Struggling motion capture technology supplier OMG (OMG:AIM) needs to accelerate a fundamental rethink of its diverse business to release value for beleaguered shareholders. The first step towards being a more focused business has come with the £800,000 sale (16 Oct) of its loss-making House of Moves services arm. To re-engage investor interest, more needs to be done.
‘We have long been critical of OMG’s strategy, which has seen its resources spread paper thin across a very diverse range of activities,’ says Lee Prout of technology news service Megabuyte. The company accepts as much itself, stating in interim results (4 Jun) that ‘it’s becoming increasingly apparent that there is significant latent value in OMG’s IP (intellectual property) which is not yet being captured.’
The company has a dismal operating track record. Revenues have consistently struggled to grow for the past five years, capped by a plunge into the red to the tune of £44,000 in the year to September 2013. The share price has reflected dire trading. The current 27.25p shows no progress in five years.