30 may 2013 omg plc · o vicon technology used in chart-topping video games including dead island...

30 May 2013

OMG plc

(“OMG” or the “Group”)

Interim Results for the six months ended 31 March 2013 OMG plc (LSE: OMG), the technology group providing image understanding products for the entertainment, defence, life science and engineering industries, announces interim results for the six months ended 31 March 2013. Financial Key Points

Group Revenue of £13.0m (H1 FY12: £13.6m)

Group Adjusted* Loss before Tax of £0.2m (H1 FY12: Adjusted* PBT of £0.7m) o Overall Group trading is in line with market expectations at half year end o Increased investment in OMG Life to prepare Autographer for volume launch

Group Cash position stable at £4.0m (H1 FY12: £3.9m) Operational Key Points

Vicon o Launched Apex – a new 3D interaction device for the engineering market o Continued sales traction from Bonita mid-range of cameras o Vicon technology used in chart-topping video games including Dead Island

Riptide, Call of Duty: BlackOps II and God of War: Ascension, and also in the forthcoming summer blockbuster film, World War Z

Yotta o Continued good sales momentum for SaaS-based Horizons platform o Significant multi-year contract wins nationwide including Cardiff, Carillion M40,

West Sussex, Hillingdon and others o Five accredited survey vehicles now live with promising survey pipeline for H2

2d3 o New versions of Tungsten, TacitView and Catalina software suites launched o Partnership announced with Insitu Inc., a wholly owned subsidiary of The Boeing

Company, for Tungsten software o US sequestration has delayed the timing and shape of certain deals but pipeline

remains strong

OMG Life o Increased investment in Autographer to provide a platform for growth o 250 devices rigorously field tested and reviewed worldwide o Autographer product now ready for volume shipping, commencing 30 July 2013

Commenting on the results Nick Bolton, Chief Executive Officer said: “The first half of this year has seen a number of developments. Some of those, particularly in 2d3, have been challenging where we find ourselves with a great product, a strong customer pipeline, but also uncertainty in US Government budgets caused by sequestration. In spite of that, we’ve made a good number of real steps forward for the business in H1, such as further sales momentum with our Horizons platform in Yotta, the continued appeal of our Bonita

range in Vicon and the finishing touches we’ve put to our ground breaking Autographer product. That work has required greater investment than we first envisaged, but the Board firmly believes that it will help to generate important sales progress in the second half and beyond.” * Profit Before Tax from continuing operations before Group recharges adjusted for share based payments, amortisation of intangibles arising on acquisition, fair value adjustment to contingent consideration, unwinding of discount on contingent consideration, acquisition costs and redundancy costs. (See note 3)

For further information please contact: OMG plc +44 (0) 1865 261800 Nick Bolton, CEO David Deacon, CFO FTI Consulting +44 (0) 20 7831 3113 Matt Dixon / Emma Appleton / Charles Palmer N+1 Singer (NOMAD to OMG) +44 (0) 20 7496 3000 Shaun Dobson / Jenny Wyllie About OMG plc 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 leader movement analysis systems; 2d3 Sensing, providing video intelligence software for defence and civil applications, Yotta DCL, our infrastructure software and services business and OMG Life, our 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, Sega, Nintendo, UbiSoft, EA and Square Enix. Infrastructure clients include Highways Agency, Atkins and Cumbria, Derbyshire and Pembrokeshire County Councils amongst others. For more information about OMG and its subsidiaries, visit www.omgplc.com, www.vicon.com, www.2d3.com, www.yottadcl.com and www.autographer.com

http://www.omgplc.com/

http://www.vicon.com/

http://www.2d3.com/

http://www.yottadcl.com/

http://www.autographer.com/

Chairman and Chief Executive’s Statement

The first half of this year has been a busy period for OMG across all areas of our business.

In this first six months, we have continued to refine and develop our core Vicon technology;

sharpened our execution within Yotta; consolidated 2d3’s presence in the US defence

market; and tuned the Autographer product so it is now ready for shipping in volume.

Since October 2013, a number of our most important initiatives have started to deliver real

traction. For example, within Yotta, our Horizons software continues to prove its potential by

achieving seven new wins and helping to inject an element of visibility and predictability to

revenues here. Similarly, within Vicon, the latest Bonita range of mid-priced cameras that we

introduced in May of last year has helped to stimulate upgrades from existing customers to

higher value T-Series systems. This is an encouraging trend and we expect to see more of it

in future years.

We have also seen challenges during the period that have held back progress in certain

areas. Our product offering within 2d3, for example, remains excellent and interest from

customers remains high. Sequestration in the US, however, has pushed out the timing of

certain deals and altered the shape and scope of others. Whilst it is easy to be frustrated by

events of this kind, we remain firmly of the view that our long-term position in this market is

strong. A number of potential customers are actively seeking ways to work around

sequestration issues to ensure they can purchase our technologies. That will inevitably take

time to deliver results, but it is an indication of our products’ strengths and an encouraging

signal to us as a Board.

In spite of short term challenges, our attention remains firmly focused on the long term

potential for our Group. To that end, innovation has been a key feature of the first half of the

year. Each of our innovations, be it Autographer, our new Apex product within Vicon or our

new fleet of vehicles within Yotta, has been developed to target a real, emerging sales

opportunity. Our task in the second half is to focus on realising this opportunity. The

important and significant investments we have made in recent months will play a key role in

helping us achieve this goal.

Financial Summary

KPI H1 FY13 H1 FY12 Change

Group Revenue £13.0m £13.6m -£0.6m

Group Cash position £4.0m £3.9m +£0.1m

Group Adjusted* – (Loss) Profit before Tax (£0.2m) £0.7m -£0.9m

During the first half, Group revenue decreased year on year by 4.0% to £13.0m (H1 FY12:

£13.6m). The Group reports an adjusted* loss before tax for the period of £0.2m (H1 FY12:

Profit £0.7m). Overall, the Group excluding OMG Life is trading as expected and consistent

with market expectations but the increase in costs in OMG Life to prepare Autographer for

volume shipment largely accounts for the decrease in profits compared to the first half of last

year. Cash at bank as at 31 March 2013 stood at £4.0m (H1 FY12: £3.9m).

OMG Vicon

Revenue PBT Adjusted* PBT

H1 FY13 H1 FY12 H1 FY13 H1 FY12 H1 FY13 H1 FY12

Vicon UK £4.2m £4.7m £1.9m £1.4m £1.4m £0.9m

Vicon US £4.1m £4.3m £0.4m £0.3m £1.6m £1.6m

Total Vicon £8.3m £9.0m £2.3m £1.7m £3.0m £2.5m

HoM £1.2m £1.5m (£0.4m) £0.0m (£0.4m) (£0.0m)

Our Vicon systems’ business reported a solid start to FY13 with an improved adjusted* PBT

of £3.0m (H1 FY12: £2.5m), despite seeing a modest decline in revenues (H1 FY13: £8.3m

vs. H1 FY12: £9.0m). This improved profit position reflects the cost reduction measures

implemented in the first half of FY12 and the changing nature of the mix of product

revenues. It is worth noting this revenue performance was achieved from a diverse set of

countries and without any dependency on any single large deals; the largest system

purchase in the first half totalled £230,000. This indicates the broad geographic appeal of the

differentiated product and the robustness of the subsidiary’s revenues.

The product highlight of the half was the launch and shipment of the company’s new Apex

product. Apex is a 3D interaction device about the size of a small football. The device is held

in the hand and enables users to manipulate objects in virtual reality environments. This

enables engineers to get a better understanding of the impact of their design choices before

going into production. Apex is a great new addition to the company’s offer in the engineering

market and we expect it to drive sales in this sector through the second half and into next

year.

Bonita sales continue to grow as a proportion of overall shipments. Bonita is Vicon’s entry-

level camera range and has opened the world of precision tracking which Vicon has always

offered, at a more accessible price point. Bonita uses all the same software as the top-end

product, the T-Series, enabling the customer to preserve their learning investment as they

grow with the company’s product ranges. In fact, we saw a number of Bonita customers

upgrade their systems to T-Series in the first half.

The outlook for Vicon Systems for the second half is positive, with further shipments of the

new product releases, the business expects Vicon to deliver market expectations.

House of Moves, our motion capture and animation services studio in Los Angeles, reported

revenues of £1.2m (H1 FY12 £1.5m) and an adjusted* operating loss of £0.4m (H1 FY12:

Breakeven) before allocation of Group overheads. The entertainment market as a whole

remains unpredictable and, as a consequence, demand for our services remain volatile.

OMG Yotta



Yotta UK £2.5m £2.0m (£0.5m) (£0.4m) (£0.2m) (£0.2m)

Yotta reported revenues up 24.4% compared to the same period last year at £2.5m (H112:

£2.0m). Despite challenging weather during the winter months, which affected operational

efficiency, revenues increased following a further seven Horizon software deals in the first

half. Horizons is provided as a Software as a Service (SaaS) product, so customers pay a

repeatable annual fee to gain access to the product’s capabilities. In addition, professional

services consulting revenues also improved which, together with the increased software

revenues, saw the revenue mix shift favourably away from weather-dependent surveying

revenues.

There were significant multi-year contract wins at Cardiff, Carillion M40, West Sussex and

the London Borough of Hillingdon amongst others. Of particular note was the East Sussex

strategic partnership win. Yotta has provided highway surveying to East Sussex for many

years and this award, won through competitive tendering, highlights the value the company

can offer through its Horizons product and its consultancy services, particularly in the area of

strategic advice. The range of work will include consolidating networks, generating National

Indicator and Whole of Government Accounting reports and helping with gap analysis to

identify existing and missing data.

Post period end, Yotta has been awarded a contract to help Hertfordshire County Council –

a longstanding client – to develop cost-effective asset data collection regimes to manage

and improve its road network. This contract was won through competitive tender process

and validates the strength of Yotta’s broader-based offer.

The outlook for the second half is encouraging, the company now runs a fleet of five

accredited highways measurement vehicles which are now engaged in revenue earning

activities including the premier TRACS contract with the Highways Agency announced

previously. The pipeline for Horizons is also promising for the second half, so as a whole

Yotta is expected to deliver market expectations.

OMG 2d3



UK £0.2m £0.2m (£0.2m) (£0.1m) (£0.1m) £0.0m

US £0.8m £0.9m (£1.0m) (£0.5m) (£0.7m) (£0.3m)

Total 2d3 £1.0m £1.1m (£1.2m) (£0.6m) (£0.8m) (£0.3m)

2d3, our intelligence from imagery business serving the defence and civil aviation industry,

reported revenues of £1.0m (H1 FY12: £1.1m) and an adjusted* operating loss of £0.8m (H1

FY12 loss: £0.3m) before allocation of Group overheads. The increased loss reflects the

Group’s increased investment in demand generation, including the recruitment in the first

half of three industry veterans into business development roles. These investments are

building on the success the business enjoyed in the second half of last year, when the

company was awarded two software license deals in excess of $1m each.

The business as a whole is largely dependent on the US Defence market and as a

consequence revenues are skewed toward the second half as was the case last year. Whilst

the Group believes that defence budgets for Intelligence, Surveillance and Reconnaissance

(‘ISR’) will ultimately be protected, the announcement by the US Government of

sequestration measures in March 2013 affecting military budgets has resulted in some

uncertainty. For 2d3, this has manifested itself with a number of deals being subject to delay

and in some cases deals which had been previously a co-operative acquisition by several

defence agencies have now been split into separate opportunities.

2d3 were busy in the first half introducing new versions of their software suite, including

Tungsten, TacitView and Catalina. More recently, they have launched a further capability in

those products, Reticle FMV (Full Motion Video) metadata improvement and geo-

registration. The geospatial data in video streams from aerial sources is often of poor quality

with frequent errors and containing no information as to where the image is positioned on the

earth’s surface. Reticle offers both automatic and user-managed remedies enabling the

creation of more useful intelligence product from surveillance imagery with better geospatial

accuracy.

On the partnership side, 2d3 announced it will supply Insitu Inc., a wholly owned subsidiary

of The Boeing Company, with Tungsten, 2d3’s digital media management and exploitation

software. Tungsten will be integrated into Insitu’s ICOMC2 (Insitu Common Open-Mission

Management Command and Control) solution. This allows users to access multiple video

streams simultaneously from an unmanned aircraft in real-time. Going forward Tungsten will

play an integral role in ICOMC2’s motion imagery infrastructure.

The 2d3 pipeline for the second half is the highest ever but the sales effort to close and

manage multiple opportunities is an additional challenge and problematic to forecast. In

summary, sequestration does not appear to have reduced the opportunity for 2d3 but some

deals expected in FY13 are now likely to shift into FY14. From a revenue perspective the

Board believes that the operation is on target to fulfil market expectations but will require

closure of other revenue opportunities in a currently uncertain defence market to hit profit

targets as well.

OMG Life



OMG Life UK £0.0m £0.0m (£1.1m) (£0.3m) (£1.0m) (£0.3m)

As highlighted at the AGM in March 2013, the Company has increased investment in OMG

Life, our consumer market subsidiary, to provide a platform for growth. As a result, the

operation reported an adjusted* loss of £1.0m (H1 FY12 Loss £0.3m).

In the first half, the Company has been focussed on bringing its first product, Autographer, to

market. Autographer is the world’s first automatic wearable camera and generated a

significant amount of market interest following its launch in September 2012. Since then the

Company has manufactured over 250 devices, which have been in active use around the

world. All the feedback from the millions of unique images captured has been used to fine-

tune both the technology and the proposition to ensure the product fully meets the demands

of the consumer marketplace.

The pioneers who have been using these first Autographers have provided us with a range

of new insights into the product’s benefits. Users valued the truly natural, unposed nature of

the images and the fact that the camera didn’t interrupt the event they were wanting to

capture – they could get on with rowing the boat, climbing the mountain and enjoying the

moment rather than having to think about getting their camera out. The unique, wide-angle

lens was viewed as an essential part of the product which added creative interest and wider

context to all images - ensuring no action was missed, capturing landscapes from captivating

new perspectives and portraying more life than a standard narrow angle lens. They loved the

way the camera and software allowed them to manage a large number of images and simply

create a video storyboard from the sequence of pictures; they saw the output as neither

photography nor video but something new and exciting - Autography.

These behavioural insights have been used to hone our marketing plans and equally the

large body of images taken through the testing process have been used to optimise the

technology. The camera now takes the very best possible shot in a wide variety of

environments and situations – indoors and outdoors, portraits and landscapes, rural and

urban.

All this excellent work means the product is now ready for volume shipping, which will begin

on 30 July 2013. The product will be sold direct online via www.autographer.com. Due to the

high level of global interest in the product, availability will be staggered by region so initial

demand can be managed. Shipping will commence into European countries and then open

up to the US and wider thereafter. As the volumes develop we will update the market in the

full year results.

Given the size of the market opportunity across the globe, it is clear Autographer has the

potential to transform the shape of the Group, by providing an outlet for our excellent

previously B2B only technology in the broader consumer marketplace. We look forward to

updating the market with volume sales data at the time of the full year results. In the

meantime, the blog on the Autographer website is the best way to stay up-to-date with

developments and share in the excitement of the project.

Outlook

As is typical for our Group, we anticipate delivering a second half trading performance that is

stronger than the first half. At a Group level we anticipate our full year revenue performance

will be in line with current market expectations, driven both by continued sales of existing

products and a full trading opportunity for new products introduced in the first half. The

second half will see us achieve a number of important trading milestones, such as the first

volume sales of Autographer and increased adoption of Horizons by new and existing Yotta

customers.

Whilst this strong trading expectation reaffirms our belief in the Group’s product offering and

strategy, we believe that our profitability performance for the full year will now be a degree

below current market expectations. Primarily this is due to the important investments we

have made in bringing Autographer to market: a product that will help to generate sales

momentum in the second half and beyond.

The Board remains confident in the Group’s strategy; in the strength of its offering and

position in key markets; and of its ability to deliver sustained, balanced and profitable growth

over the long term.

CONDENSED CONSOLIDATED INCOME STATEMENT

Six months ended

31 March 2013

Six months ended

31 March 2012

Year ended

30 September 2012

(unaudited) (unaudited) (audited)

Note £'000 £'000 £'000

Revenue 2 13,044 13,587 29,504

Cost of sales (5,599) (5,780) (11,797)

Gross profit 7,445 7,807 17,707

Sales, support and marketing costs (2,178) (2,139) (4,681)

Research and development (1,929) (1,195) (2,697)

Administrative expenses - exceptional - (186) (203)

- other (3,946) (3,937) (7,986)

Other income 22 23 168

Operating (loss)/profit (586) 373 2,308

Finance income 5 3 8

Finance expense (155) (1) (540)

(Loss)/profit before taxation 2,3 (736) 375 1,776

Taxation 4 232 (58) (685)

(Loss)/profit from continuing operations (504) 317 1,091

Profit/(loss) on discontinued operation net of tax 2 (36) (34) (Loss)/profit for the period attributable to owners of the parent during the period

(502) 281 1,057

Basic (loss)/earnings per share (pence) 5 (0.70)p 0.39p 1.48p

Diluted (loss)/earnings per share (pence) 5 (0.70)p 0.39p 1.43p

Continuing operations

Basic (loss)/earnings per share (pence) 5 (0.70)p 0.44p 1.53p

Diluted (loss)/earnings per share (pence) 5 (0.70)p 0.44p 1.47p CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended

31 March 2013

Six months ended

31 March 2012

Year ended

30 September 2012


Note £'000 £'000 £'000

Net (loss)/profit for the period (502) 281 1,057

Other comprehensive income

Currency translation differences 199 29 (52)

Tax recognised directly in equity 40 14 (2)

Total other comprehensive income 239 43 (54)

Total comprehensive income for the period attributable to the owners of the parent

(263) 324 1,003

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 March

2013 31 March

2012 30 September

2012 (unaudited) (unaudited) (audited)

Note £'000 £'000 £'000

Non-current assets

Intangible assets 6,057 4,426 5,329

Goodwill 6,886 6,665 6,638

Property, plant and equipment 2,275 2,144 2,162

Financial asset – investment 69 69 69

Deferred tax asset 855 700 362

16,142 14,004 14,560

Current assets

Inventories 2,478 1,876 1,874

Trade and other receivables 7,353 7,770 9,415

Cash and cash equivalents 3,959 3,934 4,341

13,790 13,580 15,630

Current liabilities

Trade and other payables (6,253) (4,863) (6,115) Current tax liabilities (104) (1) (36)

(6,357) (4,864) (6,151)

Net current assets 7,433 8,716 9,479

Total assets less current liabilities 23,575 22,720 24,039

Non-current liabilities

Financial liabilities (1,486) (1,964) (2,255)

Deferred tax liability (1,911) (1,468) (1,742)

(3,397) (3,432) (3,997)

Net assets 20,178 19,288 20,042

Capital and reserves attributable to the owners of the parent

Share capital 6 182 179 179

Shares to be issued 65 65 65

Share premium account 7,029 7,002 7,028

Merger reserve 4,008 3,546 3,546

Retained earnings 8,716 8,436 9,245

Foreign currency translation reserve 178 60 (21)

Total equity shareholders’ funds 20,178 19,288 20,042

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS

Six months ended

31 March 2013

Six months ended

31 March 2012

Year ended

30 September 2012


Note £'000 £'000 £'000

Cash flows from operating activities

Operating (loss)/profit (586) 373 2,308

Depreciation and amortisation 710 724 1,387

Impairment of intangibles - 396 456

Share based payments 654 6 80

Exchange adjustments (320) 308 288

Increase in inventories (567) (132) (135)

Decrease/(increase) in receivables 2,344 507 (1,162)

(Decrease)/increase in payables (936) 350 1,245

Cash generated from continuing operations 1,299 2,532 4,467

Discontinued operations 17 (9) (19)

Cash generated from operating activities 1,316 2,523 4,448

Tax paid (10) 48 50

Net cash from operating activities 1,306 2,571 4,498

Cash flows from investing activities

Purchase of property, plant and equipment (381) (222) (535)

Purchase of intangible assets (1,054) (1,007) (2,315)

Proceeds on disposal of property, plant and equipment

6 27 174

Interest received 5 3 8

Net cash used in investing activities (1,424) (1,199) (2,668)

Cash flows from financing activities

Issue of ordinary shares 1 5 6

Payment of finance lease liabilities (66) (9) (53)

Interest element of finance lease repayments (5) (1) (3)

Equity dividends paid (255) (214) (214)

Net cash used in financing activities (325) (219) (264)

Net (decrease)/increase in cash and cash equivalents

(443) 1,153 1,566

Cash and cash equivalents at beginning of the period

4,341 2,817 2,817

Effect of exchange rate changes 61 (36) (42)

Cash and cash equivalents at end of the period 3,959 3,934 4,341

CONDENSED CONSOLIDATED STATEMENT OF CHANGES TO EQUITY

Share Capital

Shares to be

issued

Share premium

account

Merger reserve

Retained earnings

Foreign currency

translation reserve

Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000

Balance as at 1 October 2012

179 65 7,028 3,546 9,245 (21) 20,042

Total comprehensive income for the period

- - - - (462) 199 (263)

Transactions with owners:

Dividends - - - - (255) - (255)

Shares issued 3 1 462 - - 466 Movement in relation to share based payments

- - - - 188 - 188

Balance as at 31 March 2013

182 65 7,029 4,008 8,716 178 20,178


178 65 6,998 3,546 8,349 31 19,167


- - - - 295 29 324

Transactions with owners:

Dividends - - - - (214) - (214)

Shares issued 1 4 - - - 5 Movement in relation to share based payments

- - - - 6 - 6

Balance as at 31 March 2012

179 65 7,002 3,546 8,436 60 19,288


178 65 6,998 3,546 8,349 31 19,167


- - - - 1,055 (52) 1,003

Transactions with owners: Dividends - - - - (214) - (214) Issue of share capital 1 - 30 - - - 31 Movement in relation to share based payments

- - - - 55 - 55

Balance as at 30 September 2012

179 65 7,028 3,546 9,245 (21) 20,042

The accompanying notes are an integral part of this interim financial information

NOTES TO THE CONDENSED CONSOLIDATED INTERIM STATEMENTS 1. Basis of preparation OMG Plc (the “Company”) is a company domiciled in England. The condensed consolidated interim financial statements of the Company for the six months ended 31 March 2013 comprise the Company and its subsidiaries (together referred to as the “Group”). The following IFRIC amendments and IASs have been issued by the IASB, but are applicable to future periods. They are not expected to have any material impact on the Group’s reporting:

IFRS 9 ‘Financial Instruments’

IFRS 10 ‘Consolidated Financial Statements’

IFRS 11 ‘Joint Arrangements’

IFRS 12 ‘Disclosure of Interests in Other Entities’

IFRS 13 ‘Fair Value Measurement’

IAS 27 ‘Separate Financial Statements’

IAS 28 ‘Investments in Associates and Joint Ventures’

IFRIC 20 ‘Stripping Costs in the Production Phase of a Surface Mine’

Amendments to IFRS1 ‘ Government Loans’

Amendments to IFRS7 ‘ Disclosures: Offsetting Financial Assets and Financial Liabilities’

Amendments to IAS 19 ‘Employee Benefits’

Amendments to IAS 32 ‘Offsetting Financial Assets and Financial Liabilities’ Otherwise, the condensed consolidated interim financial statements have been prepared using accounting policies consistent with those of the annual financial statements for the year ended 30 September 2012. They are in accordance with IAS 34. The interim financial statements have not been audited or reviewed and the financial information contained in this report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the year ended 30 September 2012 are not the statutory accounts but have been extracted from the Group's 2012 financial statements which have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified did not contain references to any matters to which the auditors drew attention without qualifying the report and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

Segmental reporting Segment information is presented in the condensed consolidated interim financial statements in respect of the Group’s business segments, which are reported to the Chief Operating Decision Maker (CODM). The Group has identified the Board of Directors of OMG plc (“the Board”) as the CODM. The business segment reporting reflects the Group’s management and internal reporting structure. The Group comprises the following business segments: Vicon Group: This is the development, production and sale of computer software and equipment for the entertainment, engineering and life science markets; Yotta Group: This is services for the management of infrastructure and taxation, highway surveying and associated software development; 2d3 Group: This is the development and sale of computer software and equipment for the defence market; OMG Life: This is the direct to consumer segment currently engaged in product development. Other unallocated costs represent head office expenses not recharged to subsidiary companies. Business segments are analysed below:

Revenue (Loss)/profit before tax Six months

ended 31 March 2013 (unaudited)

Six months ended 31

March 2012 (unaudited)

Year ended 30 September

2012 (audited)

Six months ended 31


Six months ended 31



2012 (audited)

£'000 £'000 £'000 £'000 £'000 £'000

Vicon UK 4,227 4,664 9,055 1,879 1,446 2,854 Vicon USA 4,125 4,292 7,915 431 301 378 House of Moves USA 1,204 1,461 4,024 (391) (50) 917

Vicon Group **9,556 **10,417 20,994 1,919 1,697 4,149

Yotta UK 2,457 1,975 4,278 (496) (406) (803)

Yotta Group 2,457 1,975 4,278 (496) (406) (803)

2d3 UK 209 264 467 (182) (55) (255) 2d3 USA 805 882 3,662 (1,007) (531) (99)

2d3 Group 1,014 1,146 4,129 (1,189) (586) (354)

OMG Life 17 49 103 (1,110) (319) (1,151) Unallocated - - - 140 (11) (65)

Continuing operations 13,044 13,587 29,504 (736) 375 1,776

Yotta USA – discontinued operation - - - 2 (36) (33)

OMG Group 13,044 13,587 29,504 (734) 339 1,743

Underlying (loss)/profit before tax Non-current assets Six months


Six months ended 31



2012 (audited)

Six months ended 31


Six months ended 31



2012 (audited)

£'000 £'000 £'000 £'000 £'000 £'000

Vicon UK 1,897 1,427 2,842 2,521 2,250 2,377 Vicon USA 431 487 564 1,233 1,297 1,155 House of Moves USA (391) (50) 920 929 823 682

Vicon Group 1,937 1,864 4,326 4,683 4,370 4,214

Yotta UK (416) (357) (677) 4,495 4,038 4,365

Yotta Group (416) (357) (677) 4,495 4,038 4,365

2d3 UK (177) (55) (255) 20 220 24 2d3 USA (735) (415) 738 4,920 4,505 4,641

2d3 Group (912) (470) 483 4,940 4,725 4,665

OMG Life (1,091) (319) (1,142) 1,774 671 1,150 Unallocated 247 12 (27) 250 191 166

Continuing operations (235) 730 2,963 16,142 13,995 14,560

Yotta USA – discontinued operations 2 (36) (33) - 9 -

OMG Group (233) 694 2,930 16,142 14,004 14,560

Six months ended 31


Six months ended 31



2012 (audited)

£'000 £'000 £'000

Revenue by origin UK 6,910 6,952 13,904 USA – continuing operations 6,134 6,635 15,600

Continuing operations 13,044 13,587 29,504

USA – discontinued operations - - -

OMG Group 13,044 13,587 29,504

Revenue by destination UK 3,096 2,995 6,298 Europe 1,310 1,363 2,679 North America 5,658 6,513 15,466 Asia Pacific 2,604 2,449 4,482 Other 376 267 579

Continuing operations 13,044 13,587 29,504

North America – discontinued operations - - -

OMG Group 13,044 13,587 29,504

**The following additional information is provided to the Chief Operating Decision Maker. Further analysis by market is not available.

Six months ended 31


Six months ended 31



2012 (audited)

£'000 £'000 £'000

Revenue by market Engineering 1,795 1,569 2,983 Entertainment 3,044 4,369 9,239 Life sciences 4,717 4,479 8,772

9,556 10,417 20,994

An analysis of adjusted profit before tax net of Group recharges is provided below:

Six months ended 31 March 2013 (unaudited)

Six months ended 31 March 2012 (unaudited)

Year ended 30 September 2012 (audited)

Under-lying PBT

Group recharges

Adjusted PBT

Under-lying PBT

Group recharges

Adjusted PBT

Under-lying PBT

Group recharges

Adjusted PBT

£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000

Vicon UK 1,897 (545) 1,352 1,427 (526) 901 2,842 (859) 1,983 Vicon USA 431 1,198 1,629 487 1,113 1,600 564 2,091 2,655 House of Moves USA (391) - (391) (50) - (50) 920 - 920

Vicon Group 1,937 653 2,590 1,864 587 2,451 4,326 1,232 5,558

Yotta UK (416) 207 (209) (357) 183 (174) (677) 400 (277)

Yotta Group (416) 207 (209) (357) 183 (174) (677) 400 (277)

2d3 UK (177) 87 (90) (55) 77 22 (255) 5 (250) 2d3 USA (735) 75 (660) (415) 78 (337) 738 315 1,053)

2d3 Group (912) 162 (750) (470) 155 (315) 483 320 803

OMG Life (1,091) 71 (1,020) (319) 62 (257) (1,142) 132 (1,010) Unallocated 247 (1,093) (846) 12 (987) (975) (27) (2,084) (2,111)

Continuing operations (235) - (235) 730 - 730 2,963 - 2,963

Carrying amount of segment assets Carrying amount of segment liabilities Six months


Six months ended 31



2012 (audited)

Six months ended 31


Six months ended 31



2012 (audited)

£'000 £'000 £'000 £'000 £'000 £'000

Vicon UK 7,400 6,016 8,684 (2,337) (2,104) (2,309) Vicon USA 4,627 4,971 4,069 (1,396) (1,439) (1,204) House of Moves USA 1,880 1,696 1,802 (272) (244) (264)

Vicon Group 13,907 12,683 14,555 (4,005) (3,787) (3,777)

Yotta UK 8,862 8,780 8,122 (1,747) (1,248) (1,358)

Yotta Group 8,862 8,780 8,122 (1,747) (1,248) (1,358)

2d3 UK 1,632 2,395 1,447 (68) (134) (63) 2d3 USA 5,741 5,432 7,183 (3,030) (2,518) (3,594)

2d3 Group 7,373 7,827 8,630 (3,098) (2,652) (3,657)

OMG Life (122) (395) (487) (671) (280) (710) Unallocated (139) (1,377) (677) (228) (324) (641)

Continuing operations 29,881 27,518 30,143 (9,749) (8,291) (10,143)

Yotta USA – discontinued operations 51 66 47 (5) (5) (5)

OMG Group 29,932 27,584 30,190 (9,754) (8,296) (10,148)

Additions to non-current assets Segment depreciation and amortisation

Six months ended 31


Six months ended 31



2012 (audited)

Six months ended 31


Six months ended 31



2012 (audited)

£'000 £'000 £'000 £'000 £'000 £'000

Vicon UK 371 486 926 237 277 483 Vicon USA 40 33 57 28 41 45 House of Moves USA 9 2 11 26 50 123

Vicon Group 420 521 994 291 368 651

Yotta UK 341 387 908 224 186 390

Yotta Group 341 387 908 224 186 390

2d3 UK 3 73 7 6 14 24 2d3 USA 49 24 401 179 146 296

2d3 Group 52 97 408 185 160 320

OMG Life 622 374 878 4 1 8 Unallocated 2 4 5 6 9 18

Continuing operations 1,437 1,383 3,193 710 724 1,387

Yotta USA – discontinued operations - - - - - -

OMG Group 1,437 1,383 3,193 710 724 1,387

Reconciliation of underlying (loss)/profit before tax

Six months ended

31 March 2013

Six months ended

31 March 2012

Year ended

30 September 2012

(unaudited) (unaudited) (audited) £’000 £'000 £'000 (Loss)/profit before tax – continuing operations (736) 375 1,776 Share based payments – equity settled 188 6 55 Amortisation of intangibles arising on acquisition 163 163 323 Fair value adjustment to contingent consideration - - 69 Unwinding of discount on contingent consideration 150 - 537 Redundancy costs - 186 203 Underlying (loss)/profit before tax – continuing operations (235) 730 2,963

Profit/(loss) before tax – discontinued operations 2 (36) (33) Underlying profit/(loss) before tax – discontinued operations 2 (36) (33)

Total underlying (loss)/profit before tax – all operations (233) 694 2,930

Redundancy costs in the prior year relate to the reorganisation of operations at Vicon Motion Systems, inc. 2. Taxation The Group’s consolidated effective tax rate for the six months ended 31 March 2013 was 31.5% (for the six months ended 31 March 2012: 15.5%; for the year ended 30 September 2012: 38.6%). In accordance with IAS 34 the tax charge for the half year is calculated on the basis of the estimated full year tax rate.

Earnings per share The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares on the assumed conversion of all dilutive options. Six months

ended 31 March

2013

Six months ended

31 March 2012

Year ended

30 September 2012


£'000 £’000 £’000

(Loss)/profit from continuing operations (504) 317 1,091

(Loss)/profit attributable to ordinary shareholders (502) 281 1,057

000’s 000’s 000’s Weighted average number of ordinary shares for the purpose of basic earnings per share 72,325 71,348 71,453

Dilutive effect of employee share options 4,026 530 998

Dilutive effect of contingent shares - - 1,563 Weighted average number of ordinary shares for the purpose of dilutive earnings per share 76,351 71,878 74,014

Continuing operations

Basic (loss)/earnings per share (pence) (0.70) 0.44 1.53

Diluted (loss)/earnings per share (pence) (0.70) 0.44 1.47

Total operations

Basic (loss)/earnings per share (pence) (0.70) 0.39 1.48

Diluted (loss)/earnings per share (pence) (0.70) 0.39 1.43

3. Share capital

31 March 31 March 30 September

2013 2012 2012


£'000 £'000 £'000

Authorised

100,000,000 ordinary shares of 0.25p 250 250 250

Allotted, called up and fully paid

72,945,951 shares of 0.25p (31 March 2012: 71,413,399 shares of 0.25p and 30 September 2012: 71,541,629 shares of 0.25p) 182 179 179

During the six month period ended 31 March 2013 1,400,988 shares were issued in relation to the contingent consideration payable for the acquisition of Sensing Systems Inc. In addition 3,334

shares were issued for cash in respect of share options exercised (six month period ended 31 March 2012: 65,000 shares). During the year ended 30 September 2012 98,896 shares were issued to Sacker Gooding Limited as remuneration for services received. In addition 94,334 shares were issued relating to share option exercises 4. Dividends The following dividends were recognised as distributions to equity holders in the period:

31 March 31 March 30 September

2013 2012 2012


£'000 £'000 £'000

Final dividend for 2012 paid in 2013 - 0.35 pence per share 255 214 214

The final dividend for 2012 was paid to shareholders on 1 April 2013 at 0.35 pence per share, a total of £255,000. 5. Copies of the interim statement Copies of the interim statement will be sent to shareholders. Further copies will be available from the Company's registered office at 14 Minns Business Park, West Way, Oxford OX2 0JB, and from the Company’s website: www.omgplc.com.

http://www.omgplc.com/

30 may 2013 omg plc · o vicon technology used in chart-topping video games including dead island...

Documents