15th Jun 2016 06:45
LONDON (Alliance News) - Oxford Instruments PLC on Wednesday reported a swing to a pretax profit for its most recently ended financial year as its cost-savings programme helped offset a fall in revenue.
The company, which makes technological tools and systems for industry and research, maintained its full-year dividend at 13.0 pence.
For the year to end-March the company reported a pretax profit of GBP13.1 million, swung from a pretax loss of GBP9.6 million the year before, as a fall in revenue to GBP361.6 million from GBP380.1 million was offset by lower exceptional costs.
The company attributed the revenue decline to structural changes in the superconducting wire market, and the loss of a service contract with Siemens AG that had been completed.
Oxford Instruments said it had instigated a wide-ranging cost-reduction programme in response to a difficult trading environment during the year, and had seen improved profit performance in its NanoTechnology Tools and Service segments.
On an adjusted basis, stripping out amortisation, acquisition-related costs and other exceptional items, pretax profit rose to GBP37.0 million from GBP35.7 million.
Oxford Instruments said its revenue in the first two months of its new financial year are in line with the previous year, with profits marginally ahead.
"I am excited about the opportunity to capture the long term structural growth in demand for high performance nanotechnology tools. Our focus on new product development, customer service and cost optimisation gives us confidence that we are on track to make progress in the year ahead," said Chief Executive Ian Barkshire in a statement.
"We will continue to invest in growing the business in our core markets of physical and material science, and exploiting convergence to expand into life sciences," Barkshire added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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