Oxford Instruments (OXIG) expects full-year performance to be at the lower end of analysts' current forecasts, following weak first-half trading. Adjusted operating profits fell 14 per cent to £18.9m as a result of the strong pound and troubled markets in Japan and Russia.
Profits in the Nanotechnology Tools division fell 11 per cent, partly due to weaker order intake in the plasma technology business in the previous year. However, it was the only division to report top-line growth, which reflected the acquisition of scientist cameras business Andor Technology in January.
Slow trading conditions and currency headwinds hurt revenues in the industrial products and service sector divisions. The former suffered following the end of a £40m three-year deal to supply superconducting wire to the ITER programme, which tries to generate energy using nuclear fusion; strip this out and constant-currency sales rose 4.5 per cent.
Yet now things are looking up. Even stripping out the Andor deal and currency moves, orders were up 7 per cent in the first half. That's because of improving macroeconomic conditions in the US, where orders were up 29 per cent. Order levels in Europe, too, have now started to post double-digit year-on-year growth.
Broker Numis expects pre-tax profits of £46.6m for the current financial year, giving EPS of 60.2p (down from £47.1m and 67.7p).
| OXFORD INSTRUMENTS (OXIG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,111p | MARKET VALUE: | £637m | |
| TOUCH: | 1,108-1,114p | 12-MONTH HIGH: | 1,825p | LOW: 929p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 222p* | NET DEBT: | 108% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 166 | 17.7 | 23.2 | 3.36 |
| 2014 | 179 | 2.7 | 2.9 | 3.70 |
| % change | +7 | -85 | -88 | +10 |
Ex-div: 5 Mar Payment: 9 Apr *Includes intangible assets of £240.7m, or 420p a share | ||||
