09 November 2021

Announcement of Half-year Results for the six months to 30 September 2021

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 2021.

View the RNS statement

Adjusted1	.................	Half year to 30 September 2021	.................	Half year to 30 September 2020	.................	% change reported	.................	currency4
Revenue		£170.1m		£140.3m		+21.2%		+26.8%
Adjusted operating profit		£30.6m		£24.3m		+25.9%		+28.0%
Adjusted operating profit margin		18.0%		17.3%		+70 bps
Adjusted profit before taxation		£30.2m		£23.7m		+27.4%
Adjusted basic earnings per share		41.2p		32.8p		+25.6%
Cash conversion2		48%		97%
Net cash3		£70.1m		£81.4m

1. Adjusted items exclude the amortisation and impairment of acquired intangible assets, acquisition items, profit or loss on disposal of operations, other significant non‑recurring items, and the mark-to-market movement of financial derivatives. A full definition of adjusted numbers can be found in the Finance Review and Note 1.
2. Cash conversion measures the percentage of adjusted cash from operations to adjusted operating profit, as set out in the Finance Review.
3. Net cash includes total borrowings, cash at bank and bank overdrafts but excludes IFRS 16 lease liabilities.
4. Constant currency numbers 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. Organic numbers remove the impact from the acquisition of WITec.
5. Return on sales is defined as adjusted profit before taxation expressed as a percentage of revenue.

Statutory (continuing operations)	.................	Half year to 30 September 2021	.................	Half year to 30 September 2020	.................	% change reported
Revenue		£170.1m		£140.3m		+21.2%
Operating profit		£21.8m		£20.8m		+4.8%
Operating profit margin		12.8%		14.8%		(200 bps)
Profit before taxation		£21.4m		£20.2m		+5.9%
Basic earnings per share		28.7p		27.7p		+3.6%
Interim dividend per share for the year		4.4p		4.1p		+7.3%

Financial Highlights

• Revenue growth of 26.8% at organic constant currency against weak comparator period (+13.5% vs half year 2019)
• Strong growth in orders of 18.3% at organic constant currency (+26.0% vs half year 2019)
• Reported order book grew by 13.2% (13.3% at organic constant currency), providing good visibility for the year ahead
• Strong growth in adjusted operating profit with margin rising to 18.0%
• Cash conversion of 48% reflects an increase in inventories to support order intake and mitigate supply chain disruption, timing of shipments and a resumption in capital expenditure

• Growth in interim dividend of 7.3% to 4.4p per share

Operational Highlights

• Improved financial performance reflecting strong position in attractive, structural growth markets

• Global sustainability agenda strengthening the structural growth drivers for our markets

• Strong customer demand, with double-digit order growth across Europe, North America and Asia

• Good strategic progress supporting profit growth and enhanced margin; increased investment in future growth opportunities

• Strong order and revenue growth across commercial and academic customers reflecting buoyant semiconductor, advanced materials and quantum markets, with recovery in life science

• WITec acquisition complements existing portfolio, providing additional opportunities for growth

• Order conversion to revenue impacted by prolonged customer-related administrative processes and delays in obtaining export licences

Summary and Outlook:

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

“We have emerged from the pandemic a stronger, more focused and efficient business, even more aligned to the needs of our customers in end markets with structural growth drivers. We are increasing our investment to take advantage of these growth opportunities, providing the foundation for good growth and medium-term margin expansion.

“Whilst supply chain pressures will moderate conversion of orders to revenue and drive cost inflation in the second half, our strategic alignment to a range of attractive end markets, combined with our strong opportunity pipeline and healthy order book, provides us with good momentum going into the second half. Our expectations for further progress in the year are unchanged.”

Note: Oxford Instruments plc compiled analyst consensus forecast for adjusted operating profit (year to 31 March 2022), is £62.9m

LEI: 213800J364EZD6UCE231

Enquiries:

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

MHP Communications
Katie Hunt/Rachel Mann/Florence Mayo
Email: oxfordinstruments@mhpc.com
Tel: 020 3128 8100