The motion-capture specialist's shares tumbled after it flagged a swing to an operating loss, blaming a slowdown in film, games and research spending.
Oxford Metrics (AIM: OMG) shares fell sharply on Friday after the motion-capture technology group warned that full-year profit would fall well short of market expectations, as weaker demand from the entertainment and research sectors hit its Vicon business. The stock was down 11% as the warning landed, with the group now guiding to an adjusted operating loss of between £0.5m and £3.9m for its extended 15-month financial period, versus analyst forecasts of a £3m profit, on revenue of £47m to £51m.
The scale of the downgrade explains the sell-off: trading has been running below plan since June, with Vicon's entertainment arm hit by studio consolidation, softer demand for virtual-production stages, and reduced investment across film, television and games. Research-driven sales in health and life sciences were also delayed as funding budgets tightened, while the group's vision metrology unit was knocked by a holdup to a major contact-lens inspection contract.
Not every part of the business is struggling. Oxford Metrics said its robotics division had continued to win orders from major players, including contracts tied to humanoid robot development and drone tracking, offering a rare pocket of growth amid the broader slowdown.
Management responded to the profit warning by announcing accelerated cost savings, the acquisition of move:ai to push further into 'markerless' motion capture and recurring software revenue, and a small share buyback, as part of a stated ambition to position the group as a broader 'movement intelligence' platform for AI-enabled markets. The company also confirmed Stefan Lampa will join as chief executive in December.
Oxford Metrics said it expects profit to recover in its next financial year, but investors reacted to the immediate scale of the downgrade rather than management's longer-term reassurances, and further share price weakness cannot be ruled out as the market digests the revised guidance.
This report is based on Oxford Metrics’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Alexander Dummer on Unsplash.
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