OMG to beat forecasts this year

OMG, a specialist in imaging software, saw its share price soar on Monday morning after saying that its full-year results will be 'ahead of current market expectations'.

In an statement covering the full year ended September 30th, OMG said that it had built on a strong first-half performance by trading well in the second half. "As a consequence, the board expects to report both full year revenue and an adjusted profit before tax result that is ahead of current market expectations."

Shares were up 21.65% at 29.5p by 10:00.

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The company stated that this improved result has largely been driven by a stronger 2d3 performance; 2d3 signed its first software license deal in excess of $1m with an existing US customer. At the end of the fiscal year, the group's net cash position stood at £4.3m, compared with £2.8m at the same time in 2011.

During the second half the group's portfolio of businesses has traded well. Vicon, the Group's largest division is expected to report an improved year-on-year performance, driven largely by a recovery in its House of Moves studio operations.

Yotta has also seen an improvement in its operating performance during the second half. In particular, visibility within the Yotta business has improved due to an increase in the levels of recurring revenue being generated by its Horizons SaaS (software as a service) platform, which has seen its customer base grow from one to 16 customers in the past twelve months.

In the second half its consumer division, OMG Life launched Autographer: the world's first intelligent, wearable camera. According to the company, the initial response to Autographer from key consumer and trade media has been 'both positive and encouraging'.

OMG is scheduled to report its preliminary results in December. Consensus forecasts for the full year are for pre-tax profits of £2m on turnover of £28.3m.

CM