OMG warns on profits as government shutdown impinges

23rd Oct 2013 08:36

Computer image understanding group OMG has warned full year profits would be lower than previous expectations after its film and gaming division suffered challenging conditions. The AIM-listed company, which also serves the defence, life science and engineering industries, said underlying pre-tax profit for the year to September 30th would be £3.0m instead of the £3.9m expected by broker N+1 Singer after revenues came in lower than it had expected albeit still ahead of the previous year. While the entertainment division, House of Moves, is now expected to make a loss, OMG's two other established businesses, Yotta and 2d3 achieved their respective market expectations, but the US government shutdown delayed the "timing and shape" of some deals. A newer fourth division, OMG Life, shipped its first product in the period, the "world's first intelligent wearable camera", but is expected to lose £0.4m more than previously predicted. Shares in OMG were down 13.2% to 25.5p at 08:48 on Wednesday. OH