Oxford Instruments reported a “strong performance” in its preliminary results on Tuesday, as its full-year revenue rose 15.3% to £367.3m.
The FTSE 250 company said organic revenue growth came in at 14.5% for the 12 months ended 31 March, partially constrained by supply chain disruption, while its reported revenue growth was bolstered by the acquisition of WITec.
Adjusted operating profit grew 16.9% to £66.3m, and its adjusted operating profit margin expanded by 30 basis points to 18.1%, while adjusted basic earnings per share jumped 20% to 94.3p.
Statutory operating profit was 8.9% lower year-on-year, however, at £48.3m, while the company’s statutory operating profit margin narrowed to 13.2% from 16.6%.
Its statutory profit before tax was down 8.8% to £47.6m, and basic earnings per share were 7.8% weaker at 67.1p.
Oxford Instruments reported “strong growth” in orders of 19.9% at organic constant currency, while its reported order book grew an organic 26.6% to £260.2m.
The firm said growth and phasing of its orders and revenue led to an increase in working capital, resulting in normalised cash conversion of 84%.
Its board confirmed a 6.5% rise in the total dividend for the year, to 18.1p per share.
“We have successfully navigated the turbulence of the last two years, and, through the dedication of our talented global team and the successful execution of our Horizon strategy, we have emerged as a stronger, more focused business, even better aligned to meet the needs of our customers in attractive end markets with long-term structural growth drivers,” said chief executive officer Ian Barkshire.
“The business has performed strongly this year, despite supply chain disruption impacting the conversion of orders into revenue and cost inflation holding back margin progression.
“Looking ahead, we do not foresee short term relief from the current economic headwinds and ongoing supply chain constraints.”
However, Barkshire said the company’s “diverse” end-markets remained resilient, with the firm entering the new financial year with “good visibility” due to a strong order book and continued order growth.
That, he said, supported a full-year outlook in line with its own expectations.
“Our products play a critical role for our customers in enabling a greener, healthier, more connected, and advanced society which puts us at the heart of creating a more sustainable future.
“Our leading product portfolio, the strength of our brand and our relentless drive for continuous operational improvement provide the foundation for sustainable organic growth and continued margin expansion over the medium-term, while our strong financial position supports augmenting growth through synergistic acquisitions.”
At 0910 BST, shares in Oxford Instruments were down 0.47% at 2,120p.
Reporting by Josh White at Sharecast.com.
