11 June 2019
Announcement of Preliminary Results for the year to 31 March 2019
Oxford Instruments plc, a leading provider of high technology products and systems for industry and research, today announces its Preliminary Results for the year to 31 March 2019.
| Year ended 31 March 2019 | Year ended 31 March 2018 | % change reported | % change constant currency | |
| £m | £m | |||
| Revenue1 | 333.6 | 296.9 | +12.4% | +10.8% |
| Adjusted* operating profit1 | 49.7 | 46.5 | +6.9% | +9.7% |
| Adjusted* profit before tax1 | 47.5 | 42.3 | +12.3% | |
| Profit before tax1 | 35.5 | 34.2 | +3.8% | |
| Adjusted* basic earnings per share1 | 64.9p | 56.3p | +15.3% | |
| Basic earnings per share1 | 50.1p | 34.3p | +46.1% | |
| Dividend per share (full year) | 14.4p | 13.3p | +8.3% | |
| Cash generated from operations1 | 56.3 | 33.4 | ||
| Net cash/(debt) | 6.7 | (19.7) |
Financial Highlights:
- Orders up 12.9% to £353.5m (2018: £313.0m), an increase of 12.0% at constant currency
- Order book of £171.6m (31 March 2018: £153.0m, restated for IFRS 15) up 12.2% (9.4% at constant currency)
- Reported revenue increased by 12.4% to £333.6m. The Group has adopted IFRS 15 ‘Revenue from Contracts with Customers’ and IFRS 16 ‘Leases’. The impact is to increase revenue by £7.0m
- Adjusted operating profit from continuing operations up 6.9% to £49.7m
- Adjusted operating margin of 14.9% (2018: 15.7%), 15.5% at constant currency, impacted by a currency headwind and in-year investment in operational excellence
- Reported profit before tax up 3.8% to £35.5m after mark-to-market movement on currency derivatives and adjusting items
- Net cash of £6.7m following strong cash conversion of 103%
- Full year dividend increased by 8.3% to 14.4p
Operational Highlights:
- Continued progress with the implementation of our Horizon strategy, embedding defined capabilities and disciplines across the businesses
- Incremental in-year investment in operational excellence with a focus on strategic procurement and operating processes
- Strong order, revenue and profit growth in Materials & Characterisation supported by growth in advanced material and semiconductor customer segments
- Healthy end markets across life science, quantum technology and academia supported strong order and revenue growth across our Research & Discovery sector. Operating profit was held back in the period by a lower performance from scientific X-ray tubes and Scienta Omicron
- Order, revenue and profit growth, with margin improvement, in Service & Healthcare, supported by growth in service and support of our own products and an improved performance from our healthcare businesses
- Investment in R&D supporting new and future product launches; received the Queen’s Award for Innovation for our latest material analyser
Summary and Outlook:
Ian Barkshire, Chief Executive of Oxford Instruments plc, said: “We have made good progress in the year with the continued implementation of our Horizon strategy, which is delivering good growth and improved profitability. We are serving attractive markets with long-term fundamental growth drivers and focusing on segments where we can maintain leadership positions.
“Our core purpose is to address some of the world’s most pressing challenges. We have positioned the Group to be a leading provider of high technology products and services to image, analyse and manipulate materials down to the atomic and molecular level, facilitating a greener economy, increased connectivity improved health and leaps in scientific understanding.
“While mindful of the backdrop of geopolitical and market uncertainty, we remain focused on improving the business and expect to make further progress in the year.”
Enquiries:
Oxford Instruments plc Tel: 01865 393200
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director
MHP Communications Tel: 020 3128 8100
Rachel Hirst / Luke Briggs
*NOTE: Throughout this announcement we make reference to adjusted numbers. A full definition of adjusted numbers can be found in note 1. 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.