Oxford Metrics(OMG) , announced its preliminary results for the year ending September 30, 2023.
The company, servicing life sciences, entertainment, and engineering markets, saw a record headline revenue of £44.2m, up 53.5% from the previous year, driven by the demand for their flagship system, Valkyrie. Despite a slight decrease in gross profit to 65.0%, Adjusted Profit Before Tax increased by 151.9% to £6.5m, reflecting strong revenue performance and increased R&D investments.
Maintaining a robust balance sheet with a net cash position of £64.8m, Oxford Metrics proposed a 10.0% increase in the final dividend to 2.75p per share.
Operationally, the company executed orders well, with diverse demand across all market segments. Notable contract wins in entertainment, engineering, and life sciences significantly contributed to its growth.
Furthermore, the strategic acquisition of Industrial Vision Systems Ltd (IVS) post-financial year end has further strengthened its smart manufacturing capabilities, bringing specialised machine learning AI technology for automated quality control and enriching its portfolio.
Looking ahead, Oxford Metrics anticipates a positive outlook, commencing the commercialisation of their markerless technology in the new financial year, with expectations of material revenues in subsequent fiscal years. With successful acquisitions and a focus on markets rich in intellectual property related to integrated smart sensing, the company is poised to explore further M&A opportunities for continued financial growth and market expansion.
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Oxford Metrics is a smart sensing company enabling clients in motion measurement and smart manufacturing to sense, analyse and apply data. It has over 10,000 active customers with some of the biggest names in automotive, education, electronics, entertainment, healthcare, pharmaceutical, research and sports, including Red Bull, Imperial College London, Dreamscape Immersive, Industrial Light & Magic, NASA, Jaguar Land Rover and Johnson & Johnson.
Post period end, Oxford Metrics entered into an agreement to acquire Industrial Vision Systems for £8.1m. The acquisition is to be funded with Oxford Metrics' existing cash resources and new ordinary shares. IVS should enable Oxford Metrics to extend into more applications and industries as inspection automation and smart manufacturing become standard.
Smart sensing is a rapidly growing sector within the entertainment, healthcare, defense and automotive sectors among many others. On the back of this growing demand and bolstered by its comfortable cash balance, strong momentum, and a new CEO at the helm, Oxford Metrics is positioned for continued growth.
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