
to the ongoing slowdown in the global games industry and subsequent content
creation contraction. This segment was impacted most.
· Our partner, Dimension Studio used Vicon to help build over a
dozen worlds for Apple TV+ Time Bandits. Our Vicon system enabled them to
track the position of all elements on their virtual production stage including
a large number of fast-moving objects.
· Through our customer and partner, Arri Solutions, Vicon has been
installed at one of Europe's largest virtual production stages to date, Gran
Canaria Studios.
· NYU's newly opened facility, Martin Scorsese Virtual Production
Center, fitted with our Shogun software and 40 Vicon cameras, is providing
students with an immersive, hands-on education in the emerging field of
storytelling through virtual production.
Engineering
Engineering reported revenues of £8.1m (FY23: £8.7m) representing a slight
decline of 7%, as expected with delays witnessed in academic funding.
High accuracy and low latency tracking are key in the Engineering market.
Contracts were secured across automotive, aerospace, metrology and research
sectors with common applications being Unmanned Aerial Vehicle (UAV) and other
autonomous vehicle tracking.
· DLR Robotics and Mechatronics Center, German Aerospace Center,
invested in a Valkyrie system so researchers could track exploration robots on
a test site that simulates Mars and Moon test sites for robotic missions.
· Worcester Polytechnic Institute added cameras to their existing
Vicon system which they use to track robots who are learning to navigate
complex environments at speed and scale, tackling real-world challenges from
pollination to autonomous search & rescue. Watch their small, smart and
fast robots in action.
(https://www.vicon.com/resources/case-studies/smaller-smarter-faster-worcester-polytechnic/)
Smart manufacturing - our new growth area, established in 2023
Smart manufacturing reported first time revenues of £2.9m, slightly behind
expectations as some customers delayed placing orders deferring production to
FY25. These orders have now been partially delivered, with the remainder
orders expected to be delivered in Q1.
Multiple new contracts have been secured as demand continues for automated
vision inspection and quality control.
The medical sector saw the largest growth in the year, of note were the
following applications:
· A prominent inhaler manufacturer invested in our state-of-the-art
vision inspection technology to ensure rigorous quality control for critical
components within the inhaler sub-assembly, setting a new standard for
reliability and patient safety.
· A new medical client invested in six inspection systems, three
units for integration within existing production lines and three high-speed
standalone pellet inspection machines.
· A leading London hospital invested in a semi-automatic inspection
system to verify if particulates are present in fluid filled glass containers
that would otherwise contaminate the chemical-based product.
Multiple contracts were secured worldwide for inspection systems for high
speed contact lens production lines including an automated inspection system
for a new Spanish-based contact lens manufacturer.
A major initiative in automotive battery safety is underway with a well-known,
UK-based, blue chip automotive manufacturer, focusing on safeguarding and
automatically inspecting precision connectors on batteries to ensure strict
adherence to quality and specification standards.
Overheads
Sales, Support and Marketing costs were £8.8m (FY23: £8.2m) an increase of
£0.6m which is due to investment in sales, sales support and marketing
structure to build for growth.
Research & Development expensed through the Income Statement was £5.2m
(FY23: £5.9m). The continual investment and innovation in product and
services is necessary to maintain the Group's competitive position; this
included the continued development of, the markerless project, which was
expensed during FY23 and capitalised in FY24 reflecting the stage and the
commercialisation of the project.
Administration expenses were £12.9m (FY23: £8.8m). The large increase of
£4.1m year on year is mainly due to the £2.1m costs attributable to IVS,
£0.8m new markerless offices and facility, £0.3m investment in cloud-based
ERP system to drive efficiencies and £0.3m improving of quality assurance.
The Group is taking a prudent approach to managing the cost base, increasing
efficiencies and reallocating resources to high-impact areas in order to drive
growth.
Adjusted PBT* of £3.7m (FY23: £7.5m) has been determined after adding back
to the Statutory PBT £2.8m (FY23: £7.3m) non-cash items such as amortisation
and impairment of acquired intangibles, share option charge and non-recurring
items. A full reconciliation is available in note 6.
Statement of Financial Position
The net assets of the Group amounted to £79.0 million (FY23: £81.2 million)
and can be summarised as follows:
Goodwill and intangibles
The balance increase to £18.7m (FY23: £10.2m) reflecting the acquisition of
Industrial Vision Systems Limited for £8.8m and £3.1m (FY23: £2.1m) of
capitalised development in the year less amortisation of development costs
£1.6m (FY23: £1.7m) and the amortisation of acquired intangibles of £0.5m
(FY23: £0.3m). During FY24 there was a disposal of £1.1m of goodwill
relating to discontinuing operations.
Property, plant and equipment
The value of fixed assets increased to £3.3m (FY23: £2.5m). The movement
arising mainly due to investment of £1.6m (FY23: £1.5m) in the year which
included leasehold improvements and furniture and fixtures for the new office
in Botley, UK, a variety of IT and demonstration related equipment.
Depreciation charge for the year of £1.0m (FY23: £0.6m).
Right of use assets (IFRS16)
The value of Right of Use assets increased to £3.5m (FY23: £3.1m) during the
year which reflected the commencement of a new lease for our new markerless UK
offices based in Botley, Oxford and £0.5m relating to IVS leases.
Inventories
The inventory position at the end of the financial year was £7.7m (FY23:
£7.2m). This has decreased from £9m at H124 and given the normalisation of
the supply chain now seen the Group is expecting to continue to drive
inventory down to optimise working capital but ensuring we have sufficient
inventory for growth. An additional provision of £0.3m was provided at the
year end to cover inventory which was at risk of end of life or excess.
Trade and other receivables
At the year-end Trade and other receivables were £8.9m (FY23: £9.9m). The
net overall decrease is due to lower Vicon Trade receivables £6.7m (FY23:
£7.6m), which reflected the pattern of trading seen in 2H24. There is no
change in accrued interest year on year at £0.6m (FY23: £0.6m).
Current liabilities
At the year-end, Trade and other payables were £7.3m (FY23: £11.3m). The
decrease is reflective of the trade payables decreased at the year-end to
£1.4m (FY23: £3.8m), accruals were lower at £2.6m (FY23: £3.5m) and
support contract liabilities and deferred income were lower at £2.9m (FY23:
£3.7m) due in part to exceptional level of customer deposits last year and
trade payables reduced due to the actions to reduce the inventory within the
Group.
The lease liabilities balance reported at £1.2m (FY23: £0.7m) represents the
value of lease payments due within one year relating to right of use assets.
The increase is due to IVS and the new facilities for Vicon, previously
mentioned.
Statement of cashflows
The Group finished the year with Net cash of £50.7m (FY23: £64.8m) including
Fixed Term deposits of £30.0m (FY23: £42.0m). The amount on fixed term
deposit was reduced at year-end in readiness for the acquisition of Sempre
post year end.
Cash outflow from operating activities was £0.4m (FY23: cash inflow £3.4m).
The cash reserves were utilised in continued investment in development giving
rise to a purchase of intangibles of £3.1m (FY23: £2.1m), acquisition of
subsidiary undertaking IVS £6.2m, net of £1.1m cash acquired with the
business and initial cash consideration paid of £7.3m payment of dividends of
£3.6m (FY23: £3.2m) and the aforementioned increase in Inventory.
Surplus cash not required for the day to day working capital needs of the
business is on a variety of 3-12 month bank deposits with NatWest and Lloyds
Bank. Interest received in cash for the year was £2.4m (FY23: £1.2m).
Tax
The Group tax credit this year is £0.1m (FY23: Charge £0.6m). The tax credit
in the year arose due to various deferred tax adjustments including but not
exclusively Research & Development tax credits which continues to have a
beneficial effect on the level of corporation tax payable in the UK.
The Group has a net deferred tax liability of £1.9m (FY23: £1.1m).
Zoe Fox
CFO
consolidated INCOME statement
for the year ended 30 september 2024
(Audited) (Audited)
2024 2023
Note £'000 £'000
Revenue 3 41,459 44,240
Cost of sales (13,868) (15,497)
Gross profit 27,591 28,743
Sales, support and marketing costs (8,795) (8,169)
Research and development costs (5,152) (5,899)
Administrative expenses (12,920) (8,797)
Operating profit 724 5,878
Finance income 2,334 1,561
Finance expense (276) (163)
Profit before taxation 2,782 7,276
Taxation 7 149 (612)
Profit from continuing operations 2,931 6,664
Loss from discontinued operations net of tax (2,173) (1,008)
Profit attributable to owners of the parent during the year 758 5,656
Earnings per share for profit on continuing operations attributable to owners
of the parent during the year
Basic earnings per ordinary share (pence) 8 2.24p 5.13p
Diluted earnings per ordinary share (pence) 8 2.22p 5.10p
Earnings per share for profit on total operations attributable to owners of
the parent during the year
Basic earnings per ordinary share (pence) 8 0.58p 4.35p
Diluted earnings per ordinary share (pence) 8 0.56p 4.32p
COnsolidated statement of
comprehensive income FOR THE YEAR
ENDED 30 sEPTEMBER 2024
(Audited) (Audited)
2024 2023
£'000 £'000
Net profit for the year 758 5,656
Other comprehensive expense
Items that will or may be reclassified to profit or loss
Exchange differences on retranslation of overseas subsidiaries (406) (110)
Tax credit on translation differences 81
Total other comprehensive expense (325) (110)
Total comprehensive income for the year attributable to owners of the parent 433 5,546
consolidated statement of financial position AS AT 30 september 2024
COMPANY NUMBER: 03998880 (Audited) (Audited)
2024 2023
£'000 £'000
Non-current assets
Goodwill and intangible assets 18,714 10,203
Property, plant and equipment 3,257 2,480
Right of use assets 3,534 3,135
Financial asset - investments 236 236
25,741 16,054
Current assets
Inventories 7,737 7,240
Trade and other receivables 8,932 9,907
Current tax receivable 425 -
Fixed term deposits 30,000 42,000
Cash and cash equivalents 20,723 23,965
67,817 83,112
Current liabilities
Trade and other payables (7,344) (11,304)
Current tax payable (124) (275)
Deferred consideration payable (436) -
Bank overdraft - (1,174)
Lease liabilities (1,174) (724)
(9,078) (13,477)
Net current assets 58,739 69,635
Total assets less current liabilities 84,480 85,689
Non-current liabilities
Other liabilities (848) (820)
Lease liabilities (2,601) (2,498)
Provisions (59) (48)
Deferred tax liability (1,879) (1,118)
(5,387) (4,484)
Net assets 79,093 81,205
Capital and reserves attributable to
owners of the parent
Share capital 329 326
Shares to be issued 65 65
Share premium account 19,494 19,487
Merger reserve 870 -
Retained earnings 57,865 60,451
Foreign currency translation reserve 470 876
Total equity shareholders' funds 79,093 81,205
consolidated STATEMENT of CASHFLOWS
For the year ended 30 september 2024
(Audited) (Audited)
2024 2023
£'000 £'000
Cash flows from operating activities
Profit for the year from continuing operations 2,931 6,664
Loss for the year from discontinued operations (2,173) (1,008)
Total profit for the year 758 5,656
Income tax (credit)/expense (216) 594
Finance income (2,334) (1,561)
Finance expense 276 163
Depreciation and amortisation 4,072 2,898
Impairment of intangible assets 1,273 217
Profit on sale of property, plant and equipment - (8)
Share-based payments 211 59
Increase in inventories (285) (2,799)
Decrease/(increase) in receivables 1,108 (2,274)
(Decrease)/increase in payables (4,540) 205
Cash generated from operating activities 323 3,150
Tax (paid) / received (755) 209
Net cash from operating activities (432) 3,359
Cash flows from investing activities
Purchase of property, plant and equipment (1,611) (1,499)
Purchase of intangible assets (3,086) (2,127)
Acquisition of subsidiary undertaking, net of cash acquired (6,231) -
Proceeds on disposal of property, plant and equipment 12 8
Dividends received - --
Cash placed on fixed term deposits (57,968) (67,000)
Fixed term deposits maturing 69,968 80,000
Interest received 2,388 1,219
Net cash generated from/(used in) investing activities 3,472 10,601
Cash flows from financing activities
Principal paid on lease liabilities (825) (579)
Interest paid (3) (4)
Interest paid on lease liabilities (291) (159)
Issue of ordinary shares 10 370
Equity dividends paid (3,615) (3,246)
Net cash used in financing activities (4,724) (3,618)
Net (decrease)/increase in cash and cash equivalents (1,684) 10,342
Cash and cash equivalents at beginning of the period 22,791 12,679
Exchange loss on cash and cash equivalents (384) (230)
20,723 22,791
Cash and cash equivalents included in current assets 20,723 23,965
Bank overdraft included in current liabilities - (1,174)
20,723 22,791
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER
2024
Group Share Shares Share premium account Merger Reserve Retained earnings Foreign currency translation reserve Total
capital to be issued
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 30 September 2022 324 65 19,094 - 57,917 986 78,386
(Audited)
Net profit for the year - - - - 5,656 - 5,656
Exchange differences on retranslation of overseas subsidiaries - - - - (110) (110)
-
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - 90 - 90
-
Dividends - - - - (3,246) - (3,246)
Issue of share capital 2 - 393 - - - 395
Share based payment charge - - - - 34 - 34
Balance as at 30 September 2023 (Audited) 326 65 19,487 - 60,451 876 81,205
Net profit for the year - - - - 758 - 758
Exchange differences on retranslation of overseas subsidiaries - - - - (406) (406)
-
Tax credit on translation differences - - - 81 - 81
-
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - (21) - (21)
-
Dividends - - - - (3,615) - (3,615)
Issue of share capital 3 - 7 870 - - 880
Share based payment charge - - - - 211 - 211
Balance as at 30 September 2024 (Audited) 329 65 19,494 57,865 470 79,093
870
1. Basis of preparation of the financial information
The financial information in this preliminary announcement has been prepared
in accordance with the recognition and measurement criteria of IFRSs, this
announcement does not itself contain sufficient information to comply with
IFRSs.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise judgement in the process of applying the Group's accounting policies
which affect the reported amount of assets and liabilities at the statement of
financial position date and the reported amounts of revenues and expenses
during the reported period. Although the estimates are based on management's
best knowledge of the amount, event or actions, actual results may ultimately
differ from those estimates.
The financial information for the year ended 30 September 2024 as set out in
this preliminary announcement does not constitute the statutory accounts of
the Group for the relevant year within the meaning of section 435 of the
Companies Act 2006. The audit of the statutory financial statements for the
year ended 30 September 2024 is not yet complete. These accounts will be
finalised on the basis of the financial information presented by the Directors
in this preliminary announcement and will be delivered to the Registrar of
Companies following the Company's annual general meeting. The Consolidated
Income Statement, Consolidated Statement of Comprehensive Income, Consolidated
Statement of Changes in Equity and Consolidated Statement of Cash Flows for
the year ended 30 September 2023 and the Consolidated Statement of Financial
Position as at 30 September 2023 have been derived from the full Group
accounts published in the Annual Report and Financial Statements 2023. These
have been delivered to the Registrar of Companies and on which the report of
the independent auditors was unqualified and did not contain a statement under
section 498(2) or section 498(3) of the Companies Act 2006.
2. Basis of consolidation
The consolidated financial information incorporates the results of the Company
and all of its subsidiary undertakings drawn up to 30 September 2024.
3. Revenue from contracts with customers
(Audited) (Audited)
2024 2023
Revenue £'000 £'000
Continuing operations
Vicon UK 21,250 25,545
Vicon USA 17,340 18,695
Smart manufacturing 2,869 -
41,459 44,240
Timing of the transfer of goods
and services Smart Manufacturing Vicon UK Vicon USA Total
2024 (Audited) £'000 £'000 £'000 £'000
Point in time 393 19,196 14,569 34,158
Over time 2,476 2,054 2,771 7,301
Total 2,869 21,250 17,340 41,459
Contract Counterparties
Direct to consumers 2,869 7,866 16,356 27,091
Third party distributor - 13,384 984 14,368
Total 2,869 21,250 17,340 41,459
By destination
UK 1,761 4,326 - 6,087
Germany - 1,077 94 1,171
Italy - 426 - 426
Netherlands - 659 - 659
France 3 485 - 488
Poland - 78 - 78
Spain 234 149 - 383
Ireland 162 30 - 192
Czech Republic 4 1,333 - 1,337
Switzerland - 1,268 - 1,268
Rest of Europe 72 339 - 411
Total Europe 475 5,844 94 6,413
Canada 480 6 1,527 2,013
USA 6 35 15,481 15,522
Total North America 486 41 17,008 17,535
Australia - 1,344 8 1,352
Hong Kong - 1,223 2 1,225
Japan - 4,009 - 4,009
South Korea 11 874 - 885
China - 1,530 - 1,530
India - 477 - 477
Rest of Asia Pacific - 1,500 1 1,501
Total Asia Pacific 11 10,957 11 10,979
Other 136 82 227 445
Total 2,869 21,250 17,340 41,459
Timing of the transfer of goods
and services Vicon UK Vicon USA Total
2023 (Audited) £'000 £'000 £'000
Point in time 23,714 16,032 39,746
Over time 1,831 2,663 4,494
Total 25,545 18,695 44,240
Contract Counterparties
Direct to consumers 5,341 17,673 23,014
Third party distributor 20,204 1,022 21,226
Total 25,545 18,695 44,240
By destination
UK 3,176 - 3,176
Germany 1,973 - 1,973
Italy 633 - 633
Netherlands 646 - 646
France 155 - 155
Poland 178 - 178
Spain 88 - 88
Ireland 565 - 565
Rest of Europe 1,087 - 1,087
5,325 - 5,325
Canada 9 1,878 1,887
USA 12 16,533 16,545
Total North America 21 18,411 18,432
Australia 939 13 952
Hong Kong 2,517 - 2,517
Japan 5,680 - 5,680
South Korea 2,835 - 2,835
China 3,957 - 3,957
India 574 - 574
Rest of Asia Pacific 397 - 397
Total Asia Pacific 16,899 13 16,912
Other 124 271 395
Total 25,545 18,695 44,240
(Audited) (Audited)
2024 2023
£'000 £'000
Group revenue by market - Continuing operations
Engineering 8,100 8,708
Entertainment 15,851 20,691
Life sciences 14,639 14,841
Smart Manufacturing 2,869 -
Total 41,459 44,240
Timing of the transfer of goods
and services
Vicon UK
Vicon USA
Total
2023 (Audited)
£'000
£'000
£'000
Point in time
23,714
16,032
39,746
Over time
1,831
2,663
4,494
Total
25,545
18,695
44,240
Contract Counterparties
Direct to consumers
5,341
17,673
23,014
Third party distributor
20,204
1,022
21,226
Total
25,545
18,695
44,240
By destination
UK
3,176
-
3,176
Germany
1,973
-
1,973
Italy
633
-
633
Netherlands
646
-
646
France
155
-
155
Poland
178
-
178
Spain
88
-
88
Ireland
565
-
565
Rest of Europe
1,087
-
1,087
5,325
-
5,325
Canada
9
1,878
1,887
USA
12
16,533
16,545
Total North America
21
18,411
18,432
Australia
939
13
952
Hong Kong
2,517
-
2,517
Japan
5,680
-
5,680
South Korea
2,835
-
2,835
China
3,957
-
3,957
India
574
-
574
Rest of Asia Pacific
397
-
397
Total Asia Pacific
16,899
13
16,912
Other
124
271
395
Total
25,545
18,695
44,240
(Audited)
2024
£'000
(Audited)
2023
£'000
Group revenue by market - Continuing operations
Engineering
8,100
8,708
Entertainment
15,851
20,691
Life sciences
14,639
14,841
Smart Manufacturing
2,869
-
Total
41,459
44,240
Group revenue by type
Continuing operations
Sale of hardware 33,360 36,158
Sale of software 1,753 1,974
Rendering of services 5,334 5,209
Support 1,012 899
Total 41,459 44,240
Group revenue by origin
Continuing operations
UK 22,559 23,690
Europe 1,560 1,852
North America 17,340 18,695
Asia Pacific - 3
Total 41,459 44,240
Contract balances
2024 (Audited)
Contract assets Contract liabilities
£'000 £'000
At 1 October 2023 - (4,528)
On acquisition 18 (438)
Transfers from contract assets to trade receivables during the period (18) -
Amounts included in contract liabilities recognised as revenue during the - 11,524
period
Excess of revenue recognised over invoices raised during the period 144 -
Invoices raised in advance of performance and not recognised as revenue during - (10,578)
the period
Foreign exchange differences - 247
At 30 September 2024 144 (3,773)
2023 (Audited)
Contract assets Contract liabilities
£'000 £'000
At 1 October 2022 - (6,043)
Amounts included in contract liabilities recognised as revenue during the - 18,400
period
Cash received in advance of performance and not recognised as revenue during - (17,138)
the period
Foreign exchange differences - 253
At 30 September 2023 - (4,528)
Contract assets and contract liabilities are included within trade and other
assets and trade and other payables and other liabilities respectively on the
face of the statement of financial position. They arise primarily from the
Group's support contracts which are delivered over time and where the
cumulative payments received from customers at each balance sheet date do not
necessarily equal the amount of revenue recognised on the contract.
Remaining performance obligations
The majority of the Group's contracts are for the delivery of goods and
services within the next 12 months. However, some software and support
contracts are for a period greater than 12 months and the amount of revenue
that will be recognised in future periods on these contracts is as follows:
At 30 September 2024 2025 2026 2027 2028 2029 2030 and beyond
(Audited)
£'000 £'000 £'000 £'000 £'000 £'000
Support contracts 2,732 480 225 99 23 21
Smart Manufacturing contracts
193 - - - - -
2,925 480 225 99 23 21
At 30 September 2023 2024 2025 2026 2027 2028 2029 and beyond
(Audited)
£'000 £'000 £'000 £'000 £'000 £'000
Support contracts 3,707 493 199 86 39 4
4. Segmental analysis
Segment information is presented in the 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 Oxford
Metrics plc ("the Board") as the CODM. The business segment reporting
reflects the Group's management and internal reporting structure.
During the year the Group comprised the following business segments:
· Vicon Group: This is the development, production and sale of
computer software and equipment for the engineering, entertainment and life
science markets.
· Smart Manufacturing: This is the development, production and
sale of vision inspection systems.
Other unallocated costs represent head office expenses not recharged to
subsidiary companies and interest received on surplus cash balances.
Inter segment transfers are priced along the same lines as sales to external
customers, with an appropriate discount being applied to encourage use of
Group resources. This policy was applied consistently throughout the current
and prior year. There were no significant inter segment transfers during the
current or prior year.
Segment assets consist primarily of property, plant and equipment, intangible
assets, inventories and trade and other receivables. Unallocated assets
comprise deferred taxation, investments and cash and cash equivalents.
2024 2023
(Audited) (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
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Continuing operations
Vicon Group 4,919 (207) (3,654) 1,058 9,189 (215) (3,243) 5,731
Smart manufacturing
252 (262) (304) (314) - - - -
Unallocated (1,431) (489) 3,958 2,038 (1,690) (8) 3,243 1,545
Total continuing operations
3,740 (958) - 2,782 7,499 (223) - 7,276
Discontinued operations
Vicon UK - IMU (895) (1,345) - (2,240) (954) (72) - (1,026)
Oxford Metrics Group
2,845 (2,303) - 542 6,545 (295) - 6,250
Non-current assets Additions to non-current assets Carrying amount of segment assets Carrying amount of segment liabilities
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
2024 2023 2024 2023 2024 2023 2024 2023
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon Group 16,440 15,773 4,684 5,883 35,767 41,268 (11,292) (16,833)
Smart manufacturing 9,038 - 8,858 - 10,593 - (1,872) -
Unallocated 263 281 7 55 53,250 63,950 (1,301) (1,128)
OMG Life Group*
- - - - (6,052) (6,052) - -
Oxford Metrics Group
25,741 16,054 13,549 5,938 93,558 99,166 (14,465) (17,961)
* The negative balance within segment assets represents a cash overdraft which
is part of the Group's cash offset facility.
5. Profit for the year
The profit for the year is stated after charging / (crediting):
(Audited) 2024 (Audited) 2023
£'000 £'000
Amortisation of right of use assets 1,021 523
Depreciation of property, plant and equipment - owned 955 639
Amortisation of intellectual property 394 274
Amortisation of customer relationships 124 -
Amortisation of brand 17 -
Amortisation of development costs 1,561 1,462
Impairment of development costs - 217
Impairment of intellectual property 197 -
Impairment of goodwill 1,076 -
Share based payments - equity settled - 25
Share option charges 211 34
Foreign exchange loss/(gain) 601 (108)
6. Reconciliation of adjusted profit before tax
The adjusted profit before tax is considered by the Board to more accurately
reflect the underlying operating performance of the business on a go-forward
basis and complements the statutory measure as reported in the Consolidated
Income Statement.
The reconciliation of profit before tax to adjusted profit provided below
includes items that are:
• non-recurring in nature, such as redundancy costs
incurred from time to time and acquisition costs.
• non-cash moving items which arise from the accounting
treatment of share based payments and the amortisation of acquired intangibles
which affect neither future operating performance nor cash generation.
The above definition has been consistently applied historically and is the
measure by which the market generally judges PBT performance.
(Audited) 2024 (Audited) 2023
£'000 £'000
Profit before tax - continuing operations 2,782 7,276
Share option charges 211 34
Amortisation of intangibles arising on acquisition 452 189
Acquisition costs 295 -
Adjusted profit before tax - continuing operations 3,740 7,499
Profit before tax - discontinued operations (2,240) (1,026)
Amortisation of intangibles arising on acquisition 72 72
Impairment of goodwill and intangible assets 1,273 -
Adjusted profit before tax - discontinued operations (895) (954)
Adjusted profit before tax - total operations 2,845 6,545
Adjusted earnings per share for profit on continuing operations attributable
to owners of the parent during the year
Basic earnings per share (pence) 2.96p 5.29p
Diluted earnings per share (pence) 2.93p 5.26p
7. Taxation
The tax is based on the profit for the year and represents:
(Audited) 2024 (Audited) 2023
£'000 £'000
United Kingdom corporation tax at 25.0% (2023: 22.0%) 1 218
Overseas taxation 288 143
Adjustments in respect of prior year (140) 15
Current taxation 149 376
Deferred taxation (365) 218
Total taxation (credit)/expense (216) 594
In the prior year UK corporation tax was calculated at 19.0% up to 31 March
2023 and 25.0% from 1 April 2023. This gives rise to a blended tax rate of
22.0% for the prior year.
Continuing and discontinued operations:
(Audited) 2024 (Audited) 2023
£'000 £'000
Income tax (credit)/expense from continuing operations (149) 612
Income tax credit from discontinued operations excluding gain on sale (67) (18)
Total tax (credit)/ expense (216) 594
At 30 September 2024, the Group had an undiscounted deferred tax asset of
£2,266,000 (2023: £1,618,000). The asset comprises principally short term
timing differences, future tax relief available on the exercise of outstanding
employee share options in Oxford Metrics plc and unrelieved trading losses
carried forward for which recoverability is reasonably certain.
Deferred tax assets and liabilities have been measured at an effective rate of
25% in both the UK and USA (2023: 25%).
The tax assessed for the year is lower than the standard rate of corporation
tax in the UK of 25.0% (2023: lower than the blended rate of 22%).
The differences are explained as follows:
(Audited) 2024 (Audited) 2023
£'000 £'000
Profit for the year 758 5,656
Income tax (credit)/expense including discontinued operations (216) 594
Profit on ordinary activities before tax 542 6,250
Expected tax expense based on the rate of 136 1,375
corporation tax in the UK of 25.0% (2023: 22.0%)
Effect of:
Expenses not deductible for tax purposes 436 82
Movement in unrecognised deferred tax asset 281 149
Adjustments to tax charge in respect of prior year current tax (140) 15
Adjustments to tax charge in respect of prior year deferred tax (84) (309)
Higher rates on overseas taxation (70) 44
Research and development enhanced deduction (775) (682)
Effect of tax rate change - (80)
Total tax (credit)/expense (216) 594
8. Earnings/(loss) per share
(Audited) (Audited)
2024 2023
Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount
£'000 '000 pence £'000 '000 pence
Continuing operations
Basic earnings per share
Earnings attributable to ordinary shareholders 2,931 131,338 2.24 6,664 130,162 5.13
Dilutive effect of employee share options - 1,504 (0.02) - 904 (0.03)
Diluted earnings per share 2,931 132,842 2.22 6,664 131,066 5.10
Discontinued operations
Basic earnings per share
Earnings attributable to ordinary shareholders (2,173) 131,338 (1.66) (1,008) 130,162 (0.78)
Dilutive effect of employee share options - 1,504 - - 904 -
Diluted earnings per share (2,173) 132,842 (1.66) (1,008) 131,066 (0.78)
Total operations
Basic earnings per share
Earnings attributable to ordinary shareholders 758 131,338 0.58 5,656 130,162 4.35
Dilutive effect of employee share options - 1,504 (0.02) - 904 (0.03)
Diluted earnings per share 758 132,842 0.56 5,656 131,066 4.32
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares (share options). For share options a calculation
is done to determine the number of shares that could have been acquired at
fair value (determined as the average annual market share price of the
Company's shares) based on the monetary value of the subscriptions rights and
outstanding share based payment charges attached to outstanding share
options. The number of shares calculated as above is compared with the
number of shares that would have been issued assuming the exercise price of
the share options.
9. Dividends
(Audited) 2024 (Audited) 2023
Equity - ordinary £'000 £'000
Final 2023 paid in 2024 (2.75 pence per share) 3,615 -
Final 2022 paid in 2023 (2.50 pence per share) - 3,246
3,615 3,246
The directors are proposing a final dividend in respect of the financial year
ended 30 September 2024 of 3.25 pence per share (2023: 2.75 pence per share)
which will absorb an estimated £4,218,000 of shareholders' funds. This
dividend will be paid on 5 March 2025 to shareholders who are on the register
of members at close of business on 13 December 2024 subject to approval at the
AGM. These dividends have not been accrued in these financial statements.
10. Copies of announcement
Copies of this announcement will be available from the Company's registered
office at 6 Oxford Pioneer Park, Yarnton, Oxfordshire, OX5 1QU and from the
Company's website: www.oxfordmetrics.com (http://www.oxfordmetrics.com) .
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