AGM Statement

RNS Number : 0840Z

Oxford Instruments PLC

15 September 2009

 



15 September 2009

Oxford Instruments plc 

Chairman's AGM Statement 2009

Oxford Instruments plc, the high technology tools and systems company, is holding its Annual General Meeting today at which the Chairman, Nigel Keen, will make the following statement:

In 2006 Oxford Instruments refocused its operations towards growth markets in the research and industrial sectors. This focus formed the basis of a five year plan to double the size of the business and improve EBIT margins by ten percentage points.

In June 2009, we reported on our progress at the end of the third year of this strategic plan. We achieved progress in line with our objectives, despite the difficult trading conditions encountered since November 2008. At that time we reported that, although the long term growth objective for the business was realistic, trading in the current year would be likely to be at similar levels to the previous year because of the deteriorating position of the global economy.

In recognition of this harsher trading environment, last year we acted quickly to reduce costs in our business. We reduced our headcount by some 15% and closed two of our operating facilities. This action was timely and as a result the performance of the business has been protected. The rationalisation has been undertaken in such a way that key skills have been maintained and the new, leaner business is well positioned to service increased demand as markets improve.

The restructuring programme has worked well and the business is appropriately sized for current circumstances.  This year, industrial demand in the first quarter has continued to be at the expected low level. Demand for our research equipment, however, has remained resilient both in the first quarter and in trading to date. We expect this market to remain robust, supported  by  government stimulus funds for science in the USA, Europe and Asia.  In addition we are seeing  some tentative improvement in demand for our products in the industrial sectors which we serve.  

In July we announced that we had been selected by Fusion for Energy, the procurement arm of the ITER programme, to provide £30m worth of superconducting wire for the ITER programme over three years. ITER is a multi-national collaborative research programme to develop a prototype reactor that will produce large quantities of carbon free energy via thermonuclear fusion.  The formal contract for this work was signed on 3rd August. It is one of the largest orders ever won by Oxford Instruments and positions us well for further orders in this field.

As previously announced, Peter Morgan retires at the end of this meeting. Peter joined the Board in 1999 and has served as Audit Committee Chair since 2002. We thank Peter for his contribution over the years and wish him every good fortune for the future.

Whilst it is too early to predict how the global economy will perform for the remainder of our financial year, we have seen some signs of improvement in our core markets.  Trading to date is in line with the Board's expectations.  

Enquiries:
Oxford Instruments plc	Tel: [phone]
Jonathan Flint, Chief Executive
Kevin Boyd, Group Finance Director
Hogarth Partnership Limited	Tel: [phone]
Rachel Hirst / Andrew Jaques / Ian Payne

Notes to Editors

Oxford Instruments designs, supplies and supports high-technology tools and systems with a focus on research and industrial applications. It provides solutions needed to advance fundamental physics research and its transfer into commercial nanotechnology applications. Innovation has been the driving force behind Oxford Instruments' growth and success for over 50 years, and its strategy is to effect the successful commercialisation of these ideas by bringing them to market in a timely and customer-focused fashion. 

The first technology business to be spun out from Oxford University over fifty years ago, Oxford Instruments is now a global company with over 1300 staff worldwide and a listing on the London Stock Exchange (OXIG). Its objective is to be the leading provider of new generation tools and systems for the research and industrial sectors.

This involves the combination of core technologies in areas such as low temperature and high magnetic field environments, Nuclear Magnetic Resonance, X-ray electron and optical based metrology, and advanced growth, deposition and etching. Our products, expertise, and ideas address global issues such as energy, environment, security and health.  

 

END

 

 

AGMUVOARKBRKAAR