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Thursday 21 May 2020

Oxford Metrics: plenty to work with going into H2

Oxford Metrics logoThe figures show a decline in revenue and a small net loss in H1 for Oxford Metrics but the nuances are a better indicator of what’s happening within the business. 

It was a strong first half until the lockdown effect caused delays to the shipment of Vicon orders in the last two weeks of the period (to 31 March 2020). This delay was a factor in total revenue falling 6.5% to £15m, with a related slip into the red resulting in LBT of £0.1m vs. year ago PBT of £1.2m. But on the up side most of the £1.1m of orders carried over have now been shipped to customers and revenue will be recognised in H2.

Vicon is the motion measurement analysis product, used by a range of organisations from hospitals to NASA to EA Sports. Delays meant revenue fell 9.6% to £11.3m but adjusted EBITDA stayed positive at £2m. In this sector, Oxford Metrics’ strategy is to protect its market position while opening up adjacent markets such as Elite Sport and Location Based Virtual Reality and there was slow but measurable progress in both new sectors. 

Yotta, which provides cloud based infrastructure management to central and local government agencies and other infrastructure owners, had a good H1 with revenue up 4.6% to £3.7m and strengthening ARR from the SaaS-based Connected Asset Management offering Alloy. UK local government wins included Warwickshire, South Gloucestershire, Blackburn with Darwen, City of York, Somerset, Worcestershire, and waste services contractor, Ubico. There were also new partnerships with Panasonic, (for Alloy), bbits and Telensa; the latter was particularly interesting because the company provides smart IoT streetlamps. The Yotta business model has pivoted to SaaS now, which provides a firmer footing, but the transition did take the division into an adjusted EBITDA loss of £0.5m. There is a lot happening within this division, including product development so it has a lot to work with.

Guidance has been withdrawn due to economic uncertainty but the company has a strong balance sheet, is debt free and is in forward looking tech areas that could be highly relevant to social distancing circumstances as well as its existing areas.

Posted by: Angela Eager

Tags: results   software  

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