REG - Oxford Metrics PLC - Preliminary Results <Origin Href="QuoteRef">OMG1.L</Origin> - Part 2
06/12/2017 07:10
- Part 2: For the preceding part double click ID:nRSF4895Ya
5,312 4,887
Continuing operations 29,155 26,327
Rendering of services 2,842 3,252
Discontinued operations 2,842 3,252
Oxford Metrics Group 31,997 29,579
Yotta revenue by type
Software and related services 6,643 5,775
Surveying services - 143
Continuing operations 6,643 5,918
Surveying services 2,842 3,165
Discontinued operations 2,842 3,165
Yotta Group 9,485 9,083
*This additional information is provided to the Chief Operating Decision
Maker. Further analysis by market is not available.
2017 2016
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
Vicon UK 1,418 (221) 1,653 2,850 1,544 - 2,360 3,904
Vicon USA 4,226 - (3,237) 989 4,375 - (3,774) 601
Vicon Group 5,644 (221) (1,584) 3,839 5,919 - (1,414) 4,505
Yotta 670 (445) (641) (416) 1,423 (453) (584) 386
Unallocated (2,398) 3 2,639 244 (2,237) (64) 2,530 229
Continuing operations 3,916 (663) 414 3,667 5,105 (517) 532 5,120
OMG Life Group (183) 12 - (171) (1,079) (1,673) (264) (3,016)
Yotta Surveying 213 (1,609) (414) (1,810) 537 - (268) 269
Unallocated (158) - - (158) - - - -
Discontinued operations (128) (1,597) (414) (2,139) (542) (1,673) (532) (2,747)
Oxford Metrics Group 3,788 (2,260) - 1,528 4,563 (2,190) - 2,373
Adjusted profit before tax is detailed in note 5.
Segment depreciation and amortisation
2017£'000 2016£'000
Vicon UK 1,188 1,002
Vicon USA 45 27
Vicon Group 1,233 1,029
Yotta 666 766
Unallocated 24 28
Continuing operations 1,923 1,823
OMG Life Group - 1,642
Yotta Surveying 1,873 185
Discontinued operations 1,873 1,827
Oxford Metrics Group 3,796 3,650
Non-current assets Additions to non-current assets Carrying amount of segment assets Carrying amount of segment liabilities
2017 2016 2017 2016 2017 2016 2017 2016
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon UK 8,495 3,381 6,313 1,044 18,380 10,949 (5,717) (3,587)
Vicon USA 825 860 40 17 5,782 6,342 (1,639) (2,042)
Vicon Group 9,320 4,241 6,353 1,061 24,162 17,291 (7,356) (5,629)
Yotta 4,793 4,094 603 350 15,399 11,211 (3,996) (1,884)
Yotta Surveying - 3,742 - 361 - 8,738 - (2,139)
Yotta Group 4,793 7,836 603 711 15,399 19,949 (3,996) (4,023)
Unallocated 501 254 272 37 3,613 6,184 (908) (1,114)
OMG Life Group* 12 35 - - (6,041) (5,709) (41) (120)
Held for sale - - - - 3,047 - (584) -
Oxford Metrics Group 14,626 12,366 7,228 1,809 40,180 37,715 (12,885) (10,886)
* The negative balance within segment assets represents a cash overdraft which
is part of the Group's cash offset facility.
4. Profit for the year
The profit for the year is stated after charging / (crediting):
2017 2016
£'000 £'000
(Profit)/loss on disposal of property, plant and equipment (39) 9
Depreciation of property, plant and equipment - owned 409 478
Amortisation of customer relationships 314 305
Amortisation of intellectual property 187 126
Amortisation of development costs 1,256 1,107
Impairment of intangible fixed assets 1,630 1,634
Share based payments - equity settled 142 103
Operating lease charges - land and buildings 641 576
Foreign exchange gain (95) (552)
Profit on transfer of intellectual property to equity accounted associate (208) -
Grant income receivable (89) (990)
5. Reconciliation of adjusted profit/(loss) before tax
The adjusted profit/(loss) 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/(loss) before tax to adjusted profit/(loss)
provided below includes items that are:
• non-recurring in nature, such as redundancy costs incurred from
time to time, acquisition costs and results of the Group's equity accounted
associate, which are not core to operations or future operating performance.
• 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.
2017 2016
£'000 £'000
Profit before tax - continuing operations 3,667 5,120
Share based payments - equity settled 153 64
Amortisation of intangibles arising on acquisition 485 424
Redundancy costs 9 29
Costs associated with acquisition of subsidiary undertaking 137 -
Income from transfer of intellectual property to equity accounted associate (208) -
Share of post-tax loss of equity accounted associate 87 -
Reapportion Group overheads (414) (532)
Adjusted profit before tax - continuing operations 3,916 5,105
(Loss)/profit before tax - discontinued operations (2,139) (2,747)
Share based payments - equity settled (11) 39
Impairment of intangible assets 1,608 1,634
Reapportion Group overheads 414 532
Adjusted profit/(loss) before tax - discontinued operations (128) (542)
Total adjusted profit before tax - all operations 3,788 4,563
The redundancy costs in the year ended 30 September 2017 and 30 September 2016
are associated with OMG Life Group and the restructuring of the Yotta UK
business segment.
6. Taxation
The tax is based on the profit for the year and represents:
2017 2016
£'000 £'000
United Kingdom corporation tax at 19.5% (2016: 20%) 251 492
Overseas taxation 722 312
Adjustments in respect of prior year (21) (275)
Current taxation 952 529
Deferred taxation (431) (427)
Total taxation expense 521 102
Continuing and discontinued operations:
2017 2016
£'000 £'000
Income tax expense from continuing operations 533 400
Income tax expense/(credit) from discontinued operations excluding gain on sale 6 (318)
539 82
Total tax expense:
2017 2016
£'000 £'000
Income tax expense excluding tax on sale of discontinued operations 539 82
Income tax (credit)/expense on gain on sale of discontinued operations (18) 20
521 102
At 30 September 2017, the Group had an undiscounted deferred tax asset of
£422,000 (2016: £311,000). The asset comprises principally short term timing
differences and future tax relief available on the exercise of outstanding
employee share options in Oxford Metrics plc.
Deferred tax assets and liabilities have been measured at an effective rate of
17% and 38% in the UK and USA, respectively (2016: 17% and 38%,
respectively).
The inclusion of legislation to reduce the main rate of corporation tax from
20% to 19% from 1 April 2017 and then a further reduction to 17% from 1 April
2020 was substantively enacted on 15 September 2016.
The tax assessed for the year is higher than the standard rate of corporation
tax in the UK of 19.5% (2016: lower than the standard rate of 20%).
The differences are explained as follows:
2017 2016
£'000 £'000
Profit on ordinary activities before tax 1,528 2,373
Expected tax income based on the standard rate of 298 475
corporation tax in the UK of 19.5% (2016: 20%)
Effect of:
Expenses not deductible for tax purposes 388 (53)
Tax gain on sale of discontinued operation in excess of book gain - 2
Derecognition of deferred tax asset on losses - 201
Adjustments to tax charge in respect of prior year current tax (21) (275)
Adjustments to tax charge in respect of prior year deferred tax - (185)
Higher rates on overseas taxation 160 250
Research and development tax credit (305) (308)
Share based payment charge 39 88
Effect of rate change (38) (93)
Total tax expense 521 102
7. Earnings/(loss) per share
2017 2016
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)
Continuing operations
Basic earnings per share
Earnings attributable to ordinary shareholders 3,134 122,705 2.55 4,720 120,354 3.92
Dilutive effect of employee share options - 3,322 (0.06) - 1,717 (0.05)
Diluted earnings per share 3,134 126,027 2.49 4,720 122,071 3.87
Discontinued operations
Basic (loss)/earnings per share
(Loss)/earnings attributable to ordinary shareholders (2,127) 122,705 (1.73) (2,449) 120,354 (2.03)
Dilutive effect of employee share options - 3,322 - - 1,717 -
Diluted (loss)/earnings per share (2,127) 126,027 (1.73) (2,449) 122,071 (2.03)
Total operations
Basic earnings per share
Loss attributable to ordinary shareholders 1,007 122,705 0.82 2,271 120,354 1.89
Dilutive effect of employee share options - 3,322 (0.02) - 1,717 (0.03)
Diluted earnings per share 1,007 126,027 0.80 2,271 122,071 1.86
1.86
Basic earnings per share is calculated by dividing the profit/(loss)
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.
8. Dividends
2017 2016
Equity - ordinary £'000 £'000
Final 2016 paid in 2017 (1.00 pence per share) 1,224 -
Final 2015 paid in 2016 (0.65 pence per share) - 784
Special paid in 2016 (3.75 pence per share) - 4,520
1,224 5,304
The directors are proposing a final dividend in respect of the financial year
ended 30 September 2017 of 1.20 pence per share (2016: 1.00 pence per share)
which will absorb an estimated £1,477,000 of shareholders' funds. This
dividend will be paid on 8 March 2018 to shareholders who are on the register
of members at close of business on 15 December 2017 subject to approval at the
AGM. These dividends have not been accrued in this financial information.
9. Copies of announcement
Copies of this announcement 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.
This information is provided by RNS
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