Announcement of Half Year Results for the six months to 30 September 2016
15 November 2016

Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today announces its Half Year Results for the six months to 30 September 2016.

 

 

Half year to

30 September 2016

Half year to

30 September 2015

 

% change

 

£m

£m

 

Revenue

171.5

164.8

+4.1%

Adjusted* operating profit

19.0

20.0

-5.0%

Adjusted* profit before tax

15.7

16.3

-3.7%

(Loss)/profit before tax

(0.5)

6.1

 

Continuing adjusted* basic earnings per share

21.4p

21.7p

-1.4%

Dividend per share (interim)

3.7p

3.7p

 

Operating cash flow

3.7

11.7

 

Net debt

141.1

139.5

 

Financial Highlights:

  • Stable performance in challenging markets
  • Reported revenue up 4.1%, down 6.9% at constant currency
  • Adjusted profit before tax down 3.7%; reflecting lower sales in OI Healthcare and continued weakness in Superconducting Wire
  • Increase in net debt reflecting working capital outflow and payment of deferred consideration
  • Interim dividend maintained at 3.7 pence

Operational Highlights:

  • Group order book up 18.5% to £162.2 million, 5.1% at constant currency
  • NanoTechnology Tools: improvement in profits of 17.9% (13.7% at constant currency), stronger margin and order book reflecting success of new products and operational efficiencies
  • Industrial Products: resilient performance largely absorbed ongoing weakness in Superconducting Wire
  • Service: growth in service revenues from NanoTechnology Tools and Industrial Products sectors; reduced profits due to lower sales for refurbished imaging systems in OI Healthcare, which we expect to continue in current and future years
  • Increased investment in future growth: R&D spend up 11.9% to £15.1 million, equivalent to 8.8% of revenue
  • Priorities for improvement and core capabilities identified to deliver sustainable growth
  • Continued focus on self-help and efficiencies to improve performance
  • Appointment of Alan Thomson as Chairman as previously reported

Outlook:

  •  Revenue and order book are ahead of last year, but given continued slower academic funding in the US and Europe and lower sales in our OI Healthcare business, the Board expects the Group to deliver a current year performance in line with last year
  • Looking further ahead, assuming no change to current foreign exchange rates and assuming a constant mix of currency results, we expect a benefit from currency of approximately £7 million to operating profit in the 2017/18 financial year.

 

Ian Barkshire, Chief Executive of Oxford Instruments plc, said:

“In challenging markets, Oxford Instruments has delivered a stable performance. NanoTechnology Tools performed strongly, and across the Group we made good progress with new product introductions and self-help initiatives.

“The greater role of nanotechnology for use in research and a broad range of industrial applications will continue to yield long-term sustainable growth in demand for our high technology solutions and services.

“Our increased focus on enhanced product solutions and services across our existing and new markets will underpin future revenue growth, with margin enhancement supported by the development of operational excellence as a core capability across the Group.”

 

Enquiries:

Oxford Instruments plc
Tel:  01865 393200
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director

MHP Communications
Tel:  020 3128 8100
Rachel Hirst / Jamie Ricketts