Oxford Instruments plc Chairman’s AGM Statement 2016
Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, is holding its annual general meeting today in which the Chairman, Nigel Keen will make the following statement:
“This will be my last AGM as Chairman of the Group as I step down at the conclusion of this meeting. It has been a great privilege to serve as Chairman of Oxford Instruments over the last 17 years and I take enormous satisfaction in what has been achieved in changing the Group to one that has become increasingly customer-led, while retaining its leading edge technical solutions. I am delighted that we have found such an able and experienced successor in Alan Thomson, who joined the Board in June and today steps up to Chairman.
I would also like to welcome Mary Waldner, who joined the Board in February and thank Jock Lennox and Jennifer Allerton, both of whom are standing down from the Board today.
We were also delighted to appoint Ian Barkshire and Gavin Hill as Chief Executive and Finance Director respectively in May this year.
“As previously reported, in the year to March 2016, the Group delivered a profit performance in line with expectations. Our NanoTechnology Tools and Service sectors delivered a steady performance, showing improved profit performance against an uncertain macroeconomic background, while our Industrial Products sector continued to face pressure from weakness in its end markets. We also reported an improvement in our Group order book for future deliveries.
“We have continued to actively manage the Group’s portfolio. In 2015 we acquired Medical Imaging Resources Inc. (MIR), contributing to the growth in our Service sector. We also put our Omicron business into a joint venture with GDI Scienta Scientific, and the joint venture is making good progress towards profitability.
“The cost reduction programme we put in place at the start of 2015 has helped bring our cost base in line with the needs of our trading activities, delivering the expected savings.
“Within our preliminary announcement made in June 2016 we highlighted that revenue for the first two months of trading was in line with last year and profits marginally ahead.
Turning to current trading, revenue in the year to date is marginally ahead of last year, with growth in NanoTechnology Tools and Service supported by favourable currency benefits. Revenue and profit at constant currency is slightly below the same period last year. The favourable currency benefit on profit is significantly lower than its impact on revenue due to the Group’s ongoing hedging programme.
“Revenue in our NanoTechnology Tools sector is marginally above last year. Our innovative new solutions launched during the first half of the year have received considerable interest which we expect to translate into orders over the coming months.
“Revenue in Industrial Products has continued to suffer from a weak superconducting wire market, which we had previously reported, together with continued market softness in our Industrial Analysis end markets.
“Revenue in the Service sector is trading ahead of last year, supported by growth in the servicing of our own equipment.
“Looking ahead, we expect the second half to benefit from a normal seasonal bias, assisted by favourable currency benefits and the delivery of further business efficiency improvements. Taking into account our current pipeline and improved order book, the Board continues to expect that we will make progress in the year and we remain well positioned to take advantage from future growth in our markets.”
Oxford Instruments plc
Tel: 01865 393200
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director
Tel: 020 3128 8100
Rachel Hirst/Jamie Ricketts