Oxford Instruments (OXIG) Trading Update summary

Trading performance and financials

• Revenue for the first half is expected to grow by around 10% at constant currency, with order intake about 3% higher than last year.

• Adjusted operating profit will be slightly above last year, but group margin will be lower due to a mix shift toward Advanced Technologies.

• On a reported basis, currency headwinds will result in lower adjusted operating profit and margin compared to the prior year.

• The appreciation of sterling is expected to increase the currency headwind on operating profit for the full year by £1.5-2.0m from previous guidance.

Divisional highlights

• Imaging & Analysis saw strong demand in materials analysis and semiconductor markets, offsetting softer healthcare & life science demand.

• The division recorded a positive book-to-bill ratio in the half year.

• Advanced Technologies experienced strong revenue growth in compound semiconductors and began quantum market deliveries to a key customer.

• Good order book visibility continues in Advanced Technologies, supporting progress toward profitability.

Outlook and strategic initiatives

• A stronger second half is anticipated, driven by execution of larger orders in Advanced Technologies and operational transformation projects.

• Efficiency and cost improvements are expected from ongoing business restructuring.

• Full-year performance is expected to be in line with constant currency expectations.