Oxford Instruments beating H1 expectations
By BFN News | 08:40 AM | Tuesday 14 September, 2010
High-tech tools and systems company Oxford Instruments expects an adjusted H1 pre-tax profit of at least £10m with performance so far beating its expectations, chairman Nigel Keen says in his AGM statement.
The group also plans to take a fresh look at acquisitions to supplement its organic growth.
Keen said that despite the recession, average organic growth had been in line with the group's strategic plan.
'Over four years we achieved organic growth at a rate of over 10% per annum. In the last two years we have not made any acquisitions due to the difficulties in making accurate valuations during recessionary times.
'However, as markets have stabilised and cash flows improved, we will again look at acquisitions to supplement our continuing organic growth.'
The group's research markets continued to benefit from strong demand. Its industrial markets had now seen demand return to pre-recession levels.
'This sustained strengthening of demand, coupled with the first shipments of superconducting wire on the ITER programme, means that our industrial sector businesses are showing better performance than in the prior year.
'Due to the strength of both our research and industrial markets, coupled with the efficiency improvements from the restructuring programme, performance to date for the first half has exceeded our expectations.'
The group had improved its operational processes to reduce its traditional second-half weighting. Current year sales for each half were expected to be more equally balanced.
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