TIDMOMG
RNS Number : 5439N
Oxford Metrics PLC
21 May 2020
21st May 2020
Oxford Metrics plc
("Oxford Metrics", the "Company" or the "Group")
Interim Results for the six months ended 31 March 2020
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 2020.
H1 FY20 H1 FY19
Revenue GBP15.0m GBP16.1m
--------- --------
Annualised Recurring Revenue GBP6.8m GBP5.9m
--------- --------
Adjusted Profit before Tax* GBP0.3m GBP1.7m
--------- --------
Statutory Profit/(Loss) before Tax (GBP0.1m) GBP1.2m
--------- --------
Net Cash GBP10.8m GBP10.9m
--------- --------
Cash as at 20 May 2020 GBP14.2m -
--------- --------
* 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
Commenting on the results Nick Bolton, Chief Executive said:
"The Group had a strong start to FY20 , recording our second
highest ever first half revenue performance. COVID-19 forced
lockdowns in March caused a delay in shipment of Vicon orders
during the final two weeks of the period which meant we carried
orders into the second half. Post period end, these have now been
largely shipped to customers.
This first half performance owes much to the hard work of our
people whom I would like to thank for adapting brilliantly to this
new working environment and for their ongoing efforts to service
our global customer base.
The strategic progress we have been seeking to maintain around
growing our recurring revenue base and developing our credentials
in Yotta as a true SaaS business has continued.
Our business, like any other, is not immune to the effects of
COVID-19 and we continue to monitor the evolving situation closely.
The Group's fundamentals remain strong and our robust balance sheet
will help Oxford Metrics to navigate the current challenges, whilst
continuing to drive innovation."
Financial Highlights
-- Strong performance until last two weeks of March as a result of
the government imposed restrictions and shutdowns in response
to COVID-19
-- Headline Group revenue of GBP15.0m, down 6.5% (H1 FY19: GBP16.1m),
as unable to fulfil GBP1.1m of Vicon orders during last two weeks
of the first half due to global operational shutdowns. These orders
have now been largely shipped to customers and will be recognised
in the second half of the year . This delay in shipments had a
GBP0.9m impact on profitability
-- The Group reported an adjusted profit before tax GBP0.3m (H1 FY19:
GBP1.7m)
-- Adjusted earnings per share 0.17p (H1 FY19: 1.18p)
-- Cash generated from operations (before paying interest and tax)
GBP1.0m (H1 FY19: GBP3.3m)
-- Strong balance sheet with no debt and cash of GBP10.8m as at 31
March 2020 (H1 FY19: GBP10.9m) after the payment of a final dividend.
Cash position at 20(th) May GBP14.2m
-- Growth initiatives at Yotta yielding results:
o Improved visibility with Annualised Recurring Revenue ('ARR')
up 14.6% year-on-year
o 95.8% (FY19: 93.2%) retention of growing SaaS customer base
Operational Highlights
Strategy for Vicon: strengthen and protect profitable market
leader
-- Notable wins with game companies Konami in Japan together with
Tencent and miHoYo in China
-- Continued innovation to enhance Capture.U app for iPhone/iPad,
allowing physiotherapists and sports scientists to analyse motion
on the go and see human skeletal movement and inertial measurements
overlaid onto live video in real-time
-- IMU Step, the SaaS solution for our Elite Sports offering, continues
to gain traction with new wins in the NBA, NFL, MLB, NRL and AFL
as well as with a number of collegiate athletic and health science
programmes including University of Kentucky, University of Montana
and Harvard Medical School
Strategy for Yotta: develop cloud-based software products and
grow recurring revenue
-- Strong sales performance for our Connected Asset Management Software-as-a-Service
(SaaS), Alloy
-- New wins across the UK, including: Warwickshire, South Gloucestershire,
City of York, Somerset, Worcestershire and at waste services
contractor, Ubico
-- Notable international activity in Australasia with Alloy roll-outs
at Auckland System Management and a new win in Australia at City
of Parramatta
-- New flagship partnerships secured:
o Panasonic to run Alloy on their in-cab devices in waste collection
vehicles
o Telensa, the UK's largest provider of smart IoT streetlights,
to provide a seamless lighting solution and control groups of
streetlights
o bbits as part of their "Love Clean Streets" initiative
Outlook and Guidance
-- We are currently not experiencing any supply chain issues but
will continue to take prudent actions as needed
-- The Group is mindful of the current unprecedented macro-economic
environment therefore has elected for the time being to withdraw
market guidance for the full year
-- Clear guidance will be reinstated at such time as when visibility
improves
-- Our strong fundamentals provide confidence that the Group can
navigate the current challenges
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 / Emma Hall / Jamille Smith
/ Greg Hynes
N+1 Singer (NOMAD and Broker) +44 (0) 20 7496 3000
Shaun Dobson / George Tzimas (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
Chief Executive's Statement
COVID-19 Response
The Group had a strong start to 2019/20 , recording our second
highest ever first half revenue performance. When COVID-19 struck,
we rapidly introduced measures to protect and ensure the safety of
our people. As a global business, we have the infrastructure in
place for our teams to stay closely connected and operate
seamlessly from wherever they are. Almost all staff have been
working remotely since lockdown commenced and no one has been
furloughed. The team has adapted brilliantly to this new working
environment and I thank them for their flexibility and
dedication.
March is always a particularly busy month and for the last two
weeks of the month we were unable to complete the shipment of
customer systems within our Vicon business, because of the
lockdowns in place in the UK and US. This led to us carrying over
GBP1.1m orders into the second half, which have now been largely
shipped to customers and will be recognised in the second half.
Following a closure of four weeks, a small number of Vicon
production staff have now returned to company offices to ensure
systems can be manufactured and delivered to customers. This
required adapting working practices to protect employees, including
moving to a two-shift work pattern, introducing a one-way system
around the building and increasing the spacing between
workstations. This team deserves a special thanks as their
commitment and ingenuity has enabled us to continue to make and
ship systems to our customers around the world.
Across the business, our teams have been working hard to ensure
customers have what they need to continue to access our solutions
and services. This has included, where our customers are running
essential public or health services, extending additional software
licenses free of charge to support their expanded work teams.
Looking to the future, although none of us can be certain of the
challenges the aftermath of this pandemic will bring, the business
stands resilient and ready. We have an improved level of revenue
visibility and a strong balance sheet with GBP14.2m in cash as at
20 May 2020 and the Group remains debt-free. We are diversified
across multiple vertical markets with long-term positive growth
drivers, and hold powerful competitive positions with multiple
defensible barriers to entry. We offer products and services which
are clearly differentiated from our competitors and most often
distinguished by the strength of our technology. We operate in over
70 countries worldwide and have no significant exposure to those
sectors most affected by lockdowns, such as the travel and
hospitality industries.
The commitment of the whole team places the Group in a strong
position to navigate the challenges likely to arise from the impact
of COVID-19.
Trading Performance
KPI Revenue PBT Adjusted PBT*
H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19
--------- --------- ---------- -------- -------- --------
Group GBP15.0m GBP16.1m (GBP0.1m) GBP1.2m GBP0.3m GBP1.7m
--------- --------- ---------- -------- -------- --------
The Group reports a strong revenue performance, recording our
second highest ever first half revenues. However, COVID-19
government imposed restrictions and lockdowns in March caused a
delay in customer shipments at Vicon during the final two weeks of
the first half, which led to carrying forward GBP1.1m of orders (H1
FY19: nil) into the second half of the year. These orders largely
account for the decline compared to last year. Consequently, the
Group reports total revenues of GBP15.0m (H1 FY19: GBP16.1m), down
6.5% on last year's record at a headline level and 7.0% on a
constant currency basis.
The enforced delay to revenue recognition largely accounts for
the decline in reported Adjusted PBT* to GBP0.3m (H1 FY19: GBP1.7m)
.
In line with our strategic plan to increase the visibility of
revenues and profits, the Group increased Annual Recurring Revenues
('ARR') by 14.6% year-on-year to GBP6.8m (H1 FY19: GBP5.9m).
The cash position, having paid a final dividend of GBP2.3m in
the first half, finished at GBP10.8m as at 31 March 2020 (H1 FY19:
GBP10.9m). Cash generated from operations during the first half was
GBP1.0m (H1 FY19: GBP3.3m); the decline accounted for by the
aforementioned trading performance.
Asset Management Division - Yotta
KPI Revenue PBT Adjusted PBT*
H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19
-------- -------- ---------- ---------- ---------- ----------
Yotta GBP3.7m GBP3.5m (GBP1.2m) (GBP1.0m) (GBP0.5m) (GBP0.2m)
-------- -------- ---------- ---------- ---------- ----------
Yotta reported software revenues up 4.6% to GBP3.7m (H1 FY19:
GBP3.5m). Annualised Recurring Revenues ('ARR') as at 31 March 2020
grew 14.6% year-on-year to GBP6.8m (H1 FY19: GBP5.9m). The
retention rate also improved to 95.8% (H1 FY19: 93.2%). We can also
report that additions in the first half of GBP0.8m are contracted
over the next three to four years with a Total Contract Value over
this period of GBP2.8m.The first half delivered a strong sales
performance for our Connected Asset Management
Software-as-a-Service (SaaS), Alloy. There were new wins across UK
local government, including at Warwickshire, South Gloucestershire,
Blackburn with Darwen, City of York, Somerset, Worcestershire and
at waste services contractor, Ubico. There was also good customer
activity in Australasia with roll-outs at Auckland System
Management and a new win in Australia at City of Parramatta.
Yotta also announced new partnerships during the first half with
three key providers in the marketplace: with Panasonic to run Alloy
on their in-cab devices in waste collection vehicles; with bbits
for their 'Love Clean Streets' product to provide an integrated
platform for feedback between the council and citizen; and with
Telensa, the UK's largest provider of smart IoT streetlights, Alloy
enables a completely seamless lighting solution to control groups
of streetlights and other wirelessly connected sensors. It was also
a strong period for Yotta's professional services group with a
five-year agreement with South Tyneside for Horizons and asset
management consultancy, eight Alloy "go-lives" during the period
and 12 migrations underway from Mayrise to Alloy.
Yotta's product line-up was also enhanced in the first half to
ensure the product keeps pace with market demand and opportunity.
For example, Street Manager functionality was delivered on time to
enable 80+ customers to work with the Department for Transports new
Street Manager initiative, and Custom Reports and a Task Assignment
Tool were also added to Alloy.
The transition to a 100% SaaS Business model is complete so
Yotta reported no perpetual licenses in the first half (H1 FY19:
GBP0.2m). This factor together with increased R&D Amortisation
led to an increase in Adjusted PBT loss of GBP0.5m (H1 FY19
GBP0.2m). The Group has worked hard to pivot and transition Yotta's
business model, which is now providing the Group with higher than
ever levels recurring revenue and enhanced visibility.
Notwithstanding challenges that may arise from COVID-19, Yotta is
well placed to deliver a profitable second half.
Motion measurement division - Vicon
KPI Revenue PBT Adjusted PBT*
H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19
--------- --------- -------- -------- -------- --------
Vicon GBP11.3m GBP12.5m GBP0.9m GBP2.2m GBP2.0m GBP3.3m
--------- --------- -------- -------- -------- --------
Vicon reported revenues of GBP11.3m (H1 FY19: GBP12.5m),
representing a year-on-year reduction of 9.6% at a headline level
(10.3% on a constant currency basis). Vicon carried over GBP1.1m of
orders which could not be shipped during the last two weeks of the
half due to enforced restrictions in response to COVID-19.
Vicon also reported a slight decline in gross margin at 73.8%
(H1 FY19: 75.4%) in the first half which was revenue mix related.
This t ogether with an increase in investment of GBP0.2m in Elite
Sports and an additional GBP0.1m of R&D Amortisation led to a
Vicon reported Adjusted PBT* of GBP2.0m (H1 FY19: GBP3.3m) and an
unadjusted profit before tax of GBP0.9m (H1 FY19: GBP2.2m).
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 - strength in leadership
During the first half we enhanced our product lines in most of
our vertical markets, including adding a Machine Learning-based
finger-tracking solution in Shogun 1.3 for the entertainment market
and hard synchronisation with our Blue Trident Inertial Measurement
Units ('IMU') in Nexus 2.10 targeted at our Life Sciences
customers. This helped drive strong sales of our Blue Trident
devices, especially in North America .
We also updated the ground-breaking Capture.U app for
iPhone/iPad which uses Vicon inertial sensors. By leveraging
Apple's Augmented Reality Kit 3 in iOS 13, researchers can now see
human skeletal movement and inertial measurements overlaid on live
video in real-time. This enables a low-cost entry point for
physiotherapists and sports scientists to use Vicon technology to
analyse motion in a highly portable, intuitive manner.
These new innovations combined with Vicon's existing clear
market differentiators helped underpin the first half performance
which included notable wins in the Asia Pacific region with game
companies Konami in Japan and Tencent and miHoYo in China.
Adjacent Markets - developing new growth vectors
In addition to growing our Established Market business, we also
seek further growth by applying our motion measurement technology
to more nascent markets but with the opportunity for higher levels
of growth. We are currently focussed on two specific opportunities:
Location-based Virtual Reality ('LBVR') and Elite Sports.
LBVR revenues of GBP0.7m (H1 FY19: GBP0.4m) improved compared to
the first half last year. As expected, compared to the second half
of last year traction was slower as our partner organisations began
to roll out their VR experiences worldwide and fine-tune their
business models. We remain excited about the opportunity for growth
in this segment but we do recognise it is likely that revenues will
be adversely affected for a time following the COVID-19 pandemic
with ongoing social distancing measures in place.
Our Elite sports offering, IMU Step made further progress in the
first half. We added comprehensive Impact Load assessment, enabling
coaches to examine the loading outcomes of specific activities,
drills and training days, and their respective effects on an
athlete's workload.
IMU Step continues to gain recognition and respect within the
marketplace and as a result of increased investment in our sales
channel of GBP0.2m compared to the same period last year, we won
new teams in the NBA, NFL, MLB, NRL and AFL as well as with a
number of collegiate athletic and health science programmes
including at University of Kentucky, University of Montana and
Harvard Medical School.
Outlook
As we enter our traditionally stronger second half, we are
mindful of the current unprecedented macro-economic environment and
how this might affect our business. Our primary focus is on
ensuring the well-being and safety of our employees and ensuring we
can provide an uninterrupted service to all our customers.
At Vicon, the revenue risk relates to whether customers delay or
otherwise defer system acquisitions or upgrades, especially in
Vicon's European and North American markets. On a positive note, in
Vicon's Asia-Pacific region, business activity appears to have
restarted so timing here is currently more predictable.
At Yotta the business is relatively well placed as revenues are
largely pre-contracted with government customers delivering fully
hosted, cloud software, so forecast variability relates only to
whether the business can sign new software contracts.
From a cost perspective, across the Group we will continue to
take prudent actions as needed and it is worth noting we are not
currently experiencing any supply chain issues.
As a consequence, the Group has elected for the time being to
withdraw market guidance for the full year. It is the Group's
intention that, at such time as visibility improves, clear guidance
can be reinstated.
That said, COVID-19 does not change the robust fundamentals of
the Group which remains a resilient business with exciting growth
prospects. We have a strong balance sheet with GBP14.2m in net cash
and remain debt-free. Our clear strategic "amplify the core" plan,
reduces risk by staying close to the customers and technologies we
know best and markets where we lead. In addition, in line with our
strategy we will continue to seek earnings-accretive acquisitions
to extend product range, grow market share and/or increase
differentiation to augment this growth.
We have clearly differentiated products from our competitors and
we address diversified markets across over 70 countries worldwide,
thus limiting our exposure to any one market or geography. We have
growing contracted recurring revenues, approaching a fifth of Group
revenues. Given these strong fundamentals, the Board is confident
the Group can navigate the current challenges and will indeed
thrive in the future.
* 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
2020 2019* 2019*
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
------------------------------------------ ---- ----------- ----------- -------------
Revenue 2 15,016 16,055 35,350
Cost of sales (4,491) (4,394) (10,166)
------------------------------------------ ---- ----------- ----------- -------------
Gross profit 10,525 11,661 25,184
Sales, support and marketing costs (4,186) (4,262) (8,663)
Research and development (2,196) (2,112) (4,184)
Administrative expenses (4,258) (4,161) (7,875)
Other operating income 58 104 202
------------------------------------------ ---- ----------- ----------- -------------
Operating (loss)/profit (57) 1,230 4,664
Finance income 13 12 66
Finance expense (49) (43) (2)
Share of post-tax loss of equity
accounted associate (18) (33) (59)
------------------------------------------- ---- ----------- ----------- -------------
(Loss)/profit before taxation (111) 1,166 4,669
Taxation (94) (257) (504)
------------------------------------------ ---- ----------- ----------- -------------
(Loss)/profit from continuing operations (205) 909 4,165
------------------------------------------ ---- ----------- ----------- -------------
(Loss)/profit from discontinued
operations, net of tax - (4) 13
------------------------------------------ ---- ----------- ----------- -------------
(Loss)/profit for the period attributable
to
owners of the parent during the
period (205) 905 4,178
------------------------------------------ ---- ----------- ----------- -------------
Earnings per share for profit on
continuing operations attributable
to owners of the parent during the
year
Basic (loss)/earnings per share
(pence) 6 (0.17p) 0.73p 3.33p
Diluted (loss)/earnings per share
(pence) 6 (0.17p) 0.71p 3.24p
Earnings per share for profit on
total operations attributable to
owners of the parent during the
year
Basic (loss)/earnings per share
(pence) 6 (0.17p) 0.73p 3.34p
Diluted (loss)/earnings per share
(pence) 6 (0.17p) 0.71p 3.25p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2020 2019* 2019*
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------ ----------- ----------- -------------
Net (loss)/profit for the period (205) 905 4,178
Other comprehensive income
Items that will or may be reclassified
to profit or loss
Exchange differences on retranslation
of overseas subsidiaries 171 - 271
Total other comprehensive income 171 - 271
------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the period
attributable to the owners of the parent (34) 905 4,449
------------------------------------------- ----------- ----------- -------------
*The Group has applied IFRS 16 using the modified retrospective
approach. Under this method the comparative information is not
restated. See note 9.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 31 March 30 September
2020 2019* 2019*
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
-------------------------------------- ---- ----------- ----------- ------------
Non-current assets
Goodwill and intangible assets 12,420 12,389 12,449
Property, plant and equipment 2,218 2,428 2,280
Right of use assets 9 2,013 - -
Financial asset - investments 317 125 98
Deferred tax asset 664 426 405
-------------------------------------- ---- ----------- ----------- ------------
17,632 15,368 15,232
Current assets
Inventories 3,684 3,080 3,236
Trade and other receivables 11,412 9,488 11,687
Current tax debtor 300 72 177
Cash and cash equivalents 10,848 10,949 13,837
-------------------------------------- ---- ----------- ----------- ------------
26,244 23,589 28,937
Current liabilities
Trade and other payables (9,905) (9,420) (10,733)
Lease liabilities 9 (469) - -
(10,374) (9,420) (10,733)
Net current assets 15,870 14,169 18,204
-------------------------------------- ---- ----------- ----------- ------------
Total assets less current liabilities 33,502 29,537 33,436
-------------------------------------- ---- ----------- ----------- ------------
Non-current liabilities
Other liabilities (369) (317) (462)
Lease liabilities 9 (1,794) - -
Provisions (20) (12) (16)
Deferred tax liability (2,001) (1,802) (1,797)
(4,184) (2,131) (2,275)
-------------------------------------- ---- ----------- ----------- ------------
Net assets 29,318 27,406 31,161
-------------------------------------- ---- ----------- ----------- ------------
Capital and reserves attributable
to the owners of the parent
Share capital 7 314 313 313
Shares to be issued 65 65 65
Share premium account 17,707 17,391 17,417
Retained earnings 10,546 9,393 12,851
Foreign currency translation reserve 686 244 515
-------------------------------------- ---- ----------- ----------- ------------
Total equity shareholders' funds 29,318 27,406 31,161
-------------------------------------- ---- ----------- ----------- ------------
*The Group has applied IFRS 16 using the modified retrospective
approach. Under this method the comparative information is not
restated. See note 9.
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2020 2019* 2019*
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------ ----------- ----------- -------------
Cash flows from operating activities
Operating (loss)/profit from continuing
operations (57) 1,230 4,664
Operating (loss)/profit from discontinued
operations - (3) 21
------------------------------------------- ----------- ----------- -------------
Group operating (loss)/profit (57) 1,227 4,685
Depreciation and amortisation 1,787 1,353 2,761
Share based payments 71 122 264
Exchange adjustments 174 5 134
(Increase)/decrease in inventories (448) (677) (823)
Decrease/(increase) in receivables 261 1,089 (949)
(Decrease)/increase in payables (802) 132 1,600
------------------------------------------- ----------- ----------- -------------
Cash generated from operating
activities 986 3,251 7,672
Tax paid (190) (59) (369)
Net cash from operating activities 796 3,192 7,303
Cash flows from investing activities
Purchase of property, plant and
equipment (251) (293) (467)
Purchase of intangible assets (1,183) (1,068) (2,196)
Purchase of investment (236) - -
Proceeds on disposal of property,
plant and equipment 11 54 79
Acquisition of subsidiary undertaking
net of cash acquired (128) (74) (141)
Interest arising on contingent
consideration - (43) 43
Interest received 13 12 23
Interest Paid (49) - (2)
Net cash used in investing activities (1,823) (1,412) (2,661)
Cash flows from financing activities
Issue of ordinary shares 291 65 91
Equity dividends paid (2,253) (3,125) (3,125)
------------------------------------------- ----------- ----------- -------------
Net cash used in financing activities (1,962) (3,060) (3,034)
Net (decrease)/increase in cash
and cash equivalents (2,989) (1,280) 1,608
Cash and cash equivalents at beginning
of the period 13,837 12,229 12,229
------------------------------------------- ----------- ----------- -------------
Cash and cash equivalents at end
of the period 10,848 10,949 13,837
------------------------------------------- ----------- ----------- -------------
*The Group has applied IFRS 16 using the modified retrospective
approach. Under this method the comparative information is not
restated. See note 9.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY
Foreign
Shares Share premium currency
Share to be account Retained translation
Capital issued earnings reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- -------- --------------- ---------- ------------ -------
Balance as at 30 September
2019* 313 65 17,417 12,851 515 31,161
Net profit for the period - - - (205) - (205)
Exchange difference on
retranslation of overseas
subsidiaries - - - - 171 171
Tax recognised directly
in equity - - - 82 - 82
Transactions with owners:
Dividends - - - (2,253) - (2,253)
Issue of share capital 1 - 290 - - 291
Movement in relation to
share based payments - - - 71 - 71
Balance as at 31 March
2020 314 65 17,707 10,546 686 29,318
------------------------------- --------- -------- --------------- ---------- ------------ -------
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 - - - (664) - (664)
------------------------------- --------- -------- --------------- ---------- ------------ -------
Balance at 1 October 2018
as restated* 312 65 17,327 11,358 244 29,306
Net profit for the period - - - 905 - 905
Exchange differences 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 options - - - 122 - 122
Balance as at 31 March
2019 313 65 17,391 9,393 244 27,406
------------------------------- --------- -------- --------------- ---------- ------------ -------
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 - - - (664) - (664)
------------------------------- --------- -------- --------------- ---------- ------------ -------
Balance at 1 October 2018
as restated* 312 65 17,327 11,358 244 29,306
Net profit for the period - - - 4,178 - 4,178
Exchange differences on
retranslation of overseas
subsidiaries - - - - 271 271
Tax recognised directly
in equity - - - 176 - 176
Transactions with owners:
Dividends - - - (3,125) - (3,125)
Issue of share capital 1 - 90 - - 91
Movement in relation to
share options - - - 264 - 264
Balance as at 30 September
2019 313 65 17,417 12,851 515 31,161
------------------------------- --------- -------- --------------- ---------- ------------ -------
*The Group has applied IFRS 16 using the modified retrospective
approach. Under this method the comparative information is not
restated. See note 9.
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 2020 comprise the
Company and its subsidiaries (together referred to as the
"Group").
During the period the Group adopted IFRS 16 'Leases' and the
impact of adopting IFRS 16 is shown in note 9. 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 2019.
They are in accordance with IAS 34. Other new and amended standards
and interpretations issued by the IASB that will apply for the
first time in the next annual financial statements are not expected
to impact the Group as they are either not relevant to the Group's
activities or require accounting which is consistent with the
Group's current accounting policies.
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 2019 are not the statutory accounts but
have been extracted from the Group's 2019 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. Revenue from contracts with customers
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
----------------------------------------------- ----------- ----------- -------------
Vicon UK 7,068 7,063 14,638
Vicon USA 4,260 5,466 13,692
----------------------------------------------- ----------- ----------- -------------
Vicon Group 11,328 12,529 28,330
----------------------------------------------- ----------- ----------- -------------
Yotta 3,688 3,526 7,020
Oxford Metrics Group 15,016 16,055 35,350
----------------------------------------------- ----------- ----------- -------------
Vicon revenue by market
Engineering 1,948 3,287 6,015
Entertainment 3,170 3,072 6,802
Life sciences 5,454 5,731 13,637
------------------------ ------ ------ ------
Established markets 10,572 12,090 26,454
------------------------ ------ ------ ------
Adjacent verticals 756 439 1,876
------------------------ ------ ------ ------
Vicon Group 11,328 12,529 28,330
------------------------ ------ ------ ------
Group revenue by type
Sale of hardware 8,917 10,449 23,710
Sale of software 2,293 3,506 7,023
Rendering of services 3,806 2,100 4,618
Oxford Metrics Group 15,016 16,055 35,350
---------------------- ------ ------ ------
Yotta revenue by type
Software and related services 3,688 3,526 7,020
------------------------------ ----- ----- -----
Yotta Group 3,688 3,526 7,020
------------------------------ ----- ----- -----
*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
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------- ----------- ----------- -------------
By destination
UK 4,861 3,994 8,239
Germany 295 376 993
Italy 134 - 327
Netherlands 214 540 727
France 57 160 535
Switzerland 77 121 285
Rest of Europe 1,019 616 862
Canada 335 424 905
USA 3,652 4,911 12,745
Rest of North America 107 123 110
Australia 438 288 545
Hong Kong 1,462 1,526 2,788
Japan 1,904 1,739 3,570
Korea 152 937 1,464
Rest of Asia Pacific 126 212 565
Other 183 88 690
Oxford Metrics Group 15,016 16,055 35,350
---------------------- ----------- ----------- -------------
By origin
UK 10,653 10,406 21,268
North America 4,259 5,466 13,692
Asia Pacific 104 183 390
Oxford Metrics Group 15,016 16,055 35,350
--------------------- ------ ------ ------
Timing of the transfer Six months ended 31 March 2020 (unaudited)
of goods
and services Vicon UK Vicon USA Yotta Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ----------- ------------- --------- ---------
Point in time 6,404 3,201 859 10,464
Over time 664 1,059 2,829 4,552
------------------------ ----------- ------------- --------- ---------
Oxford Metrics Group 7,068 4,260 3,688 15,016
------------------------ ----------- ------------- --------- ---------
Contract Counterparties
------------------------ ----------- ------------- --------- ---------
Direct to consumers 1,637 3,870 3,616 9,123
Third party distributor 5,431 390 72 5,893
------------------------ ----------- ------------- --------- ---------
Oxford Metrics Group 7,068 4,260 3,688 15,016
------------------------ ----------- ------------- --------- ---------
By destination
------------------------ ----------- ------------- --------- ---------
UK 1,314 - 3,547 4,861
Germany 295 - - 295
Italy 134 - - 134
Netherlands 192 - 22 214
France 57 - - 57
Switzerland 77 - - 77
Rest of Europe 1,017 - 2 1,019
Canada - 335 - 335
USA - 3,652 - 3,652
Rest of North America 3 104 - 107
Australia 335 - 103 438
Hong Kong 1,462 - - 1,462
Japan 1,904 - - 1,904
Korea 152 - - 152
Rest of Asia Pacific 126 - - 126
Other - 169 14 183
------------------------ ----------- ------------- ---------
Oxford Metrics Group 7,068 4,260 3,688 15,016
------------------------ ----------- ------------- --------- ---------
Timing of the transfer Year ended 30 September 2019 (audited)
of goods
and services Vicon UK Vicon USA Yotta Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ---------- ------------ -------- --------
Point in time 13,507 11,802 1,741 27,050
Over time 1,131 1,890 5,279 8,300
------------------------ ---------- ------------ -------- --------
Oxford Metrics Group 14,638 13,692 7,020 35,350
------------------------ ---------- ------------ -------- --------
Contract Counterparties
------------------------ ---------- ------------ -------- --------
Direct to consumers 4,170 12,638 6,811 23,619
Third party distributor 10,468 1,054 209 11,731
------------------------ ---------- ------------ -------- --------
Oxford Metrics Group 14,638 13,692 7,020 35,350
------------------------ ---------- ------------ -------- --------
By destination
------------------------ ---------- ------------ -------- --------
UK 1,662 - 6,577 8,239
Germany 969 - 24 993
Italy 327 - - 327
Netherlands 585 - 142 727
France 535 - - 535
Switzerland 285 - - 285
Rest of Europe 858 - 4 862
Canada - 905 - 905
USA 646 12,099 - 12,745
Rest of North America - 110 - 110
Australia 327 - 218 545
Hong Kong 2,788 - - 2,788
Japan 3,570 - - 3,570
South Korea 1,464 - - 1,464
Rest of Asia Pacific 565 - - 565
Other 57 578 55 690
------------------------ ---------- ------------ --------
Oxford Metrics Group 14,638 13,692 7,020 35,350
------------------------ ---------- ------------ -------- --------
3. Segmental Analysis
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 for 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:
Segment depreciation and amortisation
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------- ------------ ------------ -------------
Vicon UK 1,042 923 1,898
Vicon USA 31 32 64
--------------------- ------------ ------------ -------------
Vicon Group 1,073 955 1,962
--------------------- ------------ ------------ -------------
Yotta 423 393 788
Unallocated 9 5 13
Oxford Metrics Group 1,505 1,353 2,763
--------------------- ------------ ------------ -------------
Six months ended 31 March Six months ended 31 March 2019 Year ended 30 September 2019
2020 (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 689 (136) 188 741 1,208 (174) 699 1,733 2,354 (125) 3,248 5,477
Vicon USA 1,261 - (1,080) 181 2,098 - (1,666) 432 5,760 - (4,976) 784
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Vicon Group 1,950 (136) (892) 922 3,306 (174) (967) 2,165 8,114 (125) (1,728) 6,261
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Yotta (464) (229) (479) (1,172) (191) (284) (495) (970) (230) (469) (808) (1,507)
Unallocated (1,171) (61) 1,371 139 (1,386) (105) 1,462 (29) (2,421) (200) 2,536 (85)
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
Continuing
operations 315 (426) - (111) 1,729 (563) - 1,166 5,463 (794) - 4,669
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
OMG Life
Group - - - - (3) - - (3) 21 - - 21
Discontinued
operations - - - - (3) - - (3) 21 - - 21
------------- ------------- ---------- --------- ------------- --------- --------- ------------- --------- ---------
Oxford
Metrics
Group 315 (426) - (111) 1,726 (563) - 1,163 5,484 (794) - 4,690
------------- ------------- ---------- --------- ------------- ------------- --------- --------- ------------- ------------- --------- --------- -------------
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
2020 March 2019 2019 March 2020 March 2019 2019 March 2020 March 2019 2019 March 2020 March 2019 2019
(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 9,764 8,838 8,642 996 759 1,667 25,290 20,924 22,687 (6,057) (5,312) (5,781)
Vicon USA 1,420 858 838 23 31 55 6,351 6,196 8,824 (3,083) (2,125) (2,973)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
Vicon Group 11,184 9,696 9,480 1,019 790 1,722 31,641 27,120 31,511 (9,140) (7,437) (8,754)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
Yotta 5,798 5,301 5,366 410 462 912 14,569 15,978 13,069 (5,072) (3,644) (3,852)
Yotta Group 5,798 5,301 5,366 410 462 912 14,569 15,978 13,069 (5,072) (3,644) (3,852)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
Unallocated 610 364 386 241 - 29 3,678 1,905 5,641 (346) (470) (402)
OMG Life
Group* - 7 - - - - (6,052) (6,046) (6,052) - - -
Oxford
Metrics
Group 17,592 15,368 15,232 1,670 1,252 2,663 43,836 38,957 44,169 (14,558) (11,551) (13,008)
------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- ----------- -----------
*The negative balance within segment assets represents a cash
overdraft which is part of the Group's cash offset facility.
4. Reconciliation of adjusted profit/(loss) before tax
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- ----------- -------------
Profit before tax - continuing operations (111) 1,166 4,669
Share based payments - equity settled 71 122 264
Amortisation of intangibles arising
on acquisition 270 270 541
Redundancy costs 67 117 125
Adjustment to fair value of deferred
consideration payable and unwinding
of associated discount factor - 21 (195)
Share of post-tax loss of equity accounted
associate 18 33 59
Adjusted profit before tax - continuing
operations 315 1,729 5,463
------------------------------------------- ----------- ----------- -------------
Loss before tax - discontinued operations - (3) 21
Adjusted loss before tax - discontinued
operations - (3) 21
------------------------------------------- ----------- ----------- -------------
Total adjusted profit before tax -
all operations 315 1,726 5,484
------------------------------------------- ----------- ----------- -------------
Adjusted earnings per share for
profit on continuing operations
attributable to owners of the parent
during the year
Basic earnings per share (pence) 0.17p 1.18p 3.96p
Diluted earnings per share (pence) 0.17p 1.15p 3.86p
Adjusted earnings per share for
profit on total operations attributable
to owners of the parent during the
year
Basic earnings per share (pence) 0.17p 1.17p 3.97p
Diluted earnings per share (pence) 0.17p 1.14p 3.87p
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
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------- ----------- -------------
Profit before tax 922 2,165 6,261
Share based payments - equity settled 15 32 78
Amortisation of intangibles arising
on acquisition 121 121 242
Adjustment to fair value of deferred
consideration payable and unwinding
of discount factor - 21 (195)
Reapportion Group overheads 892 967 1,728
Adjusted profit before tax 1,950 3,306 8,114
-------------------------------------- ----------- ----------- -------------
Yotta Group
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------- ----------- -------------
Loss before tax (1,172) (970) (1,507)
Share based payments - equity settled 13 18 45
Amortisation of intangibles arising
on acquisition 149 149 299
Redundancy costs 67 117 125
Reapportion Group overheads 479 495 808
Adjusted loss before tax (464) (191) (230)
-------------------------------------- ----------- ----------- -------------
5. Taxation
The Group's consolidated effective tax rate for the six months
ended 31 March 2020 was 84% (for the six months ended 31 March
2019: 5%; for the year ended 30 September 2019: 11%).
In accordance with IAS 34 the tax charge for the half year is
calculated on the basis of the estimated full year tax rate.
6. 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 2020 (unaudited) 31 March 2019 (unaudited) 30 September 2019 (audited)
------------------------------------ ------------------------------------ -----------------------------
Weighted Weighted Weighted
average average average
number number number
of Per share of Per share of Per share
(Loss)/earnings shares amount Earnings/(loss) shares amount Earnings shares amount
GBP'000 '000 (pence) GBP'000 '000 (pence) GBP'000 '000 (pence)
---------------- --------------- -------- --------- --------------- -------- --------- -------- -------- ---------
Continuing
operations
Basic
(loss)/earnings
per share
Earnings
attributable
to ordinary
shareholders (205) 125,434 (0.17) 909 124,970 0.73 4,165 125,038 3.33
Dilutive effect
of employee
share options - 2,581 - - 4,092 (0.02) - 3,250 (0.09)
Diluted
(loss)/earnings
per share (205) 128,015 (0.17) 909 129,062 0.71 4,165 128,288 3.24
---------------- --------------- -------- --------- --------------- -------- --------- -------- -------- ---------
Discontinued
operations
Basic
earnings/(loss)
per share
Earnings
attributable
to ordinary
shareholders - 125,434 - (4) 124,970 - 13 125,038 0.01
Dilutive effect
of employee
share options - 2,581 - - 4,092 - - 3,250 -
Diluted
earnings/(loss)
per share - 128,015 - (4) 129,062 - 13 128,288 0.01
---------------- --------------- -------- --------- --------------- -------- --------- -------- -------- ---------
Total operations
Basic
(loss)/earnings
per share
Loss
attributable to
ordinary
shareholders (205) 125,434 (0.17) 905 124,970 0.72 4,178 125,038 3.34
Dilutive effect
of employee
share options - 2,581 - - 4,092 (0.02) - 3,250 (0.09)
Diluted
(loss)/earnings
per share (205) 128,015 (0.17) 905 129,062 0.70 4,178 128,288 3.25
---------------- --------------- -------- --------- --------------- -------- --------- -------- -------- ---------
7. Share capital
31 March 31 March 30 September
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ----------- ----------- ------------
Allotted, called up and fully paid
125,639,658 shares of 0.25p (31 March
2019: 125,063,130 shares of 0.25p and
30 September 2019: 125,138,130 shares
of 0.25p) 314 313 313
--------------------------------------- ----------- ----------- ------------
During the six month period ended 31 March 2020 there were
473,279 shares issued relating to share options that were
exercised. In addition, 28,249 shares were issued to the
non-executive Chairman, Roger Parry, in satisfaction of salary.
There were 122,194 shares issued in respect of share options
exercised during the six months ended 31 March 2019 (year ended 30
September 2019: 197,194).
8. Dividends
The following dividends were recognised as distributions to
equity holders in the period:
31 March 31 March 30 September
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- ----------- ----------- ------------
Final dividend for 2018 paid in 2019
- 1.50 pence per share - 1,875 1,875
Special dividend paid in 2019 - 1.00
pence per share - 1,250 1,250
Final dividend for 2019 paid in 2020
- 1.80 pence per share 2,253 - -
2,253 3,125 3,125
------------------------------------- ----------- ----------- ------------
The final dividend for 2019 was paid to shareholders on 28
February 2020 at 1.80 pence per share, a total of GBP2,253,000.
9. Changes in accounting policies
The Group has adopted IFRS 16 with the date of initial
application being 1 October 2019.
Effective 1 January 2019, IFRS 16 has replaced IAS 17 'Leases'
and IFRIC 4 'Determining whether an Arrangement Contains a
Lease'.
The Group adopted IFRS 16 using the modified retrospective
approach without restatement of comparative figures. The Group
elected to apply the practical expedient to not reassess whether a
contract contains a lease at the date of initial application.
Contracts entered into before the transition date that were not
identified as leases under IAS 17 and IFRIC 4 were not reassessed.
The definition of a lease under IFRS 16 was applied only to
contracts entered into on or after 1 October 2019.
IFRS 16 provides for certain optional practical expedients,
including those related to the initial adoption of the standard.
The Group applied the exemption not to recognise right-of-use
assets and liabilities for leases with less than 12 months of lease
term remaining as of the date of initial application, when applying
IFRS 16 to leases previously classified as operating leases under
IAS 17.
As a lessee, the Group previously classified leases as operating
or finance leases based on its assessment of whether the lease
transferred substantially all of the risks and rewards of
ownership. Under IFRS 16, the Group recognises right-of-use assets
and lease liabilities for most leases. However, the Group has
elected not to recognise right-of-use assets and lease liabilities
for some leases of low value assets based on the value of the
underlying asset when new or for short-term leases with a lease
term of 12 months or less.
On adoption of IFRS 16, the Group recognised right-of-use assets
and lease liabilities in relation to leases of business premises
and vehicles, which had previously been classified as operating
leases.
The lease liabilities were measured at the present value of the
remaining lease payments, discounted using the relevant incremental
borrowing rate as at 1 October 2019. The Group's incremental
borrowing rate is the rate at which a similar borrowing could be
obtained from an independent creditor under comparable terms and
conditions. The weighted-average rate applied was 4.06%.
The right-of-use assets were measured at an amount equal to the
lease liability, adjusted by the amount of any prepaid or accrued
lease payments.
Included in profit or loss for the period are GBP282,000 of
amortisation of right-of-use assets and GBP48,000 of finance
expenses on lease liabilities.
The following table reconciles the minimum lease commitments
disclosed in the Group's Annual Financial Statements at 30
September 2019 to the amount of lease liabilities recognised on
transition at 1 October 2019:
GBP'000
-------------------------------------------- -------
Minimum operating lease commitment at
30 September 2019 2,444
Less short-term leases not recognised
under IFRS 16 (16)
-------------------------------------------- -------
Undiscounted lease payments 2,428
Effect of discounting using the incremental
borrowing rate at the date of initial
application (278)
Lease liabilities recognised at 1 October
2019 2,150
-------------------------------------------- -------
10. 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 PPUAAAUPUGQU
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