Oxford Instruments flags strong second-half performance
reported a strong second-half performance in an update on Wednesday, with full-year results for the period to 31 March in line with market expectations.
The FTSE 250 company cited continued momentum in order intake and strategic execution as key drivers of growth.
It said full-year revenue was expected to rise by around 9% at constant currency, or 6% at reported rates.
Order intake increased 3% on a constant currency basis, reflecting sustained demand across key end markets.
Adjusted operating profit is forecast to be up approximately 13% at constant currency, with margins improving by 70 basis points year-on-year to 17.8%, or 16.5% on a reported basis.
The imaging and analysis division, which accounts for two-thirds of group revenue and 90% of adjusted operating profit, grew both orders and revenue while maintaining an operating margin above 24% at constant currency.
Strength in semiconductor and materials analysis markets offset continued weakness in healthcare and life sciences.
The advanced technologies division meanwhile delivered strong double-digit revenue growth at constant currency.
Profitability returned in the division, supported by the delivery of large quantum orders and operational improvements.
The compound semiconductor business, operating from a new facility, also achieved double-digit revenue growth and expanded its tier one customer base, contributing to margin improvement.
Oxford Instruments said it was continuing to benefit from efforts to enhance commercial execution, streamline operations and maintain cost discipline.
"I am very pleased with how the team has embraced the strategy, delivering strong results despite the macro volatility seen in H2 and the execution of our pivot away from certain market segments in China," said chief executive officer Richard Tyson.
"We continue to closely monitor and adapt to the potential impacts of macro events."
Tyson said the company's growth and resilience was underpinned by its diversified portfolio of market-leading technologies, deployed in multiple structurally growing sectors across all major geographies.
"In addition, there are significant opportunities within our own control, as we accelerate our operational transformation programme, work to simplify and standardise our business, and drive a continued critical focus on product profitability."
Oxford Instruments said it would present its full-year results to analysts and investors on 10 June.
At 0941 BST, shares in Oxford Instruments were up 5.9% at 1,724p.
Reporting by Josh White for Sharecast.com.
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