Trading Statement

Release Date: 7am, 26 March 2003

 

 

Year end update

 

Ahead of its financial year end, Oxford Instruments plc, the advanced
instrumentation company, is issuing today a year-end update for the year ending
31 March 2003.

 

Orders and turnover for Oxford Instruments for the year to 31 March 2003,
excluding Oxford Instruments' share of the Oxford Magnet Technology ("OMT")
joint venture, are forecast at approximately £184m (2002 - £189m) and £186m
(2002 - £214m) respectively.

 

Our associated company, OMT, a joint venture with Siemens, performed poorly in
the first half of the year.  Despite OMT management having taken steps to
improve its performance, profits have not recovered because of an adverse
product mix, recently-delayed customer shipments and higher production costs. 
However, although the business is trading profitably, second half results from
our 49% share of the company are now expected to be significantly below those
of the first half.  The Company has previously reported that Siemens intends to
exercise its right to assume 100% control of OMT in September 2004 if no
alternative agreement is reached.

 

Operating profits for the wholly-owned businesses are anticipated to be close
to the levels achieved last year, although the mix of these profits by business
will be different.   This result has been achieved despite the harsh economic
environment being experienced in a number of markets and the significant costs
of developing the new world-leading `Discovery' magnet used for drug
development.

 

Taking these factors into account and based on the most recent review of the
Company's financial performance, the Board believes that Group pre-tax profits
for the year will be  below published market expectations.

 

 

Enquiries:

Andrew Mackintosh, Oxford Instruments plc                      Tel: 01865
881437

Martin Lamaison, Oxford Instruments plc                           Tel: 01865
881437

Chris Barrie, Citigate Dewe  Rogerson                               Tel: 020
7638 9571