A hi-tech firm which is a pioneer in special effects for the film industry has seen £1m slashed off its profits in the first year.

OMG based in Botley has reported a pre-tax profit of £0.6m for the year ending September 30, compared to £1.6m for the same period last year.

But it managed to maintain its revenue at £26.2m and remained debt-free.

Chief executive Nick Bolton said: “Despite the extremely difficult trading conditions, OMG has emerged from the year with strong foundations and a clear plan for the future.

“Although we have not been able to avoid the impact of the downturn in the United States, the diversified operational base has provided us with some comfort, and we have seen enough growth to maintain our revenues at previous levels.

“Overall we've ended the year with the Group in robust good health.”

OMG is a world leader in 3D capture and analysis of movement, providing systems for research and engineering as well as the entertainment industry.