OMG Plc sees FY adj. pretax profit in-line with views

Oxford Metrics (OMG) said it enjoyed a successful close to the financial year and expects to report revenues of more than £29.0m, from £25.8m and ahead of market expectations.

It said adjusted pretax profit was in-line with market expectations, having excluded the write-off of £1.5m capitalised R&D treated as an exceptional cost relating to the decision to discontinue OMG Life.

"Our Vicon business, with its recently refreshed products, has performed very well this year in all geographies. Furthermore, Vicon has also benefitted from the recent increase in the strength of the US dollar vs. GBP, with an average of 50% of Vicon revenues generated by Vicon's US operation," the company said in a statement.

"Yotta has continued to benefit from a strengthened recurring software revenue stream in the UK and in international markets.

"Notable wins secured in the UK at Plymouth, Gateshead and London Borough of Havering, in the Netherlands at SAAone and with the recently announced extended relationship with Amey Plc to deploy Horizons at customer sites in UK, Australia, New Zealand and Spain.

"Following extensive analysis during the financial year, the Board concluded it should discontinue OMG Life in order to focus the Group's resources on Vicon and Yotta.

"OMG Life had been focused on deriving value from the Company's portfolio of Intellectual Property (IP) through the deployment of third-party consumer products.

"At the Group's Interim Results in May, the Board stated its intention to spin out certain IP, relating to Machine Learning-based imagery classification.

"This process has now completed, with the IP transferred to a new, independently funded vehicle, called Pimloc, in exchange for a 25% stake in the new company.

"The cash balance for the year closed at £8.2m (FY15: £11.7m) after the payment of special and final dividends totalling £5.3m during FY16. The Group expects to announce Preliminary Results for the financial year ended 30 September 2016 on Tuesday, 6 December 2016."