Oxford Instruments revenue, earnings grow against 'challenging' backdrop
By Josh White
Date: Tuesday 08 Jun 2021
(Sharecast News) - Oxford Instruments reported revenue growth of 1.7% at constant currency in its preliminary results on Tuesday, to £318.5m, against a "challenging" backdrop.
The FTSE 250 company said its adjusted operating profit for the year ended 31 March was 13.3% firmer at constant exchange rates, at £56.7m, while its adjusted operating profit margin improved 190 basis points to 17.8%.
Adjusted basic earnings per share came in at 78.6p for the 12 month period, up 12% from the 70.2p it reported at the end of the 2020 financial year.
Oxford reported "strong" growth in orders of 5.3% to £353.7m, or 6.7% growth at constant currency, while its reported order book advanced 13.2%, or 17.8% at constant exchange rates, to £198.1m.
The firm said cash conversion remained "high", with an increase in net cash to £97.6m from £67.5m at the start of the period.
Its board said the dividend for the year would total 17p per share, compared to nil a year ago, comprising an interim dividend of 4.1p and its proposed final dividend of 12.9p.
On the operational front, Oxford Instruments, reported "robust" performance in the face of "significant" Covid-19 disruption, with its profit growth and enhanced margin performance driven by gains from 'Horizon' initiatives in a number of its businesses, and the accelerated transformation of its service offering.
The company said its strengthened order book provided increased visibility for the year ahead, adding that order growth across both academic and commercial customers was driven by "buoyant demand" across semiconductor, quantum and advanced materials markets, with good growth in North America and Asia offset by a "modest decline" in Europe.
It maintained its investment in research and development, with an increased focus on strategic product development driven by "enhanced market intimacy", providing the firm with a "healthy pipeline" of future product launches.
Oxford's directors said underlying long-term growth drivers in the company's end markets remained strong, adding that it had made "considerable progress" with its sustainability agenda, with a reduction in its environmental footprint.
"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," said chief executive officer Ian Barkshire.
"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-19."
At 0809 BST, shares in Oxford Instruments were down 0.93% at 2,125p.
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