Published on: December 6, 2022

Yotta cash to invest for lotta returns?

Oxford Metrics has today reported a strong set of FY22 results particularly given the supply constraints set out in the September trading update. Demand is clearly strong with another record order book – over £24m at the year end. The statement discloses that management see the supply chain constraints relaxing, but they are not taking this for granted. We see it as too early to upgrade our FY23 trading forecasts to include the £3.5m of revenues delayed in FY22 on top of existing forecast volumes, although we are upgrading interest income expectations. Location Based Entertainment has performed particularly well – accounting for 9% of revenues. We note that the recent commentary from the semiconductor majors and the strong order book balance the risk in our forecasts to the upside – and investors are rightly focussed on what can be achieved with the £67.7m in cash.