11th Nov 2014 08:10
LONDON (Alliance News) - Oxford Instruments PLC Tuesday said it expects to see a performance at the lower end of market expectations for the full year, despite expecting second half results ahead of the previous year, due to a weaker first half to end-September.
Oxford Instruments posted a pretax profit of GBP2.7 million, down from GBP17.7 million, despite seeing revenue rise to GBP178.5 million from GBP166.3 million, due to higher operating costs, and exceptional costs of GBP11.8 million.
Orders were up 19.9% to GBP201.5 million, growing its order book by 17.3% in the first half.
Revenue growth was boosted by the company's acquisition of Andor Technology, which it acquired in January, and performed ahead of expectations. On a constant currency basis, excluding acquisitions, revenues fell by 5.9%.
The high technology tools and systems provider raised its interim dividend to 3.7 pence per share from 3.36 pence.
The company expects the improved economic conditions in the US and UK, and new product introductions to "significantly" improve its operating profit in the second half. It added that its confidence is underpinning by the strengthening of its order book built up in the first half, although this will not be enough to offset the weaker first half.
"We will continue to focus on developing innovative new products and growing market share in our core areas of physical science. Our strategy will extend our reach into adjacent new markets by applying our tools and technologies to life science research and analysis, thus extending the reach and reputation of the Oxford Instruments brand worldwide," said Chief Executive Jonathan Flint in a statement.
Shares in Oxford Instruments are trading down 3.4% at 1,098.00 pence Tuesday morning, the worst performer in the FTSE 250.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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