REG - Oxford Metrics PLC - Interim Results
06/06/2023 07:00
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RNS Number : 7191B Oxford Metrics PLC 06 June 2023
6(th) June 2023
Oxford Metrics plc
("Oxford Metrics", the "Company" or the "Group")
Interim Results for the six months ended 31 March 2023
Strongest ever half year revenue performance
Healthy order book provides confidence for the second half
Investing organically whilst actively pursuing the right acquisitions
Well placed to deliver full year performance above current market expectations
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 2023.
H1 FY23 H1 FY22 %
Revenue £21.3m £12.6m +70%
Adjusted Profit before Tax* £4.1m £0.3m +1263%
Adjusted* Basic Earnings per Share 2.64p 0.41p +544%
Statutory Profit/(Loss) before Tax £3.9m £0.6m +543%
Statutory Basic Earnings per Share 2.49p 0.65p +283%
Dividend paid £3.3m £2.5m +28%
Net Cash £63.6m £19.6m +224%
Order book ** £22.0m £13.1m +68%
* Profit/(loss) Before Tax from continuing operations before Group recharges
adjusted for share-based payments, amortisation of intangibles arising on
acquisition and exceptional costs
** FY22 comparative restated at $1.23/£ exchange rate
Commenting on the results Nick Bolton, Chief Executive said:
"I am delighted to announce that Oxford Metrics is reporting its strongest
ever half year trading performance, driven by the buoyant demand in all our
market segments and supported by a healthy order book of £22.0m as we move
into the second half.
We are on a mission to create a Group focussed on expanding market
opportunities in smart sensing. In year two of delivering our five-year plan,
the Group has continued to make progress to scale us towards our goals, with
continued organic investment in our current product offering and new products
that are well-positioned to deliver growth in the future. We continue to
actively pursue M&A to find the right acquisitions, for the right reasons,
at the right price.
Given the Group's performance, coupled with an encouraging sales pipeline and
forward visibility of second half revenues, the Board believes that Oxford
Metrics is well placed to deliver on our promise of FY23 being a year of
opportunity and growth."
Financial Highlights
· Record first half with headline Group revenue of £21.3m, up 69.6% (H1 FY22:
£12.5m). On a constant currency basis underlying growth was 62.5%,
benefitting from buoyant order demand at Vicon
· Group adjusted profit before tax of £4.1m (H1 FY22: £0.30m)
· Adjusted earnings per share of 2.64p (H1 FY22: 0.41p)
· Clear visibility with order book of £22.0m (H1 FY22**: £13.1m)
· Strong balance sheet with net cash position of £63.6m as at 31 March 2023 (H1
FY22: £19.6m)
· Cash generated by operations of £0.4m (H1 FY22: £3.1m) with cash deployed
for working capital purposes to augment inventory and underpin second half
performance
Operational Highlights
With stepped-up production, Vicon delivers strong revenue and profit
performance
· Vicon's revenue grew 69.6%, at a headline level, to £21.3m (H1 FY22: £12.5m)
· Buoyant demand continues:
o Order in-take in H1 of £19.8m
o Orders-in-hand as at 31 March 2023 of £22.0m
· Vicon secured its largest ever deal for its recently released Valkyrie system
· Strong revenue performance across all market segments:
Entertainment revenue up 178.2% to £11.0m as demand across film, TV and video
games continued through the half
o Cover, a new state-of-the-art studio in Tokyo, is now hosting 200 Valkyrie
cameras for a wide range of content production
o Segment benefitted from £3.5m of orders deferred from FY22 and fulfilled
in H1
· Life Sciences revenue grew by 25.5% to £5.8m with strong orders in hand of
£6.1m
o Victoria University, in Melbourne Australia, added a 40 camera Valkyrie
system to an already large Vicon system capability
o Our tracking capability is aiding Victoria University to become the first
university in the world to be an official FIFA Research Institute for Football
Technology
· Engineering grew 15.8% to £3.1m with continued use of Vicon systems for the
development of robots and robotic capabilities
· Location-based Entertainment (LBE) grew 6.7% to £1.4m with partners
continuing to roll-out Vicon tracking systems with future promising
opportunities
o Sandbox VR announced the opening of its 37th facility in Kentucky; and
o Immersive Gamebox expect to be running 46 active facilities by the end of
this year
Outlook
· Vicon has full visibility of second half revenues. Whilst being mindful of the
production schedule and customer delivery requirements, we expect to see
revenue growth in H2 2023 year-on-year
· 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
· We continue to actively pursue M&A to find the right acquisitions, for the
right reasons, at the right price
· Considering the current order book, the expected rise in the cost base and
with supply chain challenges diminished, the Board believes that Oxford
Metrics is well placed to deliver full year results ahead of current market
expectations.
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 / Emma Hall / 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 Group reports its strongest ever half year trading performance, continuing
to enjoy ongoing buoyant demand, and thus maintaining a healthy order book of
£22.0m going into the second half.
The business also made progress in the second year of our five-year strategic
plan, with both organic investment in new product development which is
destined to deliver revenue growth in the future, and as valuations start to
normalise, actively engaging with a number of M&A opportunities.
Strong first half trading - both revenue and profit growth
KPI Revenue PBT Adjusted PBT*
H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22
Group £21.3m £12.6m £3.9m £0.6m £4.1m £0.3m
The Group reports revenues of £21.3m (H1 FY22: £12.6m), up 69.6% at a
headline level and up 62.5% on a constant currency basis. H1 FY23 benefitted
from the delivery of £3.5m of orders largely in the Entertainment segment,
which were deferred from FY22 as outlined in our trading update on 27
September 2022. With supply chain challenges of last year diminished, Vicon
successfully stepped up volume, delivering most of the opening order book
whilst at the same time booking new orders in the first half of £19.8m,
including Vicon's largest ever deal for our new Valkyrie system. This has
served to build the current orderbook to £22.0m, which we expect to largely
be delivered through the second half.
The Group also reports an improved Adjusted PBT* of £4.1m (H1 FY22: £0.3m),
with the increase largely driven by delivery of the revenue performance whilst
absorbing some inflationary cost pressures compared to the same time last
year.
All vertical market segments performed well and reported growth through the
first half.
Engineering
Engineering reported revenues of £3.1m (H1 FY22: £2.7m), representing growth
of 15.8% and has orders-in-hand of £7.2m. A common application in the
Engineering segment is the use of Vicon systems in the development of robots
and robotic capabilities. Most recently the University of Manitoba acquired a
large Valkyrie system for both Unmanned Aerial Vehicle (UAV) and ground robot
tracking in an indoor facility. Their studies aim to increase the capacity in
research and skills training of UAVs to help the local agricultural industry
further embrace these technologies.
Entertainment
Entertainment reported revenues of £11.0m (H1 FY22 £4.0m) representing
growth of 178.2%. Demand from across the film, TV and video game industries
continued through the first half resulting in an £8.1m order book for the
second half. Of particular note was the opening of Cover's new studio in
Tokyo. This state-of-the-art facility hosts 200 Valkyrie cameras and is being
used for a wide range of content production. More generally, the strength of
the Asia Pacific region underpinned the performance with nearly half of
revenues originating in Japan together with strong revenues in China and South
Korea driven by a strong appetite for the new Valkyrie camera.
Life Sciences
Life Sciences reported revenues of £5.8m (H1 FY22: £4.6m) representing
growth of 25.5% and has strong orders-in-hand of £6.1m. Victoria University,
based in Melbourne Australia, added a 40 camera Valkyrie system to an already
large Vicon system capability. This enhanced tracking capability is part of
Victoria University becoming the first university in the world to be an
official FIFA Research Institute for Football Technology. The university first
collaborated with FIFA in 2016 when it developed an innovative international
standard for FIFA's quality program to assess the accuracy of Electronic
Performance Tracking Systems (EPTS), now widely in use across the elite game.
Location-based Entertainment (LBE)
LBE reported revenues of £1.4m (H1 FY22: £1.3m) representing growth of 6.7%
and has orders in hand of £0.6m. Reported growth reflects the delivery of
existing orders to satisfy current rollouts by our customers. For example,
Sandbox VR recently announced the opening of its 37th facility in Kentucky and
Immersive Gamebox expects to be at 46 active facilities by the end of this
year. Based on the future roll-out plans of certain key partners the prospect
for meaningful future growth remains promising.
Overall, Vicon reported a gross margin of 69.1% (H1 FY22: 70.7%) in the first
half. This marginal decline was anticipated and 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 mix within the
current order book, we expect gross margin to continue at this level
throughout the rest of this year before seeing an improvement in the next
financial year.
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 £4.9m (H1 FY22: £1.8m) and an unadjusted profit before tax of £3.3m (H1
FY22: £0.6m).
Having paid a final dividend of £3.3m in the first half, the Group's cash
position closed at £63.6m as at 31 March 2023 (H1 FY22: £19.6m). Cash
generated by operations during the first half was £0.4m compared with £3.1m
in the first half of last year.
In light of the ongoing strength of the orderbook, we have proactively
deployed cash to increase inventory to £6.4m (H1 FY22: £2.8m / End FY22:
£4.5m). Our decision to increase inventory underpins the second half and
provides some protection against any supply chain disruption.
Five-year plan progress
As our strong organic growth illustrates, we continued to make good progress
against our five-year plan, which aims to increase revenues 2.5x and deliver
15% adjusted profits. This plan, launched in October 2021, recognised
something fundamental was changing across our markets and thus creating new
opportunities. 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. Indeed, systems must be able to
capture and understand every dimension of our world in real-time - humans,
objects, movements, environments.
We term such technologies as smart sensing systems, where cameras and other
sensors are deeply coupled with powerful software to enable machines to
transparently enhance our lives. This has long been our core area of expertise
but now they are finding valuable use in an increasing array of applications.
Our plan looks to capitalise on this expanded opportunity in three key ways:
1. Extend sensing capabilities through R&D, M&A and fostering key
supplier partnerships.
2. Enhance the analysis we can undertake to broaden the range of applications to
which our systems can be applied.
3. Apply our Intellectual Property (IP) through embedding in other firms'
solutions by opening up our technology through R&D, M&A and investing
in sales and support.
Investing in the five-year plan
Through the first half we drove all three vectors both organically and
inorganically. Organically we continued to invest in our internal R&D team
in a targeted way, where we have now added 23 new team members since the start
of the five-year plan. This R&D investment has mostly been in extending
our sensing capabilities and enhancing the analysis that can be achieved
through our systems, including the launch of our Valkyrie system last year
which has seen excellent demand. The team is working on both improving
existing capabilities and adding new market-expanding functionality. This
underlines our commitment to make the most of the great IP upon which the
company is built to drive future growth. Indeed, the strong order book built
through the first half gives us confidence that this investment is proving a
worthwhile endeavour.
We said in December that, as market valuations normalise, we would have the
opportunity and increased firepower to make M&A investments that broaden
our applicability and extend our sensing and analysis capabilities. With
strict criteria, the ideal targets are rich in IP, possessing
hard-to-replicate technology, attractive cashflow metrics, good-to-high
revenue visibility and able management teams. We aim to acquire such companies
at a fair price and improve combined performance through commercial and
technology synergies. We offer flexibility as to how deeply these businesses
would be integrated - from complete integration with an existing division or
being run as a separate business unit.
Identifying targets has progressed well through the first half, moving from a
long list of hundreds to a defined target list of around 50 and now we now
have on-going active engagements with a number of specific opportunities at
various stages of maturity. The valuation mismatch between private markets and
public markets continues in some cases but we believe markets are beginning to
normalise, which gives us confidence in our ability to execute transactions to
assist in achieving our five-year aims.
Outlook
We enter the second half in a strong position with full visibility of second
half revenues for our Vicon business, and, mindful of the production schedule
and customer delivery requirements, recognised revenues are expected to show
growth in H2 2023 year-on-year. The business has an encouraging sales pipeline
and so expects to build a good order book into the next financial year. This
forward visibility provides us with confidence as well as strengthening our
investment case.
Our organic investment announced as part of the five-year strategic plan to
augment our ability to sense, analyse and apply will continue into the second
half. With headcount associated with these investments now largely in place,
the annual run rate cost base compared to the first half is likely to rise by
around £1.6m.
We continue to deploy internal and external resources into M&A to deliver
on the inorganic component of the five-year strategic plan. Whilst we
recognise the Group has considerable cash resources, the Board remains
resolute that every acquisition we make will be the right one, for the right
reasons and at the right price.
Given this impressive first half performance and visibility of the second
half, the Board believes Oxford Metrics is well placed to deliver a full year
performance ahead of current market expectations in this year of opportunity
and growth.
* Profit/(loss) Before Tax from continuing operations before Group recharges
adjusted for share-based payments, amortisation of intangibles arising on
acquisition and exceptional costs.
CONDENSED CONSOLIDATED INCOME STATEMENT
Six months ended Six months ended Year
31 March 31 March ended
2023 2022 30 September 2022
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Revenue 2 21,285 12,547 28,816
Cost of sales (7,132) (4,099) (9,352)
Gross profit 14,153 8,448 19,464
Sales, support and marketing costs (3,645) (3,099) (6,608)
Research and development (3,365) (1,676) (3,547)
Administrative expenses (3,761) (3,038) (6,814)
Operating profit 3,382 635 2,495
Finance income 547 1 305
Finance expense (48) (32) (67)
Profit before taxation 3,881 604 2,733
Taxation (638) 228 665
Profit from continuing operations 3,243 832 3,398
(Loss)/profit from discontinued operations, net of tax - (206) 43,519
Profit for the period attributable to
owners of the parent during the period 3,243 626 46,917
Earnings per share for profit on continuing operations attributable to owners
of the parent during the year
Basic earnings per share (pence) 6 2.49p 0.65p 2.66p
Diluted earnings per share (pence) 6 2.46p 0.65p 2.62p
Earnings per share for profit on total operations attributable to owners of
the parent during the year
Basic earnings per share (pence) 6 2.49p 0.49p 36.70p
Diluted earnings per share (pence) 6 2.46p 0.49p 36.11p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended Six months ended Year
31 March 31 March ended
2023 2022 30 September 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Net profit for the period 3,243 626 46,917
Other comprehensive income
Items that will or may be reclassified to profit or loss
Exchange differences on retranslation of overseas subsidiaries (368) 85 953
Total other comprehensive (expense)/income (368) 85 953
Total comprehensive income for the period attributable to the owners of the 2,875 711 47,870
parent
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 31 March 30 September
2023 2022 2022
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Non-current assets
Goodwill and intangible assets 9,798 8,984 10,081
Property, plant and equipment 1,791 1,548 1,638
Right of use assets 1,856 1,022 1,367
Financial asset - investments 236 236 236
Deferred tax asset 977 898 1,588
14,658 12,688 14,910
Current assets
Inventories 6,415 2,769 4,462
Trade and other receivables 8,121 3,406 7,397
Current tax debtor 63 32 254
Fixed term deposits 52,000 - 55,000
Cash and cash equivalents 11,613 19,614 12,679
78,212 25,821 79,792
Assets classified as held for sale - 12,001 -
Current liabilities
Trade and other payables (8,653) (8,358) (11,287)
Current tax liability - (154) -
Lease liabilities (407) (356) (440)
(9,060) (8,868) (11,727)
Liabilities directly associated with assets classified as held for sale - (6,968) -
Net current assets (69,152) 21,986 68,065
Total assets less current liabilities 83,810 34,674 82,975
Non-current liabilities
Other liabilities (1,320) (762) (965)
Lease liabilities (1,577) (839) (1,064)
Provisions (44) (36) (40)
Deferred tax liability (2,445) (2,186) (2,520)
(5,386) (3,823) (4,589)
Net assets 78,424 30,851 78,386
Capital and reserves attributable to the owners of the parent
Share capital 7 325 318 324
Shares to be issued 65 65 65
Share premium account 19,355 18,742 19,094
Retained earnings 58,061 11,608 57,917
Foreign currency translation reserve 618 118 986
Total equity shareholders' funds 78,424 30,851 78,386
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
Six months Six months Year
ended ended ended
31 March 31 March 30 September 2022
2023 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Profit for the year 3,243 626 46,917
Income tax (credit)/expense 638 (141) (934)
Finance income (547) (1) (305)
Finance expense 48 49 114
Depreciation and amortisation 1,380 1,432 2,555
Impairment of intangible assets 217 - -
Profit on sale of property, plant and equipment (8) - -
Profit on disposal of discontinued operation - - (43,578)
Share based payments 62 122 139
(Increase)/decrease in inventories (1,976) (266) (1,919)
Decrease in receivables (531) 47 (3,664)
Increase in payables (2,326) 1,200 4,187
Cash generated from operating activities 200 3,068 3,512
Tax received/(paid) 179 16 (248)
Net cash from operating activities 379 3,084 3,264
Cash flows from investing activities
Purchase of property, plant and equipment (467) (340) (588)
Purchase of intangible assets (868) (1,688) (3,464)
Disposal of discontinued operation, net of cash disposed of - - 47,141
Proceeds on disposal of property, plant and equipment 7 30 37
Cash placed on fixed term deposit (37,000) - (65,000)
Fixed term deposits maturing 40,000 - 10,000
Interest received 442 1 28
Net cash used in investing activities 2,114 (1,997) (11,846)
Cash flows from financing activities
Principal paid on lease liabilities (229) (230) (460)
Interest paid on lease liabilities (40) (45) (112)
Interest paid (8) (4) (-)
Issue of ordinary shares 262 225 583
Equity dividends paid (3,246) (2,542) (2,542)
Net cash used in financing activities (3,261) (2,596) (2,531)
Net (decrease)/increase in cash and cash equivalents (768) (1,509) (11,113)
Cash and cash equivalents at beginning of the period 12,679 22,957 22,957
Exchange gain/(loss) on cash and cash equivalents (298) 96 835
Cash and cash equivalents at end of the period 11,613 21,544 12,679
Amount included in cash and cash equivalents 11,613 19,614 12,679
Amount included in assets classified as held for sale - 1,930 -
Total cash and cash equivalents at end of the period 11,613 21,544 12,679
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 2022 324 65 19,094 57,917 986 78,386
Net profit for the period - - - 3,243 - 3,243
Exchange difference on retranslation of overseas subsidiaries - - - - (368) (368)
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - 85 - 85
Dividends - - - (3,246) - (3,246)
Issue of share capital 1 - 261 - - 262
Share based payment charge - - - 62 - 62
Balance as at 31 March 2023 325 65 19,355 58,061 618 78,424
Balance as at 30 September 2021 317 65 18,483 13,538 33 32,436
Net profit for the period - - - 626 - 626
Exchange differences 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 2021 317 65 18,483 13,538 33 32,436
Net profit for the period - - - 46,917 - 46,917
Exchange differences on retranslation of overseas subsidiaries - - - - 953 953
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - (99) - (99)
Dividends - - - (2,542) - (2,542)
Issue of share capital 7 - 611 - - 618
Share based payment charge - - - 103 - 103
Balance as at 30 September 2022 324 65 19,094 57,917 986 78,386
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 2023 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 2022. 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 2022 are not the statutory
accounts but have been extracted from the Group's 2022 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
All revenue shown within note 2 relates to continuing operations.
Six months ended Six months ended Year
31 March 31 March ended
2023 2022 30 September
2022
(unaudited) (unaudited) (audited)
Revenue £'000 £'000 £'000
Vicon UK 13,765 7,523 17,338
Vicon USA 7,520 5,024 11,478
Vicon Group 21,285 12,547 28,816
Six months ended 31 March 2023 (unaudited)
Vicon UK Vicon USA Total
£'000 £'000 £'000
Timing of the transfer of goods and services
Point in time 12,883 6,322 19,205
Over time 882 1,198 2,080
13,765 7,520 21,285
Contract Counterparties
Direct to consumers 2,600 7,210 9,810
Third party distributor 11,165 310 11,475
13,765 7,520 21,285
By destination
UK 1,182 - 1,182
Germany 1,143 - 1,143
Italy 424 - 424
Greece 59 - 59
Netherlands 258 - 258
France 621 - 621
Spain 68 - 68
Poland 105 - 105
Rest of Europe 628 - 628
Total Europe 3,306 - 3,306
Canada - 1,518 1,518
USA - 5,889 5,889
Total North America - 7,407 7,407
Australia 345 7 352
Hong Kong 1,212 - 1,212
Japan 3,896 - 3,896
Korea 1,234 - 1,234
China 2,240 - 2,240
Rest of Asia Pacific 298 - 298
Total Asia Pacific 9,225 7 9,232
Other 52 106 158
Oxford Metrics Group 13,765 7,520 21,285
Six months ended 31 March 2022 (unaudited)
Vicon UK Vicon USA Total
£'000 £'000 £'000
Timing of the transfer of goods and services
Point in time 6,556 3,933 10,489
Over time 967 1,091 2,058
7,523 5,024 12,547
Contract Counterparties
Direct to consumers 1,893 4,433 6,326
Third party distributor 5,630 591 6,221
7,523 5,024 12,547
By destination
UK 1,035 - 1,035
Germany 1,346 - 1,346
Italy 169 - 169
Greece 67 - 67
Netherlands 228 - 228
France 278 - 278
Spain 146 - 146
Rest of Europe 423 - 423
Total Europe 2,657 - 2,657
Canada 11 720 731
USA 13 4,193 4,206
Rest of North America - 104 104
Total North America 24 5,017 5,041
Australia 429 - 429
Hong Kong 1,948 - 1,948
Japan 637 - 637
Korea 509 - 509
Rest of Asia Pacific 249 - 249
Total Asia Pacific 3,772 - 3,772
Other 35 7 42
Oxford Metrics Group 7,523 5,024 12,547
Year ended 30 September 2022 (audited)
Vicon UK Vicon USA Total
£'000 £'000 £'000
Timing of the transfer of goods and services
Point in time 15,494 9,175 24,669
Over time 1,844 2,303 4,147
Oxford Metrics Group 17,338 11,478 28,816
Contract Counterparties
Direct to consumers 4,256 10,529 14,785
Third party distributor 13,082 949 14,031
Oxford Metrics Group 17,338 11,478 28,816
By destination
UK 2,396 - 2,396
Germany 2,156 - 2,156
Italy 304 - 304
Netherlands 441 - 441
France 473 - 473
Poland 332 - 332
Spain 260 - 260
Rest of Europe 1,022 - 1,022
Total Europe 4,988 - 4,988
Canada 39 1,008 1,047
USA 24 10,197 10,221
Rest of North America - 177 177
Total North America 63 11,382 11,445
Australia 797 - 797
Hong Kong 2,539 - 2,539
Japan 2,334 - 2,334
South Korea 1,314 - 1,314
China 2,158 - 2,158
Rest of Asia Pacific 532 - 532
Total Asia Pacific 9,674 - 9,674
Other 217 96 313
Total 17,338 11,478 28,816
Six months ended Six months ended Year
31 March 31 March ended
2023 2022 30 September
2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Vicon revenue by market
Engineering 3,101 2,678 5,581
Entertainment 11,001 3,955 10,023
Life sciences 5,820 4,637 10.589
Location based entertainment 1,363 1,277 2,623
Total 21,285 12,547 28,816
Group revenue by type
Sale of hardware 18,076 9,512 22,700
Sale of software 1,269 1,070 1,970
Rendering of services 1,503 1,269 3,009
SaaS - 96 193
Support 437 600 944
Total 21,285 12,547 28,816
Group revenue by origin
UK 12,906 6,778 16,010
Europe 859 745 1,312
North America 7,520 5,024 11,478
Asia Pacific - - 16
Total 21,285 12,547 28,816
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. This segment was disposed of in the
prior year.
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
2023 2022 30 September
2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Continuing operations
Vicon UK 1,299 944 1,810
Vicon USA 44 89 203
Vicon Group 1,343 1,033 2,013
Unallocated 29 30 59
Total continuing operations 1,372 1,063 2,072
Six months ended 31 March 2023 (unaudited) Six months ended 31 March 2022 (unaudited) Year ended 30 September 2022 (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 2,263 (144) 1,102 3,221 299 (134) 418 583 1,590 (434) 1,426 2,582
Vicon USA 2,683 - (2,636) 47 1,490 - (1,443) 47 3,848 - (3,712) 136
Vicon Group 4,946 (144) (1,534) 3,268 1,789 (134) (1,025) 630 5,438 (434) (2,286) 2,718
Unallocated (872) (49) 1,534 613 (1,490) (82) 1,546 (26) (2,840) (86) 2,941 15
Total 4,074 (193) - 3,881 299 (216) 521 604 2,598 (520) 655 2,733
Non-current assets Additions to non-current assets Carrying amount of segment assets Carrying amount of segment liabilities
Six months ended 31 March 2023 (unaudited) Six months ended 31 March 2022 (unaudited) Year ended 30 September 2022 (audited) Six months ended 31 March 2023 (unaudited) Six months ended 31 March 2022 (unaudited) Year ended 30 September 2022 (audited) Six months ended 31 March 2023 (unaudited) Six months ended 31 March 2022 (unaudited) Year ended 30 September 2022 (audited) Six months ended 31 March 2023 (unaudited) Six months ended 31 March 2022 (unaudited) Year ended 30 September 2022 (audited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon UK 12,623 10,982 12,825 1,828 1,510 3,304 31,154 24,148 30,757 (9,751) (8,698) (11,007)
Vicon USA 1,454 897 1,585 170 25 566 5,933 5,925 6,613 (4,245) (3,360) (4,644)
Vicon Group 14,077 11,879 14,410 1,998 1,535 3,870 37,087 30,073 37,370 (13,996) (12,058) (15,651)
Unallocated 581 809 500 55 7 8 61,835 11,254 63,384 (450) (633) (665)
Yotta Group - - - - - 661 - 15,235 - - (6,968) -
OMG Life Group*
- - - - - - (6,052) (6,052) (6,052) - - -
Oxford Metrics Group
14,658 12,688 14,910 2,053 1,542 4,539 92,870 50,510 94,702 (14,446) (19,659) (16,316)
*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
2023 2022 30 September
2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit before tax - continuing operations 3,881 604 2,733
Share option charges 62 86 103
Amortisation of intangibles arising on acquisition 131 130 261
Costs associated with acquisition of Contemplas - - 156
Reapportion Group overheads - (521) (655)
Adjusted profit before tax - continuing operations 4,074 299 2,598
Adjusted earnings per share for profit on continuing operations attributable
to owners of the parent during the year
Basic earnings per share (pence) 2.64p 0.41p 2.55p
Diluted earnings per share (pence) 2.61p 0.41p 2.51p
The adjusted profit before tax for the Vicon business segments is shown in
detail below;
Vicon Group
Six months ended Six months ended Year
31 March 31 March ended
2023 2022 30 September
2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit before tax 3,268 630 2,718
Share option charges 13 4 17
Amortisation of intangibles arising on acquisition 131 130 261
Costs associated with the acquisition of Contemplas - - 156
Reapportion Group overheads 1,534 1,025 2,286
Adjusted profit before tax 4,946 1,789 5,438
5. Taxation
The Group's consolidated effective tax rate for the six months ended 31 March
2023 was 16.3% (for the six months ended 31 March 2022: 29.5%; for the year
ended 30 September 2022: 2.0% credit.
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 2023 (unaudited) 31 March 2022 (unaudited) 30 September 2022 (audited)
Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount
/(loss) /(loss) /(loss)
£'000 '000 (pence) £'000 '000 (pence) £'000 '000 (pence)
Continuing operations
Basic earnings per share
Earnings attributable to ordinary shareholders 3,243 129,975 2.49 832 127,165 0.65 3,398 127,840 2.66
Dilutive effect of employee share options - 1,876 (0.03) - 1,510 - - 2,081 (0.04)
Diluted earnings per share 3,243 131,851 2.46 832 128,675 0.65 3,398 129,921 2.62
Discontinued operations
Basic loss per share
Earnings attributable to ordinary shareholders - 129,975 - (206) 127,165 (0.16) 43,519 127,840 34.04
Dilutive effect of employee share options - 1,876 - - 1,510 - - 2,081 (0.54)
Diluted loss per share - 131,851 - (206) 128,675 (0.16) 43,519 129,921 33.50
Total operations
Basic earnings per share
Loss attributable to ordinary shareholders 3,243 129,975 2.49 626 127,165 0.49 46,917 127,840 36.70
Dilutive effect of employee share options - 1,876 (0.03) - 1,510 - - 2,081 (0.59)
Diluted earnings per share 3,243 131,851 2.46 626 128,675 0.49 46,917 129,921 36.11
7. Share capital
31 March 31 March 30 September
2023 2022 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Allotted, called up and fully paid
130,239,276 shares of 0.25p (31 March 2022: 127,358,390 shares of 0.25p and 30 325 318 324
September 2022: 129,767,652 shares of 0.25p)
During the six month period ended 31 March 2023 there were 444,000 shares
issued relating to share options that were exercised. There were 392,500
shares issued in respect of share options exercised during the six months
ended 31 March 2022 (year ended 30 September 2022: 2,801,762).
In addition, during the six month period ended 31 March 2023 27,624 shares
(six month period ended 31 March 2022: 19,841 shares) were issued to the
non-executive Chairman, Roger Parry, 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
2023 2022 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Final dividend for 2022 paid in 2023 - 2.50 pence per share 3,246 - -
Final dividend for 2021 paid in 2022 - 2.00 pence per share - 2,542 2,542
3,246 2,542 2,542
The final dividend for 2022 was paid to shareholders on 23 February 2023 at
2.50 pence per share, a total of £3,246,000.
9. Copies of the interim statement
Copies of the interim statement 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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