Oxford Metrics (OMG) , the smart sensing software company, issued an update on trading for the financial year ended September 30 2023.
Oxford Metrics expects to report revenues of £44m and an adjusted profit before tax (PBT) of £6.3m for FY23, both ahead of full-year market expectations. The group finished the year with a strong cash balance of £64.8m and no debt.
Momentum continued into H2, driven by strong contributions from the Engineering and Life Sciences segments. Oxford said the Vicon division continued to see ongoing demand for smart sensing into more applications from new and existing customers, and the new Vicon Valkyrie system launched in late 2022 continued to generate demand.
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An excellent set of results from Oxford Metrics in FY23, exceeding full-year market expectations for revenues and adjusted PBT. Markets reacted positively, driving OMG shares 9% higher on Wednesday. After the company's strongest H1 ever, momentum continued into H2 and FY24 with a solid orderbook and comfortable cash balance, enabling Oxford Metrics to pursue its M&A objectives in the year ahead.
The impressive revenue line reflected strength in Engineering and Life Sciences, which combined with the solid orderbook should give investors confidence in next year's forecasts. For now, Progressive Equity Research forecasts revenues of £41.6m and adjusted PBT of £9.1m for FY24, though analysts' figures are likely to be revised in December when Oxford Metrics publishes its full results.
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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