Oxford Metrics Faces Annual Loss, Shares Plunge 15%
British tech firm Oxford Metrics has issued a warning about a potential annual loss, driven by spending cuts in the film and TV sectors, as well as tightened research budgets. This news has resulted in a 15% drop in the company’s shares.
Key Highlights:
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Delayed Contracts: The demand for film, TV, and gaming has softened, causing delays in significant Vicon contracts that assist developers with digital characters and visual effects.
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Acquisition: Oxford Metrics plans to acquire Move AI, a London-based AI motion-capture company, for £525,000 ($694,732) to enhance its AI-driven motion-capture capabilities.
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Market Resilience: Demand for robotics remains strong, particularly in location-based entertainment and certain Asian markets, contrasting with established regions.
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Loss Prediction: The company anticipates an annual adjusted operating loss between £0.5 million and £3.9 million, diverging from market forecasts of a £3.0 million profit.
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Customer Base: Oxford Metrics serves a diverse clientele, including film studios, research institutions, and industrial manufacturers.
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Cost-Cutting Measures: The company is expediting its cost-cutting efforts, which include job reductions and the discontinuation of low-margin products.
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Stock Performance: Shares dropped 14.6%, reaching 29.8 pence—the lowest value since March 2015.
(Reporting by Amna Mariyam in Bengaluru)
