Oxford Metrics (OMG) investor relations material

Strategic vision and business model transformation

• Pursuing a dual transformation: Vicon shifts from hardware to an AI-powered human movement platform, while IVMS moves from bespoke projects to repeatable, productized solutions leveraging proprietary IP and partner technologies.

• Targeting a doubling of group revenue from the FY25 base of £44.8m, with recurring revenues rising to approximately 25% of the total.

• Aiming for mid-teens adjusted EBIT margins, up from ~5% in FY25, through operational leverage, cost efficiencies, and improved revenue mix.

• Strategy includes platform and product-led growth, market expansion, strengthening core execution, and complementary M&A contributing 15-20% of revenues.

• Capital allocation prioritizes reinvestment, balance sheet strength, disciplined M&A, and shareholder returns, with a focus on high-return growth opportunities.

Divisional performance and market opportunity

• Vicon is recognized as the gold standard in motion capture, serving life sciences, entertainment, engineering, and other sectors, with FY25 revenue of £32.0m.

• IVMS specializes in machine vision and metrology for blue-chip manufacturers, focusing on automation, quality assurance, and compliance, with FY25 revenue of £12.8m.

• Both divisions benefit from strong repeat business and a diversified, global customer base including leading brands in technology, healthcare, automotive, and entertainment.

• Vicon's market is expanding with the adoption of markerless and hybrid motion capture, projected to grow 1.8x (optical) and 2.6x (markerless) by 2030.

• IVMS is positioned to capture growth in the machine vision and industrial metrology markets, with automation and real-time quality control driving demand.

Operational excellence and innovation

• Operational realignment and technology consolidation are underway to drive cost efficiency and scalable, recurring growth.

• AI-enabled innovation is a core focus, with in-house ML/AI engineers accelerating product development and enhancing customer value.

• Enhanced go-to-market strategies include outbound sales, professional services, and deeper client relationships to increase recurring revenue.

• Projects-to-products strategy in IVMS shortens delivery cycles, increases margin, and improves revenue predictability.

• Investment in R&D, skills, and IT supports scalable operations and non-linear cost growth, with defined metrics to track execution.