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Interim results statement for the six months ended 31 March 2011

Interim results statement for the six months ended 31 March 2011

18 May 11

OMG plc (LSE: OMG), the technology group providing image understanding products for the entertainment, defence, life science and engineering industries, announces interim results for the six months ended 31 March 2011.

Financial Key Points

  • Revenue of £13.3m (H1‟10: £14.4m)
  • Revenue largely impacted by unexpected delay in the progress of one large project within the Vicon “House of Moves” segment
  • Project is expected to resume in the second half
  • H1‟10 revenue performance was a record revenue period for OMG
  • Adjusted loss before tax of £0.3m (H1‟10: profit before tax £1.4m)
  • Not accounting for the delayed project, H1‟10 would have shown an adjusted profit before tax of £0.7m
  • Net Cash balance remains buoyant at £2.3m (H1‟10: £4.1m; FY‟10: £6.1m)
  • Reflects £1.3m cash used in period in the acquisition of Sensing Systems

Operational Key Points


Vicon

  • Launch of New T-Series S Edition cameras, which enable outdoor motion capture.
  • Bonita making headway in engineering space: Boeing, Hyundai, French Atomic Energy Commission and ASICS
  • Recent films include: The Chronicles of Narnia: The Voyage of the Dawn Treader, Gulliver‟s Travels, Mars Needs Moms and Black Swan
  • Upcoming films include: The Green Lantern and Transformers 3

Yotta UK

  • Revenue maintained, operating loss reduced
  • Contracts won with Cheshire & Merseyside
  • Launch of SaaS software platform “Horizons” well received

2d3

  • Revenue up 55%, delivering maiden divisional profit
  • Acquisition of Sensing Systems, establishing OMG as technology leader in the growing video intelligence market

OMG today forms new consumer subsidiary, “OMG Life”

  • Strategic partnership between OMG and brand agency Barty Bogle Hegarty will support creation, roll-out and targeting of new consumer-facing offering
  • Initial efforts will focus on developing technology from OMG‟s successful “Revue” product
  • The Board believes OMG Life has significant potential across a range of markets and we will be further investing during H2. The revenue benefits are expected to come through from 2012

Commenting on the results Nick Bolton, Chief Executive Officer said:

“It is disappointing to report a loss for this first half of the year, particularly when I believe very firmly that the underlying momentum of our business remains strong. Our strategic positioning as a Group is as resilient today as it has ever been and the investment we are planning to make in OMG Life, I believe, is a clear indication of our confidence in the Group’s future and in the potential of our product set.

“Global economic conditions have not yet stabilised, but the strength and breadth of our offering across multiple markets means we are well placed to contend with this. There is much to do in the second half, but there is much to aim for also and, as such, the Group looks forward to the remainder of the year with a cautious optimism.”

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