Oxford Metrics (OMG) H2 2024 earnings summary

Executive summary

• Revenue declined to £41.5m in FY24, down 6% year-over-year, with gross profit at £27.6m and gross margin near 67%.

• Adjusted profit before tax fell to £3.7m from £7.5m, reflecting lower sales and increased operational costs from acquisitions and investments.

• Cash position at year-end was just under £47m, supporting ongoing M&A and growth, after acquisition and share buyback activities.

• Strategic acquisitions (IVS and Sempre) expanded the smart manufacturing division, diversifying revenue streams and enhancing synergies.

• Operational focus included cost savings, restructuring, and investment in new technologies, notably the upcoming Markerless product.

Financial highlights

• Revenue of £41.5m, down 6% year-over-year; gross profit £27.6m; gross margin improved to 66.6%.

• Adjusted PBT £3.7m (vs £7.5m prior year); statutory PBT £2.8m; EPS down to 2.96p.

• R&D capitalization increased to £3.1m, with £2m allocated to Markerless technology.

• Inventory reduced to £7.7m at year-end.

• Dividend increased 18% to 3.25p per share.

Outlook and guidance

• Trading in early FY2025 aligns with expectations, with Vicon returning to pre-COVID buying patterns.

• Markerless technology set for launch in FY2025, expected to drive ARR and new product revenues.

• Integration of IVS and Sempre underway to drive synergies and growth.

• Continued focus on cost control, efficiency, and targeted M&A to support growth.

• Smart manufacturing division to be expanded via M&A, with £1.3m in new orders at FY2025 start.