Source - RNS
RNS Number : 1947H
Oxford Metrics PLC
06 June 2017
 

6 June 2017

Oxford Metrics plc

 

("Oxford Metrics" or the "Company")

Interim Results for the six months ended 31 March 2017

 

 

Oxford Metrics (OMG 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 2017.

 

Financial Key Points

 

·      Group Revenue of £12.9m, up 17% (H1 FY16: £11.0m) - record first half performance

·      Adjusted PBT of £1.6m (H1 FY16: £1.8m) in line with expectations following focused investments

·      Group cash stands at £11.1m, up from £5.8m a year earlier following strong cash flow generation and receipt of remaining 2d3 consideration

·      Yotta software revenue up 20% year-on-year, with 98% retention of growing SaaS customer base

·      Vicon revenue up 15% year-on-year following a strong Americas performance

·      Good progress towards strategic goal of doubling profits and tripling recurring revenues by 2021

Annual value of recurring revenues increased 13% to £4.3m (H1 FY16: £3.8m)

 

Operational Key Points

 

·      Announced five year strategic growth plan in December - targeted investments made in first half

·      Strategy for Yotta: expand geographically and develop cloud-based software products

Launch of Alloy, a cloud-based asset management platform, was received very positively - the SaaS-based software broadens Yotta's product capability and its flexibility will underpin Yotta's international expansion

Added staff in sales, partner management and delivery, to manage and develop partner network across Europe and build upon our existing presence in Australia

·      Strategy for Vicon: strengthen and protect a profitable market leader

Launched Shōgun, new software which meets the growing demands of game, film and Virtual Reality production and maintains leadership in the Entertainment market

Vicon Vero exceeded expectations in first full sales period shipping over 1100 cameras, up 57% year-on-year on the previous mid-market product, Vicon Bonita

Vicon technology used in recent film A Monster Calls

·      Initiated process to dispose of Yotta Surveying activities - now reported as asset held for sale

Negotiations ongoing, expect to announce the disposal in second half

 

 

Commenting on the results Nick Bolton, Chief Executive Officer said:

 

"This has been a very encouraging start to the year. When we announced our new five-year strategy last year we signalled a series of targeted investments to drive long term growth. Since then we have accelerated investment in our development teams and expanded our international sales channels.

 

Even at these early stages, it is encouraging to see the impact showing through as we launched Yotta's new software platform, Alloy. We are tracking well against plan recording encouraging recurring revenue growth while maintaining strong cash flow generation. The sales pipeline, which includes the first commercial sales of Alloy is also strong - all of which underpins our confidence in our full year targets as well as our long term growth prospects."

 

For further information please contact:

Oxford Metrics plc

+44 (0)1865 261860

Nick Bolton, CEO

 

David Deacon, CFO

 

 

 

FTI Consulting

+44 (0)20 3727 1000

Matt Dixon / Emma Appleton / Harry Staight

 

 

 

N+1 Singer (NOMAD to Oxford Metrics)

+44 (0)20 7496 3000

Shaun Dobson / James White

 

 

About Oxford Metrics

Oxford Metrics develops and markets analytics software for motion measurement and infrastructure asset management to clients 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, California, Colorado and Singapore. 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 and to learn about our strategy, click here.

 

 

Chairman and Chief Executive's Statement

 

We are pleased to report another strong period of trading for the business, with a record first half revenue performance on a continuing operations basis of £12.9m (H1 FY16: £11.0m), up 17% on last year's level. Adjusted profit of £1.6m (H1 FY16: £1.8m) is reported following targeted investment activities relating to the five-year plan. This strong performance converted well into cash flow and together with receipt of the remaining 2d3 consideration (£1.7m) group cash stood at £11.1m on 31 March 2017, up from £5.8m a year earlier.

 

The Group has made good progress in the first half towards achieving our strategic goals of doubling profits and tripling recurring revenues by 2021. Progress includes a pleasing increase in the annual value of recurring revenues to £4.3m (H1 FY16: £3.8m) and the public launch of Yotta's new Asset Management SaaS Software solution, Alloy - both key milestones of the five-year strategic plan. Following this positive first half performance, the Group is on target to achieve market expectations for the current financial year.

 

During the period, given the acceleration of Yotta's software business, the Group initiated a process to divest Yotta's surveying activities. The standards and methods of highways surveying are territory-specific and given Yotta's clear goal to drive growth through international expansion, the surveying business is no longer central to the Group's vision. In the first half, the operation reported revenues of £1.0m (H1 FY16: £1.2m) and an Adjusted PBT loss of £0.2m (H1 FY16 loss: £0.1m). The divestment will allow Yotta to focus on the delivery of the five-year goals and the development of a SaaS-driven Connected Asset Management software business. The Group is currently in negotiation and expects to announce a divestment in the second half. Consequently, the Financial Statement includes Yotta Surveying activities as Assets Held for Sale in the Balance Sheet and as a discontinued operation in the Income Statement.

A dividend of 1.00p per share in respect of the year ended 30 September 2016 was paid to shareholders in March 2017, following formal approval at the AGM. This represented an increase of 54% over the dividend paid in the previous year, in line with the Company's progressive dividend policy. When we announced the new plan in December 2016, we stated our aim to deliver an average dividend cover of 2.0x over the five-year period.

Strategy

 

The strong trading performance in the first half has been supported by progress against our five-year strategic plan announced in December 2016 to "amplify the core".

 

As a reminder, the strategic plan aims to drive growth by amplifying our core strengths and capabilities across our core products, markets and customers. In this way, we aim, by 2021, to double Group profit and to triple recurring revenues.

 

We are confident this is the right approach as both our Yotta and Vicon businesses are strong within their respective marketplaces. They both have highly differentiated products with exciting product roadmaps, enthusiastic global customer bases and passionate, capable teams driving the plan. We want to amplify their core strengths through carefully targeted investments.

 

The investments we are making in Vicon are designed to further strengthen and protect the position of this proven, profitable global market leader. In Yotta, the objective is to expand geographically through the building of new international sales channels and further develop our cloud-based software products, both of which should drive significant growth in Yotta's revenues and profit over time. Although we are only six months into this plan, we are starting to see clear early indicators of progress.

 

One of the key mechanisms for Vicon to strengthen its leadership position is to expand and fortify its product portfolio. This means carefully targeting our R&D spend to enhance our products' capabilities and maintain leadership within our core markets. We made two key moves in this direction in the first half.

 

First is the Vicon Vero camera, our measurement product in the key mid-tier of the market - a highly capable measurement system which utilises the same software applications as our flagship Vicon Vantage but available at a lower price point. This was Vero's first full period in the market and take up has been faster than our expectations. This was driven by the launch of the new Vicon website which includes a user configurable "build my system" visualisation tool, through the publication of Vero global customer success stories and a marketing push via our strong network of distributors. Over the six month period, Vicon shipped over 1100 Vero cameras, up 57% over the previous mid-market product, Vicon Bonita, for the same period last year.

 

Secondly, we launched Shōgun, our all new software for Entertainment customers. This is Vicon's first new software launch in this important vertical market since 2007. It offers users a new level of efficiency and quality, necessary to meet the growing demands of game, film and Virtual Reality production, and keeps our products in leadership positions within those markets. The new software has been received well by the market and has been instrumental in the decision making process for a number of customers, including Mimic Performance Capture, a new customer in Vancouver, Canada.

 

These focused efforts to broaden the capability of our solutions and strengthen our market position are key to Vicon's growth within the five-year plan.

 

Turning next to Yotta, the biggest news of the first half was the launch of Alloy, Yotta's new asset management platform. Alloy is an enterprise-level cloud application which makes it simpler for highways and other asset owners to manage vast volumes of data. Customers can explore and leverage data in real-time and harness the resulting insight to make smarter, better decisions. This SaaS-based software delivers on both of Yotta's key strategic drivers. Firstly it will broaden the capability of Yotta's software to solve more problems for customers in more integrated ways. And secondly it will underpin our international expansion as it has been written to appeal to an international audience. For example, it offers multi-language support and flexibility for the different workflows international customers use to manage their infrastructure assets.

 

Following the launch, Alloy has been received very positively by users, prospects and partners, and will be available to customers during the summer. Key to Alloy making further progress is the acceleration in its development. This is being achieved through the accelerated investment in Yotta's development team. This team is now up to full strength and focussed on ensuring Alloy reaches its potential for its target users worldwide.

 

The second important step in the strategic plan has been our development across international markets. This half we struck agreements with three international distributors. We also added staff in sales, partner management and delivery, to manage and develop those relationships as well as build upon our existing presence in Australia. This will help drive the sales of the existing products and will be in place as Alloy rolls out in these territories.

 

Lastly, we have made good progress against the key financial metric of tripling recurring revenues through strong software sales at Yotta, which in turn increased support and hosting revenues. Hosted software has become the standard way for Yotta's customers to access our solutions. In fact, the last on-premise licence we sold to an entirely new customer was over three years ago.

 

Overall, we have made a pleasing start to our five-year growth plan and we look forward to updating the market as we continue to progress in the months and years ahead.

 

Financial Performance

 

During the first half, Group revenue increased year-on-year by 17% to £12.9m (H1 FY16: £11.0m). The Group reported an adjusted profit of £1.6m (H1 FY16: £1.8m). Group cash position as at 31 March 2017 stood at £11.1m (H1 FY16: £5.8m), reflecting good collections arising from a more favourable profile of revenues in the first half, accordingly Accounts Receivable included in Trade and Other receivables are lower on the Balance Sheet at £8.2m (H1 FY16: £11.7m). The Group remains debt-free.

 

Vicon

 

Revenue momentum achieved by Vicon last financial year continued into the first half of FY17 with headline revenues of £9.6m (H1 FY16: £8.3m), improving 15% year-on-year due to a strong US and Asia Pacific performance; on a constant currency basis, underlying revenue growth was still a healthy 7%. Regionally, Americas posted a strong performance growing revenues 38% to £5.2m (H1 FY16: £3.7m) with a particularly strong performance in Canada, with wins at Mawashi Health, Mimic Performance Studios and start-up Squeeze/MOOV. Vicon reported an adjusted profit before tax of £2.1m (H1 FY16: £2.3m) and an unadjusted profit before tax of £1.4m (H1 FY16: £1.6m), which reflects lower Grant Income in FY17 of £0.0m (H1 FY16: £0.5m) following the completion of the Real-time Digital Acting (RTDA) project in October 2016.

 

Vicon reported slightly improved product gross margins at 72.5% (H1 FY16: 72.1%) in the first half, assisted by the introduction of the new Vero product and more effective supply chain management.

 

Vicon also reported an increase in working capital largely due to an increase in inventory to £4.1m (H1 FY16: £2.4m). This increase was necessary to mitigate disruption in the supply chain of certain key components. This inventory is now expected to fulfil second half demand for Vicon's products.

 

Vicon will also be relocating its UK operations in the second half. After more than 30 years at the current site, the business will be moving to a more suitable building located just outside Oxford. The new site will feature improved customer facing and demonstration areas together with production facilities, storage and offices. The fit out of the building is expected to cost £1m and will be depreciated over the next 10 years.

 

Vicon's sales pipeline for the second remains promising and, in line with previous years, as is normally the case, revenue is expected to be second half weighted giving us confidence the business will deliver on expectations for the full year.

 

Yotta

 

Yotta's Surveying activities are treated as an asset held for sale following the decision to divest of the business and focus on Yotta's accelerating software business. Thus, the numbers presented here relate solely to Yotta's software business.

 

Yotta reported software revenues up 20% compared to the same period last year at £3.3m (H1 FY16: £2.7m). This increase has been achieved through the growth in both software and consulting services. In particular, the annual value of recurring revenues improved by 13% to £4.3m (H1 FY16: £3.8m). Customer retention of the growing SaaS contract base remains high. 98% compared to the start of the year.

 

Yotta reported an adjusted profit before tax of £0.6m (H1 FY16: £0.7m) and an unadjusted loss before tax of £0.2m (H1 FY16: £0.0m), the effect of strategic investments previously announced being largely mitigated by improved revenues.

 

Yotta continues to make progress through its focus on software activities, evidenced by further growth in its recurring revenues. The outlook for the second half is encouraging for Yotta and the division remains on track to deliver on expectations.

 

 

Outlook

 

Looking forward to the second half, the Board is encouraged by the strong pipeline of sales opportunities in both Vicon and Yotta, which include the first commercial sales of Alloy. The implementation of our organic growth strategy is underway and we continue to be excited by its potential to develop and transform our business. Focused strategic investments to drive growth include the development of further Alloy software modules, investment in our international sales channels and recruitment of distributors in our target markets. Complementing our organic growth strategy, the Group will continue to explore value enhancing acquisition opportunities as they arise.

 

Notwithstanding macro-economic uncertainty, the Board is confident that, with the expected performance across the business, the Group is on track to meet current market expectations for the year as a whole.

 

 

CONDENSED CONSOLIDATED INCOME STATEMENT

 

 

 

 

Six months ended

31 March

2017

Six months ended

 31 March

2016

Year

ended

 30 September 2016

 

 

 

(unaudited)

(unaudited)

(audited)

 

 

Note

£'000

£'000

£'000

 

Revenue

2

12,852

11,030

26,327

 

Cost of sales

 

(3,692)

(3,134)

(7,651)

 

Gross profit

 

9,160

7,896

18,676

 

Sales, support and marketing costs

 

(3,160)

(2,248)

(5,136)

 

Research and development

 

(1,477)

(1,735)

(3,776)

 

Administrative expenses

 

(3,266)

(2,776)

(5,948)

 

Other operating income

 

244

502

990

 

Operating profit

 

1,501

1,639

4,806

 

Finance income

 

11

13

45

Share of post-tax loss of equity accounted associate

 

(39)

-

-

 

Profit before taxation

2,3

1,473

1,652

4,851

 

Taxation

4

67

(365)

(649)

 

Profit from continuing operations

 

1,540

1,287

4,202

 

Loss from discontinued operations, net of tax

 

(726)

(1,064)

(1,931)

 

Profit for the period attributable to

owners of the parent during the period

 

814

223

2,271

 

 

 

 

 

 

 

Earnings per share for profit on continuing operations attributable to owners of the parent during the year

 

 

 

 

 

Basic earnings per share (pence)

5

1.26p

1.08p

3.48p

 

Diluted earnings per share (pence)

5

1.24p

1.05p

3.43p

 

 

 

 

 

 

 

Earnings per share for profit on total operations attributable to owners of the parent during the year

 

 

 

 

 

Basic earnings per share (pence)

5

0.67p

0.19p

1.89p

 

Diluted earnings per share (pence)

5

0.65p

0.18p

1.86p

           

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

Six months ended

31 March

2017

Six months ended

 31 March

2016

Year

ended

 30 September 2016

 

 

(unaudited)

(unaudited)

(audited)

 

 

£'000

£'000

£'000

Net profit for the period

 

814

223

2,271

Other comprehensive income

 

 

 

 

Items that will or may be reclassified to profit or loss

 

 

 

 

Exchange differences on retranslation of overseas subsidiaries

 

30

95

224

Loss on hedging instrument

 

-

-

(158)

Tax recognised directly in equity

 

59

35

121

Total other comprehensive income

 

89

130

187

Total comprehensive income for the period attributable to the owners of the parent

 

903

353

2,458

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

 

 

31 March

2017

31 March

2016

30 September

2016

 

 

(unaudited)

(unaudited)

(audited)

 

Note

£'000

£'000

£'000

Non-current assets

 

 

 

 

Goodwill and intangible assets

 

11,106

12,823

11,086

Property, plant and equipment

 

662

982

787

Financial asset - investments

 

280

69

69

Deferred consideration receivable

 

117

213

113

Deferred tax asset

 

191

503

311

 

 

12,356

14,590

12,366

Current assets

 

 

 

 

Inventories

 

4,062

2,424

2,704

Trade and other receivables

 

8,248

11,715

13,919

Current tax debtor

 

-

-

453

Cash and cash equivalents

 

11,130

5,808

8,273

 

 

23,440

19,947

25,349

 

 

 

 

 

Assets classified as held for sale

 

1,081

-

-

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(6,898)

(7,385)

(8,582)

Derivative financial liability

 

-

-

(158)

Current tax liabilities

 

(588)

(358)

-

 

 

(7,486)

(7,743)

(8,740)

 

 

 

 

 

Liabilities directly associated with assets classified as held for sale

 

(454)

-

-

 

 

 

 

 

Net current assets

 

16,581

12,204

16,609

Total assets less current liabilities

 

28,937

26,794

28,975

 

Non-current liabilities

 

 

 

 

Other liabilities

 

(441)

-

(321)

Provisions

 

(185)

-

(185)

Deferred tax liability

 

(1,295)

(2,218)

(1,640)

 

 

 

 

 

Net assets

 

27,016

24,576

26,829

 

 

 

 

 

Capital and reserves attributable to the owners of the parent

 

 

 

 

Share capital

6

308

302

303

Shares to be issued

 

65

65

65

Share premium account

 

17,302

16,732

16,834

Cash flow hedge reserve

 

-

-

(158)

Retained earnings

 

9,032

7,327

9,506

Foreign currency translation reserve

 

309

150

279

Total equity shareholders' funds

 

27,016

24,576

26,829

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS

 

 

 

Six months

ended

31 March

2017

Six months ended

31 March

2016

Year

ended

30 September 2016

 

 

(unaudited)

(unaudited)

(audited)

 

 

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Operating profit from continuing operations

 

1,501

1,639

4,806

Operating loss from discontinued operations

 

(308)

(1,070)

(2,478)

Group operating profit

 

1,193

569

2,328

Depreciation and amortisation

 

1,001

982

2,016

Impairment of intangibles

 

-

-

1,634

(Profit)/loss on sale of property, plant and equipment

 

(36)

(2)

9

Share based payments

 

35

58

103

Exchange adjustments

 

(63)

124

(147)

Share of post-tax loss of equity accounted associate

 

(39)

-

-

Increase in inventories

 

(1,357)

(527)

(674)

Decrease/(increase) in receivables

 

5,025

(297)

(1,950)

(Decrease)/increase in payables

 

(1,571)

(677)

1,088

Cash generated from operating activities

 

4,188

230

4,407

Tax received/(paid)

 

529

(354)

(1,301)

Net cash from operating activities

 

4,717

(124)

3,106

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(187)

(252)

(526)

Purchase of intangible assets

 

(973)

(722)

(1,425)

Proceeds on disposal of property, plant and equipment

 

40

45

122

Interest received

 

11

13

45

Net cash used in investing activities

 

(1,109)

(916)

(1,784)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Issue of ordinary shares

 

473

414

517

Equity dividends paid

 

(1,224)

(5,304)

(5,304)

Net cash used in financing activities

 

(751)

(4,890)

(4,787)

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

2,857

(5,930)

(3,465)

Cash and cash equivalents at beginning of the period

 

8,273

11,738

11,738

Cash and cash equivalents at end of the period

 

11,130

5,808

8,273

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY

 

 

 

Share

Capital

Shares

to be

issued

Share premium account

Cash flow hedging reserve

Retained earnings

Foreign currency translation reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance as at 1 October 2016

303

65

16,834

(158)

9,506

279

26,829

Net profit for the period

-

-

-

-

814

-

814

 

 

 

 

 

 

 

 

Exchange difference on retranslation of overseas subsidiaries

-

-

-

-

-

30

30

Transfer between reserves

-

-

-

158

(158)

-

-

Tax recognised directly in equity

-

-

-

-

59

-

59

Transactions with owners:

 

 

 

 

 

 

 

Dividends

-

-

-

-

(1,224)

-

(1,224)

Issue of share capital

5

-

468

-

-

-

473

 

 

 

 

 

 

 

Movement in relation to share based payments

-

-

-

-

35

-

35

Balance as at 31 March 2017

308

65

17,302

-

9,032

309

27,016

 

 

 

 

 

 

 

 

Balance as at 1 October 2015

294

65

16,326

-

12,315

55

29,055

Net profit for the period

-

-

-

-

223

-

223

Exchange differences on retranslation of overseas subsidiaries

-

-

-

-

-

95

95

Tax recognised directly in equity

-

-

-

-

35

-

35

Transactions with owners:

 

 

 

 

 

 

 

Dividends

-

-

-

-

(5,304)

-

(5,304)

Issue of share capital

8

-

406

-

-

-

414

Movement in relation to share options

-

-

-

-

58

-

58

Balance as at 31 March 2016

302

65

16,732

-

7,327

150

24,576

 

 

 

 

 

 

 

 

Balance as at 1 October 2015

294

65

16,326

-

12,315

55

29,055

Net profit for the year

-

-

-

-

2,271

-

2,271

Exchange differences on retranslation of overseas subsidiaries

-

-

-

-

-

224

224

Loss on hedging instrument

-

-

-

(158)

-

-

(158)

Tax recognised directly in equity

-

-

-

-

121

-

121

Transactions with owners:

 

 

 

 

 

 

 

Dividends

-

-

-

-

(5,304)

-

(5,304)

Issue of share capital

9

-

508

-

-

-

517

Movement in relation to share options

-

-

-

-

103

-

103

Balance as at 30 September 2016

303

65

16,834

(158)

9,506

279

26,829

 

 

 

 

 

 

 

 

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, formerly OMG 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 2017 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 9 'Financial Instruments'

•     IFRS 15 'Revenue from Contracts with Customers'

•     IFRS 16 'Leases'

•     Amendments to IFRS 2 'Share-based Payment'

•     Amendments to IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations'

•     Amendments to IAS 1 'Presentation of Financial Statements'

•     Amendments to IAS 16 'Property, Plant and Equipment'

•     Amendments to IAS 38 'Intangible Assets'

 

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) and only IFRS 15 "Revenue from Contracts with Customers" and IFRS 16 'Leases' were considered to be relevant. The directors are assessing whether the application of IFRS 15 and IFRS 16, once effective, will have a material impact on the results of the company. Adoption of the other standards and interpretations referred to above is not expected to have a material impact on the results of the company. Application of these standards may result in some changes in presentation of information within the financial statements.

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 2016.  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 2016 are not the statutory accounts but have been extracted from the Group's 2016 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, formerly OMG 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;

 

Yotta Group:  This is services for the management of infrastructure, highway surveying and associated software development;

 

OMG Life:  This was the development and sale of software and hardware solutions for the consumer electronics market.

 

Other unallocated costs represent head office expenses not recharged to subsidiary companies.

 

Business segments are analysed below:

 

 

 

 

 

Revenue

 

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016    (audited)

 

£'000

£'000

£'000

 

 

 

 

Vicon UK

4,366

4,397

9,607

Vicon USA

5,210

3,909

10,802

Vicon Group

9,576

8,306

20,409

 

 

 

 

Yotta UK

1,247

1,215

2,724

Yotta Mayrise

2,029

1,509

3,194

Yotta Group

3,276

2,724

5,918

 

 

 

 

Continuing operations

12,852

11,030

26,327

 

 

 

 

OMG Life Group

-

7

87

 

 

 

 

Yotta Surveying

973

1,180

3,165

 

 

 

 

Discontinued operations

973

1,187

3,252

 

 

 

 

Oxford Metrics Group

13,825

12,217

29,579

 

 

 

Revenue

 

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016    (audited)

 

£'000

£'000

£'000

By destination

 

 

 

UK

3,996

3,642

8,094

Europe

1,001

1,602

2,973

North America

 

5,161

 

3,740

 

10,246

Asia Pacific

2,258

1,805

4,049

Other

436

241

965

Continuing operations

 

12,852

 

11,030

 

26,327

 

 

 

 

 

UK

932

1,153

3,125

Europe

41

34

41

North America

 

-

 

-

 

86

Discontinued operations

 

973

 

1,187

 

3,252

 

 

 

 

Oxford Metrics Group

 

 

13,825

 

 

12,217

 

 

29,579

 

 

 

 

By origin

 

 

 

UK

7,576

7,121

15,505

North America

 

5,210

 

3,909

 

10,802

Asia Pacific

66

-

20

Continuing operations

 

12,852

 

11,030

26,327

 

 

 

 

UK

973

1,182

3,247

North America

 

-

 

5

 

5

Discontinued operations

 

973

 

1,187

 

3,252

 

 

 

 

Oxford Metrics Group

 

 

13,825

 

 

12,217

29,579

 

 

 

 

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016    (audited)

 

£'000

£'000

£'000

Vicon revenue by market

 

 

 

Engineering

1,995

1,991

4,490

Entertainment

1,999

2,099

5,635

Life sciences

5,582

4,216

10,284

Vicon Group*

9,576

8,306

20,409

 

 

Group revenue by type

 

 

 

Sale of hardware

8,429

7,783

19,359

Sale of software

1,884

964

2,081

Rendering of services

2,539

2,283

4,887

Continuing operations

12,852

11,030

26,327

 

 

 

 

Sale of hardware

-

-

-

Sale of software

-

-

-

Rendering of services

973

1,187

3,252

Discontinued operations

 

973

 

1,187

 

3,252

 

 

 

 

Oxford Metrics Group

13,825

12,217

29,579

 

Yotta revenue by type

 

 

 

Software and related services

3,276

2,724

5,775

Surveying services

-

-

143

Yotta Group - Continuing

3,276

2,724

5,918

 

 

 

 

Surveying services

973

1,180

3,165

Yotta Group - Discontinued

973

1,180

3,165

 

 

 

 

Yotta Group - Total

4,249

3,904

9,083

 

 

*This additional information is provided to the Chief Operating Decision Maker.  Further analysis by market is not available.

 

 

 

Six months ended 31 March 2017 (unaudited)

Six months ended 31 March 2016 (unaudited)

Year ended 30 September 2016 (audited)

 

Adjusted profit/(loss) before tax

 

Adjusting items

Group recharges

Profit/(loss) before tax

Adjusted profit/(loss) before tax

Adjusting items

Group recharges

Profit/(loss) before tax

Adjusted profit/(loss) before tax

Adjusting items

Group recharges

Profit/(loss) before tax

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

Vicon UK

296

-

679

975

879

(1)

288

1,166

1,544

-

2,360

3,904

Vicon USA

1,835

-

(1,417)

418

1,383

-

(905)

478

4,375

-

(3,774)

601

Vicon Group

2,131

-

(738)

1,393

2,262

(1)

(617)

1,644

5,919

-

(1,414)

4,505

 

 

 

 

 

 

 

 

 

 

 

 

 

Yotta UK

(574)

-

(201)

(775)

(331)

-

(92)

(423)

(527)

(29)

(505)

(1,061)

Yotta Mayrise

1,150

(221)

(326)

603

984

(212)

(346)

426

1,949

(424)

(347)

1,178

Yotta Group

576

(221)

(527)

(172)

653

(212)

(438)

3

1,422

(453)

(852)

117

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated

(1,136)

123

1,265

252

(1,157)

(32)

1,194

5

(2,237)

(64)

2,530

229

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

1,571

 

(98)

 

-

 

1,473

 

1,758

 

(245)

 

139

 

1,652

 

5,104

 

(517)

 

264

 

4,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OMG Life Group

 

 

(102)

 

 

(44)

 

 

-

 

 

(146)

 

 

(798)

 

 

(25)

 

 

(139)

 

 

(962)

 

 

(1,079)

 

 

(1,673)

 

 

(264)

 

 

(3,016)

 

 

 

 

 

 

 

 

 

 

 

 

 

Yotta surveying

(162)

-

-

(162)

(108)

-

-

(108)

538

-

-

538

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

(264)

 

(44)

 

-

 

(308)

 

(906)

 

(25)

 

(139)

 

(1,070)

 

(541)

 

(1,673)

 

(264)

 

(2,478)

 

 

 

 

 

 

 

 

 

 

 

 

 

Oxford Metrics Group

 

1,307

 

(142)

 

-

 

1,165

 

852

 

(270)

 

-

 

582

 

4,563

 

(2,190)

 

-

 

2,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

Additions to non-current assets

Carrying amount of segment assets

Carrying amount of segment liabilities

Segment depreciation and amortisation

 

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016   (audited)

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016   (audited)

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016   (audited)

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016   (audited)

Six months ended 31 March 2017 (unaudited)

Six months  ended 31 March 2016 (unaudited)

Year ended 30 September 2016   (audited)

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vicon UK

3,646

3,707

3,381

796

704

1,094

10,908

10,945

10,949

(3,260)

(3,424)

(3,587)

526

483

1,002

Vicon USA

823

806

860

16

1

17

6,690

5,147

6,342

(1,754)

(1,543)

(2,042)

12

7

27

Vicon Group

4,469

4,513

4,241

812

705

1,061

17,598

16,092

17,291

(5,014)

(4,967)

(5,629)

538

490

1,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yotta UK

3,436

3,635

3,365

227

181

361

8,090

8,016

7,487

(1,644)

(922)

(1,667)

111

102

198

Yotta Mayrise

3,968

4,031

4,094

118

54

350

12,025

11,226

11,211

(1,977)

(1,317)

(1,884)

245

224

456

Yotta Group

7,404

7,666

7,459

345

235

711

20,115

19,242

18,698

(3,621)

(2,239)

(3,551)

356

326

654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated

470

291

254

3

34

37

4,123

1,943

6,184

(731)

(1,068)

(1,114)

12

14

28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

12,343

 

12,470

 

11,954

 

1,160

 

974

 

1,809

 

41,836

 

37,277

 

42,173

 

(9,366)

 

(8,274)

 

(10,294)

 

906

 

830

 

1,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OMG Life Group

 

13

 

1,537

 

35

 

-

 

-

 

-

 

(6,040)

 

(4,074)

 

(5,709)

 

(41)

 

(443)

 

(120)

 

-

 

4

 

1,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yotta surveying

-

583

377

-

-

-

1,081

1,334

1,251

(454)

(1,244)

(472)

 

95

 

148

 

297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

13

 

2,120

 

412

 

-

 

-

 

-

 

(4,959)

 

(2,740)

 

(4,458)

 

(495)

 

(1,687)

 

(592)

 

95

 

152

 

1,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oxford Metrics Group

 

 

12,356

 

 

14,590

             

 

 

12,366

 

 

1,160

 

 

974

 

 

1,809

 

 

 

36,877

 

 

34,537

 

 

37,715

 

 

(9,861)

 

 

(9,961)

 

 

(10,886)

 

 

1,001

 

 

982

 

 

3,650

 

3.  Reconciliation of adjusted profit/(loss) before tax

 

 

Six months ended

31 March

 2017

Six months ended

31 March

 2016

Year

 ended

30 September

2016

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Profit before tax - continuing operations

1,473

1,652

4,851

Share based payments - equity settled

46

33

64

Amortisation of intangibles arising on acquisition

212

212

424

Income from transfer of IP to equity accounted associate

(208)

-

-

Share of post-tax loss of equity accounted associate

39

-

-

Redundancy costs

9

-

-

Reapportion Group overheads

-

(139)

(264)

Adjusted profit before tax - continuing operations

1,571

1,758

5,075

 

 

 

Loss before tax - discontinued operations

(308)

(1,070)

(2,478)

Share based payments - equity settled

(11)

25

39

Impairment of intangibles

-

-

1,634

Redundancy costs

55

-

29

Reapportion Group overheads

-

139

264

Adjusted loss before tax - discontinued operations

(264)

(906)

(512)

 

 

 

 

Total adjusted profit before tax - all operations

1,307

852

4,563

 

 

Redundancy costs in the period ended 31 March 2017 and year ended 30 September 2016 relate to the restructuring of the Yotta and OMG Life business segments.

 

 

4.  Taxation

 

The Group's consolidated effective tax rate for the six months ended 31 March 2017 was 29.9% (for the six months ended 31 March 2016: 61.7%; for the year ended 30 September 2016: 4.3%).

 

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 2017 (unaudited)

31 March 2016 (unaudited)

30 September 2016 (audited)

 

Earnings/(loss)

Weighted average number of shares

Per share amount

Earnings/(loss)

Weighted average number of shares

Per share amount

Earnings/(loss)

Weighted average number of shares

Per share amount

 

£'000

'000

(pence)

£'000

'000

(pence)

£'000

'000

(pence)

Continuing operations

 

 

 

 

 

 

 

 

 

Basic earnings/(loss) per share

 

 

 

 

 

 

 

 

 

Earnings attributable to ordinary shareholders

1,540

 

122,354

 

1.26

 

1,287

 

119,511

 

1.08

 

4,202

 

120,354

 

3.48

 

Dilutive effect of employee share options

-

2,246

(0.02)

-

2,473

(0.03)

-

1,717

(0.05)

Diluted earnings/(loss) per share

1,540

124,600

1.24

1,287

121,984

1.05

4,202

122,071

3.43

Discontinued operations

 

 

 

 

 

 

 

 

 

Basic earnings/(loss) per share

 

 

 

 

 

 

 

 

 

Earnings attributable to ordinary shareholders

(726)

 

122,354

 

(0.59)

 

(1,064)

 

119,511

 

(0.89)

 

(1,931)

 

120,354

 

(1.59)

 

Dilutive effect of employee share options

-

2,246

-

-

2,473

-

-

1,717

-

Diluted earnings/(loss) per share

(726)

124,600

(0.59)

(1,064)

121,984

(0.89)

(1,931)

122,071

(1.59)

Total operations

 

 

 

 

 

 

 

 

 

Basic earnings/(loss) per share

 

 

 

 

 

 

 

 

 

Loss attributable to ordinary shareholders

814

 

122,354

 

0.67

 

223

 

119,511

 

0.19

 

2,271

 

120,354

 

1.89

 

Dilutive effect of employee share options

-

2,246

(0.02)

-

2,473

(0.01)

-

1,717

(0.03)

Diluted earnings/(loss) per share

814

124,600

0.65

223

121,984

0.18

2,271

122,071

1.86

 

6.  Share capital

 

 

31 March

31 March

30 September

 

2017

2016

2016

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Allotted, called up and fully paid

 

 

 

123,052,402 shares of 0.25p (31 March 2016: 120,951,475 shares of 0.25p and 30 September 2016: 121,327,208 shares of 0.25p)

308

302

303

 

During the six month period ended 31 March 2017 1,676,174 shares were issued relating to share options that were exercised. 

There were 3,516,676 shares issued in respect of share options exercised during the six months ended 31 March 2016 (year ended 30 September 2016: 3,892,409).

 

7.  Dividends

 

The following dividends were recognised as distributions to equity holders in the period:

 

 

31 March

31 March

30 September

 

2017

2016

2016

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Final dividend for 2016 paid in 2017 - 1.00 pence per share

1,224

-

-

Final dividend for 2015 paid in 2016 - 0.65 pence per share

-

784

784

Special paid in 2016 - 3.75 pence per share

-

4,520

4,520

 

1,224

5,304

5,304

 

The final dividend for 2016 was paid to shareholders on 9 March 2017 at 1.00 pence per share, a total of £1,224,000.

 

8.  Copies of the interim statement

 

Further copies will be available from the Company's registered office at 14 Minns Business Park, West Way, Oxford OX2 0JB, and from the Company's website: www.oxfordmetrics.com.

 


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