Oxford Instruments sees interim profits slide, flags stronger second half

(Sharecast News) - Oxford Instruments posted a sharp slide in first-half sales and profits on Tuesday, after tough market conditions in the US weighed heavily, but struck an upbeat note on the outlook. Interim orders at the FTSE 250 firm, which provides commercial and academic customers with a range of scientific and other high-tech products, ticked up 1.4% on a constant currency basis, to £205.2m.

But revenues in the six months to September end slid 7.9% to £185.5m, while pre-tax profits tumbled 22.5% to £25.4m.

Oxford Instruments' imaging and analysis division was hit particularly hard by Donald Trump's swingeing tariff regime as well as cuts to US academic funding.

The firm said: "The main impact was in the first quarter, as customers sought to clarify their funding sources and reduce their spending forecasts.

"While opportunities continued to grow in the first half, customers have taken longer to convert confirmed interest into firm orders."

However, looking to the second half and Oxford Instruments was more confident.

It said the business was now "recovering well" following the "significant" disruption at the start of the year.

Trading in imaging and analysis was on track to be stronger than the first half, it noted, while its advanced technologies division was expected to benefit from ongoing strong order growth as well as a new facility in Bristol, which has helped it secure large commercial customers.

Richard Tyson, chief executive, said: "During the first half we have made further progress in our strategic aims to simplifying the group, improve commercial execution and realign our regional presence.

"Our trading performance reflects that we, like others, have had to navigate the impacts of tariffs and the related global economic disruption.

"I'm very proud of the commitment and drive shown by our teams globally. Thanks to their proactive response to disruption in our markets, and the positive outcomes from our ongoing strategic programme, we expect to deliver an improved performance in the rest of the year."

As at 0845 GMT the stock had jumped 9% at 1,958p. The shares fell sharply last month, when Oxford Instruments first confirmed the interim revenue shortfall.