Oxford Instruments profit up but sales drop after disrupted first half
Oxford Instruments PLC on Tuesday said it remains confident in its mid-term goals as it reported mixed annual results.
The Buckinghamshire, England-based high-technology instruments company said pretax profit climbed 53% to £58.5 million in the financial year that ended March 31 from £38.2 million the year prior, despite a 4.6% decline in revenue to £423.2 million from £443.4 million.
Oxford Instruments took a £26.0 million impairment of goodwill in financial 2025, versus no such charge in the recent year.
Adjusted operating profit fell 7.3% to £73.7 million from £79.5 million on-year, as the margin narrowed of 17.4%, down from 17.9%.
Oxford Instruments said sales returned to growth in the second half of the financial year, following the ‘disrupted’ first half in Imaging & Analysis and later-than-expected conversion of Advanced Technologies orders to revenue.
Shares in FTSE 250 listing were down 6.5% at 2,886.00 pence each in London on Tuesday but have risen 52% in the past 12 months.
The Imaging & Analysis division was hurt by tariff and funding disruption to orders and revenue in the first half, as customers sought to clarify funding sources and delayed placing orders, Oxford Instruments explained.
Here, Chief Executive Richard Tyson said management initiatives to restructure the cost base and sharpen product strategy, alongside productivity improvements, drove a stronger second?half performance.
In I&A, order intake grew 8% in the second half of the financial year with full-year orders up 1.3% on an organic basis at constant currency.
Advanced Technologies delivered 28% order intake growth at constant currency, with the second half order intake growing more than 30%, and the year-end order book closing up 27% versus the prior year.
Following receipt of a significant multi-year order in April, the current order book in the Advanced Technologies division ‘materially’ covers planned revenue for financial 2027, with orders now extending into financial 2028.
Group order intake was up 6.4% to £450.4 million from £423.4 million.
Oxford Instruments hiked its total dividend by 6.3% to 23.6p per share from 22.2p. This includes a final payout of 18.2p, raised from 17.1p.
Looking ahead to financial 2027, Oxford Instruments said it plans to incrementally increase cash investment in research and development from the around £40 million spent in financial 2026.
The company said it remains confident in its medium-term goals for adjusted operating profit margin of 20% plus and compound annual revenue growth of 5% to 8%.
‘Whilst the macroeconomic and geopolitical environment remains uncertain, we are making clear progress against the strategy set out in 2024 and remain well positioned in structurally growing markets,’ CEO Tyson said.
‘With a strong order book, a robust balance sheet and clear priorities, we are confident in our ability to deliver attractive sustainable growth and value for all our stakeholders in the new financial year and beyond.’
Copyright 2026 Alliance News Ltd. All Rights Reserved.