Oxford Metrics has announced a downward revision of its financial forecast due to increased customer caution, significantly impacting its shares.
- The company has revised its full-year pre-tax profit predictions, now expecting figures significantly below the previous £7.8m market expectation.
- Revenue forecasts have also been adjusted to between £40m and £42m, a decrease from the earlier £48.6m target, due to longer buying cycles and deferred opportunities.
- The entertainment division is affected by a slowdown in the global games industry, while the life sciences division is slightly trailing last year’s performance.
- Stock prices fell by 23%, with the company exploring new M&A opportunities to bolster its smart manufacturing sector.
Oxford Metrics has been compelled to revise its financial projections for the remainder of the year as it navigates increased caution among its customer base. The company’s decision to adjust its forecast has led to a substantial drop in its share price by around 25%.
The company’s latest guidance suggests that pre-tax profits will fall significantly short of the initial £7.8 million market forecasts. This revision reflects the broader trend of extended purchasing cycles observed in the second half of the year.
Oxford Metrics has adjusted its revenue expectations from £48.6 million to a new range of £40 million to £42 million, attributing this change to delays in concluding purchasing decisions, pushing several potential deals into the following financial year.
Its entertainment division is grappling with a global slowdown in the gaming industry, which has adversely affected content creation. Meanwhile, its life sciences segment is not expected to match last year’s £14.8 million turnover.
Despite these challenges, the company remains proactive in seeking new mergers and acquisitions, powered by a substantial £50 million cash reserve. This strategic move follows the recent acquisition of Industrial Vision Systems, aiming to strengthen its position in the smart manufacturing market.
As Oxford Metrics approaches the publication of its full-year results on 3 December, the focus remains on adapting to shifting market dynamics under the leadership of new CEO, Imogen Moorhouse, who has been at the helm for just over a year.
Oxford Metrics faces significant financial adjustments as it recalibrates its strategy to navigate current market uncertainties.