REG - Oxford Metrics PLC - Preliminary Results
05/12/2023 07:15
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RNS Number : 6492V Oxford Metrics PLC 05 December 2023
5 December 2023
Oxford Metrics plc
("Oxford Metrics", the "Company" or the "Group")
Preliminary Results for the financial year ended 30 September 2023
- Record Revenue and Adjusted PBT performance, ahead of market expectations
- Continued innovation unveiling our new markerless technology at Siggraph
2023
- In FY23 Vicon manufactured more camera systems than ever before
- Enter FY24 with strong order book and visibility on over half of revenue
expectations
Oxford Metrics plc (LSE: OMG), the smart sensing and software company
servicing life sciences, entertainment and engineering markets, announces
preliminary results for the financial year ended 30 September 2023.
Continuing Operations FY23 % Change FY22
Revenue £44.2m +53.5% £28.8m
Adjusted Profit Before Tax* £6.5m +151.9% £2.6m
Adjusted* Basic Earnings per Share 4.57p +79.2% 2.55p
Ordinary Dividend per Share 2.75p +10% 2.50p
Statutory Profit after Tax £5.7m +66.5% £3.4m
Statutory Basic Earnings per Share 4.35p +63.5% 2.66p
Net Cash** £64.8m -4.3% £67.7m
Orders-in-hand £11.5m -52.2% £24.0m
* Profit Before Tax before Group recharges adjusted for share-based payments,
amortisation and impairment of intangibles arising on acquisition and
additional Contemplas consideration deemed remuneration.
** Including Fixed Term Deposits and Bank overdraft.
Financial Highlights
· Record headline revenue of £44.2m (FY22: £28.8m), (up 53.5%, up 52.4% on a
constant currency basis), driven by demand for our new flagship system,
Valkyrie
· Gross Profit of 65.0% (FY22: 67.5%), reflecting the use of higher cost
components acquired during the supply chain challenge of the last few years
and changes in product mix
· Adjusted Profit Before Tax* at £6.5m (FY22: £2.6m), up 151.9% year on year,
reflecting the strong revenue performance as well as a planned increase in
R&D to deliver the five-year plan and the benefit of increased interest
income
· Strong balance sheet with net cash position of £64.8m (FY22: £67.7m), well
placed to pursue M&A aspect of the five-year plan
· Board proposes increased final dividend to 2.75p per share (FY22: 2.50p), up
10.0% year on year
Operational highlights
Strong execution of orders and continued buyout demand drives revenue growth
· Order book as of 30(th) September 2023 of £11.5m (FY22: £24.0m), reflecting
the more normalised buying cycles following the global supply chain challenges
now largely abated
· Strong demand across all our market segments
· Entertainment: Buoyant demand continued, with revenue up 82%, accounting for
43% of orders in hand
o Contract wins for major Valkyrie Stages at Cover Japan, Dimension Studio &
PUBG Madison
· Engineering: revenues up 56% year on year, accounting for 22% of orders in
hand
o Contract wins with ITESM, University of Arizona and University of Manitoba
· Life Sciences: revenues grew 40%, accounting for 29% of the orders in hand
o Notable deals include Hospital Israelita Albert Einstein (HIAE), University of
Padova, Victoria University and University of Rochester Medical Centre
· Location-based Entertainment (LBE): reported a slight decline year on year of
5% following exceptional growth, accounts for 6% of orders in hand
o Sandbox VR announced their 45(th) location and Immersive Gamebox opened their
30(th) location in the year, all powered by Vicon technology
· Valkyrie, Vicon's flagship system, continued to drive revenues and orders in
the year
· Markerless technology demonstrated at Siggraph 2023 was well-received
o Technology demonstration of markerless technology follows over four years of
R&D focussing on the integration of machine learning and AI into
markerless motion capture
o Established our Pioneer Programme, working closely with both customers and
prospects to help refine the product as we start to commercialise markerless
· Imogen Moorhouse appointed Group CEO 1 October 2023
Extending smart sensing capabilities via M&A - Industrial Vision Systems
(IVS)
· Post period end on 1(st) November 2023, acquired Industrial Vision Systems Ltd
("IVS") adding smart manufacturing to our market-leading portfolio
o Brings specialised machine learning AI technology for automated quality
control, meeting companies' requirements for a "right first time" solution
o IVS adds IP rich, hard-to-replicate vision software and machine technology,
bringing over 23 years of experience in smart vision technology
o IVS' systems spot patterns and anomalies in real-time manufacturing quality
control, ensuring precise and repeatable solutions that continuously learn
based on image data
Outlook
· With encouraging demand, Vicon enters the new financial year with over £11.5m
orders in hand and a strong and executable pipeline
· Trading in the first months of the financial year has been in line with our
expectations
· Over half of revenue expectations for the full year is underpinned by orders
in hand and a strong sales pipeline.
· FY2024 will see the beginning of the commercialisation of our new markerless
technology
· Modest expectations for new markerless technology expected in FY24 ahead of
contributing more material revenues in FY25
· Following the successful acquisition of IVS in November 2023 the Group will
continue to pursue M&A opportunities in known markets possessing
hard-to-replicate, deep Intellectual Property in integrated smart sensing with
attractive financial metrics
Commenting on the results Imogen Moorhouse, Chief Executive said:
"I am delighted to report my first set of results as CEO of Oxford Metrics.
Two years into our five-year strategy, we are reporting record revenue and
adjusted PBT performance for FY23. This result builds on from our
strongest-ever first half as Vicon executed against orders and continued
demand for our smart sensing technology continued, driven by positive uptake
of our new system, Valkyrie.
Our team this year has continued to innovate, manufacturing more advanced
camera systems than ever before. At our industry conference Siggraph 2023, we
showed the world our new markerless technology. This technological advancement
represents a pivotal moment and is expected to drive growth once
commercialised in FY24.
We continue to pursue M&A opportunities to unlock growth and new market
opportunities. Post period end, we successfully delivered on our promise of
acquisition activity adding smart manufacturing to our market-leading
portfolio with Industrial Vision Systems.
Vicon enters the new financial year with well over half of revenue
expectations underpinned by orders in hand and a strong sales pipeline. With
an energised team, a clear roadmap and continued market demand, the Board
looks forward to the new financial year which is set to see further underlying
growth in our existing markets whilst laying the foundations for future growth
including the commercialisation of markerless technology."
For further information please contact:
Oxford Metrics +44 (0) 1865 261860
Imogen Moorhouse, CEO
David Deacon, CFO
Deutsche Numis +44 (0)20 7260 1000
Simon Willis / Hugo Rubinstein / Tejas Padalkar
FTI Consulting +44 (0)20 3727 1000
Matt Dixon / Emma Hall / Jamille Smith / Jemima Gurney
About Oxford Metrics
Oxford Metrics is a smart sensing and software company that enables the
interface between the real world and its virtual twin. Our smart sensing
technology helps over 10,000 customers in more than 70 countries, including
all of the world's top 10 games companies and all of the top 20 universities
worldwide. Founded in 1984, we started our journey in healthcare, expanded
into entertainment, winning an OSCAR® and an Emmy®, moved into defence,
engineering and smart manufacturing. We have a strong track record of creating
value by incubating, growing and then augmenting through acquisition, unique
technology businesses.
The Group trades through its market-leading division Vicon and, recently
acquired, Industrial Vision Systems. Vicon is a world leader in motion
measurement analysis to thousands of customers worldwide, including Red Bull,
Imperial College London, Dreamscape Immersive, Industrial Light & Magic,
and NASA. Industrial Vision Systems is a specialist in machine vision software
and technology for high precision, automated quality control systems trusted
by blue-chip, smart manufacturing companies across the globe including BD,
DePuy, Jaguar Land Rover, Johnson & Johnson, Zytronic and Alkegen.
The Group is headquartered in Oxford with offices in California, Colorado,
Auckland, and Kempten. 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
(https://eu-west-1.protection.sophos.com?d=oxfordmetrics.com&u=aHR0cDovL3d3dy5veGZvcmRtZXRyaWNzLmNvbQ==&i=NTUxMTU3ZTFlNGIwNmI0MGYxNWM1NDIw&t=ZW9DdlJoQ1JudHJDcENxREEraW9UUGdaSVRRTXN4T2YxekJnd3kvWmpaZz0=&h=bc130282db4042e1a8b0df6335b24c94&s=AVNPUEhUT0NFTkNSWVBUSVbTZyfthxptPRtYSU83nM7RGDVpUM1i75Chn7m0OnTIIQ)
Chairman's Statement
I am delighted to report that Oxford Metrics has delivered a strong financial
performance during 2023 reporting both record revenue and Adjusted PBT
results. Valkyrie, the Group's most advanced motion capture system to date,
launched in July 2022, has continued to drive revenues and has been positively
received and widely adopted by new and existing customers alike.
Since the launch of the Group's current five-year plan, we have continued to
invest in the future of the business. Over the Summer, at Siggraph, the
premier conference for computer graphics and interactive techniques, hosted in
Los Angeles, we were able to reveal the fruits of our innovation efforts over
the past four years to unveil our new markerless technology. Following
successful public demonstrations, this development represents a pivotal moment
for the business and, once commercialised, is expected to help drive growth
over the coming years.
Given the record performance in FY23, the addition of Industrial Vision
Systems (IVS) acquired in November 2023 and the commercialisation of
markerless, we remain on track to achieve our five-year plan which aims to
grow revenues 2.5x to £70m whilst delivering an Adjusted PBT* margin of 15%
by the end of the FY26.
The Group reported revenues of £44.2m (FY22: £28.8m), adjusting for the
deferment of £3.5m of orders we were unable to ship in September 2022; the
underlying growth was strong nonetheless at 26%. An Adjusted PBT* of £6.5m
(FY22: £2.6m) is reported, equivalent to a return on sales of 14.8% (FY22:
9.0%). The order book for the year ahead stands at £11.5m (FY22: £24.0m)
which represents a more reasonable lead time for our customers, following the
easing of supply chain constraints, which we will seek to maintain in the
future.
The Group reports a statutory Profit after tax for all operations of £5.7m
(FY22: £46.9m) which last year included the disposal of the Yotta business at
a highly attractive valuation and on a continuing basis a statutory Profit
after tax of £5.7m (FY22: £3.4m) is reported. The net cash position
including Fixed Term Deposits was £64.8m (FY22: £67.7m). After the continued
investment in the business and the deployment of cash for working capital
purposes during the year, the net cash position remains significant and
available for the execution of our M&A plans.
The Board proposes a 10% increase to our final dividend to 2.75p per share
(FY22 Final Dividend: 2.50p) this year. We remain committed to our progressive
dividend policy and aims to achieve average dividend cover of approximately
two-times Adjusted PBT* per share over time.
The success of our business depends on having engaged and dedicated employees.
This is reflected in our very high retention rate, 89% globally, of which we
are very proud. We understand the importance of environmental and social
sustainability within our own operations and our supply chain, and we are
taking steps to reduce our impact on the environment from redesigning our
products and transforming our operational processes. As an important part of
our investment in the future of the business, we have published our
Environmental, Social and Governance initiatives on our sustainability webpage
oxfordmetrics.com/sustainability (https://oxfordmetrics.com/sustainability) ,
and we have published our Streamlined Energy and Carbon Reporting ('SECR')
data in this year's Annual Report. The Board is committed to taking a holistic
view of the business and we will continue to update and review our
sustainability webpage throughout 2024.
I would like to take the opportunity on behalf of the Board and our colleagues
to thank our former CEO, Nick Bolton, who contributed an enormous amount. Nick
successfully led the Group over the last 18 years leaving it well positioned
to capitalise on the opportunities ahead of us today. We wish him all the very
best in his new role. Following a thorough and orderly CEO transition process,
we are delighted to have appointed Imogen Moorhouse, to step up into CEO of
Oxford Metrics to lead us forward.
We are very fortunate to have a natural successor; Imogen knows our business
inside and out, having spent 22 years at Vicon, the last 12 of which as Vicon
CEO. Through this time Imogen has grown the business organically and via
M&A and has been integral to the development and implementation of the
Group's five-year growth plan.
We were also pleased to announce the acquisition of Industrial Vision Systems.
The acquisition is immediately earnings enhancing, adding smart manufacturing
to our portfolio and increasing our presence in the Engineering market. Along
with our new IVS colleagues and energised team, I look forward to continuing
to work with Imogen as we move ahead to achieve our aims of creating a Group
focussed on expanding market opportunities in smart sensing.
Lastly, I would like to thank everyone involved in supporting and building our
business - our customers, our shareholders, our partners, and, of course, our
brilliant team across the world who responded magnificently, not least the
production team who, this year, manufactured more camera systems than ever
before.
Roger Parry
Chair
CEO STATEMENT
After 12 years as operational CEO for Vicon I am delighted to have taken on
the Oxford Metrics CEO role at such an exciting time for the Group.
Delivering the five-year growth plan for Oxford Metrics is my key focus,
having worked very closely with my predecessor, Nick Bolton, to formulate the
Group's next chapter. In year two of the plan, 2023 has certainly been a year
of powering up, delivering a record performance from our Vicon division and
unveiling yet more innovation, making our markerless technology a reality at
Siggraph. Post year end, we acquired Industrial Vision Systems in November and
are encouraged by our start to the new financial year.
We enter year three of the plan in a strong position. Over FY23 I have grown
the senior leadership team at Vicon with a series of new appointments.
With an energised team and clear roadmap, we are well-positioned to deliver on
the target of growing revenues 2.5x whilst delivering an Adjusted PBT* margin
of 15% by the end of the plan. At the core of the plan is the three elements
of smart sensing: sense, analyse and apply:
1. Extend our sensing capabilities
Firstly, we seek growth by extending our sensing methods through R&D,
M&A and fostering key supplier partnerships, which broadens the
applicability of our solutions and expands our addressable market.
At Siggraph, we unveiled our markerless technology, receiving a very positive
market reaction. At the same time, we launched a Pioneer Programme allowing
customers and prospects to work with us on executing product delivery to
ensure we capture both the technical, user experience, operational and
commercial aspects of the delivery in the right way.
With our post year end acquisition of IVS, we have added machine vision
techniques used in the growing smart manufacturing market, an adjacent
industry to Vicon, and one where there are clear opportunities to expand its
geographic footprint and grow its IP-rich static technology offering with
prospects to benefit from Vicon's dynamic sensing. We're excited about the
opportunity ahead to extend into yet more applications and industries as
inspection automation becomes more mainstream and smart manufacturing becomes
the standard.
2. Enhance the analysis we can perform
Secondly, we seek to augment the analysis our customers can undertake with our
software, thus broadening the range of applications to which our systems can
be applied.
Vicon's new life sciences reporting tool, Nexus Insight, is a good example of
this. Nexus Insight simplifies reporting, making it easier for customers to
visualise, interpret, share, analyse and compare their data. This new tool
takes motion capture data, turning it into clear, easy to understand,
accessible reports.
3. Apply our IP by embedding in other companies' solutions
Finally, we aim to grow by seeing our deep technology incorporated into other
business' products and services - which aims to expand our addressable market
as we drive the integration of our sensing and analysis IP to specific
application domains.
Currently, the best example of our embedding opportunity is in the
Location-based Entertainment (LBE) market and in FY23 we saw encouraging next
phase rollouts by our partners Sandbox VR and Immersive Gamebox. Sandbox VR
recently announced their 45(th) location while Immersive Gamebox have opened
their 30(th) location in the year with exciting news announced of their
multi-million pound agreement with Merlin entertainments across the UK,
Europe, the USA, and Australia. The multi-territory partnership is intended
to create immersive experiences that will engage and connect players of all
ages, using the Gamebox suite of IP partnerships that include Paw Patrol,
Ghostbusters, Netflix, and the Angry Birds game.
In addition, there are opportunities for IVS' proprietary vision modules to be
embedded by providers into their solutions in smart manufacturing process to
ensure "right first time" products.
New markerless technology
Markerless motion capture enables 3D motion capture without the need to wear
motion capture suits or attach reflective markers, active markers or inertial
sensors. The technology uses the latest machine learning and AI techniques to
process video imagery to create 3D visualisations. In a similar way to how
Large Language Models are used to drive AI Chatbots, we are building our own
proprietary Large Video Models to develop and improve the markerless
technology. We showcased our new markerless technology platform in the summer
showing the technique seamlessly working in a six-participant real-time
immersive VR experience with our LBE partner Dreamscape.
In its nascent state, markerless technology is not yet as accurate as existing
marker-based systems so will be a complementary solution. The markerless
solution will therefore be suited to situations where it is not practical or
desirable to add markers to the subject or where commercial imperatives mean
efficiency is key. We expect the markerless technology to have immediate
applicability in the LBE and Entertainment segments and, over time, will
become relevant in Life Sciences in clinical situations as the technique is
validated against marker-based data. Markerless is a complementary capture
technique to marker-based and will be of value to most of Vicon's existing
10,000 global customers, as well as expanding our TAM by appealing to those
who cannot use markers to adopt the technology.
Ultimately, the markerless product solution will incorporate elements of cloud
infrastructure and delivery, exploring the opportunity for subscription and
annual recurring revenue (ARR) models alongside the traditional capital goods
model.
M&A
During the year, we continued to actively pursue M&A opportunities to
complement the five-year plan. Our recent acquisition of IVS in November 2023
fits into our five-year plan and is a good strategic fit, serving as an
example of the types of targets we are seeking to acquire. IVS has deep
Intellectual Property in integrated smart sensing; has a position of strength
in its niche market; is culturally a good fit; has an attractive financial
profile and will be immediately earnings enhancing.
Oxford Metrics has a disciplined approach to M&A - we are absolutely
determined to find the right acquisitions, at the right price, for the right
reasons.
Our M&A pipeline continues to develop and evolve and includes greater
focus on certain market opportunities, for example smart manufacturing is
emerging as a strong adjacent technology market with global growth potential.
Quadrants of Growth
OPERATIONAL REVIEW
KPI Revenue PBT Adjusted PBT*
FY23 FY22 FY23 FY22 FY23 FY22
Vicon £44.2m £28.8m £4.6m £2.7m £8.2m £5.4m
Plc - - £1.6m - (£1.7m) (£2.8m)
Group £44.2m £28.8m £6.2m £2.7m £6.5m £2.6m
Record revenues are reported of £44.2m (FY22: £28.8m) representing an
increase of 53.5% (52.4% on a constant currency basis). Order intake for the
full year was £31.7m (FY22: £46.9m) reflecting a normalisation of customer
buying behaviour compared to last year in which customers were placing orders
in advance following the disruption caused by the pandemic and subsequent
supply chain challenges. As of 30(th) September 2023, the order book stood at
£11.5m (FY22: £24.0m) representing a normalisation of customer buying
patterns. Given the operational benefits of having an order book, the business
will seek to maintain an order book broadly equivalent to a quarter's revenue
in the future.
Continued buoyant performance in our Entertainment segment, which saw year on
year revenue growth of 82% and accounts for 43% of orders in hand. Cover Japan
purchased a large number of Valkyrie cameras for four motion capture stages to
allow V-tubers to capture and purchase content for their channels. Double
Negative's partnership with Dimension Studio continued with the purchase of an
In-Camera Visual Effects stage which is being shipped globally for projects
coming to a theatre or streaming service very soon. While in the USA, PUBG
Madison installed the first Valkyrie stage in that territory.
Life Sciences, traditionally our cornerstone market, saw year on year revenue
growth of 40% and accounts for 29% of the orders in hand. The Hospital
Israelita Albert Einstein (HIAE), the largest gait lab in Brazil, upgraded
their system and in Italy the University of Padova's Industrial Engineering in
Sports Department are using the new Valkyrie 8 for high speed analysis with
the Italian Paralympic team. Elsewhere, in Australia, Victoria University
continue to provide gold standard testing for FIFA's research using the
Valkyrie 16 and 26 systems, and in the US, the University of Rochester Medical
Centre have installed multiple Valkyrie laboratories for spine and other
biomechanical research.
Engineering reported year on year revenue growth of 56% and accounts for 22%
of orders in hand. ITESM, a private university in Monterrey, Mexico installed
a Valkyrie system for drone tracking whilst the University of Arizona also
purchased Valkyrie 26 cameras to track tiny 'crazyfly' drones. While the
University of Manitoba acquired a large Valkyrie system for both Unmanned
Aerial Vehicle (UAV) and ground robot tracking in an indoor agriculture
research facility.
LBE reported a slight revenue decline year on year of 5% and accounts for 6%
of orders in hand. Despite this, LBE remains an attractive market and presents
a clear growth opportunity going forward, but for the time being remains
sensitive to customer roll out plans and consumer acceptance of this exciting
application. Our partner Sandbox VR recently announced their 45(th) location
and Immersive Gamebox opened their 30(th) location in the year with exciting
news announced of their multi-million pound and multi-territory agreement with
Merlin Entertainments, a family entertainment company.
Overall, Entertainment represented the largest segment of revenues but given
strong performances in Life Sciences and Engineering in the second half, it is
likely that we can expect a more even balance of revenues in the year ahead.
Included in the Gross Profit, the Product gross margin was 68.0% (FY22:
70.5%). This was largely driven by more expensive components as a consequence
of the challenging supply chain constraints over the past two years together
with product mix. The supply chain constraints have, for the most part,
returned to normal so replenishment of Inventory will be at lower cost. The
overall cost base increased during the year reflecting the investment set out
in our five-year plan, the resources are now largely all in place. Given the
above, Vicon reported an improved Adjusted PBT* of £8.2m (FY22: £5.4m).
In addition to our markerless development outlined earlier, FY23 also saw the
development and release of numerous software updates that serve our existing
markets including Tracker 4.0 in Engineering, Shogun 1.09 and Shogun 1.10 in
Entertainment, Nexus 2.15 and Nexus Insight in Life Sciences and Evoke 1.6 in
the LBE market. All these releases kept our solutions relevant, and at the
cutting edge, ensuring the best customer experience.
CURRENT TRADING AND OUTLOOK
With ongoing market demand, Vicon starts the new financial year with an Order
Book of £11.5m which, together with a growing sales pipeline, provides the
business with visibility on over a half of expected revenues for the year
ahead. The year ahead will also see the start of the commercialisation of our
markerless technology. In this regard, revenue expectations for the year ahead
from that product are modest ahead of a more expected material contribution in
FY25.
In FY23 we saw decline in product gross margins arising from supply chain cost
pressures; the supply chain situation has now normalised, and we expect to see
recovery closer to historic performance in FY24.
The cost base increased in FY23, reflecting the planned investment to deliver
the five-year plan. We feel the key resources to deliver the plan are in place
and will open a new dedicated markerless facility in Oxford in FY24. More
generally the cost base is not immune to the current inflationary environment,
so some underlying increase is to be expected.
The Group remains in good financial health which includes a net cash position
of £64.8m. With these resources the Group can move forward with confidence
and in a strong position both to pursue further M&A in line with the
five-year plan and enhance earnings per share.
The Board looks forward to the new financial year which is set to see further
underlying growth in our existing markets whilst laying the foundations for
future growth including the rollout of markerless in Vicon.
Imogen Moorhouse
CEO
* Profit Before Tax before Group recharges adjusted for share-based payments,
amortisation and impairment of intangibles arising on acquisition and
additional Contemplas consideration deemed remuneration.
FINANCIAL REVIEW
Income Statement
The Group reported revenue from continuing operations of £44.2m (FY22:
£28.8m) representing a headline increase of 53.5%. The year on year FX
effects were modest: on a constant FX basis revenues increased by 52.4%. From
a geographical perspective, our Asia Pacific region had a strong year driven
by Entertainment reporting 74.8% year on year growth, whilst Vicon USA, our
largest market in the year reported year on year growth of 61.0%.
Gross Profit margin declined to 65.0% (FY22: 67.5%), which reflected the usage
of higher cost components acquired during the supply chain challenge of the
last few years and product mix within year. In real terms Gross Profit
improved year on year by £9.3m to £28.7m.
Reviewing the cost base within the Income Statement:
· Sales, Support and Marketing costs increased by £1.6m which was largely due
to increased revenue generation activity, additional marketing resources and
commission.
· Research & Development expensed through the Income Statement was £6.5m
(FY22: £3.5m). The continual investment and innovation in product and
services is necessary to maintain the Group's competitive position; this
included a number of the new products released during the financial year. In
addition, the markerless project, described in the CEO review was expensed
during the year as research into the technology progressed toward a marketable
and capitalisable product in the future.
· Administration expenses. Excluding the presentational effect of the Yotta
disposal, the underlying increase was £1.7m from continuing operations which
was due to augmentation of back office and operational management together
with performance related payments.
Adjusted PBT* of £6.5m (FY22: £2.6m) has been determined after adding back
to the Statutory PBT £6.3m (FY22: £2.7m) non-cash items such as amortisation
and impairment of acquired intangibles, share option charge and non-recurring
items. A full reconciliation is available in note 6.
Compared to the first half, second half profitability did benefit both from an
increased gross margin as a result of higher revenues and from additional
Interest received, however the Adjusted PBT performance in the second half of
£2.4m compared with a first half performance of £4.1m. The imbalance was
largely caused by costs incurred or accrued in the second half that in
practice relate to the full year, such as higher marketing and performance
related incentives finalised at the end of the year. Taking this effect into
account underlying profitability in the second half was similar to the first
half.
Statement of Financial Position
Goodwill and intangibles
The overall balance was largely unchanged at £10.2m (FY22: £10.1m)
reflecting the addition of £2.1m (FY22: £3.4m) of capitalised development in
the year less amortisation and impairment of development costs £1.7m (FY22:
£1.4m) and the amortisation and impairment of acquired intangibles of £0.3m
(FY22: £0.3m).
Property, plant and equipment
The value of fixed assets increased to £2.5m (FY22: £1.6m). The movement
arising due to investment of £1.5m (FY22: £0.6m) in the year which included
Leasehold Improvements for the new Denver office, a variety of IT related
equipment and a Dreamscape pod. Depreciation charge for the year of £0.6m
(FY22: £0.4m).
Right of use assets (IFRS16)
The value of Right of Use assets increased to £3.1m (FY22: £1.4m) during the
year which reflected the commencement of a new lease for our US operations in
Denver and a rent review of at our Oxford facility.
Investments
The investment of £0.2m (FY22: £0.2m) relates to a minority interest in
Trensl Inc. which provides training VR solutions for the military and
healthcare (rehabilitation). The investment comes back-to-back with an
exclusive supply agreement to provide all systems.
Inventories
The inventory position at the end of the financial year was £7.2m (FY22:
£4.5m). Given the supply chain situation over the past few years, the Group
decided to deploy cash during the year to increase inventory in order to hedge
against any further disruption. The supply chain has for the most part
normalised, so inventory is expected to return to a lower level in the year
ahead.
Trade and other receivables
At the year-end Trade and other receivables were £9.9m (FY22: £7.4m). The
net overall increase is due to higher Vicon Trade receivables £7.6m (FY22:
£5.3m), which reflected the pattern of trading in FY23 and Accrued interest
£0.6m (FY22: £0.3m).
Current liabilities
At the year-end, Trade and other payables were £11.3m (FY22: £11.3m). Whilst
there was no change overall trade payables decreased at the year-end to £3.8m
(FY22: £4.0m), accruals were higher at £3.5m (FY22: £1.9m) and Vicon
support contract liabilities were lower at £3.7m (FY22: £5.1m) due in part
to exceptional level of customer deposits last year.
The bank overdraft of £1.2m (FY22: £0.0m) relates to a subsidiary current
account where there is technically no legal right of set-off, we are therefore
required to present this balance separately.
The lease liabilities balance reported at £0.7m (FY22: £0.4m) represents the
value of lease payments due within one year relating to right of use assets.
Non-current liabilities
The £0.2m decrease in other liabilities are due to Vicon Support contract
liabilities.
The lease liabilities balance reported of £2.5m (FY22: £1.1m) represents the
value of lease payments due greater than one year relating to right of use
assets which has increased due to changes described in Right of Use assets.
Statement of cashflows
The Group finished the year with Net cash of £64.8m (FY22: £67.7m) including
Fixed Term deposits of £42.0m (FY22: £55.0m). The amount on fixed term
deposit was reduced at year-end in readiness for the acquisition of IVS post
yearend.
Cash generated by operating activities was £3.2m (FY22: £3.5m).
The deployment of this cash included continued investment in development
giving rise to a purchase of intangibles of £2.1m (FY22: £3.5m), payment of
dividends of £3.2m (FY22: £2.5m) and the aforementioned increase in
Inventory.
Surplus cash not required for the day to day working capital needs of the
business is on a variety of 3-12 month bank deposits with NatWest and Lloyds
Bank. Interest received in cash for the year was £1.2m (FY22: £0.0m).
Tax
The Group tax charge this year is £0.6m (FY22: Credit £0.7m). The tax credit
in the prior year arose due to various deferred tax adjustments including but
not exclusively Research & Development tax credits which continues to have
a beneficial effect on the level of corporation tax payable in the UK.
The Group has a net deferred tax liability of £1.1m (FY22: £0.9m).
David Deacon
CFO
* Profit Before Tax before Group recharges adjusted for share-based payments,
amortisation and impairment of intangibles arising on acquisition and
additional Contemplas consideration deemed remuneration and exceptional costs.
consolidated INCOME statement
for the year ended 30 september 2023
All amounts relate to continuing operations 2023 2022
Note £'000 £'000
Revenue 3 44,240 28,816
Cost of sales (15,497) (9,352)
Gross profit 28,743 19,464
Sales, support and marketing costs (8,202) (6,608)
Research and development costs (6,543) (3,547)
Administrative expenses (9,146) (6,814)
Operating profit 4,852 2,495
Finance income 1,561 305
Finance expense (163) (67)
Profit before taxation 3,5 6,250 2,733
Taxation 7 (594) 665
Profit from continuing operations 5,656 3,398
Profit from discontinued operations net of tax - 43,519
Profit attributable to owners of the parent during the year
5,656 46,917
Earnings per share for profit on continuing operations attributable to owners
of the parent during the year
Basic earnings per ordinary share (pence) 8 4.35p 2.66p
Diluted earnings per ordinary share (pence) 8 4.32p 2.62p
Earnings per share for profit on total operations attributable to owners of
the parent during the year
Basic earnings per ordinary share (pence) 8 4.35p 36.70p
Diluted earnings per ordinary share (pence) 8 4.32p 36.11p
COnsolidated statement of
comprehensive income FOR THE YEAR
ENDED 30 sEPTEMBER 2023
Group Group
2023 2022
£'000 £'000
Net profit for the year 5,656 46,917
Other comprehensive expense
Items that will or may be reclassified to profit or loss
Exchange differences on retranslation of overseas subsidiaries (110) 953
Total other comprehensive expense (110) 953
Total comprehensive income for the year attributable to owners of the parent 5,546 47,870
consolidated statement of financial position AS AT 30 september 2023
COMPANY NUMBER: 03998880 Group Restated Group
2023 2022
£'000 £'000
Non-current assets
Goodwill and intangible assets 10,203 10,081
Property, plant and equipment 2,480 1,638
Right of use assets 3,135 1,367
Financial asset - investments 236 236
Deferred tax asset - -
16,054 13,322
Current assets
Inventories 7,240 4,462
Trade and other receivables 9,907 7,397
Current tax receivable - 254
Fixed term deposits 42,000 55,000
Cash and cash equivalents 23,965 12,679
83,112 79,792
Current liabilities
Trade and other payables (11,304) (11,287)
Current tax payable (275) -
Bank overdraft (1,174) -
Lease liabilities (724) (440)
(13,477) (11,727)
Net current assets 69,635 68,065
Total assets less current liabilities 85,689 81,387
Non-current liabilities
Other liabilities (820) (965)
Lease liabilities (2,498) (1,064)
Provisions (48) (40)
Deferred tax liability (1,118) (932)
(4,484) (3,001)
Net assets 81,205 78,386
Capital and reserves attributable to
owners of the parent
Share capital 326 324
Shares to be issued 65 65
Share premium account 19,487 19,094
Retained earnings 60,451 57,917
Foreign currency translation reserve 876 986
Total equity shareholders' funds 81,205 78,386
consolidated STATEMENT of CASHFLOWS
For the YEAR ended 30 september 2023
Group Group
2023 2022
£'000 £'000
Cash flows from operating activities
Profit for the year 5,656 46,917
Income tax expense/(credit) 594 (934)
Finance income (1,561) (305)
Finance expense 163 114
Dividends receivable - -
Depreciation and amortisation 2,898 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 59 139
Increase in inventories (2,799) (1,919)
(Increase)/decrease in receivables (2,274) (3,664)
Increase/(decrease) in payables 205 4,187
Cash generated from operating activities 3,150 3,512
Tax received/(paid) 209 (248)
Net cash from operating activities 3,359 3,264
Cash flows from investing activities
Purchase of property, plant and equipment (1,499) (588)
Purchase of intangible assets (2,127) (3,464)
Disposal of discontinued operation, net of cash disposed of - 47,141
Proceeds on disposal of property, plant and equipment 8 37
Cash placed on fixed term deposits (67,000) (65,000)
Fixed term deposits maturing 80,000 10,000
Interest received 1,219 28
Net cash generated from/(used in) investing activities 10,601 (11,846)
Cash flows from financing activities
Principal paid on lease liabilities (579) (460)
Interest paid (4) -
Interest paid on lease liabilities (159) (112)
Issue of ordinary shares 370 583
Equity dividends paid (3,246) (2,542)
Net cash used in financing activities (3,618) (2,531)
Net increase/(decrease) in cash and cash equivalents 10,342 (11,113)
Cash and cash equivalents at beginning of the period 12,679 22,957
Exchange (loss)/gain on cash and cash equivalents (230) 835
Cash and cash equivalents at end of the period 22,791 12,679
Cash and cash equivalents included in current assets 23,965 12,679
Bank overdraft included in current liabilities (1,174) -
22,791 12,679
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER
2023
Group Share Shares Share premium account Retained earnings Foreign currency translation reserve Total
capital to be issued
£'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 year - - - 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
Net profit for the year - - - 5,656 - 5,656
Exchange differences on retranslation of overseas subsidiaries - - - - (110) (110)
Transactions with owners:
Tax recognised directly in equity in relation to employee share option schemes - - - 90 - 90
Dividends - - - (3,246) - (3,246)
Issue of share capital 2 - 393 - - 395
Share based payment charge - - - 34 - 34
Balance as at 30 September 2023 326 65 19,487 60,451 876 81,205
1. Basis of preparation of the financial information
The financial information in this preliminary announcement has been prepared
in accordance with the recognition and measurement criteria of IFRS. This
announcement does not itself contain sufficient information to comply with
IFRS. The Company expects to publish full financial statements that comply
with IFRS on 5 December 2023.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise judgement in the process of applying the Group's accounting policies
which affect the reported amount of assets and liabilities at the statement of
financial position date and the reported amounts of revenues and expenses
during the reported period. Although the estimates are based on management's
best knowledge of the amount, event or actions, actual results may ultimately
differ from those estimates.
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006 for the years ended 30 September 2023 and 30 September 2022 but is
derived from those accounts. The statutory accounts for the year ended 30
September 2022 have been delivered to the Registrar of Companies and those for
the year ended 30 September 2023 will be delivered following the Company's
annual general meeting. The auditors have reported on those accounts: their
report was unqualified, did not contain references to any matters to which the
auditors drew attention by way of emphasis and did not contain a statement
under Section 498 of the Companies Act 2006 for the year ended 30 September
2023 or 30 September 2022.
2. Basis of consolidation
The consolidated financial information incorporates the results of the Company
and all of its subsidiary undertakings drawn up to 30 September 2023.
3. Revenue from contracts with customers
All revenue is from continuing operations.
2023 2022
Revenue £'000 £'000
Continuing operations
Vicon UK 25,545 17,338
Vicon USA 18,695 11,478
44,240 28,816
Timing of the transfer of goods
and services Vicon UK Vicon USA Total
2023 £'000 £'000 £'000
Point in time 23,714 16,032 39,746
Over time 1,831 2,663 4,494
Total 25,545 18,695 44,240
Contract Counterparties
Direct to consumers 5,341 17,673 23,014
Third party distributor 20,204 1,022 21,226
Total 25,545 18,695 44,240
By destination
UK 3,176 - 3,176
Germany 1,973 - 1,973
Italy 633 - 633
Netherlands 646 - 646
France 155 - 155
Poland 178 - 178
Spain 88 - 88
Ireland 565 - 565
Rest of Europe 1,087 - 1,087
Total Europe 5,325 - 5,325
Canada 9 1,878 1,887
USA 12 16,533 16,545
Total North America 21 18,411 18,432
Australia 939 13 952
Hong Kong 2,517 - 2,517
Japan 5,680 - 5,680
South Korea 2,835 - 2,835
China 3,957 - 3,957
India 574 - 574
Rest of Asia Pacific 397 - 397
Total Asia Pacific 16,899 13 16,912
Other 124 271 395
Total 25,545 18,695 44,240
Timing of the transfer of goods
and services Vicon UK Vicon USA Total
2022 £'000 £'000 £'000
Point in time 15,494 9,175 24,669
Over time 1,844 2,303 4,147
Total 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
Total 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
2023 2022
£'000 £'000
Vicon revenue by market - Continuing operations
Engineering 8,708 5,581
Entertainment 18,193 10,023
Life sciences 14,841 10,589
Location based entertainment 2,498 2,623
Total 44,240 28,816
Group revenue by type
Continuing operations
Sale of hardware 36,158 22,700
Sale of software 1,974 1,970
Rendering of services 5,209 3,009
SaaS - 193
Support 899 944
Total 44,240 28,816
Group revenue by origin
Continuing operations
UK 23,690 16,010
Europe 1,852 1,312
North America 18,695 11,478
Asia Pacific 3 16
Total 44,240 28,816
Contract balances
2023
Contract assets Contract liabilities
£'000 £'000
At 1 October 2022 - 6,043
Amounts included in contract liabilities recognised as revenue during the - (18,400)
period
Cash received in advance of performance and not recognised as revenue during - 17,138
the period
Foreign exchange differences - (253)
At 30 September 2023 - 4,528
2022
Contract assets Contract liabilities
£'000 £'000
At 1 October 2021 261 7,474
Transfers from contract assets to trade receivables (520) -
Amounts included in contract liabilities recognised as revenue during the - (23,176)
period
Excess of revenue recognised over cash during the period 770 -
Cash received in advance of performance and not recognised as revenue during - 26,670
the period
Disposal (511) (5,325)
Foreign exchange differences - 400
At 30 September 2022 - 6,043
Contract assets and contract liabilities are included within trade and other
assets and trade and other payables and other liabilities respectively on the
face of the statement of financial position. They arise primarily from the
Group's support contracts which are delivered over time and where the
cumulative payments received from customers at each balance sheet date do not
necessarily equal the amount of revenue recognised on the contract.
Remaining performance obligations
The majority of the Group's contracts are for the delivery of goods and
services within the next 12 months. However, some software and support
contracts are for a period greater than 12 months and the amount of revenue
that will be recognised in future periods on these contracts is as follows:
At 30 September 2023 2024 2025 2026 2027 2028 2029 and beyond
£'000 £'000 £'000 £'000 £'000 £'000
Support contracts 3,707 493 199 86 39 4
At 30 September 2022 2023 2024 2025 2026 2027 2028 and beyond
£'000 £'000 £'000 £'000 £'000 £'000
Support contracts 3,143 595 239 75 44 11
4. Segmental analysis
Segment information is presented in the financial statements in respect of the
Group's business segments, which are reported to the Chief Operating Decision
Maker (CODM). The Group has identified the Board of Directors of Oxford
Metrics plc ("the Board") as the CODM. The business segment reporting reflects
the Group's management and internal reporting structure.
The Group comprises the following business segments:
· Vicon Group: This is the development, production and sale of computer software
and equipment for the engineering, entertainment and life science markets; and
Other unallocated costs represent head office expenses not recharged to
subsidiary companies.
Inter segment transfers are priced along the same lines as sales to external
customers, with an appropriate discount being applied to encourage use of
Group resources. This policy was applied consistently throughout the current
and prior year. There were no significant inter segment transfers during the
current or prior year.
Intra segment sales between Vicon UK and Vicon USA are eliminated prior to
management and internal reporting, and hence are not shown separately in the
analysis below. The total intra segment sales between Vicon UK and Vicon USA
in the year ended 30 September 2023 are £10,376,000 (2022: £5,718,000).
Segment assets consist primarily of property, plant and equipment, intangible
assets, inventories and trade and other receivables. Unallocated assets
comprise deferred taxation, investments and cash and cash equivalents.
2023 2022
Adjusted profit/(loss) before tax Adjusting items Group recharges Profit/(loss) before tax Adjusted profit/(loss) before tax Adjusting items Group recharges Profit/(loss) before tax
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Continuing operations
Vicon UK 1,692 (287) 2,852 4,257 1,590 (434) 1,426 2,582
Vicon USA 6,542 - (6,162) 380 3,848 - (3,712) 136
Vicon Group 8,234 (287) (3,310) 4,637 5,438 (434) (2,286) 2,718
Unallocated (1,689) (8) 3,310 1,613 (2,840) (86) 2,941 15
Total continuing operations
6,545 (295) - 6,250 2,598 (520) 655 2,733
Adjusted profit before tax is detailed in note 6.
Segment depreciation and amortisation
2023 2022
£'000 £'000
Continuing operations
Vicon UK 2,742 1,810
Vicon USA 328 203
Vicon Group 3,070 2,013
Unallocated 45 59
Total continuing operations 3,115 2,072
Discontinued operations
Yotta - 483
Oxford Metrics Group 3,115 2,555
Non-current assets Additions to non-current assets Carrying amount of segment assets Carrying amount of segment liabilities
2023 2022 2023 2022 2023 2022 2023 2022
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon UK 12,763 11,635 3,885 3,304 28,161 29,566 (10,717) (9,817)
Vicon USA 3,010 1,416 1,998 566 13,107 6,445 (6,116) (4,476)
Vicon Group 15,773 13,051 5,883 3,870 41,268 36,011 (16,833) (14,293)
Yotta Group - - - 661 - - - -
Unallocated 281 271 55 8 63,950 63,155 (1,128) (435)
OMG Life Group*
- - - - (6,052) (6,052) - -
Oxford Metrics Group
16,054 13,322 5,938 4,539 99,166 93,114 (17,961) (14,728)
* The negative balance within segment assets represents a cash overdraft which
is part of the Group's cash offset facility.
5. Profit for the year
The profit for the year is stated after charging / (crediting):
2023 2022
£'000 £'000
Amortisation of right of use assets 523 496
Depreciation of property, plant and equipment - owned 639 424
Amortisation of intellectual property 274 272
Amortisation of development costs 1,462 1,363
Impairment of development costs 217 -
Share based payments - equity settled 25 36
Share option charges 34 103
Foreign exchange (gain)/loss (108) 487
6. Reconciliation of adjusted profit before tax
The adjusted profit before tax is considered by the Board to more accurately
reflect the underlying operating performance of the business on a go-forward
basis and complements the statutory measure as reported in the Consolidated
Income Statement.
The reconciliation of profit before tax to adjusted profit provided below
includes items that are:
· non-recurring in nature, such as redundancy costs incurred from time to time,
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.
2023 2022
£'000 £'000
Profit before tax - continuing operations 6,250 2,733
Share option charges 34 103
Amortisation of intangibles arising on acquisition 261 261
Costs associated with the acquisition of Contemplas - 156
Reapportion Group overheads - (655)
Adjusted profit before tax - continuing operations 6,545 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) 4.57p 2.55p
Diluted earnings per share (pence) 4.54p 2.51p
The adjusted profit before tax for the Vicon business segment is shown in
detail below;
Vicon Group
2023 2022
Continuing operations £'000 £'000
Profit before tax 4,637 2,718
Share option charges 26 17
Amortisation of intangibles arising on acquisition 261 261
Costs associated with the acquisition of Contemplas - 156
Reapportion Group overheads 3,310 2,286
Adjusted profit before tax 8,234 5,438
The Group overheads in the tables above include head office expenses recharged
to subsidiaries.
7. Taxation
The tax is based on the profit for the year and represents:
2023 2022
£'000 £'000
United Kingdom corporation tax at 22.0% (2022: 19.0%) 218 462
Overseas taxation 143 69
Adjustments in respect of prior year 15 (79)
Current taxation 376 452
Deferred taxation 218 (1,386)
Total taxation expense/(credit) 594 (934)
UK corporation tax has been calculated at 19.0% up to 31 March 2023 and 25.0%
from 1 April 2023. This gives rise to a blended tax rate of 22.0% for the
year.
Continuing and discontinued operations:
2023 2022
£'000 £'000
Income tax expense/(credit) from continuing operations 594 (665)
Income tax credit from discontinued operations excluding gain on sale (note - (269)
11)
Total tax (credit)/ expense 594 (934)
At 30 September 2023, the Group had an undiscounted deferred tax asset of
£1,618,000 (2022: £1,588,000). The asset comprises principally short term
timing differences, future tax relief available on the exercise of outstanding
employee share options in Oxford Metrics plc and unrelieved trading losses
carried forward for which recoverability is reasonably certain.
Deferred tax assets and liabilities have been measured at an effective rate of
25% in both the UK and USA (2022: 25%).
The tax assessed for the year is lower than the blended rate of corporation
tax in the UK of 22.0% (2022: lower than the standard rate of 19%).
The differences are explained as follows:
2023 2022
£'000 £'000
Profit for the year 5,656 46,917
Income tax expense/(credit) including discontinued operations 594 (934)
Profit on ordinary activities before tax 6,250 45,983
Expected tax income based on the blended rate of 1,375 8,737
corporation tax in the UK of 22.0% (2022: 19.0%)
Effect of:
Expenses not deductible for tax purposes 82 68
Book gain on disposal in excess of tax gain - (8,280)
Unrelieved current year losses 170 (335)
Utilisation of losses brought forward (21) -
Adjustments to tax charge in respect of prior year current tax 15 (79)
Adjustments to tax charge in respect of prior year deferred tax (309) (383)
Higher rates on overseas taxation 44 29
Research and development tax credit (682) (467)
Effect of tax rate change (80) (224)
Total tax expense/(credit) 594 (934)
During the prior year the UK Government substantively enacted an increase in
the corporation tax rate to 25.0% effective from 1 April 2023. The deferred
tax asset and liability as at 30 September 2023 has been calculated based on
the rate of 25.0% unless the asset/liability is expected to be realised or
settled before the rate increase in which case the rate of 19.0% has been
used.
8. Earnings per share
2023 2022
Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount
£'000 '000 pence £'000 '000 pence
Continuing operations
Basic earnings per share
Earnings attributable to ordinary shareholders 5,656 130,162 4.35 3,398 127,840 2.66
Dilutive effect of employee share options - 904 (0.03) - 2,081 (0.04)
Diluted earnings per share 5,656 131,066 4.32 3,398 129,921 2.62
Discontinued operations
Basic earnings per share
Earnings attributable to ordinary shareholders - 130,162 - 43,519 127,840 34.04
Dilutive effect of employee share options - 904 - - 2,081 (0.54)
Diluted earnings per share - 131,066 - 43,519 129,921 33.50
Total operations
Basic earnings per share
Earnings attributable to ordinary shareholders 5,656 130,162 4.35 46,917 127,840 36.70
Dilutive effect of employee share options - 904 (0.03) - 2,081 (0.59)
Diluted earnings per share 5,656 131,066 4.32 46,917 129,921 36.11
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares (share options). For share options a calculation
is done to determine the number of shares that could have been acquired at
fair value (determined as the average annual market share price of the
Company's shares) based on the monetary value of the subscriptions rights and
outstanding share based payment charges attached to outstanding share options.
The number of shares calculated as above is compared with the number of
shares that would have been issued assuming the exercise price of the share
options.
9. Dividends
2023 2022
Equity - ordinary £'000 £'000
Final 2021 paid in 2022 (2.00 pence per share) - 2,542
Final 2022 paid in 2023 (2.50 pence per share) 3,246 -
3,246 2,542
The directors are proposing a final dividend in respect of the financial year
ended 30 September 2023 of 2.75 pence per share (2022: 2.50 pence per share)
which will absorb an estimated £3,587,000 of shareholders' funds. This
dividend will be paid on 14 February 2024 to shareholders who are on the
register of members at close of business on 15 December 2023 subject to
approval at the AGM. These dividends have not been accrued in these financial
statements.
10. Prior year restatement
The Group presented its deferred tax assets and liabilities arising in the
same tax jurisdictions on a gross basis in prior periods rather than netting
them off in accordance with IAS 12. The incorrect treatment resulted in a
presentational error whereby both the Group deferred tax asset and liability
were overstated by £1,588,000 at 30 September 2022.
Impact on financial statements
Group
2022
Deferred tax asset £'000
Deferred tax asset originally presented 1,588
Net of to correct presentation (1,588)
Deferred tax asset as restated -
Group
2022
Deferred tax liability £'000
Deferred tax liability originally presented (2,520)
Net of to correct presentation 1,588
Deferred tax liability as restated (932)
There is a corresponding error at the beginning of the prior period - the
error and its correction at 1 October 2021 are set out below:
Group
2021
Deferred tax asset £'000
Deferred tax asset originally presented 1,877
Net of to correct presentation (1,877)
Deferred tax asset as restated -
Group
2021
Deferred tax liability £'000
Deferred tax liability originally presented (3,058)
Net of to correct presentation 1,877
Deferred tax liability as restated (1,181)
11. Copies of announcement
Copies of this announcement will be available from the Company's registered
office at 6 Oxford Pioneer Park, Yarnton, Oxfordshire, OX5 1QU and from the
Company's website: www.oxfordmetrics.com (http://www.oxfordmetrics.com) .
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AnnouncementREG - Oxford Metrics PLC - Change in CFO
AnnouncementREG - Oxford Metrics PLC - Grant of LTIP Awards to Directors
AnnouncementREG - Oxford Metrics PLC - PDMR Shareholding
Announcement