Highlights

• Oxford Metrics paid a 3.25p final Dividend in March 2026, unchanged from the previous year.

• Adjusted Basic Earnings Per Share fell to 1.55p, leaving the dividend uncovered on that measure.

• Cash and fixed-term deposits of £37.3 million provide a buffer after £12.5 million of Shareholder returns.

• Motion Capture order intake rose 21% to £34.8 million while Smart Manufacturing Revenue jumped 341%.

Motion capture cameras that animate film characters and track elite athletes are only part of the picture at Oxford Metrics (LSE:OMG). The group is also betting on industrial vision, and its Balance Sheet is carrying a dividend that profits do not yet cover. Cash is the saving grace, and it deserves a closer look.

The payment

Within the twelve months to 10 November 2026, one dividend went ex: a final of 3.25p on 12 February 2026, paid on 27 March. It is unchanged from the prior year and equals 9.21% of a share price of 35.3p. No interim or Special Dividend was identified, so the trailing figure rests on a single payment.

Earnings and cover

For the year to 30 September 2025, adjusted basic earnings per share fell to 1.55p from 3.01p, a drop of 49%, while basic earnings were a loss of 0.55p. Revenue rose 8% to £44.8 million, but profit before tax dropped 80% to £0.1 million. Against the 3.25p dividend, adjusted earnings give cover of roughly 0.5 times. The difference was funded from cash, and £12.5 million was returned to shareholders through Buybacks and dividends combined.

A cash-rich balance sheet

Cash and fixed-term deposits stood at £37.3 million, down 26% from £50.7 million, after higher shareholder returns and investment. Operating cash generation before tax improved to £6.7 million from £0.3 million. Lower net finance income, following the higher returns and investment, reduced profit before tax. The balance sheet therefore carries the dividend, rather than current earnings.

What the group does

Oxford Metrics describes itself as a smart sensing and software company serving life sciences, entertainment, engineering and smart manufacturing. In Motion Capture, order intake rose 21% to £34.8 million, although revenue fell to £32.0 million from £38.6 million. Smart Manufacturing revenue rose 341% to £12.8 million, including 38% organic growth and two acquisitions, The Sempre Group and Amber Optix. The company also launched markerless motion capture alongside its marker-based systems.

Risks and outlook

Management cites continued softness in the US academic and entertainment markets, and an opening order book of £1.0 million against £11.5 million a year earlier. It describes external conditions as challenging. First-quarter trading was in line with board expectations, and a refined strategy with a three-year framework was due in the first half of the new financial year. The company says its solid balance sheet supports organic Investment and selective small bolt-on acquisitions.

Cash as the dividend's support

When earnings do not cover a dividend, the shortfall must come from reserves. Oxford Metrics (LSE:OMG) has £37.3 million of cash and fixed-term deposits, which is large relative to the dividend of 3.25p per share. That gives the board room to maintain the payment while the Business changes. The risk is that cash falls over time, as it did from £50.7 million, so the balance between dividends, buybacks and investment needs to be watched.

Order intake and revenue timing

Order intake measures contracts won, while revenue measures what has been delivered and recognised. Motion Capture order intake rose 21% to £34.8 million even though revenue fell to £32.0 million, which suggests that future revenue may improve if orders convert. Equally, an opening order book of £1.0 million compared with £11.5 million a year earlier shows that the start of the year was quieter. Investors in LSE:OMG should track conversion of orders into sales.

Two businesses, two stages

Motion Capture is an established business tied to entertainment, sport and academic study, while Smart Manufacturing is a smaller but fast-growing division, with revenue up 341% to £12.8 million after two acquisitions. Growth in the second can balance weakness in the first, although acquisitions bring integration risk. The launch of markerless motion capture alongside marker-based systems widens the range of customers the group can serve.

Ex-dividend dates explained

The ex-dividend date is the first day on which a buyer of the shares no longer qualifies for the next dividend. Anyone who holds the shares before that date receives the payment, normally a few weeks later. Share prices often fall by about the amount of the dividend on the ex-date, which is why a dividend on its own does not create value. The payment date is when the cash reaches the account.

What to watch next

The refined strategy and three-year framework are the next major milestones, followed by the interim results. Investors should look at adjusted earnings per share, cash and the dividend decision. A recovery in earnings towards the 3.25p payout would reduce reliance on cash, while a further fall would raise questions about how long the payment can be sustained at the current level.