Oxford Instruments (LON:OXIG), the leading provider of high technology tools and systems for industry and research announced cracking half year results for the six months to 30th Sept 2011. Revenue was up 41% to £159m including organic growth of 30%, adjusted profit before tax up 76% to £18.7m and adjusted earnings per share up 62% to 28.2p. The Group commented on continued growth in China with orders up 53% and order intake as a whole up 24% to £175m. The interim dividend was lifted 10% to 2.77p. The shares have had a great time in 2011 rising over 90% over course of 12 months and the valuation at 16x 2013 estimates may now look a little stretched, but management continues to deliver on its plan as demonstrated by the more than 15% annual growth in sales (excluding acquisitions) and the rising operating margins which are now targeted to grow to 14% in 2014 from 11.9% currently.
Operating cash flow was positive with the Group holding net cash of £11.9m at 30th Sept. There were upgrades from several analysts post the results.
