Oxford Metrics has reported a downturn in sales and profits, highlighting the impact of extended buying cycles in its markets.
- The company’s revenue decreased over 6% to £41.5m for the fiscal year ending September.
- Pre-tax profits saw a significant decline, more than halving to £3.7m.
- While the UK and European markets reported growth, this was countered by declines in the US and Asia.
- Oxford Metrics remains in a strong financial position despite these challenges, supported by strategic acquisitions.
Oxford Metrics, an Oxfordshire-based innovator in sensor and software technology, has disclosed a notable dip in its financial performance, attributing this downturn to extended purchasing timelines across its operational segments. In the fiscal year ending September, the company recorded revenues of £41.5 million, indicating a decline exceeding 6% compared to the preceding year. Adjusted pre-tax profits also suffered, reducing significantly to £3.7 million.
The protraction in purchasing decisions was particularly pronounced within the Entertainment segment, largely due to a global slowdown in the gaming industry, which in turn affected content creation. Additionally, the Engineering and Life Sciences divisions experienced setbacks, linked to delays in academic funding. Despite these challenges, Oxford Metrics reported noteworthy operational advancements, suggesting resilience and adaptation amidst industry pressures.
Encouraging growth figures emerged from the UK and European sectors, with sales increasing by 34% and 11% respectively. However, this positive trend was overshadowed by adverse performance in the United States and Asian markets, with turnovers falling by 7% and 35%. This downturn in Asian revenues particularly reflects broader industry challenges, such as the aforementioned slowdown in gaming.
Amid this challenging landscape, the company’s strategic manoeuvres included the acquisition of Sempre, a measurement specialist, for £5.5 million. Oxford Metrics has maintained a ‘healthy cash position’, which it affirms will support its ongoing ambitions in mergers and acquisitions. The company’s stock responded positively, having risen by 2% to 53p in early market trading.
Founded over 40 years ago, Oxford Metrics continues to navigate a complex market environment. While it anticipates figures to fall ‘materially below’ market expectations due to prevailing cautious customer attitudes, the firm remains committed to strategic growth and financial stability through tactical investments and operational efficiencies.
Oxford Metrics remains focused on long-term growth, navigating market challenges with strategic investment and adaptation.
