Oxford Metrics revenue rises while profits slip

International software company Oxford Metrics issued its interim results for the six months ended 31 March on Wednesday, reporting a 10.9% improvement in headline group revenue to £14.3m.

The AIM-traded firm said its adjusted profit before tax fell slightly to £1.5m from £1.6m year-on-year, though it claimed that was in line with its own expectations.

Group cash stood at £9.2m, down from £11.1m, following the purchase of IMeasureU and dividend payments, balanced by continued strong cash generation.

Growth initiatives at Yotta were said to be yielding results, with the board reporting annualised recurring revenue up 22.5% year-on-year and a retention rate of 100% during the first half.

As at 29 May, annualised recurring revenue stood at £5.6m, up from £4.3m.

Headline Vicon revenue was also up, by 14% year-on-year or 21% at constant currency, with the board saying its extended product range was gaining traction and driving growth.

“This has been an encouraging start to the year,” said chief executive Nick Bolton.

“We have delivered double-digit revenue growth as the targeted investments in our development teams and sales channels begin to pay off.

“Vicon has secured its position as a profitable market leader and continues to deliver excellent performances half-on-half.”

At Yotta, Bolton said strong strategic foundations had been built as the company continued to expand internationally through new partners and gained sales momentum.

“Our aim for this second year of our five-year plan was to amplify profits and recurring revenues.

“We are delivering against those goals and continue to track in-line with our long term objectives.”

As the company entered the second half, the sales pipelines remained strong, Bolton explained.

“All of which underpins our confidence in delivering in line with current market expectations for the full year as well as on our long term growth prospects.”