Oxford Instruments profit jumps as cost-cutting benefits come through

Technology tools and systems company Oxford Instruments posted a jump in first half pre-tax profit even though revenue fell and expressed confidence that its full-year results will be in line with expectations.

For the six months to the end of September, pre-tax profit came in at £6.1m from £2.5m in the same period a year ago, despite a 5.8% drop in revenue to £164.8m, as the company’s cost reduction programme bore fruit.

The company declared an interim dividend of 3.7p per share, unchanged from last year.

“As expected, whilst revenues were down compared to the previous period, profits were ahead of the same period last year, reflecting the management actions taken to reduce our cost base at the end of the last financial year,” the company said.

Oxford’s NanoTechnology Tools and Services sectors performed well, with increased profits and margins, while Industrial Products continued to face a number of headwinds due to the macroeconomic backdrop.

The company also announced some directorate changes on Tuesday.

Chairman Nigel Keen will step down from the board after 17 years’ service with a view to having a transition at the September 2016 AGM and Oxford said the search for his successor has already begun.

The group also announced that chief operating officer Dr Ian Barkshire is joining the board with immediate effect.

He has been with the company since 1997 and held a number of senior technical and managerial roles before being appointed COO earlier this year.

At 1237 GMT, Oxford Instruments shares were up 7% at 617p.