OMG posts higher full-year losses but successful sale of US division brings hope
Computer vision products group OMG saw its full-year losses widen but remains confident with its performance for the year ahead after selling its US image software business.
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The company sold 2d3, a motion imagery software company based in California, for £16.8m during the period, which will reduce volatility of its revenue and profit steams, and improve earnings in the future.
However, revenues declined 7% to £13.3m and pre-tax losses widened 37% to £2.9m over the period, which ended 31 March 2015. Losses per shares also rose to 1.73p from 1.36p.
The results were hurt by delays of its Vicon deal, which was delivered during the second half, instead of the first, as previously expected.
As a result, Vicon's revenues declined 6% to £7.7m despite securing a number of deals.
Chief executive Nick Bolton said: "As we enter the second half, we believe that we have a solid platform in place and we remain focused on actively pursuing new routes such as licensing or partnership to maximise the value of our IP and to generate further shareholder value."
Furthermore, it announced a special dividend of 5p per share additionally to an initial dividend of 4.5p paid in May following the sale of 2d3.
Looking ahead, the group is confident that it will meet current market expectations for the full-year.
N+1 Singer analysts said the results highlighted the strength in depth within the group.
"We make only minor adjustments to our forecasts and believe the group will continue to deliver increased shareholder value," the brokr said.
Shares were up 3.45% to 45p on Tuesday at 11:50.