Oxford Metrics revenue rises, bottom-line profit falls

(Sharecast News) - Oxford Metrics reported a return to revenue growth and improved operating profitability for the year ended 30 September on Tuesday, although bottom-line profit fell sharply due to lower finance income and higher investment. The AIM-traded smart sensing and software group posted an 8% rise in revenue to £44.8m and a 29% increase in adjusted EBIT to £2.2m, in line with market expectations.

However, profit before tax dropped 80% to £0.1m, and the company swung to a basic loss per share of 0.55p from earnings of 0.58p a year earlier.

Adjusted basic earnings per share halved to 1.55 pence.

The company attributed the stronger operating performance to higher volumes in Smart Manufacturing, improved margins in Motion Capture, and tighter cost control.

Motion Capture order intake rose 21% to £34.8m, although revenue in the division fell to £32m from £38.6m as demand weakened in US academic and entertainment markets and the business normalised its opening order book.

Smart Manufacturing revenue surged 341% to £12.8m, including 38% organic growth and contributions from two acquisitions.

Operating cash generation before tax improved to £6.7m from £0.3m, aided by inventory optimisation and stronger working capital management.

Oxford Metrics returned £12.5m to shareholders through buybacks and dividends during the year, reflecting confidence in the balance sheet.

Cash and fixed-term deposits stood at £37.3m, down 26% on the prior year, while the dividend was held at 3.25p per share.

The group continued to invest in product innovation and broaden its portfolio.

It strengthened its Smart Manufacturing division with the acquisitions of the Sempre Group and Amber Optix and launched a Markerless Motion Capture product to complement its core systems.

New divisional heads were appointed to sharpen operational focus.

The company said it was refocusing Motion Capture resources on higher-growth geographies and unifying Smart Manufacturing operations to improve efficiency and margin potential.

"This was a year of solid execution and strategic progress, with performance in-line with market expectations," said chief executive Imogen O'Connor.

"We delivered on our commitments, scaling Smart Manufacturing with two targeted acquisitions and achieving strong organic growth in that division, driven by tighter operational focus."

She added that while Motion Capture revenue was lower due to "continued softness in the US and a normalised opening order book," the division's 21% rise in order intake supported future growth.

"While external conditions remain challenging, we are focused on what we can influence: where we deploy our efforts, how the organisation operates and how we drive innovation, including the launch of Markerless Motion Capture, which together are strengthening our platform for sustainable long-term growth."

Oxford Metrics noted it was considering a change to its accounting reference date to 31 December 2026 to better align its reporting with revenue seasonality, with further announcements expected once approvals were secured.

At 0945 GMT, shares in Oxford Metrics were up 0.94% at 42.9p.

Reporting by Josh White for Sharecast.com.