17th May 2016 08:14
LONDON (Alliance News) - Technology group OMG PLC Tuesday said it is on track to meet current market expectations for its full year, as it reported a swing to pretax profit for its first half.
For the half year to end-March the company reported a pretax profit of GBP582,000, swung from a pretax loss of GBP1.4 million the year before, on revenue of GBP12.2 million, up from GBP11.3 million, helped by lower operating costs.
Revenue growth was driven by an improved performance in its Vicon and Yotta businesses, and a substantially lower loss at its OMG Life segment.
The company said it plans to spin-out some of its currently unexploited intellectual property into a new company, in which it will take an around 35% stake. This new venture will be headed up by Julian Morris, currently executive deputy chairman of OMG's board, who will move to become a non-executive director.
"This has been a very encouraging first half for our group, with solid increases in revenue and a return to first half profitability underpinning the board's confidence in the group delivering its expectations for the full year as a whole," said Chief Executive Officer Nick Bolton in a statement.
"It is also particularly exciting to announce our IP spin-out intentions today, which represents an opportunity for us to realise additional value from a currently nascent piece of IP in our portfolio, without assuming the full capital and investment risk inside our group. We believe there is meaningful potential for the team to monetise the opportunity in front of them and we wish them well in that endeavour," Bolton added.
Shares in OMG were up 3.2% at 45.40 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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