14 June 2022

Announcement of Preliminary Results for the year ended 31 March 2022

Strong performance over the year provides the foundation for sustainable growth and continued medium-term margin expansion

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 2022.

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.

FINANCIAL HIGHLIGHTS

• Organic revenue growth of 14.5%, partially constrained by supply chain disruption. Reported revenue growth bolstered by WITec acquisition
• Strong growth in orders of 19.9% at organic constant currency
• Reported order book of £260.2m, growth of 26.6% at organic constant currency
• Strong growth in adjusted operating profit of 16.9%, with margin rising to 18.1%
• Statutory profit measures include a £6.4m charge as a result of the unwind of the brought forward £6.1m financial derivative asset
• Growth and phasing of orders and revenue led to an increase in working capital, resulting in normalised cash conversion of 84%
• Growth in total dividend for the year of 6.5%

OPERATIONAL HIGHLIGHTS

• Resilience of our business model and product strength underpinned improved financial performance despite significant inflationary pressures
• Strong order growth across each of our end markets supported by long-term structural growth drivers and global sustainability agenda
• Investment in semiconductor markets drives strong growth across our materials analysis and etch and deposition portfolio
• Research and development of advanced materials supports strong demand for our range of analysis and imaging systems
• Launch of advanced benchtop microscopy system complements our imaging technology, increasing our product reach and capability into Healthcare & Lifescience
• Quantum computing research and evolving commercial market drive demand for our cryogenic systems and scientific cameras
• Strong performance from WITec acquisition in first year with key applications across advanced materials and life science research

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

“We have successfully navigated the turbulence of the last two years, and, through the dedication of our talented global team and the successful execution of our Horizon strategy, we have emerged as a stronger, more focused business, even better aligned to meet the needs of our customers in attractive end markets with long-term structural growth drivers.

“The business has performed strongly this year, despite supply chain disruption impacting the conversion of orders into revenue and cost inflation holding back margin progression. Looking ahead, we do not foresee short term relief from the current economic headwinds and ongoing supply chain constraints. However, our diverse end-markets remain resilient, and we enter the year with good visibility due to a strong order book and continued order growth. This supports full year outlook in line with our expectations.

“Our products play a critical role for our customers in enabling a greener, healthier, more connected, and advanced society which puts us at the heart of creating a more sustainable future. Our leading product portfolio, the strength of our brand and our relentless drive for continuous operational improvement provide the foundation for sustainable organic growth and continued margin expansion over the medium-term, while our strong financial position supports augmenting growth through synergistic acquisitions.”

The financial information set out above does not constitute the group’s statutory accounts for the years ended 31 March 2022 or 2021, but is derived from those accounts. Statutory accounts for 2021 have been delivered to the Registrar of Companies and those for 2022 will be delivered following the company’s Annual General Meeting. The auditors have reported on those accounts: their reports were unqualified, did not draw any attention to any matters by way of emphasis and do not contain statements under s498(2) or (3) of the Companies Act 2006.

Issued for and on behalf of Oxford Instruments plc