12 November 2019

Announcement of Half Year Results for the six months to 30 September 2019

Oxford Instruments plc, a leading provider of high technology products and systems for industry and research, today announces its Half Year Results for the six months to 30 September 2019.

Financial Highlights:

• Orders up 6.4% to £173.3 million (2018: £162.9 million), an increase of 2.8% at constant currency; book-to-bill ratio of 1.04
• Order book of £186.8 million (31 March 2019: £171.6 million), up 8.9% (+6.0% at constant currency)
• Reported revenue increased by 13.1% to £166.3 million (+9.1% at constant currency)
• Adjusted operating profit from continuing operations up 22.9% at £25.8 million (+12.4% at constant currency)
• Adjusted operating margin of 15.5% (2018: 14.3%), 14.7% at constant currency
• Reported profit before tax up 55.2% to £18.0 million after mark-to-mark movement on currency derivatives and other adjusting items
• Net cash of £14.2 million following cash conversion of 65% and one-off US pension termination payment
• Interim dividend increased by 7.9% to 4.10 pence

Operational Highlights:

• Good progress with Horizon, delivering continued growth and improved operating margin
• Market intimacy enabled new growth opportunities from academic and commercial customers, which more than offset softening in silicon semiconductor, electronics and automotive production markets
• Materials & Characterisation delivered a strong performance underpinned by increased sales across Semiconductor & Communications, Advanced Materials and Energy & Environment segments
• Research & Discovery saw growth across Healthcare & Lifescience, Quantum Technology and Fundamental Research segments
• Increased focus on customer support services related to our own products delivered an improved performance in Service & Healthcare
• Improved commercial practices and gains from our operational excellence programme contributed to increased profitability in the period
• Focus on customer applications driving success of recently launched products and the development of richer future product roadmaps and IP portfolio; total cash spend on R&D equivalent to 7.8% of sales
• Underlying order growth impacted by some softer end markets and the phasing of OEM orders
• Our access to all phases of the technology cycle – from academic research through to commercial production – provided resilience against uncertain macroeconomic backdrop

Summary and Outlook:  

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

"The Group has delivered a strong first-half performance, with revenue, profit and order growth against a backdrop of uncertain macroeconomic conditions. Our customer-centric approach has delivered growth within existing markets and expansion into new adjacent markets.

"The breadth of our product portfolio and the diversity of our end-markets, together with our focus on understanding customer needs and responding to market changes, underpin our ability to deliver further growth and margin improvement. We expect the second half of the financial year to benefit from the normal seasonal bias, with expectations for the current financial year remaining unchanged on a constant currency basis."

Enquiries:

Oxford Instruments plc                                                          Tel:  01865 393200

Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director

MHP Communications                                                           Tel:  020 3128 8100

Rachel Hirst / Alice McLaren

*NOTE: Throughout this half-year announcement we make reference to adjusted numbers. A full definition of adjusted numbers can be found in Note 2.  Where we make reference to constant currency numbers, these are prepared on a month-by-month basis using the translational and transactional exchange rates which prevailed in the previous year rather than the actual exchange rates which prevailed in the year. Transactional exchange rates include the effect of our hedging programme.

NOTE: Oxford Instruments plc compiled analyst forecast range for adjusted operating profit (year to 31 March 2020): £51.5 million to £53.0 million, with an average consensus of £52.4 million.