Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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December 5, 2023

Motion capture powers Oxford Metrics

Macro & Overnight

There is little new today in macro; attention remains on US employment data culminating in the non-farm payrolls on Friday for clues on the inflation and recession trade-off in the world’s biggest economy.

UK Company News

There is a flurry of news from some interesting smaller technology companies in the UK. 

AdvancedADVT has announced the cancellation of its main market listing and admission to AIM. 

AdvancedADVT is a hangover from the 2021 SPAC boom and launched as an acquisition vehicle for founder Vin Murria. The shares, suspended pending restructuring after acquiring various small software and data solutions businesses from Captita earlier this year, will be relisted on AIM from January 10th. In unusual praise of the AIM market, Vin said today that AIM provides a more suitable regulatory environment and greater flexibility for a company of its size. It also announced today that it has already agreed the sale of one of the Capita businesses to Fintel for GBP3.5m.  

CML Microsystems, the communications semiconductor supplier, reported H1 results showing 5% revenue growth, 9% PBT growth and a decent cash outturn. It expects the FY to be in line with expectations. 

Solid State, the design in component and computing supplier, reported H1 results. Revenue increased by 48%, PBT by 25% and diluted EPS by 7%. It lowered debt with another decent year of cash generation and trades in line with FY expectations. 

Oxford Metrics reported FY results with revenue ahead by 53% and PBT by 152% and ahead of market forecasts. Its focus on motion capture has driven impressive growth, but it was also positively impacted by the unwinding of prior year component shortages. OM’s revenue is derived from the life science, entertainment, and engineering sectors. 

OM is a business undergoing significant transformation. After the sale of Yotta and the transformation of the balance sheet, the new management focus on motion capture looks promising. Its new markerless capture technology can provide growth for OM over the coming years with the added attraction of a more significant software component. Progressive has made its second upgrade to revenue and profits in recent weeks, and based on its forecasts today, OM trades on an ex-cash PE of 11x. Note here


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