A firm which provides special effects equipment for Hollywood films has made the first loss in its 18-year history.

Managers at OMG, based at the Minns Business Park, in Oxford, have also made 16 people redundant after being hit by plummeting sales, mainly in its entertainment division.

The company, formerly Oxford Metrics, said it had been hit by major fall in business confidence which had led to customers delaying decisions on purchases for long periods. As a result, it made a pre-tax loss of £1.8m for the year to September 30, compared with an £800,000 profit in the same period last year.

OMG has three divisions -- life sciences, science and engineering and entertainment. It is the entertainment sector which has the highest profile.