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The Business Magazine July 2024
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Oxford Instruments reports first-half revenue growth

The Business Magazine article image for: Oxford Instruments reports first-half revenue growth
13 November 2024

The firm recorded a 10.4 per cent increase in revenue to £225.8m, supported by strong performance in North America and Asia outside of China.

The FTSE 250 firm said that despite a slight drop in adjusted operating profit of 7.1% to £33.9m, that measure was up 3.6% at constant currency, with an adjusted operating profit margin of 15%, down 240 basis points year-on-year.

Its statutory operating profit rose 8.7% to £31.1m, leading to an increased interim dividend of 5.1p per share.

Oxford Instruments noted robust growth in its imaging and analysis, and advanced technologies divisions, with constant currency revenue up by 6% and 21.4%, respectively.

The company said it maintained high margins in imaging and analysis, with a focus on operational transformation and cost reduction by consolidating four business units into one.

In advanced technologies, demand for semiconductor and materials analysis products drove revenue, while a ‘fix, improve and grow’ programme had led to new customer acquisitions and an increase in customer demonstration requests.

The quantum segment also showed progress, delivering initial orders to a major technology client, rebuilding its order book, and reducing costs.

A key driver of the company’s regional strategy, Oxford Instruments saw North American revenue grow 32.2% at constant currency, complemented by growth in Asia ex-China.

Demand for semiconductor technologies rose 26.9% year-on-year, while materials analysis grew by 9.6%.

Healthcare and life sciences, however, showed a 17.3% decline due to softer market conditions.

Oxford Instruments ended the half-year with a net cash balance of £39.3m, though normalised cash conversion was lower at 17%, reflecting seasonal factors and timing of large contract receipts.

The company said it expected cash conversion to improve in the second half.

With an order book of £294.9m as of September, the firm said it was maintaining positive momentum, particularly in semiconductors and materials analysis, and expected continued demand across its main market segments.

“The group has delivered a good first half performance, with both divisions growing, reflecting strong demand in our semiconductor and materials analysis markets which more than offset the well-documented softer demand from the healthcare and life science market,” said chief executive officer Richard Tyson.

“Order intake for the first half has been robust, with underlying book-to-bill above one, and our healthy order book provides good visibility, although the timing of the recovery in our healthcare and life science market remains uncertain.

“As expected, margin was impacted by currency and the mix effect of strong growth in advanced technologies.”

However, at constant currency, Tyson noted that group profit improved, and in imaging and analysis - which represented more than 95% of 2024 financial year profit - margins were stable at over 23%.

“We expect to deliver our typical stronger trading performance in the second half, supported by delivery of some larger orders in advanced technologies and efficiency improvements.

“As a result, we expect to report a performance for the full year in line with expectations on a constant currency basis.”


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Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset.

Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users.

He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.

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