As we approach the Small Cap Awards, due to take place on 25th June, Master Investor profiles some of the companies shortlisted. Oxford Metrics has been shortlisted for the Technology Company of the Year award.
- Please provide a brief description of the business
Oxford Metrics plc is a global software company, founded in 1984, enabling clients in motion measurement and infrastructure asset management to capture, analyse and visualise data. By analysing the metrics that matter most to them, clients can make more informed and ultimately, better decisions.
The Group’s subsidiaries, Vicon, the world leader in high precision motion measurement, and Yotta, a provider of cloud-based infrastructure asset management software, have a diversified customer base with blue chip customers including Guy’s Hospital, EA Sports, MIT and NASA. Oxford Metrics solutions are helping to accelerate the rehabilitation of injured elite athletes; creating new immersive, free-to-roam Virtual Reality experiences; making highways safer and cheaper to maintain; and making sure domestic waste is efficiently collected from our doorsteps.
- 2019/20 was clearly a strong year for the company, to what do you attribute your success?
2019 was another year of clear growth for the Group, setting a new record for revenue performance. Just over half-way through the current five-year plan, the business made demonstrable progress through the “amplify the core” strategy. This strategy recognises the business operates in exciting markets, with differentiated products and loyal customers, and from this strong platform aims to amplify their visible, material capabilities. The demand for more precise capture and analysis of data has been clear in an ever-increasing number of applications.
The strategy is delivered through three key organic mechanisms:
- Using market and technology insights to guide R&D investment to increase product range and solution differentiation.
- Developing new adjacent vertical and geographical market opportunities either directly or indirectly through partners.
- Improving quality of earnings by developing annual recurring revenue through SaaS opportunities, which are recurring and high quality in nature and building long-term relationships with repeat customers.
Oxford Metrics strategy and business model promotes long-term value for shareholders through driving profitable growth and it is delivering strong results. The strategy has a clear path for organic growth and is also seeking earnings-accretive acquisitions that increase the visibility of revenues.
Oxford Metrics consistently maintains a robust balance sheet and a strong cash position, ensuring the Group is resilient through evolving macro and micro-environments. Operating in multiple vertical markets with customers in over 70 countries and having no significant exposure to sectors most affected by current lockdowns means the impact of localised economic downturn in any one market or geography is minimised.
- How would you characterise the long-term drivers for your business?
Looking to the future, although no one can be certain of the challenges the aftermath this current pandemic will bring, Oxford Metrics has exciting growth prospects and is ready to navigate the current challenges with an improved level of revenue visibility, a strong balance sheet with £14.2m in cash as at 20 May 2020 and remains debt-free. The Group has core fundamentals to remain resilient but also the vision, and creativity, to help reimagine new ways of working post the pandemic.