LONDON (ShareCast) - (ShareCast News) - Oxford Instruments has offloaded its superconducting wire unit for $17.5m (£14.1m) cash, relieving the group of one of the main sources of its September profit warning.
OXIG had previously warned that group revenues and profits were being hit due to weakness in the superconducting wire markets, which has been primarily due to pricing pressures from makers of MRI machines and reduced demand for wire from OEM customers.

Chief executive Ian Barkshire said a comprehensive review of the group portfolio had revealed the superconducting wire business to be "no longer core to the group's long-term strategic vision" and so the disposal represents a further step in the group's ongoing strategy of actively managing its portfolio.

In the year to March, the superconducting wire business contributed £42.4m and operating profits of £3.4m to Oxford Instruments' industrial products division, and in the six months to 30 September had made revenues of £19.1m and a profit of £1.1m as the group swung to a small first-half loss before tax.

"The divestment will allow increased focus across the group on our chosen market segments and the cash proceeds will enable us to reduce our net debt, in line with our strategy to deliver enhanced shareholder value," Berkshire said.

Shares in OXIG, which since September's profit warning had fallen almost 20% this week, recovered only very slightly on Friday's news they, climbing 2p or 0.3% to 620p in early trading.

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