REG - Oxford Metrics PLC - Interim Results
23/06/2022 07:00
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RNS Number : 8744P Oxford Metrics PLC 23 June 2022
23(rd) June 2022
Oxford Metrics plc
("Oxford Metrics", the "Company" or the "Group")
Interim Results for the six months ended 31 March 2022
- Oxford Metrics trades successfully in important development period
for the Group
- Vicon revenue grows despite supply chain constraints
- Unprecedented level of orders-in-hand going into the second half
- Strong financial platform, further strengthened by sale of Yotta, to
accelerate M&A and planned organic investments
Oxford Metrics plc (LSE: OMG), the smart sensing software company, servicing
life sciences, entertainment and engineering markets, announces unaudited
interim results for the six months ended 31 March 2022.
H1 FY22 H1 FY21
Revenue £12.5m £11.2m
Adjusted Profit before Tax* £0.3m £1.0m
Adjusted* Basic Earnings per Share 0.41p 0.69p
Statutory Profit/(Loss) before Tax £0.6m £1.3m
Statutory Basic Earnings per Share 0.65p 0.92p
Net Cash £19.6m £15.9m
Operating Cashflow £3.2m £4.5m
Cash as at 22 June 2022 £67.7m -
Order book £12.9m £0.7m
* Profit/(loss) Before Tax from continuing operations before Group recharges
adjusted for share-based payments, amortisation of intangibles arising on
acquisition, change in fair value of deferred consideration payable and
unwinding of associated discount factor and exceptional costs
Commenting on the results Nick Bolton, Chief Executive said:
"Oxford Metrics has traded successfully in an important development period for
the Group. Firstly, in October last year we announced our new five-year plan
to both grow revenues by 2.5x and to deliver Adjusted PBT margins of 15% by
the end of the plan.
Secondly, the Group's trading during the first half of FY22 saw Vicon
reporting strong revenue growth of 11.8% despite supply chain constraints, but
this does not fully reflect the underlying strength of the business.
More recently, the Group announced the disposal of Yotta to Causeway
Technologies for a cash consideration of £52.0m. The sale means we have
increased financial firepower to make strategic organic and inorganic
investments through the lens of Vicon and its core technology.
The Group enters the second half with Vicon having more than recovered from
the pandemic-impacted years with an unprecedented level of orders-in-hand
driven by buoyant demand continuing. Although our ability to deliver has been
impacted by supply chain constraints, the situation is gradually improving and
the Board remains confident that Oxford Metrics is in-line with achieving its
full year expectations. The Group also has significant cash resources and is
actively seeking out M&A opportunities to enhance our capabilities and
scale towards our five-year goals."
Financial Highlights
· Headline Group revenue of £12.5m, up 11.8% (H1 FY21: £11.2m), on a constant
currency basis underlying growth was 11.1%
· The Group reported an adjusted profit before tax £0.3m (H1 FY21: £1.0m)
reflecting a planned increase in R&D investment, together with operating
costs returning to more normal levels
· Adjusted earnings per share 0.41p (H1 FY21: 0.69p)
· Order book of £12.9m (H1 FY21: £0.7m)
· Continued cash generation with operating cashflow of £3.2m (H1 FY21: £4.5m)
· Strong balance sheet with no debt and cash of £19.6m as at 31 March 2022 (H1
FY21: £15.9m)
· Cash position as at 22(nd) June 2022 £67.7m, reflecting Yotta sale proceeds
Operational Highlights
Vicon delivers strong revenue growth, despite supply chain constraints
· Vicon's revenue grew 11.8%, at a headline level, to £12.5m (H1 FY21: £11.2m)
despite some supply chain constraints.
· Strong demand across all vertical markets despite being subject to supply
chain constraints, with an unprecedented level of orders-in-hand of £12.9m.
o Location-based Entertainment (LBE) market recovery continues with growth
of 131.3%, as all market partners restart their experiences.
o Life Sciences revenue grew by 11.0%, and accounts for a quarter of the
orders in-hand.
o Engineering grew 8.3% with good wins at Cranfield University and ICAI
Madrid.
o Entertainment revenue was flat although buoyant Virtual Production and
Animation growth continues, with Entertainment accounting for half of the
orders-in-hand.
· Before Group costs, Vicon reported an Adjusted PBT* of £1.8m (H1 FY21:
£2.2m) reflecting a change in product mix and some increases to operating
costs.
Yotta sale is an enabler of growth
· Yotta was sold to Causeway Technologies on 30th May 2022 for a cash
consideration of £52.0 million, in a sale that makes sense on multiple
fronts:
o The transaction represents attractive revenue and profit multiples.
o While Yotta has been growing steadily in scale, growing recurring revenue
and achieving full year adjusted profitability, it shared no overlap with
Vicon - the much larger and higher growth part of the Group.
o In joining with Causeway, a well-established leader of software solutions
to the construction industry, we believe this newly combined business is much
better positioned to continue both Yotta's growth and innovation.
· The proceeds from the sale have provided the Group with significant near-term
financial firepower to accelerate M&A and planned organic investments.
Outlook and Guidance
· Vicon has more than recovered from the pandemic-affected years which is
evidenced by the unprecedented level of orders-in-hand arising from ongoing
buoyant demand.
· The overall cost base in the second half is expected to rise compared to the
first half as costs continue to normalise following the pandemic and we
continue with our investment plans to augment our ability to sense, analyse
and apply.
· Having considered the current order book, the expected rise in the cost base
and given that supply chain constraints are gradually improving, the Board
remains confident that Oxford Metrics is in-line with achieving its full year
expectations.
· Following the sale of Yotta, the Group has significant cash resources and is
actively seeking out M&A opportunities to enhance capabilities.
· The Company is now a more focussed business, well placed to deliver on the
targets set out in our five-year plan.
For further information please contact:
Oxford Metrics +44 (0)1865 261860
Nick Bolton, CEO
David Deacon, CFO
Numis Securities Limited +44 (0)20 7260 1000
Simon Willis / Hugo Rubinstein / Tejas Padalkar
FTI Consulting +44 (0)20 3727 1000
Matt Dixon / Jamille Smith / Jemima Gurney
About Oxford Metrics
Oxford Metrics develops software that enables the interface between the real
world and its virtual twin. Our smart sensing software 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®, then moved into defence and engineering. We have a
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. Vicon is a world
leader in motion measurement analysis to thousands of customers worldwide,
including Guy's Hospital, Industrial Light & Magic, MIT and NASA.
The Group is headquartered in Oxford with offices in California, Colorado, and
Auckland. 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)
Chairman and Chief Executive's Statement
The first half was a period of important development for the Group. Firstly,
in October 2021, we announced our new five-year plan, through which we aim, by
the end of plan, to both grow revenues by 2.5x and deliver adjusted PBT
margins of 15%. Secondly, we traded successfully in the first half with
headline revenues growing 11.8% whilst still holding an unprecedented level of
orders-in-hand of £12.9m (H1FY21: £0.7m) into the second half driven by
buoyant demand. In May 2022, we announced the disposal of our Yotta business
at a highly attractive valuation. The disposal has resulted in a company which
is now more focussed and with greater financial firepower to deliver on its
growing set of organic and inorganic opportunities.
Yotta sale
Given the significance of the sale of Yotta to both these reported figures and
to the go-forward growth opportunities for the Group, let us start here. On
30th May 2022, we announced the sale of Yotta, our infrastructure asset
management software division, to Causeway Technologies for a cash
consideration of £52.0 million. First and foremost, the transaction makes
clear financial sense. The consideration was paid fully in cash and represents
attractive revenue and profit multiples.
The second point to note is that, whilst Yotta had been growing steadily in
scale, particularly in growing recurring revenue and achieving full year
adjusted profitability, it shared no overlap with Vicon - the much larger part
of our Group and higher-growth division. This meant driving synergy benefits
to scale Yotta would be difficult to achieve under our ownership. Whereas, in
joining with Causeway, a well-established leader of software solutions to the
construction industry, we believe this newly combined business is much better
positioned to continue both Yotta's growth and innovation.
Although the sale closed after period end, these Interim Results have been
restated accordingly to reflect the sale. This means Yotta is disclosed as a
discontinued operation in the Income Statement and as an Asset Held for Sale
on the Statement of Financial Position. The disposal is expected to generate a
profit on disposal net of costs of £44.3m which will not be subject to tax
given the transaction qualifies under the Finance Act 2002 Substantial
Shareholder Exemption as amended. From a net cash perspective the transaction
is expected to add £47.4m.
First half trading (from continuing operations)
KPI Revenue PBT Adjusted PBT*
H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21
Group £12.5m £11.2m £0.6m £1.3m £0.3m £1.0m
Removing Yotta from the trading figures, the reported revenues of the
remaining Group have improved to £12.5m (H1 FY21: £11.2m), up 11.8% at a
headline level and up 11.1% on a constant currency basis. However, this does
not fully reflect the underlying strength of the business when orders-in-hand
are taken into account. We have continued to see strong demand across all
Vicon's vertical markets, although delivering on this demand has been subject
to well publicised supply chain constraints. We have had success in navigating
these challenges in the first half and continue to actively manage the
situation. As we enter the second half of the financial year, we carry an
unprecedented level of orders-in-hand of £12.9m (H1 FY21: £0.7m) driven by
buoyant demand. Whilst some supply chain constraints continue, the overall
picture continues to improve gradually.
The Group also reports an Adjusted PBT* of £0.3m (H1 FY21: £1.0m), largely
reflecting an increase in R&D investment announced at the Preliminary
Results for FY21, together with operating costs returning to more normal
levels following the depressed spend during the pandemic when marketing and
travel costs were lower.
All vertical market segments have performed well and reported growth through
the first half.
Engineering
Engineering reported revenue growth of 8.3%. During the period the Centre for
Autonomous and Cyberphysical Systems, at Cranfield University, purchased a
system to be used in the research and study of Aeronautical Systems,
Autonomous Systems, Flight Physics and Off-Road Vehicle Engineering. While
ICAI Madrid, in Spain, is using Vicon to understand the potential risks of
reclined seating postures intended for autonomous cars as the current design
of seat belts and airbags has never considered installation in autonomous
vehicles.
Entertainment
Entertainment reported revenues were broadly flat year-on-year, following a
strong performance in the first of last year. However, over half of the order
backlog is accounted for by Entertainment which continues to see buoyant
growth in Virtual Production and Animation. In the half the Institute of
American Indian Arts purchased a system to help to preserve the heritage of
the Native American. Illfonic Games and Monkey Chow also added Vicon to their
Games and VFX business, and our long-term customer Industrial Light and Magic
launched the "ABBA: Voyage" show which used Vicon technology to help animate
the band members to widespread critical acclaim.
Life Sciences
Life Sciences reported revenues were up 11.0% and accounts for over a quarter
of the order backlog. During the period Manchester Metropolitan University
Institute of Sport invested in a new system, which is an integral part of the
brand new £26m Institute of Sport Building (Centre of Sporting Excellence) at
the University, opening in 2022. While a system purchased by the JOiiNT LAB
(https://eu-west-1.protection.sophos.com?d=joiintlab.com&u=aHR0cHM6Ly93d3cuam9paW50bGFiLmNvbS8=&i=NTUxMTU3ZWFlNGIwNmI0MGYxNWM1OTZh&t=RXJ2cDJ1QUx3bmZtNmVzYWR6ZzRXdFBCa3RWSG00YUl0TnRqVEovSXhsaz0=&h=aff50359978449c79690b144da8e3577)
in Bergamo, Italy is being used for robot control (navigation and
manipulation), ergonomic studies, and biomechanical studies to technically
evaluate a novel prosthetic foot for lower-limb amputees, a by no means unique
combination of Life Sciences and Engineering studies being conducted on the
same system. As part of the same research consortium another system installed
at IIT Genoa will be used for robot teleoperation, as well as for technically
evaluating upper-limb and lower-limb prostheses. Tonal, a home gym and
personal training company purchased system to help assess their sports science
product range.
LBE
Our Location-based Entertainment (LBE) market continues to recover reporting
year-on-year growth of 131.3% and also has an encouraging order backlog. This
performance was driven by all of our market partners restarting their
experiences as the pandemic rules were relaxed. Significant expansions,
previously planned prior to COVID-19 are now in progress, and we were able to
sign a new market partner up in the latter part of the first half.
Overall, Vicon reported a gross margin at 70.7% (H1 FY21: 73.3%) in the first
half. The decline is attributed to the mix of revenues arising from both the
specific geographic spread of revenues and the various margin contributions of
each product line.
Given the above revenue and gross margin performance coupled with a rise in
the underlying cost base, before Group costs, Vicon reported an Adjusted PBT*
of £1.8m (H1 FY21: £2.2m) and an unadjusted profit before tax of £0.6m (H1
FY21: £1.1m).
The cash position, having paid a final dividend of £2.5m in the first half,
finished at £19.6m as at 31 March 2021 (H1 FY21: £15.9m). Cash generated
from operations during the first half was £3.2m (H1 FY21: £4.5m). The Group
cash position on the eve of these Interims Results stood at £67.7m.
Five-year plan - a reminder
The successful sale of Yotta changes nothing about our ambition for our
five-year plan but it does provide an increased opportunity as to how fast and
how hard we drive it. Our plan recognised something fundamental was changing
in our markets and in our opportunity. This change was driven by the arrival
of the Augmented Age - an era where humans partner with machines to achieve
what neither can alone. For this augmented partnership to thrive, we need
technologies which have the ability to perceive us and our surroundings. They
must be able to capture and understand every dimension of our world in
real-time - humans, objects, movements, environments.
This requires smart sensing systems, where cameras and other sensors are
deeply coupled with powerful software to enable machines to transparently
enhance our lives. Such smart sensing capability has always been our core
technology - from imagery to insight; from pixel to purpose; and from sensing
to sense-making. Indeed, it provided the seed for Yotta's creation, growth and
eventual sale. Today, we are seeing it can be applied to a growing set of
domains and applications.
Our plan looks to capitalise on exactly this expanded opportunity by focussing
on driving each of the three elements of smart sensing - sense, analyse and
apply.
1. Extend the sensing capabilities our integrated smart sensing systems through
R&D, M&A and fostering key supplier partnerships. Currently, our
solutions utilise a wide range of sensors - including optical, video,
inertial, force plates among others - some we own and some we integrate with.
These existing sensing mechanisms can be improved, and we can also add other
sensing mechanisms to broaden the applicability of our integrated solutions.
2. Enhance the analysis we can undertake to broaden the range of applications to
which our systems can be applied. Our most recent acquisition, Contemplas,
completed in August 2021 is a great example of this.
3. Embed our Intellectual Property (IP) in other firms' solutions by opening up
our technology through R&D, M&A and investing in dedicated embedding
sales and support resources. Here we will expand the ability to integrate our
sensing and analysis IP to specific application domains, such as our existing
partners in the Location-based Entertainment (LBE) market.
Greater focus. Greater resources.
Following the sale of Yotta, the entirety of the five-year plan still holds.
The contexts of market and technology developments still hold. The validity of
our three-initiative approach through the constituent elements of sense,
analyse and apply still hold. Now we will pursue this plan through the
focussed lens of our market-leading global Vicon business and technology, and
with the increased resources the sale of Yotta has provided to our balance
sheet. Our aim is to build a larger, more connected enterprise. This means
adding the following adaptations to our sense, analyse, apply initiatives:
· Focus on a single integrated core technology stack. We already lead in a
variety of markets through a range of sensing and analysis technologies. We
now have to the opportunity to add to this core through both organic
development and M&A. In all cases the additional technologies must augment
and/or amplify our existing capabilities. Although the end market application
may be new, there will always be a tie back to this central capability of
integrated smart sensing systems.
· Extract greater operational leverage across markets and the organisation.
Closer markets, technologies and customers enable us to extract greater
operational leverage across initiatives. For example, a single technology
innovation which can be applied to all our markets or driving out economies of
scale in our marketing or our production. We are seeking coherence across the
organisation and the end markets we target.
· Pursue larger scale transactions. With a stronger balance sheet, we have the
opportunity to accelerate our pace of growth through lifting our ambition to
complete a number of larger transactions. We already have an exciting pipeline
of M&A opportunities which fit well within this new, more cohesive plan.
We will remain disciplined on price and we continue to look for IP-rich,
hard-to-replicate technology companies with attractive actual or potential
cashflow metrics, good-to-high revenue visibility or a dominant position in a
niche market, proven market acceptance of their technology, and able
management teams who share our cultural values.
Outlook
The Vicon business has more than recovered from the pandemic-affected years,
which is evidenced by the unprecedented level of orders-in-hand driven by
ongoing buoyant demand.
The overall cost base in the second half is expected to rise as costs continue
to normalise following the pandemic and we continue with our investment plans
to augment our ability to sense, analyse and apply.
Our ability to deliver on the buoyant demand has hitherto been impacted by
supply chain constraints but looking forward, the situation is gradually
improving and the Board believe Oxford Metrics will deliver a performance for
the full year in line with achieving market expectations.
With growing market demand, a newly focussed, more connected enterprise and
now with more financial firepower, we believe Oxford Metrics is well
positioned to realise its ever-visible, longstanding growth potential.
* Profit/(loss) Before Tax from continuing operations before Group recharges
adjusted for share-based payments, amortisation of intangibles arising on
acquisition, change in fair value of deferred consideration payable and
unwinding of associated discount factor and exceptional costs.
CONDENSED CONSOLIDATED INCOME STATEMENT
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September 2021
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Revenue 2 12,547 11,225 27,571
Cost of sales (4,099) (3,525) (8,589)
Gross profit 8,448 7,700 18,982
Sales, support and marketing costs (3,099) (2,569) (5,336)
Research and development (1,676) (1,374) (3,511)
Administrative expenses (3,038) (2,473) (6,438)
Operating profit 635 1,284 3,697
Finance income 1 3 4
Finance expense (32) (34) (67)
Profit before taxation 604 1,253 3,634
Taxation 228 (88) (574)
Profit from continuing operations 832 1,165 3,060
Loss from discontinued operations, net of tax (206) (145) (125)
Profit for the period attributable to
owners of the parent during the period 626 1,020 2,935
Earnings per share for profit on continuing operations attributable to owners
of the parent during the year
Basic earnings per share (pence) 6 0.65p 0.92p 2.42p
Diluted earnings per share (pence) 6 0.65p 0.91p 2.40p
Earnings per share for profit on total operations attributable to owners of
the parent during the year
Basic earnings per share (pence) 6 0.49p 0.81p 2.32p
Diluted earnings per share (pence) 6 0.49p 0.80p 2.30p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Net profit for the period 626 1,020 2,935
Other comprehensive income
Items that will or may be reclassified to profit or loss
Exchange differences on retranslation of overseas subsidiaries 85 (351) (129)
Total other comprehensive income/(expense) 85 (351) (129)
Total comprehensive income for the period attributable to the owners of the 711 669 2,806
parent
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 31 March 30 September
2022 2021 2021
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Non-current assets
Goodwill and intangible assets 8,984 12,524 13,543
Property, plant and equipment 1,548 1,728 1,756
Right of use assets 1,022 2,061 1,978
Financial asset - investments 236 305 236
Deferred tax asset 898 1,155 1,877
12,688 17,773 19,390
Current assets
Inventories 2,769 3,220 2,494
Trade and other receivables 3,406 8,627 6,099
Current tax debtor 32 102 118
Cash and cash equivalents 19,614 15,867 22,957
25,821 27,816 31,668
Assets classified as held for sale 12,001 - -
Current liabilities
Trade and other payables (8,358) (10,978) (12,504)
Current tax liability (154) - -
Lease liabilities (356) (496) (582)
(8,868) (11,474) (13,086)
Liabilities directly associated with assets classified as held for sale (6,968) - -
Net current assets 21,986 16,342 18,582
Total assets less current liabilities 34,674 34,115 37,972
Non-current liabilities
Other liabilities (762) (687) (883)
Lease liabilities (839) (1,719) (1,563)
Provisions (36) (28) (32)
Deferred tax liability (2,186) (1,972) (3,058)
(3,823) (4,406) (5,536)
Net assets 30,851 29,709 32,436
Capital and reserves attributable to the owners of the parent
Share capital 7 318 316 317
Shares to be issued 65 65 65
Share premium account 18,742 18,184 18,483
Retained earnings 11,608 11,333 13,538
Foreign currency translation reserve 118 (189) 33
Total equity shareholders' funds 30,851 29,709 32,436
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
Six months Six months ended Year
ended 31 March ended
31 March 2021 30 September 2021
2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Operating profit from continuing operations 635 1,284 3,697
Operating loss from discontinued operations (102) (243) (374)
Group operating profit 533 1,041 3,323
Depreciation and amortisation 1,432 1,711 3,339
Impairment of intangible assets - - 1,341
Increase in fair value of investment - - (68)
Share based payments 122 72 98
Exchange adjustments 96 (254) (69)
(Increase)/decrease in inventories (266) 176 1,144
Decrease in receivables 47 440 3,126
Increase in payables 1,200 1,265 2,223
Cash generated from operating activities 3,164 4,451 14,457
Tax received/(paid) 16 (87) (102)
Net cash from operating activities 3,180 4,364 14,355
Cash flows from investing activities
Purchase of property, plant and equipment (340) (78) (239)
Purchase of intangible assets (1,688) (1,191) (2,778)
Proceeds on disposal of property, plant and equipment 30 4 11
Acquisition of subsidiary undertaking net of cash acquired - - (1,149)
Interest received 1 3 4
Net cash used in investing activities (1,997) (1,262) (4,151)
Cash flows from financing activities
Principal paid on lease liabilities (230) (248) (504)
Interest paid on lease liabilities (45) (50) (105)
Interest paid (4) - (1)
Issue of ordinary shares 225 387 687
Equity dividends paid (2,542) (2,264) (2,264)
Net cash used in financing activities (2,596) (2,175) (2,187)
Net (decrease)/increase in cash and cash equivalents (1,413) 927 8,017
Cash and cash equivalents at beginning of the period 22,957 14,940 14,940
Cash and cash equivalents at end of the period 21,544 15,867 22,957
Amount included in cash and cash equivalents 19,614 15,867 22,957
Amount included in assets classified as held for sale 1,930 - -
Total cash and cash equivalents at end of the period 21,544 15,867 22,957
CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY
Foreign currency translation reserve
Shares Share premium account
Share to be Retained earnings
Capital issued Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance as at 30 September 2021 317 65 18,483 13,538 33 32,436
Net profit for the period - - - 626 - 626
Exchange difference on retranslation of overseas subsidiaries - - - - 85 85
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - (100) - (100)
Dividends - - - (2,542) - (2,542)
Issue of share capital 1 - 259 - - 260
Share based payment charge - - - 86 - 86
Balance as at 31 March 2022 318 65 18,742 11,608 118 30,851
Balance as at 30 September 2020 314 65 17,763 12,437 162 30,741
Net profit for the period - - - 1,020 - 1,020
Exchange differences on retranslation of overseas subsidiaries - - - - (351) (351)
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - 104 - 104
Dividends - - - (2,264) - (2,264)
Issue of share capital 2 - 421 - - 423
Share based payment charge - - - 36 - 36
Balance as at 31 March 2021 316 65 18,184 11,333 (189) 29,709
Balance as at 30 September 2020 314 65 17,763 12,437 162 30,741
Net profit for the period - - - 2,935 - 2,935
Exchange differences on retranslation of overseas subsidiaries - - - - (129) (129)
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - 368 - 368
Dividends - - - (2,264) - (2,264)
Issue of share capital 3 - 720 - - 723
Share based payment charge - - - 62 - 62
Balance as at 30 September 2021 317 65 18,483 13,538 33 32,436
The accompanying notes are an integral part of this interim financial
information.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM STATEMENTS
1. Basis of preparation
Oxford Metrics 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 2022 comprise the Company and its subsidiaries (together
referred to as the "Group").
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 2021. They are in accordance with
IAS 34. Other new and amended standards and interpretations issued by the
IASB that will apply for the first time in the next annual financial
statements are not expected to impact the Group as they are either not
relevant to the Group's activities or require accounting which is consistent
with the Group's current accounting policies.
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 2021 are not the statutory
accounts but have been extracted from the Group's 2021 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. Revenue from contracts with customers
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
(unaudited) (unaudited) (audited)
Revenue £'000 £'000 £'000
Continuing operations
Vicon UK 7,523 7,389 17,260
Vicon USA 5,024 3,836 10,311
Vicon Group 12,547 11,225 27,571
Discontinued operations
Yotta Group 4,256 4,099 8,056
Total operations
Oxford Metrics Group 16,803 15,324 35,627
Six months ended 31 March 2022 (unaudited)
Continuing Continuing Total Continuing Discontinued Total
Vicon UK Vicon USA operations Yotta Group
£'000 £'000 £'000 £'000 £'000
Timing of the transfer of goods and services
Point in time 6,556 3,933 10,489 732 11,221
Over time 967 1,091 2,058 3,524 5,582
7,523 5,024 12,547 4,256 16,803
Contract Counterparties
Direct to consumers 1,893 4,433 6,326 3,576 9,902
Third party distributor 5,630 591 6,221 680 6,901
7,523 5,024 12,547 4,256 16,803
By destination
UK 1,035 - 1,035 4,072 5,107
Germany 1,346 - 1,346 - 1,346
Italy 169 - 169 - 169
Greece 67 - 67 41 108
Netherlands 228 - 228 26 254
France 278 - 278 - 278
Spain 146 - 146 - 146
Rest of Europe 423 - 423 - 423
Canada 11 720 731 - 731
USA 13 4,193 4,206 - 4,206
Rest of North America - 104 104 - 104
Australia 429 - 429 107 536
Hong Kong 1,948 - 1,948 - 1,948
Japan 637 - 637 - 637
Korea 509 - 509 - 509
Rest of Asia Pacific 249 - 249 - 249
Other 35 7 42 10 52
Oxford Metrics Group 7,523 5,024 12,547 4,256 16,803
Six months ended 31 March 2021 (unaudited)
Continuing Continuing Total Continuing Discontinued Total
Vicon UK Vicon USA operations Yotta Group
£'000 £'000 £'000 £'000 £'000
Timing of the transfer of goods and services
Point in time 6,612 2,973 9,585 981 10,566
Over time 777 863 1,640 3,118 4,758
Oxford Metrics Group 7,389 3,836 11,225 4,099 15,324
Contract Counterparties
Direct to consumers 1,796 3,484 5,280 3,299 8,579
Third party distributor 5,593 352 5,945 800 6,745
Oxford Metrics Group 7,389 3,836 11,225 4,099 15,324
By destination
UK 1,361 - 1,361 3,914 5,275
Germany 694 - 694 - 694
Italy 247 - 247 - 247
Netherlands 284 - 284 10 294
France 101 - 101 - 101
Switzerland 64 - 64 - 64
Rest of Europe 555 - 555 - 555
Canada - 195 195 - 195
USA 2 3,550 3,552 - 3,552
Rest of North America - 43 43 - 43
Australia 177 - 177 168 345
Hong Kong 1,390 - 1,390 - 1,390
Japan 1,591 - 1,591 - 1,591
Korea 569 - 569 - 569
Rest of Asia Pacific 354 - 354 - 354
Other - 48 48 7 55
Oxford Metrics Group 7,389 3,836 11,225 4,099 15,324
Year ended 30 September 2021 (audited)
Continuing Continuing Total Continuing Discontinued Total
Vicon UK Vicon USA operations Yotta Group
£'000 £'000 £'000 £'000 £'000
Timing of the transfer of goods and services
Point in time 15,606 8,353 23,959 1,747 25,706
Over time 1,654 1,958 3,612 6,309 9,921
Oxford Metrics Group 17,260 10,311 27,571 8,056 35,627
Contract Counterparties
Direct to consumers 4,750 9,265 14,015 6,773 20,788
Third party distributor 12,510 1,046 13,556 1,283 14,839
Oxford Metrics Group 17,260 10,311 27,571 8,056 35,627
By destination
UK 3,519 - 3,519 7,741 11,260
Germany 1,591 - 1,591 - 1,591
Italy 484 - 484 - 484
Netherlands 435 - 435 22 457
France 220 - 220 - 220
Poland 355 - 355 - 355
Rest of Europe 1,601 - 1,601 6 1,607
Canada - 1,221 1,221 - 1,221
USA - 8,920 8,920 - 8,920
Rest of North America 2 104 106 - 106
Australia 530 - 530 269 799
Hong Kong 1,277 - 1,277 - 1,277
Japan 3,290 - 3,290 - 3,290
South Korea 1,364 - 1,364 - 1,364
China 2,254 - 2,254 - 2,254
Rest of Asia Pacific 338 - 338 - 338
Other - 66 66 18 84
Oxford Metrics Group 17,260 10,311 27,571 8,056 35,627
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Vicon revenue by market (continuing operations)
Engineering 2,678 2,472 5,763
Entertainment 3,955 4,022 11,884
Life sciences 4,637 4,179 9,106
Location based entertainment 1,277 552 818
Vicon Group* 12,547 11,225 27,571
Group revenue by type
Continuing operations
Sale of hardware 9,512 8,910 22,496
Sale of software 1,070 768 1,662
Rendering of services 1,269 1,115 2,485
SaaS 96 65 141
Support 600 367 787
Total continuing operations 12,547 11,225 27,571
Discontinued operations
Sale of software - 3 4
Rendering of services 886 1,130 2,057
SaaS 1,969 1,558 3,164
Support 1,401 1,408 2,831
Total discontinued operations 4,256 4,099 8,056
Oxford Metrics Group 16,803 15,324 35,627
Group revenue by origin
Continuing operations
UK 6,778 7,389 17,000
Europe 745 - 238
North America 5,024 3,836 10,311
Asia Pacific - - 22
Total continuing operations 12,547 11,225 27,571
Discontinued operations
UK 4,148 3,931 7,786
Asia Pacific 108 168 270
Total discontinued operations 4,256 4,099 8,056
Oxford Metrics Group 16,803 15,324 35,627
*This additional information is provided to the Chief Operating Decision
Maker. Further analysis by market is not available.
3. Segmental Analysis
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 Oxford Metrics 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; and
Yotta Group: This is the provision of software and services for the
management of infrastructure assets for Government Agencies, Local Government
and major infrastructure contractors.
Other unallocated costs represent head office expenses not recharged to
subsidiary companies.
Business segments are analysed below:
Segment depreciation and amortisation
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Continuing operations
Vicon UK 944 1,071 3,436
Vicon USA 89 105 208
Vicon Group 1,033 1,176 3,644
Unallocated 30 9 38
Total continuing operations 1,063 1,185 3,682
Discontinued operations
Yotta 369 526 998
Oxford Metrics Group 1,432 1,711 4,680
Six months ended 31 March 2022 (unaudited) Six months ended 31 March 2021 (unaudited) Year ended 30 September 2021 (audited)
Adjusted profit/(loss) before tax 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
Adjusting items
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Continuing operations
Vicon UK 299 (134) 418 583 1,244 (135) (6) 1,103 3,229 (1,344) 1,130 3,015
Vicon USA 1,490 - (1,443) 47 965 - (930) 35 3,562 - (3,065) 497
Vicon Group 1,789 (134) (1,025) 630 2,209 (135) (936) 1,138 6,791 (1,344) (1,935) 3,512
Unallocated (1,490) (82) 1,546 (26) (1,252) (21) 1,388 115 (2,763) 30 2,855 122
Total continuing operations
299 (216) 521 604 957 (156) 452 1,253 4,028 (1,314) 920 3,634
Discontinued operations
Yotta 495 (93) (521) (119) 380 (187) (452) (259) 793 (286) (920) (413)
Oxford Metrics Group 794 (309) - 485 1,337 (343) - 994 4,821 (1,600) - 3,221
Non-current assets Additions to non-current assets Carrying amount of segment assets Carrying amount of segment liabilities
Six months ended 31 March 2022 (unaudited) Six months ended 31 March 2021 (unaudited) Year ended 30 September 2021 (audited) Six months ended 31 March 2022 (unaudited) Six months ended 31 March 2021 (unaudited) Year ended 30 September 2021 (audited) Six months ended 31 March 2022 (unaudited) Six months ended 31 March 2021 (unaudited) Year ended 30 September 2021 (audited) Six months ended 31 March 2022 (unaudited) Six months ended 31 March 2021 (unaudited) Year ended 30 September 2021 (audited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon UK 10,982 9,537 10,324 1,510 1,022 2,137 24,148 25,009 22,962 (8,698) (6,974) (8,702)
Vicon USA 897 917 941 25 15 33 5,925 6,237 6,971 (3,360) (3,246) (2,989)
Vicon Group 11,879 10,454 11,265 1,535 1,037 2,170 30,073 31,246 29,933 (12,058) (10,220) (11,691)
Unallocated 809 682 863 7 3 94 11,254 6,641 13,984 (633) (339) (979)
Yotta Group - 6,637 7,262 - 377 1,078 15,235 13,754 13,193 (6,968) (5,321) (5,952)
OMG Life Group*
- - - - - - (6,052) (6,052) (6,052) - - -
Oxford Metrics Group
12,688 17,773 19,390 1,542 1,417 3,342 50,510 45,589 51,058 (19,659) (15,880) (18,622)
*The negative balance within segment assets represents a cash overdraft which
is part of the Group's cash offset facility.
4. Reconciliation of adjusted profit before tax
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit before tax - continuing operations 604 1,253 3,634
Share option charges 86 30 51
Amortisation of intangibles arising on acquisition 130 121 258
Impairment of intangibles arising on acquisition - - 981
Reorganisation costs - 5 6
Costs associated with acquisition of Contemplas - - 86
Adjustment to fair value of investment - - (68)
Reapportion Group overheads (521) (452) (920)
Adjusted profit before tax - continuing operations 299 957 4,028
Loss before tax - discontinued operations (119) (259) (413)
Share option charges - 6 11
Amortisation of intangibles arising on acquisition - 149 249
Reorganisation costs 93 32 26
Reapportion Group overheads 521 452 920
Adjusted profit before tax - discontinued operations 495 380 793
Total adjusted profit before tax - all operations 794 1,337 4,821
Adjusted earnings per share for profit on continuing operations attributable
to owners of the parent during the year
Basic earnings per share (pence) 0.41p 0.69p 2.73p
Diluted earnings per share (pence) 0.41p 0.68p 2.71p
Adjusted earnings per share for profit on total operations attributable to
owners of the parent during the year
Basic earnings per share (pence) 0.73p 1.08p 3.59p
Diluted earnings per share (pence) 0.73p 1.07p 3.56p
The adjusted profit before tax for the Vicon and Yotta business segments is
shown in detail below;
Vicon Group
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
(unaudited) (unaudited) (audited)
Continuing operations £'000 £'000 £'000
Profit before tax 630 1,138 3,512
Share option charges 4 9 13
Amortisation of intangibles arising on acquisition 130 121 258
Impairment of intangible arising on acquisition - - 981
Reorganisation costs - 5 6
Costs associated with the acquisition of Contemplas - - 86
Reapportion Group overheads 1,025 936 1,935
Adjusted profit before tax 1,789 2,209 6,791
Yotta Group
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
(unaudited) (unaudited) (audited)
Discontinued operations £'000 £'000 £'000
Loss before tax (119) (259) (413)
Share option charges - 6 11
Amortisation of intangibles arising on acquisition - 149 249
Reorganisation costs 93 32 26
Reapportion Group overheads 521 452 920
Adjusted profit before tax 495 380 793
5. Taxation
The Group's consolidated effective tax rate for the six months ended 31 March
2022 was 29.5% (for the six months ended 31 March 2021: 2.6%; for the year
ended 30 September 2021: 8.9%).
In accordance with IAS 34 the tax charge for the half year is calculated on
the basis of the estimated full year tax rate.
6. Earnings 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 2022 (unaudited) 31 March 2021 (unaudited) 30 September 2021 (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 per share
Earnings attributable to ordinary shareholders 832 127,165 0.65 1,165 126,145 0.92 3,060 126,437 2.42
Dilutive effect of employee share options - 1,510 - - 1,441 (0.01) - 993 (0.02)
Diluted earnings per share 832 128,675 0.65 1,165 127,586 0.91 3,060 127,430 2.40
Discontinued operations
Basic loss per share
Earnings attributable to ordinary shareholders (206) 127,165 (0.16) (145) 126,145 (0.12) (125) 126,437 (0.10)
Dilutive effect of employee share options - 1,510 - - 1,441 - - 993 -
Diluted loss per share (206) 128,675 (0.16) (145) 127,586 (0.12) (125) 127,430 (0.10)
Total operations
Basic earnings per share
Loss attributable to ordinary shareholders 626 127,165 0.49 1,020 126,145 0.81 2,935 126,437 2.32
Dilutive effect of employee share options - 1,510 - - 1,441 (0.01) - 993 (0.02)
Diluted earnings per share 626 128,675 0.49 1,020 127,586 0.80 2,935 127,430 2.30
7. Share capital
31 March 31 March 30 September
2022 2021 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Allotted, called up and fully paid
127,358,390 shares of 0.25p (31 March 2021: 126,430,168 shares of 0.25p and 30 318 316 317
September 2021: 126,937,668 shares of 0.25p)
During the six month period ended 31 March 2022 there were 392,500 shares
issued relating to share options that were exercised. There were 656,000
shares issued in respect of share options exercised during the six months
ended 31 March 2021 (year ended 30 September 2021: 1,163,500).
In addition, 19,841 shares (2021: 27,777 shares) were issued to the
non-executive Chairman, Roger Parry, in satisfaction of salary and 8,381
shares (2021: 11,733 shares) were issued to the non-executive Director, Naomi
Climer, in satisfaction of salary.
8. Dividends
The following dividends were recognised as distributions to equity holders in
the period:
31 March 31 March 30 September
2022 2021 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Final dividend for 2020 paid in 2021 - 1.80 pence per share - 2,264 2,264
Final dividend for 2021 paid in 2022 - 2.00 pence per share 2,542 - -
2,542 2,264 2,264
The final dividend for 2021 was paid to shareholders on 23 February 2022 at
2.00 pence per share, a total of £2,542,000.
9. Copies of the interim statement
Copies of the interim statement will be available from the Company's
registered office at 6 Oxford Industrial Park, Yarnton, Oxfordshire OX5 1QU,
and from the Company's website: www.oxfordmetrics.com
(http://www.oxfordmetrics.com) .
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