Overview
Oxford Instruments reported a strong first half of fiscal 2027, with total order intake increasing 44% year‑on‑year to £296 million. The Advanced Technologies division, which supplies tools for compound semiconductor manufacturing, saw order intake surge 126% as high‑volume manufacturing customers expanded capacity for data‑center and communications infrastructure. The division now expects revenue growth of about 20% in fiscal 2028 and aims to lift its margin into the 12%‑15% target range for that year.
Financial Performance
Revenue for the six months ended 30 September rose 8.4% to £201.1 million, representing a 9.0% increase on an organic constant‑currency basis. Advanced Technologies revenue grew 26.6% on that basis. Adjusted operating profit increased 21.5% to £30.0 million, with the operating margin expanding by 160 basis points to 14.9% despite a £1.7 million adverse currency impact. Adjusted diluted earnings per share rose 29% to 42.2 pence, supported by the ongoing share‑buyback programme.
Division Highlights
The Imaging and Analysis division recorded a 12% rise in order intake. Commercial orders within this segment were up 20%, reflecting heightened demand for semiconductor and materials analysis, while academic orders grew modestly by 2.8% despite a softening U.S. life‑science research market.
Cash Flow and Capital Allocation
Free cash flow improved dramatically to £19.1 million from £0.2 million in the prior year. Net cash balances stood at £74.8 million. The company has completed £83.1 million of its £100 million share‑buyback programme and expects to finish the remaining £16.9 million in early 2027, after which the programme will be extended into the summer. An interim dividend of 5.8 pence per share was declared.
Market Reaction and Outlook
Oxford Instruments’ shares rose 1.4% in early London trading following the announcement. The company stated that it is trading in line with market expectations for the current fiscal year and expressed confidence in meeting full‑year targets. A further trading update is scheduled for 14 January 2027.