Oxford Metrics, the smart sensing and measurement technology group, has cut its outlook and now expects an adjusted operating loss for its extended financial year.
It forecasts revenue of £47.0 million to £51.0 million for the 15 months to 31 December 2026, against market expectations of £56.2 million.
Adjusted earnings before interest and tax (EBIT), which excludes share-based payments, amortisation of acquired intangibles and one-off items, should be a loss of £0.5 million to £3.9 million, compared with expected profit of £3 million.
The company said trading since June had been weaker because of studio consolidation across film, television and games, and constrained research funding, particularly in the US.
Delays to major projects at its industrial inspection division also hurt, with the next phase of a large contact lens inspection programme pushed into the first quarter of 2027.
For 2027, Oxford Metrics expects adjusted EBIT at or above market forecasts of £3.5 million, with revenue below the £52.5 million expected.
Gary Bullard, chair and interim chief executive, said: "Trading in our established markets has been more difficult than expected.
"Changes in the studio landscape and constrained research funding have reduced customer investment, and we have revised our near-term expectations accordingly."
Costs and management
The company is extending its cost-cutting programme to deliver net annual savings of £1.5 million to £2 million.
Stefan Lampa will become group and Vicon chief executive on 1 December, and Bullard will return to his role as non-executive chair.
Cash and fixed-term deposits stood at about £29.5 million at 30 September, and the company expects to launch a share buyback of up to £3 million.
