Oxford Metrics, a provider of smart sensing and software solutions, has revised its financial projections for the year.
- The company anticipates its full-year pre-tax profits will fall significantly short of the initial market expectations of £7.8 million.
- Projected revenue has been adjusted from £48.6 million down to a range of £40 million to £42 million.
- A downturn in the global games industry has adversely affected their entertainment sector, contributing to decreased financial performance.
- The company’s stock value has experienced a notable decline, with shares dropping by 23% in significant trading.
Oxford Metrics has announced a substantial revision of its annual financial forecasts, prompted by increased prudence among its clientele. Originally forecasting a pre-tax profit of £7.8 million, the Yarnton-based firm has warned that actual figures will fall considerably below this mark. Revenue expectations have also been downgraded from an anticipated £48.6 million to a figure between £40 million and £42 million, reflecting elongated decision-making processes among their clientele. Global economic trends have led to extended purchasing cycles, influencing several business opportunities to be deferred to the subsequent financial year.
The entertainment division of Oxford Metrics has been particularly impacted, correlating directly with the global games industry’s downturn and the resultant decline in content creation. This sectoral contraction has hindered financial growth, aligning with their expectation that the life sciences division will slightly underperform against last year’s £14.8 million benchmark. Despite these challenges, the company maintains a strong pipeline of potential contracts, though these are now anticipated to materialise in the following fiscal periods.
Financial markets reacted promptly, with Oxford Metrics’ shares plunging by approximately 23% shortly after the announcement, settling at 60p during early London trading. This decline underscores a larger trend, as the company’s share value has fallen over 40% since the year’s commencement. The timing of these developments is notably challenging for newly appointed CEO Imogen Moorhouse, whose leadership commenced just over a year ago following the departure of long-time CEO Nick Bolton.
Looking ahead, the company remains committed to strategic expansions through mergers and acquisitions, backed by a robust £50 million reserve. Recent acquisition activities include the purchase of Industrial Vision Systems for £8.1 million, aiming to enhance their capabilities within the smart manufacturing market. Oxford Metrics is scheduled to release its full-year financial outcomes on 3 December, providing further clarity on its adaptive strategies in this evolving economic landscape.
Oxford Metrics faces significant financial challenges, yet remains poised to leverage strategic acquisitions to navigate through market uncertainties.
