AUS
NZ
UK
CA
USA
IND
_09_19_2024_15_18_44_391379.jpg)
Oxford Metrics (LSE:OMG) has released an update regarding its trading performance for the financial year ending September 30, 2024. The company notes that, while it has a healthy pipeline of business opportunities, there has been a discernible trend of extended buying cycles, particularly in the latter half of the year. This shift comes after a robust performance in the previous year and indicates that customers across various sectors are exercising increased caution, which has resulted in longer timelines for purchasing decisions. As a consequence, some opportunities that were expected to close within this fiscal year have been pushed into the next.
In terms of segment performance, the Vicon division, which serves multiple industries, is projected to be slightly behind last year’s figures. The Engineering and Life Sciences sectors are expected to see minor declines compared to their previous performance. Furthermore, the Entertainment segment is grappling with the broader slowdown in the global gaming industry, which has led to a contraction in content creation and, consequently, a decline in demand.
On a positive note, Oxford Metrics is making significant strides with its markerless technology, which remains on track for commercial delivery in the financial year 2025. The company has received positive feedback and notable interest in this innovative technology, leading to three additional blue-chip partners joining its beta program. This brings the total number of cornerstone customers to ten, underscoring the growing demand for markerless solutions in the market.
Looking ahead, Oxford Metrics projects its revenue for the financial year to fall within the range of £40 million to £42 million. However, the company has indicated that its adjusted profit before tax is expected to fall materially below current market expectations. This outlook reflects the challenges it faces in securing timely sales amid shifting market dynamics.
Despite these challenges, Oxford Metrics remains in a strong financial position, boasting high gross margins and a net cash balance of approximately £50 million. The company is actively pursuing mergers and acquisitions within the smart manufacturing sector, aiming to enhance its capabilities following its recent acquisition of Industrial Vision Systems (IVS). This strategic focus on expanding its footprint in smart manufacturing reflects Oxford Metrics’ commitment to long-term growth and innovation.
Investors and stakeholders can look forward to further insights into the company’s performance and outlook, as the Preliminary Results for the financial year ending September 30, 2024, are scheduled to be announced on December 3, 2024.
