1st Mar 2005 07:03
Oxford Instruments PLC01 March 2005 For release at: 7.00am on 1 March 2005 Oxford Instruments plc disposes of its Medical business Oxford Instruments plc ("OI" or "the Group") announces today that it has soldits Medical business ("OIM") to VIASYS Healthcare Inc, a company listed on theNew York Stock Exchange. The aggregate gross cash consideration received by OIin respect of this disposal, including the repayment of inter company loans, is£24 million. This disposal will allow the Group to focus its resources on thecontinued growth and development of its Analytical and Superconductivitybusinesses.OIM, an international supplier of medical diagnostic and monitoring products,made an operating profit before tax and exceptional items of £0.1 million forthe year ended 31 March 2004 (2003: operating loss of £1.3 million). The resultsof OIM for the 11 months to the end of February 2005 will be shown asdiscontinued operations in the Group's full year results. The net operatingassets of OIM at 31 March 2004 were £11.8 million and at the end of February2005, are estimated to be £13 million.The sale, after allowing for expenses and related costs but before adjusting forgoodwill of £3.7 million previously written off against reserves, will give riseto a gain on disposal of approximately £8 million. Use of proceeds and payment of a special dividendThe Directors of OI have declared the payment of a special dividend as a secondinterim dividend of 25p per ordinary share for the year to 31 March 2005 inorder to distribute to shareholders the funds that are surplus to the resourcesrequired by the Group to develop its business following the sale of OIM. Thespecial dividend will be paid on 24 March 2005 to shareholders registered at theclose of business on 11 March 2005. In respect of the special dividend, theshares will be marked 'ex-dividend' on 9 March 2005. The interim dividend,declared on 18 November 2004 of 2.4p per ordinary share, will also be paid on 24March 2005. The actuarial deficit of the Group's UK defined benefit pension scheme at thelast actuarial valuation, carried out at 31 March 2003, amounted to £22 million.The scheme has been closed to new members since 2001 and a long term plan is inplace to recover this deficit over the remaining average working life of itsactive members. After discussion with the scheme's actuary and trustees, theDirectors intend to make a special contribution of £6 million to the pensionscheme. The deficit funding position will be reviewed again after the nextactuarial review at 31 March 2006. The balance of the consideration received will be used to reorganise thoseactivities which will no longer be necessary following the reduction in size andcomplexity of the Group, to complete the changes described below and to continuethe development of the Analytical and Superconductivity businesses. Analytical reorganisation Plasma Technology has decided to close its manufacturing facility at EastGrinstead and move this activity to its main factory at Yatton. The acquisitionof the VG Semicon business in 2003, which operated from East Grinstead, has beensuccessful and the business has made a significant contribution to PlasmaTechnology's performance. This progress has encouraged today's decision to seekfurther benefits by the integration of its MBE, Plasma and Ion Beam products atYatton. Superconductivity reorganisation In June 2004 the Superconductivity business reorganised its business into threemarket facing product groups. Further changes are now being made to these groupsto improve their operating performance and to reduce overhead cost. These changes will be implemented immediately and an exceptional charge of up to£3 million will be taken in the current year's accounts against thesereorganisations. Nigel Keen, Chairman of Oxford Instruments plc, said: "The disposal of OIM isconsistent with our strategy of focusing our business into those areas where wehave significant market positions and capabilities. The disposal will enable usto focus our strategy and resources on the continued growth and development ofour strong and successful Analytical and Superconductivity operations to delivervalue to our shareholders. Under its new ownership, OIM will be better placed totake advantage of wider opportunities in the medical equipment market. The focusing of our business also gives us the opportunity of making otherorganisational changes which will lead to increased efficiency and reduced costsfor future years." Enquiries: Oxford Instruments plcNigel Keen, ChairmanMartin Lamaison, Financial DirectorTel: +44 (0) 1865 884665 Hogarth Partnership LimitedRachel HirstAndrew JaquesTel: +44 (0) 20 7357 9477 NOTES TO EDITORS Born out of Oxford University, with over 40 years of continuous productdevelopment, Oxford Instruments is a global leader in advanced instrumentation.It is a recognised world leader in several technologies, including theapplication of superconductivity, the creation of low temperatures and theproduction and detection of X-rays. The Company's products are used around theworld in scientific research, industrial chemical analysis and quality control,and semiconductor processing. Its customers include most of the world's majorinternational companies, as well as the leading research institutes. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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