Trading Update

RNS Number : 4215Q

OMG PLC

19 October 2011

 



19 October 2011

OMG plc

('OMG' or the 'Group')

Trading Update

OMG plc, (LSE: OMG), the technology group providing image understanding products for the entertainment, defence, life science and engineering industries, provides the following update on trading for the financial year ended 30 September 2011.

Following a challenging first half, the Group's broad portfolio of businesses has traded reasonably well through the second half. However, the funding situation of one significant project within the Group's House of Moves business remains unresolved, as described further below. Consequently, the Group expects full year revenues to be in excess of £27m delivering a small adjusted profit before tax. The Group ended the year with a net cash balance of £2.8m.

During the second half several of the Group's businesses have continued to deliver good growth and prove their long-term potential. The Group's core Vicon systems business reported growth over the first half of this financial year and exceeded revenues reported in the second half of last financial year. Furthermore, the Group's 2d3 defence business has maintained its strong growth momentum, winning important new contracts and reporting a significant rise in revenues over the last financial year. Yotta UK, however, has faced a more challenging business environment and revenues have continued to be impacted in the second half by the effects of the Government's Comprehensive Spending Review. Lastly, the Group remains excited by the prospects for OMG Life, its recently launched consumer facing business, and has continued to invest in OMG Life ahead of a key product launch which remains on track for the current financial year.

The performance of the Group's House of Moves business has continued to be significantly impacted by the funding situation at one large client engagement: the Guardian Project. First highlighted in the Group's Interim Results in May, funding of the Project remains unresolved and the Group remains unpaid for services provided by House of Moves during the first half. Whilst the Board still believes that the Group could ultimately be paid, it now considers it unlikely that payment will be within a timeframe that would permit recognition of associated revenue in this year's financial results.

The Group expects to announce Preliminary Results for the financial year ended 30 September 2011 on Thursday 1 December 2011.

For further information please contact:

OMG plc	[phone]
Nick Bolton, CEO
David Deacon, CFO
FTI Consulting	[phone]
Matt Dixon / Emma Appleton / Charles Palmer
Evolution Securities (NOMAD to OMG)	[phone]
Jeremy Ellis / Chris Clarke

About OMG

OMG plc (Oxford Metrics Group. LSE: OMG) is a group of technology companies producing image understanding products and services for the entertainment, defence, life science and engineering industries.

Be it for capturing the movements of actors (for the movie industry),sportsmen (for video games or improving team performance), or children with Cerebral Palsy, rehab patients and animals (for medical, life science and research industries); or recording the condition of highways and the assets that surround them; or even providing image intelligence and situational awareness from drone aircraft. Through this diversified offering the Group has earned its strong international reputation for precision from pixels.

Founded in 1984, the Group is headquartered in Oxford, UK, and has four offices in the US and two in the UK. It has customers in over 50 countries and is a quoted company listed on AIM, a market operated by the London Stock Exchange. The Group trades through four operating subsidiaries: Vicon, the world's largest motion capture and movement analysis company, 2d3, a manufacturer of specialised image understanding software for defence applications, Yotta, our highways surveying business and OMG Life our new consumer subsidiary.

The Group's global clients spanning the worlds of science, medicine, sport, engineering, gaming, film and broadcast include: major hospitals and research facilities such as Guy's Hospital, Nuffield Orthopaedic Centre and Loughborough University, engineering industry leaders including: Ford Motor Company, BMW, Airbus and Toyota, and in the entertainment sector; Sony, Industrial Light and Magic, The Moving Picture Company (MPC), Sega, Nintendo, UbiSoft, EA and Square Enix. In surveying clients include Atkins and Oxfordshire, Cumbria, Derbyshire and Pembrokeshire County Councils as well as many others.

For more information about OMG and its subsidiaries, visit www.omgplc.com, www.vicon.com, www.2d3.com, www.yottadcl.com.

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