Oxford Metrics has reported a decline in sales and profits, attributing this to longer decision-making times by customers.
- Revenue decreased by over 6%, with adjusted pre-tax profits more than halved, highlighting financial challenges.
- The entertainment segment was notably affected, showing the impact of a global slowdown in the gaming industry.
- Despite setbacks, Oxford Metrics experienced growth in UK and European sales, counterbalancing declines in other regions.
- Acquisition of Sempre and a positive cash position indicate continued strategic investments by the company.
Oxford Metrics has released its financial results, showing a notable decline in both sales and profits for the year leading up to September. The company attributed this downturn to extended buying cycles, which have lengthened decision-making times across its customer base. Revenues fell to £41.5 million, marking a decrease of just over 6% from the previous year. Adjusted pre-tax profits dropped significantly, landing at £3.7 million—more than half of the previous figure.
The entertainment segment was particularly impacted, as the global games industry faced a slowdown, affecting related content creation efforts. Furthermore, delays in academic funding also brought challenges to the engineering and life sciences sectors. Despite such setbacks, Oxford Metrics acknowledged having made operational progress throughout the year.
The company performed well in the UK and Europe, with sales rising by 34% and 11% respectively, yet these gains were overshadowed by declines in other markets. Sales in Asia dropped by 35%, while a 7% decline was observed in the United States. The company correlated these downturns to the broader global games industry slowdown, which significantly influenced purchasing behaviors.
In light of these challenges, Oxford Metrics has continued to pursue strategic growth. In October, it acquired Sempre, a measurement specialist, in a transaction valued at £5.5 million. The company boasts a robust cash position, which it intends to leverage for future acquisitions, underscoring its commitment to overcoming current market adversities.
The company’s stock experienced a slight recovery, with shares increasing by 2% to 53p in early market trading. This uptick follows a period where the share value had dropped significantly since the beginning of the year, reflecting investor concerns tied to the company’s performance expectations.
Oxford Metrics remains cautiously optimistic, leveraging strategic investments to navigate market challenges and capitalize on growth opportunities.
