Oxford Instruments sees full-year results in line with expectations

The group, which provides high technology products and services to industrial companies and scientific research communities, also said it expects to see an improvement in performance on a reported basis in the next financial year after allowing for FX headwinds.

Trading in the second half of the year was supported by a growing order book, the group's normal second half seasonal bias and currency benefits.

Meanwhile, cash generation in the year is as anticipated with a strong reduction in net debt at 31 March 2018 against 30 September 2017, Oxford said.

"The phasing of shipments towards the end of the year for some of our higher value systems will lead to a short-term increase in trade receivables and moderate cash conversion for the year."

Results for the year to the end of March 2018 are due on 12 June.

Shore Capital said: "Oxford Instruments is hardly trading on a high multiple, circa 13x price-to-earnings for the current year. We have cautioned in the past over the speed of benefits from management’s turnaround policy, acknowledging that operating leverage could make for a relatively hasty margin recovery for businesses suffering headwinds. The statement does not, in our view, give much new information in this regards."

At 1530 BST, the shares were up 10% to 871p.