Oxford Metrics warns adjusted profits will be 'materially below' expectations

Software firm Oxford Metrics warned on Monday that full-year adjusted pre-tax profits were now expected to be "materially below" current market expectations as customers exercised greater caution.

Oxford Metrics said a number of opportunities in its pipeline had been shifted into the new financial year, starting October 1, and now expects to report annual revenues of £40.0m-42.0m, down from £46.8m.

"The group continues to have high gross margins and remains in a strong financial position with a robust current net cash position of circa £50.0m, enabling the business to continue its active pursuit of a number of M&A opportunities within the smart manufacturing space to enhance our recent acquisition of Industrial Vision Systems," said the London-listed group.

On a segmental basis, Oxford Metrics said its Vicon, Engineering and Life Sciences units were expected to be "slightly behind" the prior year and highlighted that its Entertainment division was impacted by an ongoing slowdown in the global games industry and subsequent content creation contraction.

As of 0940 BST, Oxford Metrics shares had sunk 20.08% to 63.30p.

Reporting by Iain Gilbert at Sharecast.com