AGM Statement

RNS Number : 6007S

Oxford Instruments PLC

14 September 2010

 



Embargoed for release at 7:00 am on 14^th September 2010

Oxford Instruments plc

Chairman's AGM Statement 2010

Oxford Instruments plc, the high technology tools and systems company, is holding its Annual General Meeting today at which the Chairman, Nigel Keen, will make the following statement:

In 2006 Oxford Instruments embarked on a strategy of growth and commercialisation in the research and industrial high technology capital equipment sectors.  This strategy formed a basis of a five year plan to double the size of the business and improve EBIT margins by ten percentage points.

In June 2010, we reported on our progress at the end of the fourth year of this strategic plan.  Despite the recession, average organic growth over the period has been in line with the plan. Over four years we achieved organic growth at a rate of over 10% per annum.    In the last two years we have not made any acquisitions due to the difficulties in making accurate valuations during recessionary times.  However, as markets have stabilised and cash flows improved, we will again look at acquisitions to supplement our continuing organic growth.

At the beginning of 2009 we restructured the business to reduce costs and improve efficiencies.  This prompt action reduced our cost base and protected our operating performance during the recession.  We estimate that around two thirds of the £11.5m annualised cost saving was structural. This cost will not be reinstated as demand picks up. 

Our research markets continue to benefit from strong demand. Our industrial markets, which had been hard hit by recession, have now seen demand return to pre-recession levels.  This sustained strengthening of demand, coupled with the first shipments of superconducting wire on the ITER programme, means that our industrial sector businesses are showing better performance than in the prior year.

Due to the strength of both our research and industrial markets, coupled with the efficiency improvements from the restructuring programme, performance to date for the first half has exceeded our expectations.  We currently expect adjusted profit before tax* for the first six months of the year to be not less than £10 million.

Oxford Instruments has traditionally shown a marked second half bias in performance.  This year we have improved our operational processes to reduce this second half weighting. As a result, in the current year we expect the sales for each half to be more equally balanced.

Whilst market visibility has not currently returned to pre-recession levels in the longer term, we remain confident in the growth potential of Oxford Instruments and our ability to produce sustained shareholder value.

*Adjusted figures are stated before other operating income, amortisation of acquired intangibles, reorganisation costs and impairment and unrealised changes in the fair value of financial instruments.

Enquiries:
Oxford Instruments plc	Tel: [phone]
Jonathan Flint, Chief Executive
Kevin Boyd, Group Finance Director
Hogarth Partnership Limited	Tel: [phone]
Rachel Hirst / Andrew Jaques / Ian Payne

Notes to Editors

Oxford Instruments aims to pursue responsible development and deeper understanding of our world through science and technology.  We provide high technology tools and systems for industrial and research markets, based on our ability to analyse and manipulate matter at the smallest scale.Innovation has been the driving force behind Oxford Instruments' growth and success for over 50 years, and its strategy is to effect the successful commercialisation of these ideas by bringing them to market in a timely and customer-focused fashion.

The first technology business to be spun out from Oxford University over fifty years ago, Oxford Instruments is now a global company with over 1,400 staff worldwide and a listing on the London Stock Exchange (OXIG). 

Our objective is to be a leading supplier of next generation tools and systems for research and industry.  This involves the combination of core technologies in areas such as low temperature and high magnetic field environments, Nuclear Magnetic Resonance, X-ray electron and optical based metrology, and advanced growth, deposition and etching. Our products, expertise, and ideas address global issues such as energy, environment, terrorism and health and are part of the next generation of telecommunications, energy products, environmental measures, security devices, drug discovery and medical advances.

 

END

 

 

AGMUOUVRRVAKAAR