Oxford Metrics reports a significant financial adjustment due to heightened customer caution.
- The company predicts full-year pre-tax profits to fall short of the £7.8m market expectation.
- Revenue forecasts have been reduced from £48.6m to a range of £40m-£42m.
- The global games industry slowdown has impacted Oxford Metrics’ entertainment division.
- Stock value has plummeted over 40% since the beginning of the year.
Oxford Metrics has revised its financial outlook for the remainder of the financial year due to increased customer caution. The company, operating within the smart sensing and software market, has faced extended purchase decision cycles globally, leading to a forecasted decline in profitability and revenue.
The company’s revised guidance suggests that full-year pre-tax profits will be ‘materially below’ previous market expectations of £7.8m. Additionally, anticipated revenues have been decreased from £48.6m to a range between £40m and £42m. Oxford Metrics attributes this adjustment to a more cautious customer base, resulting in delayed purchasing decisions and several opportunities shifting to the next financial year.
Oxford Metrics’ entertainment division has been notably affected by a slowdown in the global games industry, resulting in a contraction of content creation. The life sciences segment is also expected to narrowly trail last year’s results of £14.8m. This has occurred under the leadership of CEO Imogen Moorhouse, who assumed her role a year ago, succeeding Nick Bolton.
The impact of these developments has been significant, with the share price of Oxford Metrics dropping 23% to 60p during early London trading. Over the course of the year, the company’s stock has experienced a more than 40% decline.
Despite these challenges, Oxford Metrics is actively seeking new mergers and acquisitions, backed by a £50m reserve, aiming to enhance its presence in the smart manufacturing sector. Following its £8.1m acquisition of Industrial Vision Systems in November, the company remains committed to expanding its market applications.
Oxford Metrics faces a challenging financial landscape, but remains focused on strategic growth initiatives.
