Oxford Metrics shares hit on trading update

Shares in Oxford Metrics dropped on Monday (September 23) as the smart sensing firm issued a trading update for its financial year to September 30.

In a statement, the company said it now expects to report revenues between £40m and 42m, which is expected to result in adjusted pre-tax profit (PBT) that was "materially below current market expectations" for the financial year.

READ MORE: Oxford Metrics posts reports of strong growth in half year report

That is based on the firm's own compiled market consensus (on Sep 20), which was for revenue £48.6m and adjusted PBT of £7.8m. Preliminary results for the fiscal year are expected to be released on December 3 this year.

"While the Group continues to have a healthy pipeline, the trend of more extended buying cycles has developed in the second half against a strong prior year comparative," it said.

"Globally, we are seeing customers across our markets exercising greater caution and purchasing decisions are taking longer to conclude. A number of opportunities in the pipeline have now shifted into the new financial year."

That said, the firm's motion capture technology Markerless remains on track for commercial delivery in FY25, it said.

Three more blue chip partners have been secured to enter the beta programme taking the total to ten cornerstone customers, the company added.

The group continues to have high gross margins and remains in a strong financial position with a robust current net cash position of around £50 million, 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 (IVS), it said.

"We are excited about the opportunities open to us to drive more applications into the smart manufacturing space to build the group's position in this important market."

In London on Monday, shares in the company fell around 20% to 63p.