Oxford Instruments (OXIG.L) 04/04/01
Following its financial year end, Oxford Instruments plc, the advanced instrumentation company, issues a year end update including its preliminary unaudited orders and turnover figures for the year ended 31 March 2001.
Preliminary estimates of orders and turnover for the year to 31 March 2001, excluding Oxford Instruments’ share of the OMT joint venture, are £199 million (2000 - £169 million) and £181 million (2000 - £161 million) respectively. The turnover of OMT, the joint venture with Siemens, is estimated at £99 million (2000 - £100 million). Operating profit before exceptional items for continuing businesses is expected to be within the range of market expectations.
In line with company forecasts, turnover from the Medical business increased in the second half of the year following the earlier site relocation. The major part of the Analytical business was also successfully consolidated onto one site in March 2001. Of the three major sites now vacated, two are under offer. This completes the management and site restructuring programme initiated under the ‘TopFlight’ banner in September 1999 across the UK-based businesses. The planned savings have been achieved, while continued investment in the improvement programmes set up over the past 18 months is also contributing progressively to operational efficiencies.
The successful launch last summer of a world-leading magnet for use in biological research and drug development has already been followed by the receipt of multiple orders worth several million pounds for this product. Furthermore, the total number of overdue projects in the Superconductivity business has been reduced by a further 30% in the past 6 months and progress has been made with the delivery of a number of old unprofitable technically challenging ‘legacy contracts’ which have been holding back the recovery of the business.
In addition to the magnet orders above, the increase in new orders over the past year has been driven primarily by the strength of the semiconductor and telecommunications industries. These two sectors were responsible for around 20% of orders in 2000/01. While order levels from other markets have also held up well, the company is cautious over the possible impact on future growth of current trends in the major world economies. However, with second half orders last year of around £107 million, the company enters 2001/02 with a record order book. Moreover, it is committed to realising further operational improvements in the coming year from the programmes already in place now that site relocations are complete... |
