Oxford Instruments ends year in line with expectations

16th Apr 2024 08:52

(Sharecast News) - Scientific technology specialist Oxford Instruments said in an update on Tuesday that trading in the financial year just ended was in line with expectations, with positive momentum in revenue growth.

The FTSE 250 company said revenue for the year ended 31 March was expected to show an increase of around 9% at constant currency, or 6% at actual rates, on the year.

It attributed that growth to its differentiated positions in key sustainability-driven and structurally growing end markets, such as advanced materials, life sciences, and semiconductors.

Despite lower orders, particularly in life science original equipment manufacturer (OEM) orders, the firm said its underlying book-to-bill ratio remained positive.

However, the operating margin was expected to be about 100 basis points behind last year's figures, due to losses incurred in the quantum business resulting from the end of commercial activities in China, and ongoing operational investment.

Adjusted operating profit for the full financial year was expected to meet expectations.

"The group enters the new financial year with a strong order book providing good visibility to planned revenues and a good pipeline of growth opportunities in structurally growing end markets," the company's board said in its statement.

Oxford Instruments said it would release its results for the year ended 31 March on 11 June, together with an update on its strategy.

At 0856 BST, Oxford Instruments shares were down 2.87% at 2,030p.

Reporting by Josh White for Sharecast.com.