Oxford Metrics (AIM:OMG), the smart sensing and measurement technology group serving life sciences, entertainment, engineering and manufacturing markets, warned on Friday that trading has been below the board's expectations since its interim results were published on 17 June.
The London-listed company now expects revenue of £47m to £51m for the 15 months to 31 December, against current market expectations of £56.2m, with an adjusted EBIT loss of £0.5m to £3.9m compared with market expectations of a £3m profit. The period covers an extended 15-month "FY26" running from 1 October 2025 to 31 December, following a change in the group's accounting reference date announced in December.
Oxford Metrics attributed the shortfall to changes in Vicon's established end markets, pressure on research funding, and delays to major projects within its Industrial Vision and Metrology Systems (IVMS) division.
Vicon's entertainment revenue has suffered from reduced investment across film, television and games, including studio consolidation and weaker demand for virtual-production stages, which has delayed several large contracts.
Within health and life sciences, constrained research funding and institutional budgets, particularly in the US, continue to delay purchasing decisions, though the company said robotics demand remains "a particularly encouraging area", with orders secured from major robotics companies in humanoid development and drone tracking.
IVMS trading was hit chiefly by delays to the next phase of a major contact lens inspection programme, now expected in the first quarter of 2027, alongside a deliberate narrowing of its distribution portfolio to remove lower-margin products.
Looking to FY27, the board expects adjusted EBIT to be at or above current market expectations of £3.5m, while revenue is expected to come in below the current £52.5m market estimate.
The company said it is accelerating cost savings and margin-improvement actions already ahead of its 2027 implementation plan, including the integration of IVMS operations and headcount reductions made in July and August, targeting total net annualised savings of £1.5m to £2m, including the £0.6m already communicated.
Oxford Metrics also confirmed it will imminently announce an acquisition of move:ai, intended to accelerate Vicon's push into markerless and hybrid motion-capture technology, following its acquisition of Captive Devices on 1 September.
Cash and fixed-term deposits stood at approximately £29.5m at 30 September, and the company expects to launch a further share buyback of up to £3m under the capital allocation framework set out in June.
"Trading in our established markets has been more difficult than expected," said Gary Bullard, Non-Executive Chair and Interim CEO, adding that "the opportunity for Vicon is expanding" as demand from humanoid robotics and drone applications grows.
Stefan Lampa will join as Group and Vicon Chief Executive on 1 December, after which Bullard will return to his role as Non-Executive Chair, with unaudited interim results covering the 12 months to 30 September due in December.