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(Sharecast News) - Oxford Metrics slashed its full-year profit and revenue forecasts on Friday following weaker-than-expected trading, as it announced a bolt-on acquisition to expand its motion capture capabilities, along with a new £3m share buyback programme.
The smart sensing and measurement technology company now expects revenue of £47m to £51m for the 15 months ending 31 December 2026, compared with market forecasts of £56.2m, and an adjusted operating loss of £0.5m to £3.9m, against expectations of a £3m profit.
The downgrade reflects weaker demand in Vicon's established motion capture markets, pressure on research funding and delays to major projects in its Industrial Vision and Metrology Systems (IVMS) division.
Investment in film, television and gaming has been affected by studio consolidation and reduced demand for virtual production, while constrained research budgets, particularly in the US, have delayed customer spending.
However, Oxford Metrics said demand from robotics companies remained encouraging, particularly in humanoid robot development and drone tracking.
The group is accelerating cost-cutting measures, targeting annualised savings of £1.5m to £2m, of which around £1.5m is expected to benefit the 2027 financial year after reinvestment.
Despite anticipating revenue below market forecasts of £52.5m in 2027, it expects adjusted operating profit to meet or exceed the £3.5m currently forecast.
Non-executive chair and interim chief executive Gary Bullard 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."
In a separate announcement, Oxford Metrics said it had acquired the assets of London-based Move AI, a developer of AI-powered motion capture technology, for £525,000 in cash, or approximately £725,000 including transaction expenses.
Move AI, which generated unaudited revenue of £1.1m in 2025, specialises in converting video footage into three-dimensional motion data without the need for physical markers or specialist suits.
Oxford Metrics said the acquisition would strengthen Vicon's technology offering and expand its opportunities in entertainment, sport, biomechanics and human movement analysis.
The company also announced a share buyback programme worth up to £3m, starting on 12 October, with repurchased shares to be held in treasury.
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