08 June 2021
Announcement of Preliminary Results for the year ended 31 March 2021
Oxford Instruments plc, a leading provider of high technology products and systems for industry and research, today announces its preliminary results for the year ended 31 March 2021.
Adjusted1 (continuing operations) |
................. | Year ended | ................. |
Year ended | ................. |
% change reported | ................. |
currency4 |
Revenue |
£318.5m | £317.4m | +0.3% | +1.7% |
||||
Adjusted operating profit |
£56.7m | £50.5m | +12.3% | +13.3% |
||||
Adjusted operating profit margin |
17.8% | 15.9% | +190 bps | |||||
Adjusted profit before taxation |
£55.9m | £49.5m | +12.9% | |||||
Adjusted basic earnings per share |
78.6p | 70.2p | +12.0% | |||||
Cash conversion2 |
101% | 124% | ||||||
Net cash3 |
£97.6m | £67.5m |
|
Statutory |
................. |
Year |
................. |
Year |
................. |
% change |
|
|
Revenue |
£318.5m |
£317.4m |
+0.3% |
||||
|
Operating profit |
£53.0m |
£39.8m |
+33.2% |
||||
|
Operating profit margin |
16.6% |
12.5% |
+410 bps |
||||
|
Profit before taxation |
£52.2m |
£38.8m |
+34.5% |
||||
|
Basic earnings per share |
72.8p |
55.9p |
+30.2% |
||||
|
Dividend per share for the year |
17.0p |
— |
n/a |
FINANCIAL HIGHLIGHTS
- Revenue growth of 1.7% at constant currency against challenging backdrop. Strong growth in orders of 5.3% to £353.7m (+6.7% at constant currency).
- Reported order book grew by 13.2% (17.8% at constant currency) to £198.1m
- Strong growth in adjusted operating profit, with margin rising to 17.8% (2020: 15.9%).
- Cash conversion remains high, with increase in net cash to £97.6m.
- Dividend for the year of 17.0p per share (comprising interim dividend of 4.1p and proposed final dividend of 12.9p).
OPERATIONAL HIGHLIGHTS
- Robust performance in the face of significant covid disruption reflects resilience of business model and strong position in diverse, attractive end markets.
- Strong profit growth and enhanced margin performance driven by significant gains from Horizon initiatives in a number of the businesses and the accelerated transformation of our service offering.
- Strengthened order book provides increased visibility for the year ahead.
- Order growth across academic and commercial customers driven by buoyant demand across semiconductor, quantum and advanced materials markets; good growth in North America and Asia offset by modest decline in Europe.
- Maintained investment in R&D with increased focus on strategic product development driven by enhanced market intimacy, providing a healthy pipeline of future product launches.
- Underlying long-term growth drivers in our end markets remain strong.
- Considerable progress with our sustainability agenda, with significant reduction in our environmental footprint.
Summary and Outlook:
Ian Barkshire, Chief Executive of Oxford Instruments plc, said:
“We have made good progress during the year as our people have demonstrated outstanding agility to adapt to new ways of working to protect each other and our customers, whilst driving forward with our strategy for increased end market focus and operational effectiveness.
“Our robust performance, strong order book and breadth of attractive end markets demonstrate the resilience of our business model, positioning us well for good progress in the year despite anticipated currency headwinds and the ongoing uncertainties as global economies look to recover from covid.”
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.
Enquiries:
Oxford Instruments plc Tel: 01865 393200
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director
MHP Communications Tel: 020 3128 8100
Katie Hunt/ James Midmer/ Florence Mayo
Email: oxfordinstruments@mhpc.com