14 Jun

Announcement of Preliminary Results for the year to 31 March 2016

Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today announces its Preliminary Results for the year to 31 March 2016.

Financial Highlights:

• Adjusted profit before tax up 3.6%, in line with expectations
• Adjusted operating profit margin up 100 basis points to 12.3%, reflecting delivery of cost saving programme
• Reported revenue down 4.9%, and 5.7% at organic constant currency*, driven by structural changes within the superconducting wire market and completion of a service contract
• Strong cash performance with operating cash flow up 27.5%; leverage maintained at 2.3 times
• Dividend maintained at 13.0p for the full year
• Improved group order book at year end, 12.1% above prior year

Operating Highlights:

• Improved profit performance in NanoTechnology Tools and Service sectors; decline in Industrial Products due to market softness
• Reported revenue broadly flat in North America, assisted by acquisition of Medical Imaging Resources (‘MIR’); declined in Europe due to sale of Omicron and marginal decline in Asia due to currency effects
• Early action on cost reduction delivered operational benefits of £9.4 million
• Active management of portfolio to deliver long-term shareholder value: acquisition of MIR; joint venture to combine Oxford Instruments’ Omicron business with Scienta Scientific AB
• Appointment of Ian Barkshire as Chief Executive in line with succession plan and Gavin Hill as Group Finance Director.  Alan Thomson to assume Chairman role in September

Outlook:
• Revenue for first two months of trading in line with last year; profits marginally ahead
• Our focus on product innovation, customer service and cost optimisation gives us confidence that we are on track to make progress in the year ahead
 
Ian Barkshire, Chief Executive of Oxford Instruments plc, said:

“I am excited about the opportunity to capture the long term structural growth in demand for high performance nanotechnology tools.  Our focus on new product development, customer service and cost optimisation gives us confidence that we are on track to make progress in the year ahead.

“We will continue to invest in growing the business in our core markets of physical and material science, and exploiting convergence to expand into life sciences.”

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