13 Jun

Oxford Instruments plc Announcement of Preliminary Results for the year to 31 March 2017

Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today announces its Preliminary Results for the year to 31 March 2017.

Financial Highlights:

• Stable performance in line with expectations, against a challenging market backdrop
• Reported revenue up 9.0%, down 3.7% at constant currency
• Adjusted profit before tax up 7.1%, in line with our expectations
• Adjusted operating margin down 70 basis points, reflecting lower returns in Service and higher returns in NanoTechnology Tools
• Non-cash impairment of non-current assets of £45.8 million drives reported loss before tax
• Net debt of £109.3 million (2016: £128.2 million), with leverage of 2.1 times reflecting good cash conversion and the sale of Oxford Superconducting Technology (2016: 2.3 times)
• Dividend maintained at 13.0p for the full year
• Stronger order book at year end, 9.3% above prior year

Operating Highlights:

• Good progress in repositioning the Group for long-term growth with significant progress in portfolio management
• ‘Horizon’ strategy underway, focused on markets with long-term growth drivers where the Group can be market leader
• Completed disposal of Oxford Superconducting Technology and announced sale of Industrial Analysis
• Strong performance in Nanotechnology Tools
• Steady performance in Industrial Products, despite continued end market weakness
• In Service, increased demand for services related to our own products was more than offset by weaker demand for OI Healthcare in the US, as previously flagged
• Geographical demand reflects global trends in funding and capital expenditure: strong growth in Asia, steady growth in Europe, flat in North America
• Stephen Blair to join Board as Senior Independent Director in July 2017

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

“In a year of transition, the Group delivered a stable performance, supported by currency tailwinds. Whilst academic and R&D funding levels remain uncertain, we believe that progress with our strategic initiatives and favourable currency effects will deliver an outcome for the year in line with expectations.

“Our focus is on markets with long term growth drivers where nanotechnology has the potential to address some of the world’s most complex and pressing challenges. Fundamental improvements to our structure, operations and strategy are underway and give us a solid platform to return to sustainable growth, at improved margins over the medium term.”

Enquiries:

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

MHP Communications
Tel: 020 3128 8100
Rachel Hirst / Jamie Ricketts/Luke Briggs