13 Jun

Announcement of preliminary results for the 12 months to 31 March 2023

Strong momentum driven by strategic positioning in structural growth markets places the Group well for further growth

1. Adjusted items exclude the amortisation and impairment of acquired intangible assets, acquisition items, 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 of the acquisition of WITec.

Oxford Instruments plc, a leading provider of high technology products and systems for industry and research, today announces its unaudited preliminary results for the 12 months to 31 March 2023

Financial highlights

• Strong growth in orders of 20.9% to £511.6m, 14.2% at constant currency
• Reported order book of £319.6m, growth of 19.2% at constant currency
• Revenue growth of 21.1%, 14.0% at constant currency, 70% driven by volume, partially constrained by supply chain disruption and export licence refusals
• Adjusted operating profit of £80.5m, growth of 21.4% (13.4% at constant currency) with currency tailwind supporting strong growth. Margin in line with the prior year, despite the inflationary environment, supply chain challenges and investment across the Group to support growth
• Net cash increased to £100.2m, with normalised cash conversion of 88%. Strong ROCE of 35%
• Growth in total dividend of 7.7% to 19.5p

Operational highlights

• Business model and strategy continues to drive strong order, revenue and profit growth, with positive momentum in the second half
• Strong growth in our end markets – life science, semiconductor, advanced materials, energy & environment, and quantum – each with long-term sustainable structural growth drivers
• Accelerated growth driven by our market intimacy, product leadership and successful product launches
• Strong uplift to performance in Materials & Characterisation and Service & Healthcare in the second half with easing of supply chain; Research & Discovery performance impacted by phasing of high value product installations and investment for future growth
• Increased focus on attractive North American and European markets driving enhanced growth in these regions; China saw strong order growth, with revenue in line with last year reflecting disruptions in the first half which eased as demand rose post Covid-19 lockdowns
• New 2045 net zero commitment announced, building on 23% in-year reduction in Scope 1 and 2 emissions per £m revenue

Ian Barkshire, Chief Executive of Oxford Instruments plc, commented on performance and outlook:

“The Group’s continued positive momentum reflects our purpose-driven focus on structural growth markets that are enabling a greener, healthier, more connected advanced society. Our deep understanding of our customers’ needs and the drivers of growth in our markets, combined with our product leadership, our relentless innovation, and our commitment to operational excellence – all key elements of our well-embedded Horizon strategy – have supported a strong set of results and underpinned continuing investment for future growth.

“We have delivered growth in orders, revenue and profit, as well as maintaining margin, with performance strengthened in the second half as we converted our order book and realised the benefits of new pricing structures.

“While mindful that the wider macroeconomic context remains challenging, our record order book and strong positions in attractive end markets underpin our confidence in the future growth of the Group. Our strong balance sheet positions us well to invest in people, infrastructure and innovation, and to make synergistic acquisitions to augment our organic growth. Full year outlook is in line with our expectations.”

Notes

• 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 2
• Cash conversion measures the percentage of adjusted cash from operations to adjusted operating profit, as set out in the finance review.
• Net cash includes total borrowings, cash at bank and bank overdrafts but excludes IFRS 16 lease liabilities.
• 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.

The financial information for the year ended 31 March 2023 as set out in this preliminary announcement does not constitute the statutory accounts of the Group for the relevant year within the meaning of section 435 of the Companies Act 2006. The financial statements for the year ended 31 March 2023 are unaudited. These accounts will be finalised on the basis of the financial information presented by the Directors in the preliminary announcement and will be delivered to the Registrar of Companies following the Company’s annual general meeting. The Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows for the year ended 31 March 2022 and the Consolidated Balance Sheet as at 31 March 2022 have been derived from the full Group accounts published in the Annual Report and Accounts 2022. These have been delivered to the Registrar of Companies and on which the report of the independent auditors was unqualified and did not contain a statement under section 498(2) or section 498(3) of the Companies Act 2006.

The financial information in this preliminary announcement has been prepared with regards to UK adopted international accounting standards. The Group has applied all accounting standards and interpretations issued relevant to its operations and effective for accounting periods beginning on 1 April 2022. The IFRS accounting policies have been applied consistently to all periods.

Issued for and on behalf of Oxford Instruments plc

View the full release here.