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Oxford Metrics Group (OMG)

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OLTB
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Oxford Metrics Group (OMG)

#268873

Postby OLTB » December 3rd, 2019, 5:29 pm

Evening all

This lovely share reported today with some upbeat figures namely:

Revenue up 11.7%
Adjusted profit before tax up 5.7%
Dividend up 20%
Net cash balance of £13.8m

Further info here https://www.investegate.co.uk/article.a ... 700094151V

It has two businesses - Yotta, that helps local govt agencies and infrastructure owners with cloud based magic and Vicon, which is motion measurement analysis - lots of big customers.

I hold in my small, small cap portfolio and wish I'd bought more!

Cheers, OLTB.

jackdaww
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Re: Oxford Metrics Group (OMG)

#268876

Postby jackdaww » December 3rd, 2019, 5:43 pm

and i believe a third business - alloy -- something to do with street lights .

:)

simoan
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Re: Oxford Metrics Group (OMG)

#268883

Postby simoan » December 3rd, 2019, 5:57 pm

OLTB wrote:Evening all

This lovely share reported today with some upbeat figures namely:

Revenue up 11.7%
Adjusted profit before tax up 5.7%
Dividend up 20%
Net cash balance of £13.8m

Further info here https://www.investegate.co.uk/article.a ... 700094151V

It has two businesses - Yotta, that helps local govt agencies and infrastructure owners with cloud based magic and Vicon, which is motion measurement analysis - lots of big customers.

I hold in my small, small cap portfolio and wish I'd bought more!

Cheers, OLTB.

Hi OLTB,

Yes, I hold some OMG in my SIPP and have done for a few years now. Perhaps I woke up in a strange mood this morning but I wasn't sure what to make of the FY19 results and I'm left slightly surprised by the share price reaction today, particularly in light of the general market sell off. I thought the market would react somewhat differently to the results - the growth in EPS was only 3.1%, up to 3.33p which gives a FY19 PER of 28 at today's closing price. That seems pretty rich to me for a company growing earnings so slowly and with operating margin down a whole 2% from FY18. However, the increase in dividend was welcome and another special cannot be far off if cash generation continues to be so healthy.

For me the results were a mixed bag. I'm not selling but not buying any more either.

All the best, Si

simoan
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Re: Oxford Metrics Group (OMG)

#503738

Postby simoan » May 30th, 2022, 11:42 am

Great news from OMG this morning!
https://www.investegate.co.uk/oxford-me ... 00081604N/

To have sold Yotta, a barely profitable part of the company for £52m in cash (equivalent to 6.5x FY21 sales) is a great deal for shareholders. By way of comparison, as of the close on Friday the whole company was valued at 3.7x sales. This leaves only the highly profitable Vicon division to allow management to fully concentrate their efforts on growing the company. This will undoubtedly be through acquisition, so there is a danger there, but it seems a pretty good time to be cashed up and looking for bolt-on acquisitions. Current Market Cap is £127m of which more than £70m is likely to be in cash following the sale.

I bought back in this morning for around the same price as I sold out last year. The valuation now makes a lot more sense and even though the share price has shot up today you can still make a case for it being cheap, if you do the sums. Interim results are due on 23rd June.

Funnily enough I was only reading this article by Richard Beddard yesterday: https://knowledge.sharescope.co.uk/2022 ... ge-lseomg/

All the best, Si

WickedLester
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Re: Oxford Metrics Group (OMG)

#503820

Postby WickedLester » May 30th, 2022, 5:33 pm

I've previously been a shareholder of OMG and did very nicely out of them. I saw the price had shot up today and then saw the news and thought that was a great price for a business which is only just about profitable.

I agree the shares are very interesting again, even after today's rise and I'll definitely have a better look at them this week.

As simoan says they should have around £70m in net cash and Vicon is an excellent business. If they can achieve their targets then there is plenty of growth to come and they now have the cash to make a transformational acquisition without gearing up the balance sheet.

simoan
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Re: Oxford Metrics Group (OMG)

#503831

Postby simoan » May 30th, 2022, 7:12 pm

WickedLester wrote:I've previously been a shareholder of OMG and did very nicely out of them. I saw the price had shot up today and then saw the news and thought that was a great price for a business which is only just about profitable.

I agree the shares are very interesting again, even after today's rise and I'll definitely have a better look at them this week.

As simoan says they should have around £70m in net cash and Vicon is an excellent business. If they can achieve their targets then there is plenty of growth to come and they now have the cash to make a transformational acquisition without gearing up the balance sheet.

I think worst case (assuming the sale of Yotta goes ahead) they will have £70m cash which leaves Vicon valued at £59m at the current market cap of £129m at close today. That equates to 2.1x FY21 sales for Vicon which is plain stupid cheap for such a high quality profitable business. Only a few weeks to go until the interims which should be interesting and provide more up to date financial information on which to value Vicon standalone.

WickedLester
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Re: Oxford Metrics Group (OMG)

#504046

Postby WickedLester » May 31st, 2022, 6:16 pm

I bought a few shares today in anticipation of the results. The way I see it is if they achieve their growth targets then they are dirt cheap and if they don't they are worth today's price. The only way I can see this going wrong is if they spend that £70m on a lemon but their record is good so I hope that won't happen.

simoan
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Re: Oxford Metrics Group (OMG)

#593530

Postby simoan » June 6th, 2023, 1:03 pm

Realise I am likely talking to myself, but...

Lovely set of HY results from OMG today: https://www.londonstockexchange.com/new ... s/15986131

Gross margin rock solid at 67% and a juicy 16% operating margin. Fabulous stuff in these inflationary times. Add to that strong forecast EPS growth and an ahead of current market expectations update for FY23. And you can get all of this this with 49 pence per share in cash on the balance sheet for just over a quid. A lovely little growth company operating in a lovely niche, and a couple of days after Apple announced their first VR headset. Even a magnificently covered 2.8% dividend yield for those of that persuasion. I just hope the company stays independent long enough to enjoy the growth...

I just bought some more.
All the best, Si


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