TIDMOMG
RNS Number : 7439B
Oxford Metrics PLC
11 June 2019
11 June 2019
Oxford Metrics plc
("Oxford Metrics", the "Company" or the "Group")
Interim Results for the six months ended 31 March 2019
Oxford Metrics plc (LSE: OMG), the international software
company servicing government, life sciences, entertainment and
engineering markets, announces interim results for the six months
ended 31 March 2019.
Summary of Results
H1 FY19 H1 FY18 % Change
-------- -------- --------
Revenue GBP16.1m GBP14.3m +12.6%
-------- -------- --------
Adjusted Profit before Tax* GBP1.7m GBP1.5m +16.1%
-------- -------- --------
Statutory Profit before Tax GBP1.2m GBP1.2m -1.5%
-------- -------- --------
Statutory Earnings per Share 0.86p 0.58p +48.3%
-------- -------- --------
Net Cash GBP10.9m GBP9.2m +18.7%
-------- -------- --------
* Profit/(loss) Before Tax from continuing operations before
Group recharges adjusted for share-based payments, amortisation of
intangibles arising on acquisition, change in fair value of
deferred consideration payable and unwinding of associated discount
factor, Pimloc and exceptional costs
Financial Highlights
-- Headline Group revenue of GBP16.1m, up 12.6% (H1 FY18: GBP14.3m)
o Group revenue up 10.4% on a constant currency basis
-- Adjusted profit before tax up 16.1% to GBP1.7m (H1 FY18: GBP1.5m)
-- Cash generated from operations (before paying interest and tax) GBP3.3m (H1 FY18: GBP3.5m)
-- Cash of GBP10.9m as at 31 March 2019 (H1 FY18: GBP9.2m) after
the payments of a final and special dividend worth GBP3.1m
-- Growth initiatives at Yotta yielding results:
o Annualised Recurring Revenue ('ARR') up 10.7% year-on-year
o 93.2% (FY18: 95.3%) retention of growing SaaS customer
base
o As at 10(th) June 2019, ARR stood at GBP6.0m
-- Headline Vicon revenue up 14.4% year-on-year (11.5% at
constant currency) against a strong comparator
Operational Highlights
-- Five-year "amplify the core" strategic growth plan launched
in 2016, with aim to drive growth by building on core strengths and
capabilities of subsidiaries
-- Good progress in Third Year of plan leveraging investments
made in previous years to broaden product range and expand
addressable markets
-- Vicon capitalising on its leadership position in its
established markets, with a particularly strong performance in
Engineering which grew 89% year-on-year
-- Vicon seeing increasing traction for Location-based Virtual
Reality ('LBVR') solution which now accounts for 8% of first-half
revenue
-- Established new partnership with Sandbox VR, who immediately
purchased systems from Vicon, with significant opportunity to scale
the partnership over time
-- IMU Step, SaaS solution for elite sports, continues to build
momentum with universities and trials being undertaken by a number
of major sporting franchises
-- Yotta launched a new Waste and Environmental Management
module for Alloy expanding its addressable market and the pipeline
continues to build following sales team changes
Commenting on the results Nick Bolton, Chief Executive Officer
said:
"We have made a positive start to the year, delivering record
revenue and double-digit revenue and earnings growth. Driving that
performance was Vicon, which delivered revenue growth of 14%,
securing deals with NASA's Jet Propulsion Lab and Square Enix to
consolidate our leadership position in the Engineering and
Entertainment markets.
This year we have also seen the Location-based Virtual Reality
market really beginning to take off. The scale of this market is
significant, our partners are now launching new locations across
multiple geographies and we signed an exciting new partnership with
Sandbox VR.
The focused investments we are making this year will help us to
capture these new opportunities and launch new products to drive
future growth. As we move into the second half, our pipeline of
sales for both Yotta and Vicon is strong, underpinning our
confidence in delivering in-line with market expectations for the
full year."
For further information please contact:
Oxford Metrics +44 (0) 1865 261860
Nick Bolton, CEO
David Deacon, CFO
FTI Consulting +44 (0) 20 3727 1021
Matt Dixon / Harry Staight
N+1 Singer (NOMAD to OMG) +44 (0) 20 7496 3000
Shaun Dobson / Jen Boorer (Corporate
Finance)
Tom Salvesen (Corporate Broking)
About Oxford Metrics
Oxford Metrics develops and markets analytics software for
motion measurement and infrastructure asset management to customers
in over 70 countries worldwide. Our list of clients across the
globe is as diverse as the markets we operate in; we help highways
authorities manage and maintain their road networks, hospitals and
clinicians decide therapeutic strategies and Hollywood studios
create stunning visual effects. And the diversity of applications
is growing all the time.
The Group trades through two subsidiaries: Vicon and Yotta.
Vicon is the world's leader in high precision motion measurement
analysis to thousands of customers worldwide, including Guy's
Hospital, EA Sports, MIT and NASA and our software is used in an
ever expanding range of applications. Yotta provides cloud-based
infrastructure asset management software to central and local
government agencies and other infrastructure owners. Yotta has a
large number of high profile clients including Highways England and
Amey in the UK and VicRoads in Australia amongst others.
Founded in 1984 our Group is headquartered in Oxford with
offices in Leamington Spa, Gloucester, Los Angeles, Denver,
Singapore 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
Chairman and Chief Executive's Statement
KPI Revenue PBT Adjusted PBT*
H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18
--------- --------- -------- -------- -------- --------
Group GBP16.1m GBP14.3m GBP1.2m GBP1.2m GBP1.7m GBP1.5m
--------- --------- -------- -------- -------- --------
Overall the Group has traded well in the first half setting a
new record for revenue performance on a continuing operations basis
of GBP16.1m (H1 FY18: GBP14.3m), up 12.6% on last year at a
headline level and 10.4% on a constant currency basis and reporting
Adjusted PBT* up 16.1% to GBP1.7m (H1 FY18: GBP1.5m). The cash
position, having paid a Final and Special Dividend of GBP3.1m in
the first half, finished at GBP10.9m as at 31 March 2019 (H1 FY18:
GBP9.2m). Cash generated from operations during the first half was
GBP3.3m (H1 FY18: GBP3.5m); the slight decline accounted for by the
intentionally higher inventory position in preparation for Brexit.
The Group remains debt-free.
This pleasing trading performance is being driven by our
five-year strategic plan, launched in 2016, which aims to "amplify
the core". Through this plan we aim to broaden and enhance future
profit streams, improve the quality of future earnings and
ultimately accelerate future growth. As we reach the half way point
of our plan, overall progress has been strong and we remain on
track.
Vicon - continuing momentum
KPI Revenue PBT Adjusted PBT*
H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18
--------- --------- -------- -------- -------- --------
Vicon GBP12.5m GBP11.0m GBP2.2m GBP2.0m GBP3.3m GBP3.0m
--------- --------- -------- -------- -------- --------
Revenue momentum achieved by Vicon in the last financial year
continued into the first half of FY19 with record headline revenues
of GBP12.5m (H1 FY18: GBP11.0m), improving 14.4% year-on-year on a
constant currency basis equating to 11.5% underlying growth. Vicon
reported Adjusted PBT* of GBP3.3m (H1 FY18: GBP3.0m) and an
unadjusted profit before tax of GBP2.2m (H1 FY18: GBP2.0m). Vicon
also reported improved product gross margins at 75.4% (H1 FY18:
72.6%) in the first half.
The implementation of our "amplify the core" strategy at Vicon
aims to strengthen and protect a profitable market leader, driving
the business through two key growth vectors, Established Markets
and Adjacent Verticals - both saw notable highlights during the
first half.
Established Markets - making the strong even stronger
Now 35 years since its original founding, Vicon has long been
the market leader in its space but it still continues to break new
ground, inspired by a material increase in movement measurement
applications from a broader variety of markets than ever before. We
believe this is driven by the arrival of the Augmented Age, where
our lives are becoming increasingly enhanced and augmented through
digital interfaces. Responding to this increased market interest,
we have broadened the appeal of our products through targeted
investments since the start of the strategic plan. For example,
introduced in April 2017, Vicon Sh gun, our software for Visual
Effects customers, made our solutions more accessible and
productive. This broadened appeal across our solutions is driving
the growth reported in this set of Interim Results. As previously
announced, this strategy has seen considerable success and we have
accelerated investment this year to deliver new products to market
for FY20 and drive future growth.
The Engineering market segment performed particularly well in
the first half, delivering 89% year-on-year growth. Amongst the
many new contracts won across a variety of geographies, notable
were those with Northrop Grumman and NASA's Jet Propulsion Lab.
In the Entertainment market, we delivered a strong performance,
landing large system wins at NC Soft in South Korea and Square Enix
in Japan. This drove 67% growth for Vicon in the Asia Pacific
region over the same period last year. In the UK, games company
Ninja Theory, creators of Hellblade and many other titles, invested
in a significant size Vicon system to help drive their future game
development.
There were good contract wins in the Life Sciences market with
long-term Vicon customer KTH Stockholm upgrading and further wins
at Deakin University, Shriners' Hospitals, Athlone University and
University of Western Scotland.
Adjacent Markets - capitalising on new growth opportunities
Our adjacent market business delivered an outstanding
performance, reporting a tripling of revenues over the same period
last year, albeit off a low base. Our adjacent markets represent
vertical market opportunities, where our broad motion tracking
capability is tailored to provide an end-to-end complete solution
for the customer. Currently we are pursuing two specific vertical
opportunities: Location-based Virtual Reality (LBVR) and Elite
Sports.
Firstly, our LBVR business continued to gain momentum, with LBVR
sales now accounting for 8% of Vicon's first-half revenues. LBVR is
an emerging form of entertainment where participants share
collective VR experiences in a specific location, such as a
shopping mall, cinema, theme-park or museum. In these experiences,
users are free to walk around and interact with each other - all
within a virtual world. Vicon's software tracks the complex
movement of these users and various props which delivers
simplicity, accuracy and resilience.
Having broadened our product range with Vicon Origin, we saw
real progress in this LBVR market, rolling out our products across
multiple site locations in multiple geographies with both existing
and new partners. One of those new partners is Sandbox VR, a market
leader in LBVR with a total of seven active locations currently.
Their latest and most ambitious experience, Amber Sky 2088, will be
powered by Vicon. As part of the partnership, Sandbox has initially
purchased a series of seed systems from Vicon. Some of these will
be used at Sandbox's existing locations in Hong Kong, upgrading
their current solution. Sandbox plan to open 40 experience rooms
across 12 new locations around the world, so there is significant
opportunity to scale the partnership over time.
Turning to our Elite Sports vertical, this business line saw
growing understanding of our lower-limb load monitoring software,
IMU Step. This unique software, provided on a Software-as-a-Service
(SaaS) basis, enables coaches to gain an objective measure of the
load an athlete endures in their lower limbs during training. The
first half saw product trials being undertaken by major sporting
franchises and some satisfying wins, including the University of
Memphis and the University of Tennessee Knoxville. Recognising the
unique capability of the solution, our patent applications for the
technology are making good progress.
Lastly as part of our push into vertical markets, we are
pursuing further OEM relationships, where Vicon's tracking
capability is embedded in other companies' end market solutions. We
have a number of such engagements already, including Motek and
Innovative Sports Training. Ultimately our aim is to see Vicon
software running on a wide variety of platforms, empowering the
Augmented Age with motion tracking excellence.
Yotta - driving innovation, winning market share
KPI Revenue PBT Adjusted PBT*
H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18
-------- -------- ---------- ---------- ---------- ----------
Yotta GBP3.5m GBP3.3m (GBP1.0m) (GBP0.8m) (GBP0.2m) (GBP0.1m)
-------- -------- ---------- ---------- ---------- ----------
Yotta reported software revenues up 6.8% to GBP3.5m (H1 FY18:
GBP3.3m). Annualised Recurring Revenues ('ARR') as at 31 March 2019
grew 10.7% year-on-year to GBP5.9m (H1 FY18: GBP5.3m). Overall
growth in the first half was muted by a lower retention rate of
93.2% (FY18: 95.3%) largely due to the anticipated termination of
one unused software element by one specific customer who continues
to use Yotta software. As at 10 June 2019, ARR stood at
GBP6.0m.
Our market-defining SaaS software, Alloy, saw growing levels of
interest and market adoption during the first half. This is driven
by strengthened capabilities across our maturing platform. Of
particular note is the new Blueprints feature, which enables faster
on-boarding of new customers and helps drive partner
differentiation. Furthermore, a new version of Alloy has just been
released, adding Waste and Environmental Management functionality,
broadening the Total Addressable Market for the product.
We also started to see our enhanced subscription offer be taken
up by a growing number of customers. This new programme enables a
customer to subscribe to a combined offer of SaaS software and
relevant services, where the customer receives a number of credits
that can be used to acquire services from Yotta on a
use-it-or-lose-it basis. This enables customers to get more out of
our solutions in an easy-to-use manner.
We are winning an increased number of contracts with longer than
average durations. Total Contract Value ('TCV'), being the sum of
ARR over the life of the contract, of all deals in the first half
was GBP1.5m (H1 FY18: GBP1.2m) and since the start of the second
half we have added a further GBP0.5m TCV to that. We continue to
drive this business to capture a greater market share and as a
result Yotta reported an Adjusted* loss before tax of GBP0.2m (H1
FY18: GBP0.1m loss) and an unadjusted loss before tax of GBP1.0m
(H1 FY18: GBP0.8m loss).
As previously announced, we implemented changes early in the
financial year to our sales approach and made modest changes to the
cost base. Given the length of sales cycles in the markets we
serve, the benefits of these changes are expected to emerge in the
second half. The early signs are encouraging with a healthy sales
pipeline.
Yotta is driving growth through three important vectors: direct
sales, indirect sales via a network of independent international
resellers and through OEMs, where third-party companies re-label
our software products as their own and then market them through
their existing sales teams.
-- Direct - sales grew through wins across the UK, including
Bury Metropolitan Borough Council, Chorley Council and
Northamptonshire County Council. Bury plans to use Alloy to help
manage the reactive maintenance of its highway networks and street
lighting assets, enabling them to inspect and fix potholes and
street lights more efficiently. Northamptonshire Highways have
replaced legacy software from a competitor with Alloy, which
provides an end-to-end workflow management solution from the
reporting of a pothole through to its repair.
-- Resellers (Indirect) - Following changes to our sales
approach implemented early in the financial year, we are now
focussing on key international partners in Europe and South
America. This has led to some notable wins at Aeropuerto de Bogotá
and Concesiones CCFC.
-- OEM - We currently have two OEM partners within Highways (in
Australia and the Netherlands) and we are now actively engaged in
pursuing partnerships in other asset-rich vertical markets, such as
other forms of Transportation and Utilities.
Yotta's long-term opportunity remains strong. In the
geographical markets Yotta serves, there is a clear need for
infrastructure assets to be better managed. Yotta's software suite
does exactly that - effectively and efficiently.
Outlook
As we look to the second half, the Board is encouraged by the
strong pipeline of sales opportunities in both Vicon and Yotta.
Vicon's qualified sales pipeline is currently 11% higher than this
time last year and Vicon orders-in-hand for the remainder of the
financial year are encouraging. Following changes made to the sales
team at Yotta, pipelines continue to grow in this subsidiary and
the benefits of those changes are expected to emerge in the second
half. The H2 outlook for the Group is promising.
We continue to pursue our organic "amplify the core" growth
strategy and remain on track to achieve the objectives set out in
our five-year plan. Complementing this, the Group will also
continue to explore value-enhancing acquisition opportunities.
Notwithstanding macro-economic factors, the Board remains
confident that, with the expected performance across the business,
the Group is on track to deliver in line with current market
expectations for the year as a whole.
* Profit/(loss) Before Tax from continuing operations before
Group recharges adjusted for share-based payments, amortisation of
intangibles arising on acquisition, change in fair value of
deferred consideration payable and unwinding of associated discount
factor, Pimloc and exceptional costs.
CONDENSED CONSOLIDATED INCOME STATEMENT
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018* 2018*
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
------------------------------------ ---- ----------- ----------- -------------
Revenue 16,055 14,253 31,656
Cost of sales (4,394) (4,105) (8,743)
------------------------------------ ---- ----------- ----------- -------------
Gross profit 11,661 10,148 22,913
Sales, support and marketing costs (4,262) (3,476) (7,526)
Research and development (2,112) (1,797) (3,336)
Administrative expenses (4,161) (3,744) (7,467)
Other operating income 104 107 173
------------------------------------ ---- ----------- ----------- -------------
Operating profit 1,230 1,238 4,757
Finance income 12 11 73
Finance expense (43) (15) (172)
Share of post-tax loss of equity
accounted associate (33) (50) (75)
------------------------------------- ---- ----------- ----------- -------------
Profit before taxation 1,166 1,184 4,583
Taxation (49) (438) (556)
------------------------------------ ---- ----------- ----------- -------------
Profit from continuing operations 1,117 746 4,027
------------------------------------ ---- ----------- ----------- -------------
Loss from discontinued operations,
net of tax (4) (269) (484)
------------------------------------ ---- ----------- ----------- -------------
Profit for the period attributable
to
owners of the parent during the
period 1,113 477 3,543
------------------------------------ ---- ----------- ----------- -------------
Earnings per share for profit on
continuing operations attributable
to owners of the parent during the
year
Basic earnings per share (pence) 5 0.89p 0.60p 3.23p
Diluted earnings per share (pence) 5 0.86p 0.58p 3.12p
Earnings per share for profit on
total operations attributable to
owners of the parent during the
year
Basic earnings per share (pence) 5 0.89p 0.38p 2.84p
Diluted earnings per share (pence) 5 0.86p 0.37p 2.75p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018* 2018*
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- ----------- -------------
Net profit for the period 1,113 477 3,543
Other comprehensive income
Items that will or may be reclassified
to profit or loss
Exchange differences on retranslation
of overseas subsidiaries - (115) 173
Total other comprehensive (expense)/income - (115) 173
-------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the period
attributable to the owners of the parent 1,113 362 3,716
-------------------------------------------- ----------- ----------- -------------
*The Group has applied IFRS 15 using the cumulative effect
method. Under this method the comparative information is not
restated. See note 8.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 31 March 30 September
2019 2018* 2018*
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
-------------------------------------- ---- ----------- ----------- ------------
Non-current assets
Goodwill and intangible assets 12,389 11,927 12,361
Property, plant and equipment 2,428 2,404 2,496
Financial asset - investments 125 182 157
Deferred tax asset 426 127 230
-------------------------------------- ---- ----------- ----------- ------------
15,368 14,640 15,244
Current assets
Inventories 3,080 3,406 2,403
Trade and other receivables 9,488 7,641 10,576
Current tax debtor 72 - 101
Cash and cash equivalents 10,949 9,225 12,229
-------------------------------------- ---- ----------- ----------- ------------
23,589 20,272 25,309
Assets classified as held for
sale - 2,247 -
Current liabilities
Trade and other payables (9,420) (7,515) (8,167)
(9,420) (7,515) (8,167)
Liabilities directly associated
with assets classified as held
for sale - (437) -
Net current assets 14,169 14,567 17,142
-------------------------------------- ---- ----------- ----------- ------------
Total assets less current liabilities 29,537 29,207 32,386
-------------------------------------- ---- ----------- ----------- ------------
Non-current liabilities
Other liabilities (317) (1,039) (631)
Provisions (12) (189) (8)
Deferred tax liability (1,802) (1,519) (1,777)
(2,131) (2,747) (2,416)
-------------------------------------- ---- ----------- ----------- ------------
Net assets 27,406 26,460 29,970
-------------------------------------- ---- ----------- ----------- ------------
Capital and reserves attributable
to the owners of the parent
Share capital 6 313 312 312
Shares to be issued 65 65 65
Share premium account 17,391 17,327 17,327
Retained earnings 9,393 8,800 12,022
Foreign currency translation reserve 244 (44) 244
-------------------------------------- ---- ----------- ----------- ------------
Total equity shareholders' funds 27,406 26,460 29,970
-------------------------------------- ---- ----------- ----------- ------------
*The Group has applied IFRS 15 using the cumulative effect
method. Under this method the comparative information is not
restated. See note 8.
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018* 2018*
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ----------- ----------- -------------
Cash flows from operating activities
Operating profit from continuing
operations 1,230 1,238 4,757
Operating loss from discontinued
operations (3) (275) (483)
---------------------------------------- ----------- ----------- -------------
Group operating profit 1,227 963 4,274
Depreciation and amortisation 1,353 1,245 2,479
Loss on sale of property, plant
and equipment - 1 3
Loss on disposal of subsidiary
undertaking - - 445
Share based payments 122 163 323
Exchange adjustments 5 (72) 89
(Increase)/decrease in inventories (677) (110) 941
Decrease/(increase) in receivables 1,089 2,832 (184)
Increase/(decrease) in payables 132 (1,542) (1,635)
---------------------------------------- ----------- ----------- -------------
Cash generated from operating
activities 3,251 3,480 6,735
Tax paid (59) (571) (727)
Net cash from operating activities 3,192 2,909 6,008
Cash flows from investing activities
Purchase of property, plant and
equipment (293) (713) (1,243)
Purchase of intangible assets (1,068) (809) (2,125)
Proceeds on disposal of property,
plant and equipment 54 7 154
Proceeds on disposal of subsidiary
undertakings net of cash disposed
of - - 1,295
Acquisition of subsidiary undertaking
net of cash acquired (74) - (76)
Interest arising on contingent
consideration (43) (15) (172)
Interest received 12 11 73
Net cash used in investing activities (1,412) (1,519) (2,094)
Cash flows from financing activities
Issue of ordinary shares 65 29 29
Equity dividends paid (3,125) (1,499) (1,499)
---------------------------------------- ----------- ----------- -------------
Net cash used in financing activities (3,060) (1,470) (1,470)
Net (decrease)/increase in cash
and cash equivalents (1,280) (80) 2,444
Cash and cash equivalents at beginning
of the period 12,229 9,785 9,785
---------------------------------------- ----------- ----------- -------------
Cash and cash equivalents at end
of the period 10,949 9,705 12,229
---------------------------------------- ----------- ----------- -------------
Amount included in cash and cash
equivalents 10,949 9,225 12,229
Amount included in assets classified
as held for sale - 480 -
---------------------------------------- ----------- ----------- -------------
10,949 9,705 12,229
--------------------------------------- ----------- ----------- -------------
*The Group has applied IFRS 15 using the cumulative effect
method. Under this method the comparative information is not
restated. See note 8.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY
Share Shares Share premium Retained Foreign Total
Capital to be account earnings currency
issued translation
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- ------- ------------- --------- ------------ -------
Balance as at 30 September
2018 as previously stated 312 65 17,327 12,022 244 29,970
Impact of change in accounting
policy - IFRS 15 Revenue
from Contracts with Customers
(see note 8) - - - (872) - (872)
------------------------------- -------- ------- ------------- --------- ------------ -------
Balance as at 1 October
2018 as restated 312 65 17,327 11,150 244 29,098
Net profit for the period - - - 1,113 - 1,113
Exchange difference on - - - - - -
retranslation of overseas
subsidiaries
Tax recognised directly
in equity - - - 133 - 133
Transactions with owners:
Dividends - - - (3,125) - (3,125)
Issue of share capital 1 - 64 - - 65
Movement in relation to
share based payments - - - 122 - 122
Balance as at 31 March
2019 313 65 17,391 9,393 244 27,406
------------------------------- -------- ------- ------------- --------- ------------ -------
Balance as at 1 October
2017* 308 65 17,302 9,549 71 27,295
Net profit for the period - - - 477 - 477
Exchange differences on
retranslation of overseas
subsidiaries - - - - (115) (115)
Tax recognised directly
in equity - - - 110 - 110
Transactions with owners:
Dividends - - - (1,499) - (1,499)
Issue of share capital 4 - 25 - - 29
Movement in relation to
share options - - - 163 - 163
Balance as at 31 March
2018* 312 65 17,327 8,800 (44) 26,460
------------------------------- -------- ------- ------------- --------- ------------ -------
Balance as at 1 October
2017* 308 65 17,302 9,549 71 27,295
Net profit for the year - - - 3,543 - 3,543
Exchange differences on
retranslation of overseas
subsidiaries - - - - 173 173
Tax recognised directly
in equity - - - 106 - 106
Transactions with owners:
Dividends - - - (1,499) - (1,499)
Issue of share capital 4 - 25 - - 29
Movement in relation to
share options - - - 323 - 323
Balance as at 30 September
2018* 312 65 17,327 12,022 244 29,970
------------------------------- -------- ------- ------------- --------- ------------ -------
*The Group has applied IFRS 15 using the cumulative effect
method. Under this method the comparative information is not
restated. See note 8.
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 2019 comprise the
Company and its subsidiaries (together referred to as the
"Group").
At the date of authorisation of these financial statements the
following standards, amendments to standards and interpretations,
which have not been adopted early in these financial statements,
were issued by the IASB, but not yet effective:
-- IFRS 16 'Leases'
-- Amendments to IFRS 9 'Financial Instruments'
-- Amendments to IFRS 3 'Business Combinations'
-- Amendments to references to the Conceptual Framework in IFRS Standards
-- Amendments to IAS 1 'Presentation of Financial Statements'
-- Amendments to IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors'
-- Amendments to IAS 28 'Investments in Associates and Joint Ventures'
-- Amendments to IAS 19 'Employee Benefits'
-- Amendment to IFRIC 23 'Uncertainty over Income Tax Treatments
-- Annual improvements to IFRS's (2015-2017) cycle
At the date of authorisation of these financial statements, the
directors have considered the standards and interpretations which
have not been applied in these financial statements that were in
issue but not yet effective (and in some cases had not yet been
adopted by the EU).
During the period the Group adopted IFRS 15 'Revenue from
contracts with customers' and IFRS 9 'Financial Instruments'. The
impact of adopting IFRS 15 is shown in note 8, the impact of
adopting IFRS 9 is not material. Otherwise, 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 2018. They are in
accordance with IAS 34.
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 2018 are not the statutory accounts but
have been extracted from the Group's 2018 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. Segmental reporting
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 and highways surveying
services (which were disposed of during the year ended 30 September
2018) for the Government Agencies, Local Government and major
infrastructure contractors.
Other unallocated costs represent head office expenses not
recharged to subsidiary companies.
Business segments are analysed below:
Revenue from contracts with customers
Revenue
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------- ----------- -------------
Vicon UK 7,063 6,315 13,964
Vicon USA 5,466 4,635 10,418
-------------------------------------- ----------- ----------- -------------
Vicon Group 12,529 10,950 24,382
-------------------------------------- ----------- ----------- -------------
Yotta 3,526 3,303 7,274
Continuing operations 16,055 14,253 31,656
-------------------------------------- ----------- ----------- -------------
Yotta surveying - 1,208 1,693
-------------------------------------- ----------- ----------- -------------
Discontinued operations - 1,208 1,693
-------------------------------------- ----------- ----------- -------------
Oxford Metrics Group 16,055 15,461 33,349
-------------------------------------- ----------- ----------- -------------
Vicon revenue by market
Engineering 3,287 1,740 4,367
Entertainment 3,298 2,951 7,153
Life sciences 5,944 6,259 12,862
------------------------ ------ ------ ------
Vicon Group* 12,529 10,950 24,382
------------------------ ------ ------ ------
Group revenue by type
Sale of hardware 10,449 9,419 21,687
Sale of software 3,506 1,831 4,289
Rendering of services 2,100 3,003 5,680
------------------------ ------ ------ ------
Continuing operations 16,055 14,253 31,656
------------------------ ------ ------ ------
Sale of software - - 12
Rendering of services - 1,208 1,681
------------------------ ------ ------ ------
Discontinued operations - 1,208 1,693
------------------------ ------ ------ ------
Oxford Metrics Group 16,055 15,461 33,349
------------------------ ------ ------ ------
Yotta revenue by type
Software and related services 3,526 3,303 7,274
Continuing operations 3,526 3,303 7,274
------------------------------ ----- ----- -----
Surveying services - 1,208 1,693
------------------------------ ----- ----- -----
Discontinued operations - 1,208 1,693
------------------------------ ----- ----- -----
Yotta Group 3,526 4,511 8,967
------------------------------ ----- ----- -----
*This additional information is provided to the Chief Operating
Decision Maker. Further analysis by market is not available.
Revenue
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------ ----------- ----------- -------------
By destination
UK 3,994 5,106 9,978
Germany 376 313 1,078
Poland - 52 145
Netherlands 540 254 662
France 160 110 348
Switzerland 121 130 409
Rest of Europe 616 753 1,811
Canada 424 224 420
USA 4,911 4,002 9,357
Rest of North America 123 - 123
Australia 288 340 685
Hong Kong 1,526 683 1,766
Japan 1,739 1,443 3,257
Korea 937 209 270
Rest of Asia Pacific 212 133 669
Other 88 501 678
------------------------ ----------- ----------- -------------
Continuing operations 16,055 14,253 31,656
------------------------ ----------- ----------- -------------
UK - 1,208 1,693
Discontinued operations - 1,208 1,693
------------------------ ----------- ----------- -------------
Oxford Metrics Group 16,055 15,461 33,349
------------------------ ----------- ----------- -------------
By origin
UK 10,406 9,410 20,849
North America 5,466 4,635 10,419
Asia Pacific 183 208 388
Continuing operations 16,055 14,253 31,656
------------------------ ------ ------ ------
UK - 1,208 1,693
Discontinued operations - 1,208 1,693
------------------------ ------ ------ ------
Oxford Metrics Group 16,055 15,461 33,349
------------------------ ------ ------ ------
Segment depreciation and amortisation
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------ ------------ ------------ -------------
Vicon UK 923 751 1,525
Vicon USA 32 27 57
------------------------ ------------ ------------ -------------
Vicon Group 955 778 1,582
------------------------ ------------ ------------ -------------
Yotta 393 377 775
Unallocated 5 11 21
Continuing operations 1,353 1,166 2,378
------------------------ ------------ ------------ -------------
Yotta surveying - 79 101
------------------------ ------------ ------------ -------------
Discontinued operations - 79 101
------------------------ ------------ ------------ -------------
Oxford Metrics Group 1,353 1,245 2,479
------------------------ ------------ ------------ -------------
Six months ended 31 March Six months ended 31 March 2018 Year ended 30 September 2018
2019 (unaudited) (unaudited) (audited)
Adjusted Adjusted Adjusted
profit/(loss) Adjusting Profit/(loss) profit/(loss) profit/(loss) Profit/(loss)
before items Group before before Adjusting Group Profit/(loss) before Adjusting Group before
tax recharges tax tax items recharges before tax tax items recharges tax
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Vicon UK 1,208 (174) 699 1,733 947 (107) 335 1,175 2,916 105 1,309 4,330
Vicon USA 2,098 - (1,666) 432 2,034 - (1,212) 822 4,372 - (3195) 1,177
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Vicon Group 3,306 (174) (967) 2,165 2,981 (107) (877) 1,997 7,288 105 (1,886) 5,507
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Yotta (191) (284) (495) (970) (125) (246) (391) (762) 437 (472) (993) (1,028)
Unallocated (1,386) (105) 1,462 (29) (1,367) (122) 1,438 (51) (2,556) (219) 2,879 104
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Continuing
operations 1,729 (563) - 1,166 1,489 (475) 170 1,184 5,169 (586) - 4,583
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
OMG Life
Group (3) - - (3) 18 - - 18 51 - - 51
Yotta
surveying - - - - (123) - (170) (293) (89) (445) - (534)
Discontinued
operations (3) - - (3) (105) - (170) (275) (38) (445) - (483)
------------- ------------- ---------- --------- ------------- --------- --------- ------------- --------- ---------
Oxford
Metrics
Group 1,726 (563) - 1,163 1,384 (475) - 909 5,131 (1,031) - 4,100
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Additions to non-current Carrying amount of segment Carrying amount of segment
Non-current assets assets assets liabilities
Year
Six months Year ended Year ended ended Year ended
ended Six months 30 Six months Six months 30 Six months Six months 30 Six months Six months 30
31 March ended 31 September ended 31 ended 31 September ended 31 ended 31 September ended 31 ended 31 September
2019 March 2018 2018 March 2019 March 2018 2018 March 2019 March 2018 2018 March 2019 March 2018 2018
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
Vicon UK 8,838 8,629 8,899 759 885 2,006 20,924 18,022 22,522 (5,312) (4,910) (4,485)
Vicon USA 858 788 797 31 137 164 6,196 4,764 5,995 (2,125) (1,303) (1,698)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
Vicon Group 9,696 9,417 9,696 790 1,022 2,170 27,120 22,786 28,517 (7,437) (6,213) (6,183)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
Yotta 5,301 4,912 5,212 462 497 1,177 15,978 15,558 16,093 (3,644) (3,705) (3,910)
Yotta Group 5,301 4,912 5,212 462 497 1,177 15,978 15,558 16,093 (3,644) (3,705) (3,910)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
Unallocated 364 300 328 - 2 14 1,905 2,610 1,987 (470) (344) (490)
OMG Life
Group* 7 11 8 - - - (6,046) (6,042) (6,044) - - -
Held for
sale - - - - - - - 2,247 - - (437) -
Oxford
Metrics
Group 15,368 14,640 15,244 1,252 1,521 3,361 38,957 37,159 40,553 (11,551) (10,699) (10,583)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
*The negative balance within segment assets represents a cash
overdraft which is part of the Group's cash offset facility.
3. Reconciliation of adjusted profit/(loss) before tax
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- ----------- -------------
Profit before tax - continuing operations 1,166 1,184 4,583
Share based payments - equity settled 122 163 323
Amortisation of intangibles arising
on acquisition 270 333 645
Redundancy costs 117 - -
Adjustment to fair value of deferred
consideration payable and unwinding
of associated discount factor 21 (71) (457)
Share of post-tax loss of equity accounted
associate 33 50 75
Reapportion Group overheads - (170) -
Adjusted profit before tax - continuing
operations 1,729 1,489 5,169
------------------------------------------- ----------- ----------- -------------
Loss before tax - discontinued operations (3) (275) (483)
Loss on disposal of subsidiary undertaking - - 445
Reapportion Group overheads - 170 -
Adjusted loss before tax - discontinued
operations (3) (105) (38)
------------------------------------------- ----------- ----------- -------------
Total adjusted profit before tax -
all operations 1,726 1,384 5,131
------------------------------------------- ----------- ----------- -------------
The adjusted profit before tax for the Vicon and Yotta business
segments which are included within the Group's continuing
operations is shown in detail below;
Vicon Group
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------- ----------- -------------
Profit before tax 2,165 1,997 5,507
Share based payments - equity settled 32 56 110
Amortisation of intangibles arising
on acquisition 121 121 242
Adjustment to fair value of deferred
consideration payable and unwinding
of discount factor 21 (70) (457)
Reapportion Group overheads 967 877 1,886
Adjusted profit before tax 3,306 2,981 7,288
-------------------------------------- ----------- ----------- -------------
Yotta Group
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------- ----------- -------------
Loss before tax (970) (762) (1,028)
Share based payments - equity settled 18 34 69
Amortisation of intangibles arising
on acquisition 149 212 403
Redundancy costs 117 - -
Reapportion Group overheads 495 391 993
Adjusted (loss)/profit before tax (191) (125) 437
-------------------------------------- ----------- ----------- -------------
4. Taxation
The Group's consolidated effective tax rate for the six months
ended 31 March 2019 was 4.5% (for the six months ended 31 March
2018: 35.2%; for the year ended 30 September 2018: 13.6%).
In accordance with IAS 34 the tax charge for the half year is
calculated on the basis of the estimated full year tax rate.
5. 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 2019 (unaudited) 31 March 2018 (unaudited) 30 September 2018 (audited)
------------------------------------ ------------------------------------ ------------------------------------
Weighted Weighted Weighted
average average average
number number number
of Per share of Per share of Per share
Earnings/(loss) shares amount Earnings/(loss) shares amount Earnings/(loss) shares amount
GBP'000 '000 (pence) GBP'000 '000 (pence) GBP'000 '000 (pence)
---------------- --------------- -------- --------- --------------- -------- --------- --------------- -------- ---------
Continuing
operations
Basic
earnings/(loss)
per share
Earnings
attributable
to ordinary
shareholders 1,117 124,970 0.89 746 124,230 0.60 4,027 124,569 3.23
Dilutive effect
of employee
share options - 4,092 (0.03) - 3,619 (0.02) - 4,327 (0.11)
Diluted
earnings/(loss)
per share 1,117 129,062 0.86 746 127,849 0.58 4,027 128,896 3.12
---------------- --------------- -------- --------- --------------- -------- --------- --------------- -------- ---------
Discontinued
operations
Basic
earnings/(loss)
per share
Earnings
attributable
to ordinary
shareholders (4) 124,970 - (269) 124,230 (0.22) (484) 124,569 (0.39)
Dilutive effect
of employee
share options - 4,092 - - 3,619 - - 4,327 -
Diluted
earnings/(loss)
per share (4) 129,062 - (269) 127,849 (0.22) (484) 128,896 (0.39)
---------------- --------------- -------- --------- --------------- -------- --------- --------------- -------- ---------
Total operations
Basic
earnings/(loss)
per share
Loss
attributable to
ordinary
shareholders 1,113 124,970 0.89 477 124,230 0.38 3,543 124,569 2.84
Dilutive effect
of employee
share options - 4,092 (0.03) - 3,619 (0.01) - 4,327 (0.09)
Diluted
earnings/(loss)
per share 1,113 129,062 0.86 477 127,849 0.37 3,543 128,896 2.75
---------------- --------------- -------- --------- --------------- -------- --------- --------------- -------- ---------
6. Share capital
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ----------- ----------- ------------
Allotted, called up and fully paid
125,063,130 shares of 0.25p (31 March
2018: 124,905,475 shares of 0.25p and
30 September 2018: 124,905,475 shares
of 0.25p) 313 312 312
--------------------------------------- ----------- ----------- ------------
During the six month period ended 31 March 2019 there were
122,194 shares issued relating to share options that were
exercised. In addition 35,461 shares were issued to the
non-executive Chairman, Roger Parry, in satisfaction of salary.
There were 1,812,750 shares issued in respect of share options
exercised during the six months ended 31 March 2018 (year ended 30
September 2018: 1,812,750).
7. Dividends
The following dividends were recognised as distributions to
equity holders in the period:
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- ----------- ----------- ------------
Final dividend for 2018 paid in 2019
- 1.50 pence per share 1,875 - -
Special dividend paid in 2019 - 1.00
pence per share 1,250 - -
Final dividend for 2017 paid in 2018
- 1.20 pence per share - 1,499 1,499
3,125 1,499 1,499
------------------------------------- ----------- ----------- ------------
The final dividend for 2018 was paid to shareholders on 7 March
2019 at 1.50 pence per share, a total of GBP1,875,000. In addition,
a special dividend of 1.00 pence per share was paid on 25 January
2019, a total of GBP1,250,000.
8. Changes in accounting policies
The Group has applied IFRS 15 using the cumulative effect
method, i.e. by recognising the cumulative effect of initially
applying IFRS 15 as an adjustment to the opening balance of equity
at 1 October 2018, and presenting in the Statement of Changes in
Equity for the period ended 31 March 2019. Therefore the
comparative information has not been restated and continues to be
reported under IAS 18. The details of the significant changes and
quantitative impact of the changes are set out below.
Sales of Vicon systems which include customer support
Under IAS 18 revenue was recognised on the delivery of the
product or service, with a deferral made for the fair value of the
undelivered element under the terms of the sale. This undelivered
element relates to ongoing hardware and software support, the fair
value of which was calculated by reference to the anticipated cost,
plus a margin, of providing the support service. Revenue that was
not recognised in the income statement under this policy was
classified as deferred income in the statement of financial
position.
Under IFRS 15, revenue should be recognised to depict the
transfer of goods and services to customers in an amount that
reflects the consideration to which the entity expects to be
entitled. IFRS 15 also includes specific guidance for multi element
arrangements, contract costs and disclosures. An assessment has
been made of the impact of IFRS 15 on the way in which revenue will
be recognised across the Group. Whilst most revenue streams within
Yotta and Vicon will not be materially affected by the move to IFRS
15, there will be an impact on the way in which revenue from system
sales within Vicon is recognised. These system sales are multi
element and include the sale of hardware, software and ongoing
support. Under IFRS 15 the support element of the system sale has
been identified as a separate performance obligation and revenue is
recognised over time as this obligation is fulfilled. The revenue
attributable to the support element of a system sale is calculated
by reference to the equivalent standalone selling price of that
support had it not been included within a system sale. In general,
this has resulted in a greater revenue deferral per system sale
than under IAS 18.
Impact on Financial Statements
The following extracts summarise the impact on the Group
consolidated financial statements of adopting IFRS 15 for the
period ended 31 March 2019. Had the Group continued to report in
accordance with IAS 18 'Revenue', it would have reported the
following amounts in the financial statements for the period ended
31 March 2019.
Condensed consolidated income statement
As would
have been
As reported reported
under IFRS Effect under IAS
15 18
GBP'000 GBP'000 GBP'000
------------------------------------ ------------- -------- -----------
Revenue 16,055 47 16,102
Finance income 12 - 12
Finance expense (43) - (43)
Taxation (49) - (49)
Profit for the period attributable
to
owners of the parent during the
period 1,113 47 1,160
Total comprehensive income for the
period attributable to owners of
the parent during the period 1,113 47 1,160
------------------------------------- ------------- -------- -----------
Earnings per share for profit on
continuing operations attributable
to owners of the parent during the
year
Basic earnings per share (pence) 0.89p 0.04p 0.93p
Diluted earnings per share (pence) 0.86p 0.04p 0.90p
Earnings per share for profit on
total operations attributable to
owners of the parent during the
year
Basic earnings per share (pence) 0.89p 0.04p 0.93p
Diluted earnings per share (pence) 0.86p 0.04p 0.90p
Condensed Consolidated Statement of Financial Position
As would
As reported have been
under IFRS Effect reported
15 under IAS
18
GBP'000 GBP'000 GBP'000
Contract liabilities/deferred
income (included in trade and
other payables) (3,861) 919 (2,942)
Total equity shareholders' funds 27,406 919 28,325
---------------------------------- ------------- -------- -----------
9. Copies of the interim statement
Copies of the interim statement 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, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR GMGMVRGLGLZM
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