Oxford Instruments (LSE:OXIG) reported an increase of nearly 44% in group order intake during the first half of its financial year, alongside revenue growth of approximately 8% and an improvement of more than 100 basis points in adjusted operating margin.
The FTSE 250 scientific technology company also reported net cash of £75 million, supported by improved cash conversion and working capital management. Management said its order book provides substantial coverage for the second half and maintained confidence in meeting full-year market expectations.
The Advanced Technologies division recorded order growth of more than 125%, supported by contracts associated with volume manufacturing for data communications applications. The division’s order book now extends into the 2028 financial year and covers its expected revenue for FY27.
Revenue in Advanced Technologies increased by approximately 26% during the first half as Oxford Instruments expanded production capacity and supply chain operations to accommodate customer demand. Adjusted operating margins also increased despite additional investment in the division.
The Imaging and Analysis division reported double-digit growth in order intake, with demand from semiconductor and materials science customers contributing to the increase.
Revenue in the division rose by approximately 2% to 3%, reflecting a more moderate rate of growth than orders. The company said smaller product lines continued rebuilding their order books following a period of higher activity in the preceding quarter.
Adjusted operating margins in Imaging and Analysis improved compared with the corresponding period last year. Oxford Instruments is continuing to invest in customer-facing capabilities and operational risk management as part of its divisional development plans.
At group level, free cash flow increased compared with the prior-year period. The improvement reflected changes in working capital management, reduced adjusting items and the elimination of pension contributions.
Oxford Instruments also provided an update on its £100 million share buyback programme. By the end of September, the company had completed £83 million of repurchases and expects to conclude the remaining programme early in the new year.
Management attributed the first-half performance to progress in implementing its strategy and increased customer demand for its process and platform technologies.
The company said its operational priorities include expanding manufacturing capacity, developing supply chain arrangements and improving its service capabilities to support existing and future orders.
Oxford Instruments continues to serve customers in semiconductor manufacturing, materials analysis and data communications, with the Advanced Technologies division’s order book providing visibility into future financial periods.
The company maintained its expectation of meeting full-year market forecasts, supported by its existing order book and planned operational expansion.
About Oxford Instruments
Oxford Instruments is a UK-based scientific technology company listed on the London Stock Exchange and included in the FTSE 250 index.
Founded in 1959 as a technology spin-out from the University of Oxford, the company develops and supplies scientific instruments, analytical systems and associated technologies to academic institutions, research organisations and industrial customers.
Its operations include Imaging and Analysis and Advanced Technologies, serving applications in semiconductor manufacturing, materials science, healthcare, life sciences and data communications.
The company focuses on developing scientific instrumentation and manufacturing technologies for research and industrial applications, alongside investment in production capacity and international customer support.
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