Oxford Metrics (OMG) delivered a creditable, if unspectacular, set of results for the 12 months to September 2019, underpinned by a fourth year of record revenues for Vicon, its motion measurement business. Here, sales rose by 16 per cent to £28.3m – driven in large part by established markets, with a particularly strong performance in engineering. Meanwhile, Vicon’s ‘adjacent’ markets – including location-based virtual reality and elite sports – made up 3.4 per cent of revenues, up from less than 0.1 per cent two years ago.
For the smaller asset management division, Yotta, revenues were down by 4 per cent to £7m – dampened by an ongoing shift away from perpetual licences towards a software-as-a-service (SaaS) model. This transition is “now complete”. Sales in the division were also knocked by delays to some customer-driven implementations. Still, Yotta achieved its highest ever level of annualised recurring revenues, at £6.2m, up from £5.7m last year. This figure stood at £6.5m in early December – repeat business is on the rise.
Pre-tax profit growth was dampened by higher costs. Sales, support and marketing expenses rose by £1.1m, due largely to marketing activity within Vicon. A further £0.5m has been earmarked for publicising the business’s elite sports work in the coming year.
Broker N+1 Singer is forecasting adjusted EPS of 4.3p in March 2020, up from 3.2p in FY2019.
| OXFORD METRICS (OMG | ||||
| ORD PRICE: | 90p | MARKET VALUE: | £112m | |
| TOUCH: | 89-90p | 12-MONTH HIGH: | 99p | LOW: 66p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 25p* | NET CASH: | £13.8m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 25.7 | 4.8 | 3.9 | 0.65 |
| 2016 | 26.3 | 5.1 | 3.9 | 1.00 |
| 2017 | 29.2 | 3.7 | 2.6 | 1.20 |
| 2018 | 31.7 | 4.6 | 3.2 | 1.50 |
| 2019 | 35.4 | 4.7 | 3.3 | 1.80 |
| % change | +12 | +2 | +3 | +20 |
| Ex-div: | 12 Dec | |||
| Payment: | 28 Feb | |||
| *Includes intangible assets of £12m, or 10p a share | ||||
