Oxford Instruments reports strong first-half demand

16th Oct 2024 10:48

(Sharecast News) - Oxford Instruments reported strong demand and order intake growth in a half-year trading update on Wednesday.

The FTSE 250 company said it expected revenue growth of around 10% at constant currency, with order intake about 3% ahead of the prior year.

Adjusted operating profit was projected to be slightly above last year's level, although group margins would be lower, primarily due to a revenue mix shift towards Advanced Technologies.

Despite the robust underlying performance, currency headwinds were expected to impact reported figures, resulting in adjusted operating profit and margin falling below last year's comparable period.

The imaging and analysis division saw solid growth, driven by strong demand in the materials analysis and semiconductor markets, offsetting weaker performance in healthcare and life sciences.

Oxford said the division saw a positive book-to-bill ratio for the half year.

In advanced technologies, the compound semiconductor business continued to perform well, and initial deliveries for a key customer in the quantum market supported progress towards profitability.

The board said the division maintained good order book visibility.

Looking ahead, Oxford Instruments anticipated a stronger second half, driven by the execution of larger orders in advanced technologies and continued efficiency improvements through its operational transformation and restructuring projects.

However, the appreciation of sterling was expected to increase the currency headwind on operating profit by £1.5m to £2m for the full year, based on current exchange rates.

The company's half-year results were scheduled for release on 12 November.

At 1028 BST, shares in Oxford Instruments were up 5.39% at 2,042.39p.

Reporting by Josh White for Sharecast.com.