REG - Oxford Instruments - Half-Year Results
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RNS Number : 9583G Oxford Instruments PLC 11 November 2025
Oxford Instruments plc half-year results 2025/26
Challenging trading conditions in Q1 impacting first half; positive momentum
returning
Oxford Instruments plc, a leading provider of high technology products and
systems
for industry and research, today (11 November 2025) announces its interim
results
for the six months to 30 September 2025.
Summary of half year(1)
· The business is recovering following significant macroeconomic
disruption in Q1, with order momentum improved in Q2, back to levels in line
with last year
· Actions taken within Imaging & Analysis (I&A) in H1,
including adjusting some assembly locations and restructuring Belfast cameras
and microscopy cost base, alongside successful re-pricing of US open order
book to mitigate tariff impact
· Positive momentum in Advanced Technologies (AT) compound
semiconductor business, with new clean room fully operational. Strong order
demand, driven by US and European commercial customers, has resulted in full
order cover to support another year of strong growth
· Completion of sale of NanoScience business expected in Q3 once
regulatory approvals received
· The Group's H1 actions and a recovery in order intake are expected to
lead to a full-year performance consistent with our October trading update(2)
· Current buyback programme to be increased by a further £50m, to
£100m. As at 31 October, £32m already completed
Financial highlights
Adjusted(3) Statutory
Half year 2025/26 Half year 2024/25 OCC change(4) Half year 2025/26 Half year 2024/25
Orders £205.2m £204.9m 1.4%
Revenue £185.5m £204.3m (7.9%) £185.5m £204.3m
Operating profit £24.7m £35.3m (22.9%) £20.0m £32.7m
Operating profit margin 13.3% 17.3% (280) bps 10.8% 16.0%
Operating profit margin OCC 14.5% (280) bps
Profit before taxation £25.4m £36.0m (22.5%) £20.3m £33.3m
Basic earnings per share 33.0p 46.6p (29.2%) 26.1p 43.8p
Normalised cash conversion 41% 44%
Free cash flow £0.2m (£7.1m)
Net cash £45.1m £39.3m
Dividend per share (interim) 5.4p 5.1p 5.9%
· Order intake up 1.4% OCC year-on-year; Q1 orders down 3.0% OCC
followed by 5.7% OCC growth in Q2; Book-to-bill at 1.1x(5):
- Greater Q1 order disruption in Imaging & Analysis, our relatively
higher margin, shorter lead time division, followed by recovering momentum to
flat Q2, leading to H1 orders down 6%
- 25.3% OCC order growth in Advanced Technologies, led by augmented
reality and datacomms compound semiconductor applications and six-fold
expansion into higher volume commercial customers
· Revenue down 7.9% OCC as business recovers from repricing order books
and delayed shipments; Q2 order recovery supports a stronger H2 revenue
performance
· High gross margin consistent with prior year; overheads slightly down
on prior year following restructuring in Belfast and good cost management.
Strong operational leverage expected in H2 as the benefits come through
· Revenue shortfalls in H1 dropped through to Group adjusted operating
profit (£24.7m, down 22.9% OCC), and adjusted operating profit margin (13.3%,
-280bps OCC)
· Strong balance sheet with £45.1m net cash (2024: £39.3m) at half
year. Sales proceeds from NanoScience sale expected in Q3 (c. £57m); as at 31
October, £32m of £50m share buyback programme executed
· Normalised cash conversion 41% (2024: 44%), following profile of H1
revenue; expected to materially improve in H2
· FX headwind in H1 of £2.6m on adjusted operating profit. Full year
impact expected to be £5.5m, in line with recent trading update and reflected
in full-year guidance
· 5.9% increase in the interim dividend to 5.4p (2024: 5.1p)
Current trading and outlook
The business is recovering well following significant disruption in the early
weeks of H1. Second half Imaging & Analysis order momentum is in line with
expectations, with cost control actions taken in H1, notably in Belfast,
underpinning expected margin improvement. A number of product launches are
also expected to contribute to a stronger H2 for the division.
Within Advanced Technologies, strong positive momentum within the compound
semiconductor business, driven by large commercial customers, has resulted in
a robust order book to support another year of strong growth.
We expect to provide a further trading update on 15(th) January 2026.
Richard Tyson, Chief Executive Officer of Oxford Instruments plc, said:
"During the first half we have made further progress in our strategic aims to
simplify the Group, improve commercial execution and realign our regional
presence. Our trading performance reflects that we, like others, have had to
navigate the impacts of tariffs and the related global economic disruption.
"We expect trading performance in Imaging & Analysis to be stronger in the
second half than the first, benefitting from increased order momentum and
adjustments made to some product assembly locations, coupled with the impact
of margin enhancement actions we took in the first half. In Advanced
Technologies, we have had very strong order growth, with our new Bristol
facility and leading technology helping us to secure orders from our target
large commercial customers. We therefore expect the division to deliver
another year of strong growth and improved margins supported by a full order
book.
"I'm very proud of the commitment and drive shown by our teams globally.
Thanks to their proactive response to disruption in our markets and the
positive outcomes from our ongoing strategic programme, we expect to deliver
an improved performance in the rest of the year."
Notes:
1. Excludes all revenues and costs directly related to the NanoScience
business which will exit the Group upon final deal closing. Any costs
previously allocated to the NanoScience business which will not exit the
business at deal close are presented within continuing operations. All prior
year comparators are presented on the same basis. For reference, a pro-forma
consolidated statement of income for FY25 for continuing operations is
included in the Finance review.
2. Trading update issued Monday 13 October, guiding to full year
revenue, adjusted operating profit (AOP) and AOP margin similar to FY24/25 on
an organic constant currency basis.
3. Adjusted items exclude the amortisation and impairment of acquired
intangible assets, acquisition items, business reorganisation costs, other
significant nonrecurring items, and the mark-to-market movement of financial
derivatives. A full definition of adjusted numbers can be found in the Finance
review.
4. Organic constant currency (OCC) numbers are prepared on a
month-by-month basis using the translational and transactional exchange rates
which prevailed in the previous year rather than the actual exchange rates
which prevailed in the year. Transactional exchange rates include the effect
of our hedging programme. They also exclude the impact of acquisitions and
divestment made in the comparator periods.
5. Book-to-bill is defined as orders received in the period divided by
revenue in the period.
The financial information in this preliminary announcement has been prepared
in accordance with UK adopted international accounting standards. The Group
has applied all accounting standards and interpretations issued relevant to
its operations and effective for accounting periods beginning on 1 April 2025.
The UK adopted IFRS accounting policies have been applied consistently to all
periods.
LEI: 213800J364EZD6UCE231
Oxford Instruments management will present its interim results at Deutsche
Numis, 45 Gresham Street, London EC2V 7BF, to analysts and investors at 9:00
today (11 November 2025). The presentation will be streamed live at
https://brrmedia.news/OXIG_HY25/26
(https://protect.checkpoint.com/v2/r06/___https:/brrmedia.news/T2NL_M37/d7*~*___.ZXV3MjpuZXh0MTU6YzpvOmY4NjVhMGY2NjEyZmZlYTI2MDM4NzFkY2JmYWYyMjAzOjc6ZmE4OTphMmQ0MWZlMjgwYjFlZDNkMTAzNjUwNDRiODNlNjM0ZGVhMGRhZTVhZDkxYjI0NTkyZTc2MzE3MTE2NTkwZjNiOnA6VDpU)
and a recording will be made available later today at
www.oxinst.com/investors/financial-reports-and-presentations
(https://protect.checkpoint.com/v2/r06/___http:/www.oxinst.com/nsAjxytwxdknsfshnfq-wjutwyx-fsi-uwjxjsyfyntsx___.ZXV3MjpuZXh0MTU6YzpvOjkwYmFmNjA0MDQ3Y2E5NmZkNDc1ZTdhYzBjZDgwZDZlOjc6ZjBiOTo1MGY1NTVjYTcyNTNhZmE2MWFlOGMzNjljZTI5NjRkNzY3YzBiMWMyYjFkY2ExYzZiNjczMWRlNDA3MTkwMDU5OnA6VDpU)
.
Enquiries:
Oxford Instruments plc
Richard Tyson, Chief Executive Officer
Paul Fry, Chief Financial Officer
Stephen Lamacraft, Head of Investor Relations 07776 433916
s (mailto:stephen.lamacraft@oxinst.com) tephen.lamacraft@oxinst.com
(mailto:stephen.lamacraft@oxinst.com)
MHP Group 07710 117517
Katie Hunt/Tim Rowntree/Veronica Farah oxfordinstruments@mhpgroup.com (mailto:oxfordinstruments@mhpgroup.com)
Notes to Editors
About Oxford Instruments plc
Oxford Instruments provides academic and commercial organisations worldwide
with market-leading scientific technology and expertise across its key market
segments: materials analysis, semiconductor, and healthcare & life
science.
Innovation is the driving force behind Oxford Instruments' growth and success,
supporting its core purpose to accelerate the breakthroughs that create a
brighter future for our world. The vigorous search for new ways to make our
world greener, healthier and more productive is driving unprecedented levels
of R&D investment in new materials and techniques to support productivity
and decarbonisation worldwide, creating a significant opportunity for Oxford
Instruments to grow.
Oxford Instruments holds a unique position to anticipate global drivers and
connect academic researchers with commercial applications engineers, acting as
a catalyst that powers real world progress.
Founded in 1959 as the first technology business to be spun out
from Oxford University, Oxford Instruments is now a global, FTSE250
company listed on the London Stock Exchange (OXIG).
For more information, visit www.oxinst.com
Chief Executive Officer's Review
In common with many of our peers, and the wider market, we have faced a
challenging external environment in the first half of the year. This impact
was primarily felt in our Imaging & Analysis division, where announcements
on tariffs and US academic funding, coupled with the resulting broad economic
uncertainty, affected demand patterns. We took decisive action to ensure that
orderbooks were repriced to take account of the new tariff regime and rapidly
renegotiated new business opportunities to restore order flow.
The main impact was in the first quarter, as customers sought to clarify their
funding sources and reduce their spending forecasts. Whilst opportunities
continued to grow in H1, customers have taken longer to convert confirmed
interest into firm orders.
For I&A, the resulting order book is recovering, with a growing pipeline
and positive quarter-on-quarter momentum. Despite the turbulent start to the
year, we expect to see an improved second half performance in I&A, as
revenue returns to prior year levels, and the benefit of Belfast cost savings
and other margin improvement initiatives flow through to adjusted operating
profit (AOP) and AOP margin.
Our Advanced Technologies division has experienced very strong order growth of
25% OCC in the period, as our compound semiconductor business continues its
expansion into volume manufacturing and benefits from tailwinds in its chosen
market segments. With our new Severn Beach facility now fully operational, and
with several important customer wins, we are seeing the benefits of our growth
strategy as we continue to expand our reach into commercial customers. AT's
full-year order book provides a clear line of sight to H2 revenue and AOP
margin growth.
Further detail on each division's performance is given in the divisional
overviews below.
The volatile trading landscape has impacted the Group's results for the half
year. However, our teams have responded with focus and agility, and we are
embarking on the second half with improved momentum, with book-to-bill above
1.
Navigating volatile global trading dynamics
We have been proactive in our response to the dynamic tariff situation,
successfully mitigating direct impacts by working with customers, primarily in
Imaging & Analysis (I&A), to reprice our open order book where there
have been additional tariffs applied to trading regimes. The impact of tariffs
has been less marked in our Advanced Technologies division, due to exemptions
for semiconductor fabrication systems.
The actions we have taken, together with cost controls and efficiencies, have
helped us to maintain strong contribution margins. Work has also been carried
out across the Group to build provisions for tariffs into future contracts.
We have undertaken two key initiatives in I&A, to expand our manufacturing
footprint and improve our resilience to changes in the global trading
landscape, as well as addressing customer demand for locally produced
products:
· Working with a UK key supply chain partner, we are now able to
manufacture part of our detector line for electron microscopy in China. This
is a significant step for us, allowing customers based in China to buy locally
produced products, supported by local government policy. This is expected to
provide us with a helpful competitive advantage locally as we look to protect
and extend our market share.
· Moving some of the manufacture of our atomic force microscopes
(AFM) from the US to Germany. Teams from our AFM production line in Santa
Barbara have trained technicians at our Ulm site to produce a range of
products, with orders for 'Made in Germany' AFM now flowing into the order
book and the first unit shipped from Ulm in early November.
Both initiatives bring multiple benefits, including addressing customer demand
for local production, boosting supply chain resilience and reducing lead
times.
We continue to pursue further opportunities to reshape our manufacturing
footprint, with a proportion of nanoindentation production to be moved to the
UK from Switzerland in the second half as this recently acquired product line
continues to grow in importance.
New Chinese controls on the export of rare earth materials have also presented
a challenge in the first half of the year for I&A, with many of our
products containing strong magnets. Magnets produced in China frequently
include trace elements of heavy rare earths covered by the controls. However,
heavy rare earths are not required for our products, and we have been able to
substantially mitigate the impact of the controls through R&D adaptations
and alternative sourcing. We continue to monitor developments on this issue
following recent positive discussions between the US and China.
Continued progress to medium-term targets
Despite the difficult start to FY26, our strategic actions taken last year,
and continuing in the first half of this year, give us continued confidence in
our medium-term financial targets. Throughout the period, we have continued to
simplify and streamline the Group and optimise its growth and margin
potential, pursuing separate action plans in each division in line with their
individual characteristics.
Our planned medium-term targets remain unchanged and are as follows:
· Organic revenue growth of 5-8% CAGR
· Adjusted operating margin improvement to 20%+
· Cash conversion of over 85%
· Continuing to invest in growth, including 8-9% of revenue on R&D
· Return on capital employed of over 30% (FY25: 27%)
· Selective acquisitions bringing complementary capabilities.
By successfully repricing the order book and focusing on cost control, the
fundamental margin structure of the I&A division is well positioned to
respond to growth in revenues as demand recovers from our core, structurally
growing markets. We continue to invest in R&D at targeted levels to
support sustained growth, with several new product launches this year.
In AT, higher average selling prices and a shift to larger, commercial
systems, underpin confidence in the margin expansion trajectory for the
division that we set out last year. The investment in Severn Beach is playing
a key role in our ability to drive new customer interest, and to improve
execution.
Our Operational Excellence programme continues to be a key contributor to the
Group's medium-term margin and cash conversion goals. Our focus to date has
been in Belfast, home to our scientific cameras and microscopy business, and
on helping to bring NanoScience back to profit prior to our decision to
divest.
Satellite teams are now leading similar programmes in High Wycombe, home to
our electron microscopy and nuclear magnetic resonance product lines, and in
Severn Beach, home to our compound semiconductor business. Given the strong
existing operational performance at these sites, these initiatives are
intended to take the sites 'from good to great', and are expected to generate
stronger order book execution, growth capacity and margin improvement.
Service is another key lever in delivering our medium-term goals, with an
opportunity to grow above-average margin revenues, as well as to generate
increased customer loyalty and brand reputation. We have continued to invest
in our service capability across the Group, with service revenue now
accounting for 20% of Group revenues (H1 FY25: 18%).
Finally, we continue to strengthen the role of the regions in driving product
and service growth, and in bringing together a more cohesive EMEAI commercial
structure under new leadership. This build out will continue during H2, but we
already see a number of positive opportunities to improve our commercial
execution across the region.
Capital allocation priorities
We have a strong balance sheet, with a net cash position at the half year of
£45.1m. We returned £25.5m of cash to shareholders via our share buyback
programme in H1, and we expect to receive proceeds from the sale of
NanoScience in H2.
Cash conversion and free cash flow generation are expected to be strong in H2,
and to accelerate into FY27 as the business grows, restructuring costs fall
away, capital expenditure normalises and our defined benefit pension
contributions cease.
Our primary capital allocation priorities are i) organic investment and ii)
dividends. Our organic investment programme encompasses both R&D, to which
we are committed to continuing to invest 8-9% of revenue, and other growth
opportunities, most recently our investment in Severn Beach. We remain
committed to our dividend programme, and we are again growing our interim
dividend, by 5.9% to 5.4p.
After these two priorities we will then consider inorganic growth
opportunities and returns of capital to our shareholders alongside each other.
We continue to actively review M&A opportunities, mainly focused on our
I&A division. However, we are disciplined in our approach to assessing
these opportunities to ensure they provide clear strategic advantages and meet
our investment return threshold.
In the current capital market environment, and given the current limited
number of available near-term M&A options, the Board now expects to
increase the current buyback programme by a further £50m, to £100m. As at 31
October, £31.9m of this programme has been completed.
Imaging & Analysis
The Imaging & Analysis division develops and manufactures microscopes,
scientific cameras, analytical instruments and software, with manufacturing
bases in the UK (High Wycombe and Belfast), Europe (Aix-en-Provence, Ulm and
Zurich) and the USA (Santa Barbara).
Key highlights
Imaging & Analysis Half year 2025/26 Half year 2024/25 growth OCC growth(1)
Orders £146.6m £157.5m (6.9%) (5.8%)
Revenue £138.9m £153.9m (9.7%) (8.5%)
Adjusted(2) operating profit £23.7m £34.6m (31.5%) (24.9%)
Adjusted(2) operating margin 17.1% 22.5% (540bps)
OCC adjusted(2) operating margin 18.4% (410bps)
Statutory operating profit £17.5m £29.9m (41.5%)
Statutory operating margin 12.6% 19.4% (680bps)
1. For definition refer to note above.
2. Details of adjusting items can be found in note 2 to the
financial statements.
Created in 2024, the Imaging & Analysis (I&A) division brings together
the Group's extensive capabilities in imaging and analysis, where we offer
highly sophisticated, but relatively small-scale scientific instruments to a
wide range of customers from academic research institutions to commercial
R&D teams and volume manufacturers. The division generates strong margins
and runs on a shorter order cycle than our Advanced Technologies division,
where we typically sell larger scale capital equipment with longer lead times
and structurally lower, albeit growing, margins.
As set out above, the division had a disrupted start to the year, with orders
down in Q1 as customers sought to confirm their budgets in light of tariffs
and announcements on academic funding from the US administration.
As a result of the actions we have taken, and with order momentum having
returned in the second quarter (including in the US), we expect to see a
strong positive second half weighting.
Imaging & Analysis market dynamics
We have a strong divisional presence in each of our three main markets:
materials analysis, semiconductors and healthcare & life science, with our
differentiated product ranges and continual innovation driving the demand for
our products. The challenging start to H1 impacted revenue in all three
markets, with materials analysis down 7% CC, semiconductor down 10% CC, and
healthcare & life science down 9% CC. Whilst opportunities continued to
grow in H1, customers have taken longer to convert confirmed interest into
firm orders. However, orders are now ahead of revenue in all three markets,
and our expectation is for revenue to return to prior year levels in H2.
In materials analysis, our products and software facilitate analysis by both
academic and commercial customers, with a wide variety of end uses, including
structural materials R&D, the development of new, advanced materials such
as graphene and other 2D materials (where our ability to analyse at the
nanoscale is key), and applications in automotive, energy generation and
storage, environment and food technology, among others.
More broadly, we also provide instruments for service labs for core
facilities, increasingly popular centralised shared resources where
cutting-edge equipment is made available for scientists to carry out a wide
range of analysis. Here, as elsewhere, the ease of use, accuracy and speed of
the results generated by our tools are key differentiators.
We also have extensive semiconductor analysis capabilities in our Imaging
& Analysis division, where customers use our instruments to carry out a
wide range of analysis across the semiconductor cycle, from early-stage
research to quality control, semiconductor packaging, and failure analysis.
Divisional orders for semiconductor applications have remained robust in
difficult market conditions.
Following a slower start to the half year for semiconductor in this division,
we have seen momentum returning, in part as a result of the dynamic global
trade environment, with semiconductor packaging diversifying and companies
continuing to establish new product manufacturing lines across Asia, Europe
and the USA.
In healthcare & life science, we work with customers across a wide range
of disciplines, from pure academic research into cellular behaviour and the
development of new treatments for diseases such as cancer and dementia, to
quality control in pharmaceuticals. In common with many of our peers, we have
been reporting weakness in the global market for several reporting periods,
driven by OEM and wider destocking post-Covid, and a challenging period for
academia. This continued into the first half of the year. With revenue down 9%
and orders down 8% CC on the prior half year, demand continues to be weak.
However, we see some positive signs from our actions, with a book to bill at
1.17 and growth returning in the US and China.
Our differentiated technology is a key source of strength for Oxford
Instruments, and continued investment in innovation is central to our growth
plans. New product development is key to us growing and maintaining market
share, even in difficult market conditions such as those in healthcare and
life science.
New launches in Imaging & Analysis this year include:
· an easier-to-use, more budget-friendly extension to our atomic
force microscopy range, which delivers excellent capabilities at a more
attractive price point for customers, extending our market reach;
· a significantly updated benchtop nuclear magnetic resonance
instrument which has enabled us to regain technology leadership in the space;
· a new suite of high-speed, high-resolution, visible light and UV
scientific cameras created by the team that joined Oxford Instruments as part
of the acquisition of First Light Imaging in 2024; and
· a refreshed core Raman microscope line with a groundbreaking new
spectrometer, which together offer customers greater speed, ease-of-use and
flexibility in obtaining research-grade results.
Imaging & Analysis: strategic and operational progress
The Imaging & Analysis division has been actively addressing a number of
priorities in the first half of the year. We have dealt with the impacts of
tariffs and wider global trading dynamics, as set out above, while also
delivering organisational change and laying foundations to restore our Belfast
facility to its expected level of profitability.
We have further integrated the division during the year, uniting six sites
across the UK, Europe and the US under a single leadership team to align
strategic focus and leverage synergies across teams and customer bases. The
benefits of greater alignment have been clear as we worked across the division
to agree approaches to tariffs, and to move part of the production of our
atomic force microscopy lines from our existing Santa Barbara site in
California to our base in Ulm in Germany. Our 'Made in China' project, where
we are manufacturing detectors though a supply chain partner in China, has
also benefitted from division-wide expertise.
Over the half year we have also worked with regional teams around the business
to realign our operating model, bringing sales and service leadership closer
to our customers.
Our Belfast cameras and microscopy site has required special focus as we
address historical operational and quality issues and seek to grow revenue and
margin in the face of a challenging healthcare & life science market. In
light of reduced demand, we rightsized our workforce over the summer, reducing
headcount by 20%. Together with other cost reductions, this is expected to
generate c. £4m of benefit in the second half of the year. A year-on-year
reduction in inventory of £4m will also benefit working capital in H2.
Our operational excellence programme in Belfast continues to deliver benefits
in terms of increased productivity, quality and timely delivery to customers.
Labour efficiency continues to trend upwards, with a 60% increase in
productivity in our cameras workstream versus a year ago.
We have concluded the reshaping of our Belfast product portfolio to
deprioritise those which were not sufficiently profitable in order to
concentrate on marketing products with core leading technology. We are also
focusing on rebuilding our OEM order book, which had been impacted by quality
and lead time issues, as well as the downturn in the wider market. This work
is beginning to gain traction, with two significant OEM framework orders
placed in H1 and further success with an order placed early in H2.
We have successfully launched several products since April, as set out
above. Across the division we continue to align our innovation roadmap, and
to optimise new product launches with a consistent approach. To further
leverage the synergies across the division, and improve our customer reach, we
have realigned our social media channels from a product line approach to a
market-led approach and are beginning to see the benefits in terms of
engagement and lead generation.
Advanced Technologies
The Advanced Technologies division develops and manufactures compound
semiconductor fabrication capital equipment (Severn Beach, UK) and X-ray tubes
(Scotts Valley, USA).
Key highlights
Advanced Technologies Half year 2025/26 Half year 2024/25 growth CC growth(1)
Orders £58.6m £47.4m +23.6% +25.3%
Revenue £46.6m £50.4m (7.5%) (6.2%)
Adjusted(2) operating profit £1.0m £0.7m +42.9% +71.4%
Adjusted(2) operating margin 2.1% 1.4% +70bps
CC adjusted(2) operating margin 2.5% +110bps
Statutory operating profit £1.7m £0.3m
Statutory operating margin 3.6% 0.6% +300bps
1. For definition refer to note above.
2. Details of adjusting items can be found in note 2 to the
financial statements.
The Advanced Technologies division has a different profile from Imaging &
Analysis, with a largely separate customer base. Our growing compound
semiconductor business (representing more than 90% of divisional revenue)
sells much lower product volumes of larger-scale complex systems, while our
small X-ray tube manufacturer (which accounts for the remainder of revenue)
focuses on consumables.
Our strategic priorities for Advanced Technologies are to grow our commercial
customer revenues by expanding our reach with corporate R&D and volume
manufacturers, while improving productivity and profitability to achieve
increased margins.
Orders increased by 25.3% CC growth in H1, which is testament to the progress
we have made over the past 18 months. Since setting out our strategy in June
2024, we have completed our move to the new Severn Beach compound
semiconductor facility, successfully growing our reach with volume
manufacturers.
Divisional revenue for the period was down 6.2% CC year on year, partly due to
the timing of finished goods shipments, but also reflecting the more
substantial shift in the semiconductor equipment order book from small, single
chamber systems to large, multi-chamber systems which have longer delivery
lead times. This transition is expected to feed back into revenue growth in
H2.
Margin was up 70bps to 2.1% reported (2.5% OCC), with a significant uplift
forecast in the second half of the year as we deliver on the division's full
order book, with its positive mix of higher margin business, while maintaining
a tight focus on overheads.
Compound semiconductor market dynamics
Our positive momentum is driven by our successful targeting of key niches
within the AI and augmented reality ecosystems, where compound semiconductors
are playing a crucial and growing role in advancing major companies'
technology roadmaps. In particular, we focus on the critical layers within
semiconductor devices which determine their functionality, supporting
customers to achieve greater data transfer speeds, better optoelectronic
properties and lower power consumption, in end markets including consumer
technology, automotive and AI datacentres. These critical layers account for
around two thirds of order intake.
Our leading-edge capabilities in critical layer technology give us pricing
power to command both a higher price and a higher margin than those typically
achieved for more standardised processes. We enable next generation device
architectures for better performance, helping our industrial customers to
accelerate their own growth by improving wafer performance, yield and
therefore cost per wafer.
Our market applications range from datacomms to augmented reality, next
generation power electronics and quantum, providing resilience to demand
fluctuations in any single area.
We continue to see strong growth in applications for datacentres, including a
significant and ongoing partnership with global advanced chips manufacturer
Coherent Corp. to support its 6" indium phosphide fab ramp for AI datacentres
in Europe and the US.
Augmented reality is a further key growth area. We are working with globally
recognised customers to advance their technology roadmaps for products such as
augmented reality glasses, in applications including microLED, meta lenses,
wireless charging and 3D sensors.
We are also playing a role in the transition of quantum technology from
academic research to corporate R&D. From leading universities and
start-ups to blue chip global technology companies, we provide products and
applications to support the fabrication of qubits, and the acceleration of
capabilities in quantum sensing and quantum communications. We were delighted
to win a significant repeat order from a Tier 1 customer in the half as part
of its quantum programme.
Gallium nitride applications (GaN), which enable customers to increase power
and drive efficiency in datacentres and next generation AI smartphones, are a
further focus area for the business, and we are seeing increased customer
interest in validating applications.
The silicon carbide market remains weak globally. However, we continue to be
active in the sector, and are focusing on applications that enable next
generation devices, winning a small number of orders in the period.
Strategic and operational update
The move to our new compound semiconductor site at Severn Beach, outside
Bristol, is now fully complete, with all fabrication and metrology tools
installed and operational in the facility's ISO 5-standard cleanroom, enabling
an increased volume of customer demonstrations and internal R&D work to be
carried out.
Following the transfer of tools via a phased programme over the summer months,
our legacy site at Yatton, in North Somerset, was sold in early September for
£4.8m.
The increased capacity of the Severn Beach facility - up to three times that
of the previous site - together with its world-class cleanroom, is key to the
business's ability to address structural growth in datacomms, power
electronics, and augmented reality. With state-of-the-art equipment, improved
capacity and the productivity enhancements enabled by the new,
purpose-designed space, the move marks a step change in our ability to meet
production manufacturers' needs. We have seen a six-fold increase in order
value from volume production customers year on year.
Overall demand indicators continue to be strong, with a growing pipeline of
qualified compound semiconductor opportunities. Conversion rates are also up,
most notably where the sales process is supported by a demonstration. Our new
cleanroom dramatically increases our ability to do so, and we have seen a
particularly strong uplift in post-demo conversion for our target critical
layer processes.
In tandem with the move to the new site, and the strategic decision to focus
on the technologies where we have a significant competitive edge, we continue
to generate efficiencies by streamlining the product portfolio of this
business. In this half year, more than 90% of system orders (up from 75% at
full year FY25) have been generated from sales of three core platforms -
Plasma Pro, IonBeam and ALD (atomic layer deposition) - with modular assembly
carried out in dedicated bays, and fewer complex and resource intensive
one-off products. The production of fully automated production systems has
grown significantly as a proportion of overall system orders year on year,
supporting our strategy of growing our reach within compound semiconductor
production markets.
Sale of NanoScience
The sale of Oxford Instruments NanoScience to Quantum Design International is
progressing well and is expected to complete in the third quarter of FY26,
subject to receipt of UK government approval. The business is currently held
for sale and is reported as a discontinued operation within our financial
statements. Its divestment further enables the Group to focus its capital
deployment on business capabilities with higher margin and potential for
shareholder returns, and is consistent with our focus on our three main
markets: materials analysis, semiconductor, and healthcare and life science.
Talented and resilient global workforce
Our teams all around the world have demonstrated a high degree of resilience
and ingenuity throughout a volatile start to the year, working with each other
and with our customers to deliver solutions at pace to emerging challenges.
They have done so while continuing to make excellent progress with our
existing strategic priorities, collaborating across regions and business units
to deliver further streamlining and simplification of our operational
structure and to improve our operational performance. My thanks, and those of
the whole Board, go to all our colleagues for their commitment, drive and
talent.
Summary and outlook
During the first half we have made further progress in our strategic aims to
simplify the Group, improve commercial execution and realign our regional
presence. Our trading performance reflects that we, like others, have had to
navigate the impacts of tariffs and the related global economic disruption.
We expect trading performance in Imaging & Analysis to be stronger in the
second half than the first, benefitting from increased order momentum and
adjustments made to some product assembly locations, coupled with the impact
of margin enhancement actions we took in the first half. In Advanced
Technologies, we have had very strong order growth, with our new Bristol
facility and leading technology helping us to secure orders from our target
large commercial customers. We therefore expect the division to deliver
another year of strong growth and improved margins supported by a full order
book.
I'm very proud of the commitment and drive shown by our teams globally. Thanks
to their proactive response to disruption in our markets and the positive
outcomes from our ongoing strategic programme, we expect to deliver an
improved performance in the rest of the year.
We expect to provide a further trading update in mid-January 2025.
RICHARD TYSON
Chief Executive Officer
10 November 2025
Finance Review
In June 2025 Oxford Instruments announced that it had entered into a binding
agreement to sell Oxford Instruments NanoScience ("NanoScience"), its
quantum-focused business. As a result of this agreement NanoScience has been
classified as held for sale in the FY26 financial statements, with all
revenues and costs directly related to the NanoScience business being reported
within discontinued operations both for the current year and prior year. All
financial information reported below relates to continuing operations, unless
otherwise stated.
Adjusted(1) Statutory
Half year 2025/26 Half year 2024/25 OCC(2) Change Half year 2025/26 Half year 2024/25 Change
From continuing operations
Revenue £185.5m £204.3m (7.9%) £185.5m £204.3m (9.2%)
Gross margin 55.0% 55.4% (20) bps 55.0% 55.4% (40) bps
Operating profit £24.7m £35.3m (22.9%) £20.0m £32.7m (38.8%)
Profit before tax £25.4m £36.0m (22.5%) £20.3m £33.3m (39.0%)
Operating margin 13.3% 17.3% (280) bps 10.8% 16.0% (520) bps
Normalised cash conversion(3) 41% 44%
Free cash flow(4) £0.2m (£7.1m)
Basic earnings per share 33.0p 46.6p (29.2%) 26.1p 43.8p (40.4%)
Dividend per share 5.4p 5.1p +5.9%
Key highlights
(1) Removing the effect of adjusting items; See Note 3 to the financial
statements for further analysis of adjusting items
(2) Organic constant currency basis
(3) Normalised cash conversion excludes the impact of the Severn Beach
facility, the purchase of land and buildings adjacent to our High Wycombe
site, and proceeds from the sale of the building in Yatton
(4) Free cash flow before acquisitions and other corporate development
Certain Alternative Performance Measures (APMs) have been included within the
half-year results. These APMs are used by management and the Board to help it
effectively monitor the performance of the Group as they consider that these
represent a more consistent measure of underlying performance. Note 3 provides
further analysis of the adjusting items in reaching adjusted profit measures.
Definitions of the Group's material alternative performance measures, along
with reconciliation to their equivalent IFRS measure are included within the
Finance Review. Unless stated otherwise, movements in orders, revenue and
adjusted operating profit are given on an organic and constant currency (OCC)
basis, removing the impact of acquisitions, disposals and currency movements
in the year.
Orders
The period saw contrasting order dynamics across our two divisions, with
market turbulence, primarily due to tariffs and resulting global economic
uncertainty, having a greater impact on order intake in our Imaging and
Analysis division than previously anticipated. In our Advanced Technologies
division, market tailwinds in the compound semiconductor market, and our
expansion into volume manufacturing customers, have continued to drive very
strong order growth.
At Group level, this has resulted in a first half order intake of £205.2m
(FY25: £204.9m), up 1.4% OCC versus prior year, with a Q1 decline of 3.0%,
followed by growth of 5.7% in Q2. I&A order intake in Q1 was down 11.4%,
and Q2 approximately flat on prior year (-0.5%). AT order intake grew 25.5% in
Q1 and 25.9% in Q2. Our half-year book-to-bill ratio is 1.1 (1.0 H1 prior
year).
Whilst most I&A end markets showed declines in order intake in H1, the
largest impacts were in healthcare and life sciences (-7.6%), which continues
to show weakness primarily impacting our Belfast imaging business. The
academic research sector accounted for most of the I&A decline, also down
7.6%. US academia grew 0.9%, offset by a 11.7% decline in academia outside of
the US.
Orders in our AT division grew 25.3% OCC in the period, with strong growth
from commercial customers (+34%) for datacomms and augmented reality
applications. Commercial customers accounted for 55% of orders in the half. US
academia order intake fell 9.7% in the period, but we saw significant growth
in academia outside of the US (+24.8%), mainly in Europe for semiconductor
applications in quantum computing.
Revenue
Revenue declined 7.9% OCC for the period to £185.5m (FY25: £204.3m). Revenue
for our I&A division was down 8.5% OCC for the period (-9.7% statutory),
with Q1 down 8.7% OCC following the imposition of tariffs leading to delays in
both order receipt and shipping. Revenue in Q2 showed recovery for delayed
shipping in the core detector business, but low order intake in Q1 affected Q2
shipments in other areas of the division, leading to a revenue decline of 8.3%
OCC in Q2.
Revenue in the AT division declined by 6.2% OCC (-7.5% statutory) in the
period, down by 12.7% in Q1 and again by 2.1% in Q2. Revenue for AT in the
first half was partially impacted by delays in shipping of finished goods,
which are expected to resolve in H2. The shape of the semiconductor orderbook
has also been a factor, with the inflection to very strong order growth
occurring from Q4 FY25 which, given the longer lead times for this equipment,
has yet to fully pull through to revenue.
Broadly speaking, we have seen significant order book growth coming from
commercial manufacturers, mainly in the US and Europe for larger,
multichambered systems. These systems command a higher average selling price,
but also have longer build lead times. This shift in the orderbook delivery
profile has also led to lengthening of time to revenue recognition in the
first half. However, H2 revenue growth is expected to return to double digit.
£m Imaging & Analysis Advanced Technologies Total
Revenue: half year 2024/25 153.9 50.4 204.3
Constant currency growth (13.1) (3.1) (16.2)
Growth through acquisition 1.4 - 1.4
Currency (3.3) (0.7) (4.0)
Revenue: half year 2025/26 138.9 46.6 185.5
Revenue growth: reported (9.7%) (7.5%) (9.2%)
Revenue growth: organic constant currency (8.5%) (6.2%) (7.9%)
Geographic revenue growth
On a geographical basis, the US continues to be the Group's largest market,
accounting for 26% of revenues. Whilst all regions have shown a revenue
decline in H1, our US business has proved to be resilient across a number of
product lines, with order growth up 12.3% OCC, driven by good growth across
both divisions.
China revenue has declined 5.3% OCC in the period, but this has mainly been
driven by lower AT revenues due to the shipping delays and generally lower
demand for compound semiconductor systems.
Revenue in Europe fell 5.1% OCC in the period, where the decline in shipments
of large healthcare and life science-related equipment offset growth in
revenues from materials analysis applications. Compound semiconductor system
academic revenue growth has lagged order growth as the size of systems and
associated lead times have also grown.
Asia revenue declined 14.9% OCC in H1, with I&A revenues staying
relatively resilient, and AT revenues declining more significantly as we
transition channel partners in Japan. However, pipeline opportunities remain
strong across the Asia region.
Half year 2025/26 Half year 2024/25 Change
£m £m Change OCC
United States 47.9 52.4 (8.6%) (5.2%)
China 43.5 47.0 (7.4%) (5.3%)
Asia (ex. China) 38.3 45.7 (16.2%) (14.9%)
Europe 47.6 48.8 (2.5%) (5.1%)
Rest of World 8.2 10.4 (21.2%) (16.3%)
185.5 204.3 (9.2%) (7.9%)
R&D
Total R&D expenditure charged to the income statement in the period was
£17.2m (FY25: £19.1m). In addition, £1.5m of R&D expense was
capitalised in the period (FY25: £0.5m), mainly related to four new I&A
products launching in FY26 and compound semiconductor process developments to
be commercialised.
Adjusted operating profit and margin
Adjusted operating profit of £24.7m (FY25: £35.3m) was 22.9% lower than last
year in organic constant currency terms (Statutory: -38.8%). Adjusted
operating profit margin was 13.3% (FY25: 17.3%). On an organic constant
currency basis adjusted operating margin was down 280 bps versus the prior
year.
The I&A division continues to be the more profitable of the Group's two
divisions, as a result of high gross margins which have been largely preserved
despite the tariff challenges faced and a negative mix effect this year. The
adjusted operating profit (AOP) of the division is very sensitive to declines
in volume, which have been partially offset by price increases and cost
savings, mainly in our Belfast facility. Overall overheads are slightly down
versus the prior year, but as a percentage of revenue are higher, accounting
for all of the AOP margin erosion in H1.
The AT division has improved profitability slightly despite lower revenues and
the increase in depreciation associated with the new Severn Beach facility
(£0.4m in H1). Gross margins have improved, in part due to higher average
selling prices, but will return to similar levels to the prior year once the
full depreciation and maintenance charges for the new facility are incurred in
H2. However, we expect to see a strong operational leverage impact on
operating margins in H2, leading to a marked improvement in full year
divisional margin versus the prior year.
£m Imaging & Analysis Advanced Technologies Total
Adjusted operating profit: half year 2024/25 34.6 0.7 35.3
Constant currency growth (8.6) 0.5 (8.1)
Growth through acquisition 0.1 - 0.1
Currency (2.4) (0.2) (2.6)
Adjusted operating profit: half year 2025/26 23.7 1.0 24.7
Adjusted operating margin(1): half year 2024/25 22.5% 1.4% 17.3%
Adjusted operating margin(1): half year 2025/26 17.1% 2.1% 13.3%
Adjusted operating margin(1) (OCC): half year 2025/26 18.5% 2.5% 14.5%
1. Adjusted operating margin is calculated as adjusted operating profit
divided by revenue. Adjusted operating margin at constant currency is defined
as adjusted operating profit at constant currency divided by revenue at
constant currency. Stranded costs have been allocated to the divisions in the
current and prior year comparator (H1 FY26: £1.6m; H1 FY25: £1.3m)
Adjusting items
The following adjusting items are excluded from statutory profit in order to
give a clearer picture of the underlying profitability of the Group:
· Amortisation of acquired intangibles relates to intangible assets
recognised on acquisitions, being the value of technology, customer
relationships and brands. This value was slightly lower than the prior year
at £4.2m (FY25: £4.7m) due to acquired intangibles becoming fully amortised.
· Restructuring costs of £5.4m (FY25: £2.2m), of which £2.8m
related to relocation of the compound semiconductor business to Severn Beach,
and £2.6m related to one-off restructuring within the Group, mostly connected
to our Belfast site. Full year non-recurring expenses are expected to be
£7m-£8m.
· Profit on disposal of £3.7m arising from the sale of premises in
Yatton following the move of the compound semiconductor business to Severn
Beach.
· The Group uses derivative products to hedge its short-term
exposure to fluctuations in foreign exchange rates. Net movements in the value
of unrealised mark-to-market derivatives are disclosed in the Income Statement
as foreign exchange and excluded from our calculation of adjusted profit
before tax. In the year this amounted to a gain of £1.2m (FY25: £2.7m).
· The unwind of discount in respect of contingent consideration on
the acquisition of FemtoTools of £0.4m (FY25: £0.1m), reported under net
finance income.
In the prior year adjusting items also included a release of contingent
consideration (£2.1m) following a review of expected performance of First
Light Imaging versus the earn out targets agreed at acquisition, and £0.5m of
transaction-related costs. Non-recurring costs associated with the disposal of
the NanoScience business are reported within Discontinued Operations for the
current and prior year.
Net finance income
Adjusted net finance income for the Group was flat at £0.7m (FY25: £0.7m),
following an average cash balance consistent with the prior half year period,
and following a share buyback of £25.5m.
Taxation
The adjusted tax charge of £6.3m (FY25: £9.0m) represents an effective tax
rate of 24.8% and is consistent with the prior year (FY25: 25.0%). Half-year
tax rates are calculated based on the expected effective tax rate for the
year, based on certain assumptions about where profits will arise.
The statutory tax charge of £5.2m (FY25: £7.9m) represents an effective tax
rate of 25.6% (FY25: 23.7%). The increase has arisen as a result of certain
non-deductible accounting costs relating to the FemtoTools acquisition and
certain costs related to the move to the new Severn Beach facility.
Additionally, the prior year benefitted from non-taxable income arising on the
release of the First Light Imaging earn-out consideration.
The half-year tax rate has been calculated based on the expected effective tax
rate for the year of 24.8% (having made certain assumptions about where
profits will arise).
Cash tax paid in the period was £3.7m (2025: £11.3m); the decrease was due
to the reallocation of prior year UK tax overpayments to the current period
meaning that no additional UK tax payments were required to be made in the
period.
Earnings per share from continuing operations
Adjusted basic earnings per share decreased by 29.2% to 33.0p (FY25: 46.6p);
adjusted diluted earnings per share decreased by 28.9% to 32.7p (FY25: 46.0p).
Basic earnings per share decreased by 40.4% to 26.1p (FY25: 43.8p); diluted
earnings per share decreased by 40.2% to 25.9p (FY25: 43.3p).
The number of undiluted weighted average shares decreased to 57.9m (FY25:
58.0m). As at 30th September, 56.9m shares were in issue.
Currency
The Group faces transactional and translational currency exposure, most
notably against the US dollar, euro and Japanese yen. For the period,
approximately 11% of Group revenue was denominated in sterling, 52% in US
dollars, 26% in euros, 8% in Japanese yen and 4% in other currencies.
Translational exposures arise on the consolidation of overseas subsidiary
results into sterling. Transactional exposures arise where the currency of
sale or purchase transactions differs from the functional currency in which
each subsidiary prepares its local accounts.
The Group's translation and transaction foreign currency exposure for the half
year FY26 is summarised below:
£m equivalent Revenue Adjusted operating profit
Sterling 19.6 (62.0)
US Dollar 96.5 63.0
Euro 47.7 15.0
Japanese Yen 14.9 8.9
Chinese Renminbi 3.2 (0.5)
Other 3.6 0.3
185.5 24.7
Our guidance for the FY26 full-year currency impact has been updated to
reflect hedging currently in place and forecast currency rates. Our guidance
for the full year is a headwind of £8.8m to revenue and £5.6m to operating
profit versus FY25 (based on a GBP: USD rate of 1.34). Previous guidance was
£9.0m and £4.5m respectively, based on an GBP:USD rate of 1.33. A one cent
movement in the GBP to USD exchange rate is expected to have an approximately
£0.2m impact on adjusted operating profit.
£m equivalent Half year 2025/26 blended rate Half year 2024/25 blended rate % change
US Dollar 1.32 1.27 (3.9%)
Euro 1.14 1.19 +4.2%
Japanese Yen 195 196 (0.5%)
Balance sheet
Intangible assets
Intangible assets net book value decreased by £7.5m versus the prior year
end. The decrease was largely due to classifying the NanoScience business as
held-for-sale which held £7.7m of intangibles, as well as £4.4m of
amortisation during the period. This was offset by £1.5m of R&D
capitalised as intangible assets during the period and movements in FX
(£3.1m).
Property, plant and equipment
Additions to property, plant and equipment were £3.9m in the period. The
semiconductor facility in Yatton was sold for £4.8m and generated a profit on
disposal of £3.7m. The depreciation charge for the half year was £3.0m, of
which £0.4m relates to Severn Beach. Depreciation in respect of Severn Beach
is expected to be £1.5m for the full year, and approximately £2.1m per annum
for FY27 onwards.
Working capital
Working capital has increased by £16.2m from the year end, to £61.0m.
Inventories increased mainly due to reduced or delayed shipments at period
end, as well as building inventory in line with the increased order book in
Advanced Technologies. Payables increased by £9.9m reflecting a typical H1
pattern for the Group. Working capital was down 11% versus H1 of the prior
year, and remains a key area of focus for the remainder of the year.
Pensions
The Group provides a defined benefit pension scheme in the UK. This has been
closed to new entrants since 2001 and closed to future accrual from 2010.
Scheme liabilities decreased slightly to £194.5m (31 March 2025: £194.8m).
Company contributions of £4.5m in the period were offset by market conditions
that reduced the scheme's assets during the period to £217.2m (31 March 2025:
£218.2m). On an IAS 19 basis, the surplus arising from our UK defined benefit
pension scheme obligations on 30 September 2025 decreased slightly to £22.7m
(31 March 2025: £24.4m). Contributions to date in FY26 have been £5.25m.
Following a review in the period of future funding requirements for the
scheme, the company has ceased further contributions in FY26. The probability
that the company will need to resume contributions to the scheme is now
considered very low.
Cash and liquidity
The Group ended the half year with £45.8m in cash or cash equivalents
(£45.1m net cash). Adjusted cash from operations, including capital
expenditure, was £12.9m (FY25: £10.4m) and represents a cash conversion of
52% (FY25: 29%). Cash conversion is calculated as adjusted cash from
operations divided by adjusted operating profit. Excluding capital expenditure
relating to our new semiconductor systems facility, the sale of the previous
facility, and the purchase of land and buildings adjacent to our facility in
High Wycombe, cash conversion on a normalised basis was 41%, similar to the
prior year (FY25: 44%).
Free cash flow (FCF) was +£0.2m in the period (FY25: -£7.1m). As a result of
reduced adjusted operating profit, operating cash flows were lower in the
period by £8.6m. The change in FCF versus the prior year is mainly due to the
reduction in capital expenditure associated with the new Severn Beach compound
semiconductor facility, the receipt of proceeds from the sale of the Yatton
site in H1, and a reduction in cash tax following overpayments in the prior
year.
Capital expenditure net of the Yatton proceeds is expected to be around
£5m-£7m, and from FY27 is expected to be around £8m-10m per annum.
During the period the Group made purchases of its own shares amounting to
£25.5m, and paid dividends of £9.9m, ending the period with a net cash
balance of £45.1m. Proceeds from the sale of NanoScience are expected to be
£57m. The transaction is expected to close before the end of the calendar
year. A tax charge on the proceeds of £4m is expected to be paid in FY26
(~£3m) and FY27 (~£1m).
The Group Consolidated Statement of Cash Flows is summarised below:
Half year Half year
2025/26 2024/25
£m £m
Adjusted operating profit 24.7 35.3
Depreciation and amortisation 5.8 5.3
Adjusted EBITDA(1) 30.5 40.6
Working capital movement (16.2) (20.3)
Non-recurring cash items (5.4) (2.7)
Equity settled share schemes 1.5 1.5
Pension scheme payment above charge to operating profit (4.0) (4.1)
Cash generated by operations 6.4 15.0
Add /(deduct):
Net interest income 0.4 0.6
Tax paid (3.7) (11.3)
Capitalised development expenditure (1.5) (0.5)
Expenditure on tangible and intangible assets 0.9 (8.4)
Payments made in respect of finance leases (2.3) (2.5)
Free Cash Flow (FCF)(2) 0.2 (7.1)
Acquisition of subsidiaries, net of cash acquired - (15.4)
Share buyback (25.5) -
Dividends paid (9.9) (9.2)
Proceeds from issue of share capital 0.1 -
Decrease in borrowings (0.2) (0.6)
Net decrease in cash and cash equivalents from continuing operations (35.3) (32.3)
Net decrease in cash and cash equivalents from discontinued operations (2.4) (10.3)
Net decrease in cash and cash equivalents (37.7) (42.6)
Effect of exchange rate fluctuations on cash held (1.8) (2.5)
Closing cash and cash equivalents 45.8 40.4
Borrowings (0.7) (1.1)
Net cash 45.1 39.3
( )
(1)Adjusted EBITDA is defined as Adjusted operating profit before depreciation
and amortisation of capitalised development costs.
(2) Free cash flow is reported before acquisitions or similar corporate
development activity
Reconciliation of cash generated from operations to adjusted operating cash
flow:
( )
Half year Half year
2025/26 2024/25
£m £m
Cash generated by operations 6.4 15.0
Add back /(deduct):
Pension scheme payment above charge to operating profit 4.0 4.1
Non-recurring items 5.4 2.7
Capitalised development expenditure (1.5) (0.5)
Net proceeds/(expenditure) on tangible and intangible assets 0.9 (8.4)
Payments made in respect of finance leases (2.3) (2.5)
Adjusted cash generated by operations 12.9 10.4
Cash conversion(1) 52% 29%
Normalised cash conversion(2) 41% 44%
( )
(1)Cash conversion = adjusted cash generated by operations divided by adjusted
operating profit.
(2)Cash conversion calculated on a normalised basis excludes expenditure in
the period of £0.7m (FY25: £5.3m) relating to the new semiconductor systems
facility in Severn Beach, £1.3m purchase of land and buildings adjacent to
our facility in High Wycombe, and proceeds from the sale of the previous
semiconductor systems facility in Yatton of £4.8m.
The Group maintains an unsecured multi-currency revolving facility agreement
which expires in June 2029. An option to extend the facility from March 2028
to June 2029 was exercised during the period. A further 12-month extension
option at the end of the second year remains available. The facility is
supported by four banks and comprises a euro-denominated multi-currency
facility of €95.0m (£83m) and a US dollar-denominated multi-currency
facility of $150.0m (£111m).
Debt covenants are net debt to EBITDA less than 3.0 times and EBITDA to
interest greater than 4.0 times.
Dividend
The Group's dividend policy takes into account changes to underlying earnings,
dividend cover, movements in currency and demands on our cash. The Board
remains confident in the long-term performance of the business and has
proposed an interim dividend of 5.4p (half year FY25: 5.1p) per share, a
growth of 5.9%.
The interim dividend will be paid, subject to shareholder approval, on 9
January 2026 to shareholders on the register as at 28 November 2025.
Outlook
Full-year expectations have not changed since the recent Trading Update.
Full-year adjusted operating profit (AOP) is expected to be broadly in line
with the prior year on an organic constant currency basis, and including an
expected FX headwind of £5.6m, reported AOP is expected to decline by 6%-9%
on the prior year.
Following challenging conditions in the first half, H2 reported revenue is
expected to be in line with the H2 of the prior year. Constant currency
revenue for the I&A division is expected to be in line with H2 of the
prior year, with margin benefiting from around £4m of cost reductions arising
from restructuring at our Belfast site. We expect the AT division to grow
revenue by double digits in H2 versus the prior year, with a high drop through
to adjusted operating profit.
Forward-looking statements
This document contains certain forward-looking statements. The forward-looking
statements reflect the knowledge and information available to the company
during the preparation and up to the publication of this document. By their
very nature, these statements depend upon circumstances and relate to events
that may occur in the future, thereby involving a degree of uncertainty.
Therefore, nothing in this document should be construed as a profit forecast
by the company.
PAUL FRY
Chief Financial Officer
10 November 2025
Addendum - Continuing operations full-year comparator
Following the classification of NanoScience as held for sale, all revenues and
costs directly related to the NanoScience business will be reported within
Discontinued Operations both for the current year and prior year. Full audited
financial statements for FY25 and FY26, including these adjustments, will be
published at the time of the Group's annual results next year. However, to
support users of our financial statements we have provided below a full-year
pro-forma consolidated statement of income for the prior year, as well
additional divisional analysis. This statement and divisional analysis are
unaudited and may be subject to change.
Full year to 31 March 2025
Pro-Forma (unaudited) Adjusted Adjusting items Total
£m £m £m
Revenue 443.4 - 443.4
Cost of sales (199.1) - (199.1)
Gross profit 244.3 - 244.3
Research and development (38.7) - (38.7)
Selling and marketing (73.3) - (73.3)
Administration and shared services (53.7) (41.6) (95.3)
Foreign exchange gain/(loss) 0.9 (0.3) 0.6
Operating profit 79.5 (41.9) 37.6
Financial Income 2.6 - 2.6
Financial expenditure (1.4) (0.6) (2.0)
Profit/(loss) before income tax 80.7 (42.5) 38.2
Income tax (expense)/credit (17.4) 4.2 (13.2)
Profit/(loss) for the period from continuing operations 63.3 (38.3) 25.0
Profit/(loss) from discontinued operations after tax 1.9 (0.9) 1.0
Profit/(loss) for the year attributable to shareholders 65.2 (39.2) 26.0
Basic earnings per share (in pence)
Continuing operations 109.1 43.1
From profit for the year (incl. discontinued operations) 112.4 44.8
Diluted earnings per share (in pence)
Continuing operations 107.8 42.6
From profit for the year (incl. discontinued operations) 111.1 44.3
Full prior year results for continuing operations by division:
£m Imaging & Analysis Advanced Technologies Total
Revenue 330.5 112.9 443.4
Adjusted operating profit 73.9 5.6 79.5
Adjusted operating margin 22.4% 5.0% 17.9%
Condensed consolidated statement of income
Half year to 30 September 2025
Half year to 30 September 2025 (Unaudited) Half year to 30 September 2024 (Unaudited)
Adjusted Adjusting items Total Adjusted Adjusting items (Note 3) Total
(Note 3)
Note £m £m £m £m £m £m
Revenue 2 185.5 - 185.5 204.3 - 204.3
Cost of sales (83.4) - (83.4) (91.2) - (91.2)
Gross profit 102.1 - 102.1 113.1 - 113.1
Research and development 4 (17.2) - (17.2) (19.1) - (19.1)
Selling and marketing (37.5) - (37.5) (35.3) - (35.3)
Administration and shared services (23.0) (5.9) (28.9) (24.3) (5.3) (29.6)
Foreign exchange gain 0.3 1.2 1.5 0.9 2.7 3.6
Operating profit 24.7 (4.7) 20.0 35.3 (2.6) 32.7
Financial income 1.6 - 1.6 1.6 - 1.6
Financial expenditure (0.9) (0.4) (1.3) (0.9) (0.1) (1.0)
Profit/(loss) before income tax 2/3 25.4 (5.1) 20.3 36.0 (2.7) 33.3
Income tax (expense)/credit (6.3) 1.1 (5.2) (9.0) 1.1 (7.9)
Profit/(loss) for the period from continuing operations 19.1 (4.0) 15.1 27.0 (1.6) 25.4
Loss from discontinued operations after tax (2.2) (0.9) (3.1) (1.1) (0.2) (1.3)
Profit/(loss) for the period attributable to equity shareholders of the parent 16.9 (4.9) 12.0 25.9 (1.8) 24.1
Earnings per share (in pence) 7
Basic earnings per share
From continuing operations 33.0p 26.1p 46.6p 43.8p
From discontinued operations (3.8)p (5.4)p (1.9)p (2.2)p
From profit for the period 29.2p 20.7p 44.7p 41.6p
Diluted earnings per share 7
From continuing operations 32.7p 25.9p 46.0p 43.3p
From discontinued operations (3.8)p (5.3)p (1.9)p (2.2)p
From profit for the period 28.9p 20.5p 44.1p 41.1p
The attached notes form part of these Financial Statements.
Condensed consolidated statement of comprehensive income
Half year to 30 September 2025
Half year to Half year to
30 September 2025 (Unaudited) 30 September 2024
(Unaudited)
£m £m
Profit for the period 12.0 24.1
Other comprehensive income/(expense):
Items that may be reclassified subsequently to Consolidated Statement of
Income
Foreign exchange translation differences 1.6 (4.4)
Items that will not be reclassified to Consolidated Statement of Income
Remeasurement loss in respect of post-retirement benefits (6.2) (1.4)
Tax credit on items that will not be reclassified to Consolidated Statement of 1.6 0.4
Income
Total other comprehensive expense (3.0) (5.4)
Total comprehensive income for the period attributable to equity shareholders 9.0 18.7
of the parent
Condensed consolidated statement of financial position
As at 30 September 2025
As at As at
30 September 2025 (Unaudited) 31 March
2025
Note £m £m
Assets
Non-current assets
Property, plant and equipment 77.0 85.6
Intangible assets 114.3 121.8
Right-of-use assets 27.7 29.9
Long-term receivables 0.9 1.0
Derivative financial instruments 10 1.5 0.3
Retirement benefit asset 11 22.7 24.4
Deferred tax assets 9.9 11.1
254.0 274.1
Current assets
Inventories 78.6 99.1
Trade and other receivables 101.0 126.2
Tax receivable 7.2 9.4
Derivative financial instruments 10 2.3 1.9
Cash and cash equivalents 72.3 94.1
Current assets excluding assets classified as held for sale 261.4 330.7
Assets of discontinued operations held for sale 61.8 -
Total current assets 323.2 330.7
Total assets 577.2 604.8
Equity
Capital and reserves attributable to the company's equity shareholders
Share capital 2.8 2.9
Share premium 62.7 62.6
Other reserves 0.3 0.2
Translation reserve 7.0 5.4
Retained earnings 278.5 305.0
351.3 376.1
Liabilities
Non-current liabilities
Bank loans 0.4 0.5
Lease liabilities 25.9 26.7
Retirement benefit obligations 11 0.9 0.9
Derivative financial instruments 10 0.2 -
Provisions 1.2 1.3
Deferred tax liabilities 14.7 16.7
43.3 46.1
Current liabilities
Bank loans and overdrafts 26.8 9.2
Trade and other payables 117.7 157.7
Lease liabilities 3.4 4.5
Tax payable 4.5 6.0
Derivative financial instruments 10 0.9 0.6
Provisions 3.3 4.6
Current liabilities excluding liabilities classified as held for sale 156.6 182.6
Liabilities of discontinued operations held for sale 26.0 -
Total current liabilities 182.6 182.6
Total liabilities 225.9 228.7
Total liabilities and equity 577.2 604.8
Condensed consolidated statement of changes in equity
Half year to 30 September 2025
Share capital Share premium Other reserves Translation reserve Retained earnings Total
£m £m £m £m £m £m
As at 1 April 2025 2.9 62.6 0.2 5.4 305.0 376.1
Profit for the period - - - - 12.0 12.0
Foreign exchange translation differences - - - 1.6 - 1.6
Remeasurement loss in respect of post-retirement benefits - - - - (6.2) (6.2)
Tax credit on items that will not be reclassified to Consolidated Statement of - - - - 1.6 1.6
Income
Total comprehensive income - - - 1.6 7.4 9.0
Share-based payment transactions - - - - 1.5 1.5
Income tax on share-based payment transactions - - - - - -
Proceeds from shares issued - 0.1 - - - 0.1
Share buyback (1) (0.1) - 0.1 - (25.5) (25.5)
Dividends - - - - (9.9) (9.9)
Total transactions with owners: (0.1) 0.1 0.1 - (33.9) (33.8)
As at 30 September 2025 (Unaudited) 2.8 62.7 0.3 7.0 278.5 351.3
As at 1 April 2024 2.9 62.6 0.2 7.4 292.6 365.7
Profit for the period - - - - 24.1 24.1
Foreign exchange translation differences - - - (4.4) - (4.4)
Remeasurement loss in respect of post-retirement benefits - - - - (1.4) (1.4)
Tax credit on items that will not be reclassified to Consolidated Statement of - - - - 0.4 0.4
Income
Total comprehensive (expense)/income - - - (4.4) 23.1 18.7
Share-based payment transactions - - - - 1.5 1.5
Income tax on share-based payment transactions - - - - - -
Proceeds from shares issued - - - - - -
Proceeds from shares issued - - - - - -
Dividends - - - - (9.2) (9.2)
Total transactions with owners: - - - - (7.7) (7.7)
As at 30 September 2024 (Unaudited) 2.9 62.6 0.2 3.0 308.0 376.7
(1) During the period ended 30 September 2025, 1,382,978 ordinary shares were
repurchased and cancelled by the Group as part of the £50 million share
buyback programme announced on 10 June 2025, resulting in a cash outflow of
£25.5 million. The remaining amount of share buyback is expected to complete
in the second half of the year ended 31 March 2026.
Condensed consolidated statement of cash flows
Half year to 30 September 2025
Half year to Half year to
30 September 2025 (Unaudited) 30 September 2024 (Unaudited)
£m £m
Cash flows from operating activities
Profit for the period 12.0 24.1
Loss for the period from discontinued operations 3.1 1.3
Profit for the period from continuing operations 15.1 25.4
Adjustments for:
Income tax expense 5.2 7.9
Net financial income (0.3) (0.6)
Fair value movement on financial derivatives (1.2) (2.7)
Release of contingent consideration - (2.1)
Amortisation of right-of-use assets 2.6 2.4
Depreciation of property, plant and equipment 3.0 2.6
Amortisation and impairment of intangible assets 4.4 5.0
Profit on disposal of plant, property and equipment (3.7) -
Charge in respect of equity-settled employee share schemes 1.5 1.5
Contributions paid to the pension scheme more than the charge to operating (4.0) (4.1)
profit
Increase in inventories (7.8) (6.2)
Decrease/(increase) in receivables 1.5 (6.0)
Decrease in payables and provisions (15.5) (10.3)
Increase in customer deposits 5.6 2.2
Cash generated from operations 6.4 15.0
Interest paid (0.6) (0.6)
Income taxes paid (3.7) (11.3)
Net cash from operating activities - continuing operations 2.1 3.1
Net cash from operating activities - discontinued operations (1.0) (9.6)
Net cash from/(used in) operating activities 1.1 (6.5)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 4.8 0.1
Purchase of property, plant and equipment (3.9) (8.5)
Acquisition of subsidiaries, net of cash acquired - (15.4)
Capitalised development expenditure (1.5) (0.5)
Interest received 1.0 1.2
Net cash generated from/(used in) investing activities - continuing operations 0.4 (23.1)
Net cash generated used in investing activities - discontinued operations (1.4) (0.6)
Net cash used in investing activities (1.0) (23.7)
Cash flows from financing activities
Proceeds from issue of share capital 0.1 -
Interest paid on lease liabilities (0.3) (0.3)
Payment of lease liabilities (2.0) (2.2)
Repayment of borrowings (0.2) (0.6)
Share buyback (25.5) -
Dividends paid (9.9) (9.2)
Net cash used in financing activities - continuing operations (37.8) (12.3)
Net cash used in financing activities - discontinued operations - (0.1)
Net cash used in financing activities (37.8) (12.4)
Change in cash and cash equivalents (37.7) (42.6)
Cash and cash equivalents at beginning of the year 85.3 85.5
Effect of exchange rate fluctuations on cash held (1.8) (2.5)
Cash and cash equivalents at end of the period 45.8 40.4
Comprised of:
Cash and cash equivalents as per the Consolidated Statement of Financial 72.3 53.0
Position
Bank overdrafts (26.5) (12.6)
45.8 40.4
Notes to the half-year financial statements
Half year to 30 September 2025
1 Basis of preparation
Reporting entity
Oxford Instruments plc is a company incorporated in England and Wales. The
condensed consolidated half-year set of Financial Statements consolidate the
results of the Company and its subsidiaries (together referred to as the
"Group".) They have been prepared and approved by the Directors in accordance
with UK adopted IAS 34 Interim Financial Reporting. They do not include all of
the information required for full annual Financial Statements, and should be
read in conjunction with the consolidated Financial Statements of the Group
for the year ended 31 March 2024. The Group Financial Statements were prepared
in accordance with UK adopted International Accounting Standards (IAS) in
conformity with the requirements of the Companies Act 2006 and interpretations
issued by the IFRS Interpretations Committee (IFRIC) applicable to companies
reporting under UK adopted IFRS.
The financial information contained herein is unaudited and does not
constitute statutory accounts as defined by Section 435 of the Companies Act
2006. The comparative figures for the financial year ended 31 March 2024 are
not the Company's statutory accounts for that financial year. Those accounts
have been reported on by the Company's auditors and delivered to the registrar
of companies. The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report, and (iii) did not contain a
statement under Section 498 (2) or (3) of the Companies Act 2006.
The Board of Directors approved the Condensed Consolidated Interim Financial
Statements on 11 November 2025.
Significant accounting policies
As required by the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority, the condensed set of Financial Statements has been prepared
applying the accounting policies and presentation that were applied in the
preparation of the Company's published consolidated Financial Statements for
the year ended 31 March 2025.
Changes in accounting standards
The IASB (International Accounting Standards Board) issued a new Standard,
IFRS 18 Presentation and Disclosure in Financial Statements, on 9 April 2024
that will replace IAS 1 Presentation of Financial Statements. The purpose of
the new standard is to provide more consistent presentation of financial
information across preparers as it is acknowledged that existing standards
have given flexibility to present information in different ways. IFRS 18 will
not impact the recognition or measurement of items in the financial
statements. Many of the existing presentation principles in IAS 1 are
retained, but there are some more specific requirements that will require the
Group to make some changes in its future Annual Report and Interim Financial
Statements.
The new Standard is not yet endorsed by the UK Endorsement Board 'UKEB' but is
expected to be applicable for reporting periods beginning on or after 1
January 2027. Comparative information for 2026 will need to be restated when
the 2027 Interim Financial Statements and Annual Report and Accounts are
published and early adoption is expected to be permitted.
The Group has started an initial review of the Standard and expects changes to
the presentation of the income statement. The process of assessing the
financial impact on the Consolidated Financial Statements will continue during
2025 and 2026.
There are no other new standards or interpretations issued by the IASB that
had a significant impact on the Consolidated Financial Statements.
There are no standards or amendments that are not yet effective and that would
be expected to have a material impact on the Group in the current or future
reporting periods and on foreseeable future transactions.
Estimates
The preparation of half-year Financial Statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these half-year Financial Statements, the significant judgements
made by management in applying the Group's accounting policies and key sources
of estimation uncertainty were the same as those that applied to the
Consolidated Financial Statements as at and for the year ended 31 March 2025,
with one exception. On 10 June 2025, the Group entered into a binding
agreement to sell the trade and assets of Oxford Instruments NanoScience. In
accordance with IFRS 5 Non-current Assets Held-for-Sale and discontinued
Operations, the conditions for an asset to be classified as held-for-sale were
met, and the assets were classified as held-for-sale on that date. For further
information, refer to accounting policies (b) for details of all other
significant estimates and judgements, and Note 13 for the sensitivity analysis
on the Andor CGU in the 2025 Report and Financial Statements.
Going concern
The Financial Statements have been prepared on a going concern basis based on
the Directors' opinion, after making reasonable enquiries, that the Group has
adequate resources to continue in operational existence for the foreseeable
future.
The Finance Review discloses information relevant to the Group's financial
position, its cash flows, borrowing facilities and liquidity.
The directors have considered the appropriateness of the going concern basis
of preparation following a detailed assessment of the risks to the Group as
outlined above, and have a reasonable expectation that the Group will be able
to continue operating and meet its liabilities as they fall due over a period
of 12 months from approval of these half year financial statements.
On 19 March 2024 the Group entered into a new multi-currency revolving
facility agreement, which is committed until June 2029. An option to extend
the facility from March 2028 to June 2029 was exercised during the period. A
further 12-month extension option at the end of the second year remains
available. The facility has been entered into with four banks and comprises a
Euro-denominated multi-currency facility of €95m and a US Dollar denominated
multi-currency facility of $150m. Debt covenants are net debt to EBITDA less
than 3.0 times and EBITDA to interest greater than 4.0 times. At the date of
approving these financial statements, the facility remains undrawn.
The relatively diverse nature of the Group together with its current financial
strength provides a solid foundation. In its going concern assessment, the
directors considered several scenarios, including base case and downside
scenarios. The assessment is based on board approved budget, incorporating
severe but plausible scenarios in the forecast. These scenarios reflected a
25% reduction in group's performance, a 25% increase in working capital and a
third scenario of incorporating both. In each scenario the Group's cash
balances remained positive and the facility remains undrawn throughout the
going concern period to 11 November 2026.
Based on this assessment, incorporating a review of current position, the
scenarios, the principal risks and mitigation, the Directors have a reasonable
expectation that the group will be able to continue operating and meet its
liabilities as they fall due over a period of 12 months from approval of these
half year financial statements and there are no material uncertainties which
may cast significant doubt over its ability to continue as a going concern.
2 Segment information
The Group has nine operating segments. These operating segments have been
combined into two aggregated operating segments to the extent that they have
similar economic characteristics, with relevance to products and services,
type and class of customer, methods of sale and distribution, and the
regulatory environment in which they operate. Each of these two aggregated
operating segments is a reportable segment. The aggregated operating segments
are as follows:
- The Imaging & Analysis segment comprises a group of businesses
focusing on microscopy, cameras, analytical instruments and software.
- The Advanced Technologies segment comprises a group of businesses focusing
on compound semiconductor fabrication equipment and X-ray tubes.
The Group's internal management structure and financial reporting systems
differentiate the two aggregated operating segments based on the economic
characteristics discussed above.
Reportable segment results include items directly attributable to a segment as
well as those which can be allocated on a reasonable basis. The operating
results of each are regularly reviewed by the Chief Operating Decision Maker,
which is deemed to be the Executive Directors. Discrete financial information
is available for each segment and used by the Executive Directors for
decisions on resource allocation and to assess performance. No asset
information is presented below as this information is not presented in
reporting to the Group's Executive Directors.
On 28 June 2024, the Group acquired 100% of the issued share capital of
FemtoTools which has been integrated into the Imaging & Analysis segment.
Further information can be found in Note 8.
The NanoScience business is classified as a discontinued operation and is not
included in the segment results, further information can be found in Note 9.
It was previously reported within the Advanced Technologies segment. The
reported segment results are from continuing operations.
Results
Half year to 30 September 2025 Imaging & Analysis Advanced Technologies Total
£m £m £m
External product revenue 109.9 38.4 148.3
External service revenue 29.0 8.2 37.2
Total external revenue 138.9 46.6 185.5
Inter-segment product revenue - -
Total segment revenue 138.9 46.6
Segment adjusted operating profit 23.7 1.0 24.7
Half year to 30 September 2024 Imaging & Analysis Advanced Technologies Total
£m £m £m
External product revenue 126.0 41.5 167.5
External service revenue 27.9 8.9 36.8
Total external revenue 153.9 50.4 204.3
Inter-segment product revenue - -
Total segment revenue 153.9 50.4
Segment adjusted operating profit 34.6 0.7 35.3
No individual customer accounts for more than 10% of revenue.
Reconciliation of reportable segment profit
Half year to 30 September 2025 Imaging & Analysis Advanced Technologies Unallocated Group items Total
£m £m £m £m
Segment adjusted operating profit 23.7 1.0 - 24.7
Restructuring costs and charges associated with management changes (2.0) (3.0) (0.4) (5.4)
Profit on disposal of assets - 3.7 - 3.7
Amortisation of acquired intangibles (4.2) - - (4.2)
Fair value movement on financial derivatives - - 1.2 1.2
Financial income - - 1.6 1.6
Financial expenditure - - (1.3) (1.3)
Profit before income tax 17.5 1.7 1.1 20.3
Half year to 30 September 2024 Imaging & Analysis Advanced Technologies Unallocated Group items Total
£m £m £m £m
Segment adjusted operating profit 34.6 0.7 - 35.3
Transaction-related costs (0.5) - - (0.5)
Restructuring costs and charges associated with management changes (1.6) (0.4) (0.2) (2.2)
Amortisation of acquired intangibles (4.7) - - (4.7)
Fair value movement on financial derivatives - - 2.7 2.7
Financial income - - 1.6 1.6
Financial expenditure - - (1.0) (1.0)
Release of contingent consideration 2.1 - - 2.1
Profit before income tax 29.9 0.3 3.1 33.3
The Group's revenue by destination of the end user is as follows:
Revenue Half year to Half year to
30 September 2025 (Unaudited) 30 September 2024 (Unaudited)
£m £m
UK 6.1 6.4
China 43.5 47.0
Japan 16.3 14.9
USA 47.9 52.4
Germany 17.0 20.4
Rest of Europe 24.5 22.0
Rest of Asia 22.0 30.8
Rest of World 8.2 10.4
185.5 204.3
3 Adjusting items
In the preparation of adjusted numbers, the Directors exclude certain items in
order to assist with comparability between peers and to give what they
consider to be a better indication of the underlying performance of the
business. In determining whether an event or transaction is an adjusting item,
the Directors consider quantitative as well as qualitative factors such as the
frequency or predictability of occurrence.
These adjusting items are excluded in the calculation of adjusted operating
profit, adjusted profit before tax, adjusted profit for the period, adjusted
EPS, adjusted cash conversion and adjusted effective tax rate. Details of
adjusting items are given below.
The calculation of adjusted EPS can be found in Note 7. Adjusted effective tax
rate is calculated by dividing the share of tax attributable to adjusted
profit before tax by adjusted profit before tax. The definition of cash
conversion is set out in the Finance Review.
Information about adjusting items included in discontinued operations can be
found in Note 9.
Reconciliation between operating profit and profit before income tax and
adjusted profit
Half year to 30 September 2025 Half year to 30 September 2024
Operating profit Profit before income tax Operating profit Profit before income tax
£m £m £m £m
Statutory measure 20.0 20.3 32.7 33.3
Transaction-related costs - - 0.5 0.5
Impairment of goodwill - - - -
Restructuring costs and charges associated with management changes 5.4 5.4 2.2 2.2
Profit on disposal of assets (3.7) (3.7) - -
Amortisation of acquired intangibles 4.2 4.2 4.7 4.7
Fair value movement on financial derivatives (1.2) (1.2) (2.7) (2.7)
Unwind of discount in respect of contingent consideration - 0.4 - 0.1
Release of contingent consideration - - - (2.1)
Total adjusting items 4.7 5.1 4.7 2.7
Adjusted measure 24.7 25.4 37.4 36.0
Adjusted income tax expense (6.3) (9.0)
Adjusted profit 24.7 19.1 37.4 27.0
Adjusted effective tax rates 24.8% 25.0%
Transaction-related costs
In the prior year, these represent the costs of one-off charges incurred at
the Statement of Financial Position date relating to the acquisitions of First
Light Imaging and FemtoTools.
Restructuring costs and charges associated with management changes
In the current year, these represent £2.8m of costs associated with the
relocation of production facilities within the Plasma Technology business,
£2.0m of one-off restructuring within the Andor Technology business and other
restructuring costs of £0.6m in Head Office as a result of relocating the
office from the NanoScience business as it is expected to be sold. In the
prior year, these represent the costs of one-off restructuring within the
group.
Profit on disposal of assets
In the current year, this represents the profit on disposal of the Yatton site
by the Plasma Technology business following their move to Severn Beach.
Amortisation and impairment of acquired intangibles
Adjusted profit excludes the non-cash amortisation and impairment of acquired
intangible assets.
Fair value movement on financial derivatives
Under IFRS 9, all derivative financial instruments are recognised initially at
fair value. Subsequent to initial recognition, they are also measured at fair
value. In respect of instruments used to hedge foreign exchange risk and
interest rate risk, the Group does not take advantage of the hedge accounting
rules provided for in IFRS 9 since that standard requires certain stringent
criteria to be met in order to hedge account, which, in the particular
circumstances of the Group, are considered by the Board not to bring any
significant economic benefit. Accordingly, the Group accounts for these
derivative financial instruments at fair value through profit or loss. To the
extent that instruments are hedges of future transactions, adjusted profit for
the period is stated before changes in the valuation of these instruments so
that the underlying performance of the Group can be more clearly seen.
Unwind of discount in respect of contingent consideration
This represents the unwind of the discount in respect of the contingent
consideration on the acquisition of FemtoTools (Note 8).
Release of contingent consideration
In the prior year, this represents the release of the earn-out provision in
respect of the acquisition of First Light Imaging.
Adjusted income tax expense
Statutory income tax is adjusted for the income tax impact on the adjusting
items described above.
4 Research and development (R&D)
The total research and development spend by the Group is as follows:
Half year to Half year to
30 September 2025 30 September 2024
£m £m
R&D expense charged to the condensed consolidated statement of income 17.2 19.1
Less: amortisation of R&D costs previously capitalised as intangibles (0.1) (0.3)
Add: amounts capitalised as intangible assets 1.5 0.5
Total cash spent on R&D during the period 18.6 19.3
5 Taxation
The total effective tax rate on profits for the half year is 25.6% (prior half
year: 23.7%). The weighted average tax rate in respect of adjusted profit
before tax (see Note 3) for the half year is 24.8% (prior half year: 25.0%).
For the full year the Group expects the tax rate in respect of adjusted profit
before tax to be 24.8%.
6 Dividends
The following dividends per share were paid by the Group:
Half year to Half year to
30 September 2025 30 September 2024
pence pence
Previous period final dividend 17.1 15.9
Current period interim dividend - -
17.1 15.9
The following dividends per share were proposed by the Group in respect of
each accounting period presented:
Half year to Half year to
30 September 2025 30 September 2024
pence pence
Interim dividend 5.4 5.1
Final dividend - -
5.4 5.1
The interim dividend for the year to 31 March 2025 of 5.1 pence per share was
approved by a sub-committee of the Board on 11 November 2024 and was paid on
10 January 2025. The final dividend for the year to 31 March 2025 of 17.1
pence per share was approved by Shareholders at the Annual General Meeting on
28 July 2025 and paid on 19 August 2025.
The interim dividend for the year to 31 March 2026 of 5.4 pence per share was
approved by a sub-committee of the Board on 10 November 2025 and has not been
included as a liability as at 30 September 2025. The interim dividend is
expected to be paid on 9 January 2026 to Shareholders on the register on the
record date of 28 November 2025, with an ex-dividend date of 27 November 2025
and with the last date of election for the Dividend Reinvestment Plan (DRIP)
being 16 December 2025.
7 Earnings per share
Basic earnings per ordinary share (EPS) is calculated by dividing the profit
attributable to equity shareholders of the parent by the weighted average
number of ordinary shares in issue during the period, excluding ordinary
shares held by the Employee Benefit Trust, which have been treated as if they
had been cancelled.
For the purposes of calculating diluted and diluted adjusted EPS, the weighted
average number of ordinary shares is adjusted to include the weighted average
number of ordinary shares that would be issued on the conversion of all
potentially dilutive ordinary shares expected to vest, relating to the
company's share-based payment plans. Potential ordinary shares are only
treated as dilutive when their conversion to ordinary shares would decrease
EPS.
The following table shows the weighted average number of shares used in the
calculation and the effect of share options on the calculation of diluted
earnings per share:
Half year to Half year to
30 September 2025 30 September 2024
shares shares
million million
Weighted average number of shares outstanding 57.9 58.0
Less: weighted average number of shares held by Employee Benefit Trust - -
Weighted average number of shares used in calculation of basic earnings per 57.9 58.0
share
Effect of shares under option 0.5 0.7
Number of ordinary shares per diluted earnings per share calculations 58.4 58.7
Basic and diluted EPS are based on the profit for the period attributable to
equity shareholders of the parent, as reported in the Consolidated Statement
of Income. Adjusted and diluted adjusted EPS are based on adjusted profit for
the period, as reported in Note 3:
Half year to Half year to
30 September 2025 30 September 2024
£m Pence £m Pence
Profit for the period from continuing operations 15.1 26.1 25.4 43.8
Loss from discontinued operations after tax (3.1) (5.4) (1.3) (2.2)
Profit attributable to equity shareholders of the parent/Basic EPS 12.0 20.7 24.1 41.6
Total underlying adjustments to profit before tax (Note 3) 5.1 8.8 2.7 4.7
Related tax effects 2.0 3.5 0.2 0.3
Adjusted profit attributable to equity shareholders of the parent/adjusted EPS 19.1 33.0 27.0 46.6
Diluted basic EPS 20.5 41.1
Diluted adjusted EPS 32.7 46.0
8 Acquisitions
Acquisition of FemtoTools
On 28 June 2024, the Group acquired 100% of the issued share capital of
FemtoTools AG ('FemtoTools') on a cash-free, debt-free basis for consideration
of CHF 17.9m (£15.8m), with a further CHF 5.5m (£4.8m) which was conditional
on trading performance over a period of 33 months from the acquisition. The
conditions for the contingent consideration were meeting certain revenue,
order and margin thresholds. In the calculations below, it has been assumed
that these thresholds will be met.
The book and fair value of the assets and liabilities acquired is given in the
table below. Fair value adjustments have been made to better align the
accounting policies of the acquired business with the Group accounting
policies and to reflect the fair value of assets and liabilities acquired.
Book value Adjustments Fair value
£m £m £m
Intangible assets - 10.5 10.5
Property, plant and equipment 0.3 - 0.3
Inventories 0.6 - 0.6
Trade and other receivables 0.9 - 0.9
Deferred tax 0.1 (2.1) (2.0)
Trade and other payables (0.9) - (0.9)
Retirement benefit obligations (0.3) - (0.3)
Provisions (0.1) - (0.1)
Cash 1.1 - 1.1
Net assets acquired 1.7 8.4 10.1
Goodwill 9.5
Total consideration 19.6
Net cash acquired (1.1)
Contingent consideration after discounting to transaction date (3.6)
Net cash outflow relating to the acquisition 14.9
The goodwill arising is considered to represent the value of the acquired
workforce and the value of technology that has not been individually fair
valued.
Acquisition-related costs in the prior period of £0.3m were expensed to the
Consolidated Statement of Income as an adjusting item in the administration
and shared services cost line. There were no acquisition-related costs in the
current period in relation to this acquisition.
The acquisition contributed revenue of £2.2m, adjusted operating profit of
£0.6m and a statutory loss before tax of £0.6m in the prior period.
If the acquisition had occurred on the first day of the prior year the
acquisition would have contributed revenue of £3.5m, adjusted operating
profit of £0.4m and a statutory profit before tax of £0.4m in the prior
period.
9 Discontinued operations
At 30 September 2025, the Group's NanoScience business was classified as
held-for-sale and as a discontinued operation, given it was a major class of
business and highly probable that the sale will take place within 12 months of
the statement of financial position date. The Group's results have been
re-presented to reflect the NanoScience business as discontinued operations.
Results of discontinued operations Half year to Half year to
30 September 2025 30 September 2024
£m £m
Revenue 19.0 21.5
Expenses (21.8) (22.9)
Income tax credit 0.6 0.3
Adjusted loss after tax (2.2) (1.1)
Adjusting items:
Transaction related costs related to sale of NanoScience business (0.9) (0.2)
Loss from discontinued operations after tax (3.1) (1.3)
Earnings per share from discontinued operations Half year to Half year to
30 September 2025 30 September 2024
pence pence
Adjusted basic earnings per share (3.8)p (1.9)p
Adjusted diluted earnings per share (3.8)p (1.9)p
Total diluted earnings per shares (5.3)p (2.2)p
The disposal group consists of the following assets and liabilities, held in
accordance with IFRS 5 at the lower of carrying value and fair value less
costs to sell:
Assets of disposal group held for sale Half year to
30 September 2025
£m
Property, plant and equipment 9.3
Intangible assets 7.7
Trade and other receivables 15.6
61.8
Liabilities of disposal group held for sale Half year to
30 September 2025
£m
Trade and other payables 24.8
Provisions 1.2
26.0
10 Financial instruments
Fair values of financial assets and liabilities
The following table shows the carrying amounts and fair values of financial
assets and financial liabilities, including their levels in the fair value
hierarchy. It does not include fair value information for financial assets and
financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value.
As at As at Year to
30 September 2025 30 September 2024 31 March 2025
Fair value hierarchy Carrying amount Fair Carrying amount Fair Carrying amount Fair value
value value
£m £m £m £m £m £m
Financial assets measured at fair value
Derivative financial assets:
- Foreign currency contracts 2 3.8 3.8 5.2 5.2 2.2 2.2
Financial assets measured at amortised cost
Long-term receivables 0.9 1.2 1.0
Trade receivables 75.9 82.2 97.5
Other receivables and accrued income 11.4 16.9 14.5
Cash and cash equivalents 72.3 53.0 94.1
Financial liabilities measured at fair value
Derivative financial liabilities:
- Foreign currency contracts 2 (1.1) (1.1) (0.1) (0.1) (0.6) (0.6)
- Contingent consideration 3 (3.9) (3.9) (3.1) (3.1) (4.0) (4.0)
Financial liabilities measured at amortised cost
Trade and other payables (46.6) (58.9) (76.8)
Bank overdrafts (26.5) (12.6) (8.8)
Borrowings (0.7) (1.1) (0.9)
The following summarises the major methods and assumptions used in estimating
the fair values of financial instruments reflected in the above table.
Derivative financial instruments
Derivative financial instruments are marked-to-market using market prices.
Fixed and floating rate borrowings
The fair value of fixed and floating rate borrowings is estimated by
discounting the future contracted principal and interest cash flows using the
market rate of interest at the reporting date.
Trade and other receivables/payables
For receivables/payables with a remaining life of less than one year, the
carrying amount is deemed to reflect the fair value. All other
receivables/payables are discounted to determine their fair value. Advances
received are excluded from other payables above as these are not considered to
be financial liabilities. Tax-related receivables and payables are excluded
from the above table as these are not considered to be financial assets and
liabilities.
Fair value hierarchy
The table above gives details of the valuation method used in arriving at the
fair value of financial instruments. The different levels have been identified
as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets
and liabilities.
- Level 2: inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (ie. as prices) or
indirectly (ie. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable
market data.
There have been no transfers between levels during the period.
11 Retirement benefit assets and obligations
The Group operates a defined benefit plan in the UK. A full actuarial
valuation of the UK plan was carried out as at 31 March 2024 which, for
reporting purposes, has been updated to 30 September 2025 by a qualified
independent actuary.
At 31 March 2025, the scheme actuary calculated a retirement benefit asset of
£24.4m, being the net of £219.2m of assets and a present value of future
liabilities of £194.8m.
In the period to 30 September 2025, asset returns have been lower than the
discount rate leading to a small decrease in the net surplus. The scheme
obligations have decreased to £194.5m (31 March 2025: £194.8m). There have
been no material changes to the demographic assumptions associated with the
scheme.
The deficit recovery payment for the period was £4.5m (year to 31 March 2025:
£8.7m). However, changes in market conditions reduced the scheme's assets
during the period. As a result, the fair value of plan assets decreased to
217.2m (31 March 2025: £218.2m).
The overall effect is that for the purposes of IAS 19 the surplus on the
scheme decreased from £24.4m to £22.7m.
On acquisition of FemtoTools AG on 28 June 2024, the Group now operates a
defined benefit pension scheme in Switzerland. At 30 September 2025 the
overall position of the scheme is a deficit of £0.9m which comprises a
defined benefit obligation of £2.9m and a fair value of plan assets of
£2.0m.
12 Related parties
There have been no related party transactions in the first six months of the
current financial year which have materially affected the financial position
or performance of the Group.
Related parties are consistent with those disclosed in the Group's annual
report for the year ended 31 March 2025.
Principal risks and uncertainties
Information regarding the risk management process in place at the Group is set
out on pages 69 to 71 of the 2025 Report and Financial Statements.
The principal risks and uncertainties identified through that process are set
out on pages 72 to 78 of the 2025 Report and Financial Statements and can be
found on the Group's website at www.oxinst.com.
In keeping with the risk management process, the Group has performed a
quarterly update of its risk register as at 30 September 2025. It has
evaluated the disclosures made on pages 72 to 78 of the 2025 Annual Report and
has concluded that all of the risks identified remain relevant for the
remainder of the year ending 31 March 2025.
Further it considers that there are no additional significant risks to be
disclosed.
A summary of the risks and uncertainties identified in the 2025 Report and
Financial Statements is set out below:
• Geopolitical risk;
• Operational transformation risk;
• Supply chain risk;
• Routes to market risk;
• New Product Introduction (NPI) risk;
• Macroeconomic risk;
• Cyber/information technology risk;
• Legal and regulatory compliance risk;
• People and capability risk;
• Business interruption risk; and
• Climate change risk.
Responsibility statement of the directors in respect of the half-year
financial statements
The Directors confirm that, to the best of their knowledge:
• the condensed consolidated interim financial statements have been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by the UK;
and
• the interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed consolidated interim
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last Annual Report that could
do so.
RICHARD TYSON PAUL FRY
Chief Executive Officer Chief Financial Officer
10 November 2025
Cautionary statement
Certain statements in this announcement constitute, or may be deemed to
constitute, forward-looking statements, projections and information (including
beliefs or opinions) with respect to the Company and its subsidiary
undertakings ("the Group"). An investor can identify these statements by the
fact that they do not relate strictly to historical or current facts. They
include, without limitation, statements regarding the Group's future
expectations, operations, financial performance, financial condition and
business. Such forward looking statements are based on current expectations
and are subject to a number of risks, uncertainties and assumptions that may
cause actual results to differ materially from any expected future results in
forward-looking statements. These risks, uncertainties include, among other
factors, changing economic, financial, business or other market conditions.
These and other factors could adversely affect the outcome and financial
effects of the plans and events described in this announcement.
Other than in accordance with its legal or regulatory obligations (including
under the Market Abuse Regulation, the UK Listing Rules, Disclosure and
Transparency Rules of the Financial Conduct Authority) no undertaking is given
by the Group to update any forward-looking statements contained in this
announcement, whether as a result of new information, future events or
otherwise. Accordingly, no assurance can be given that any particular
expectation will be met and investors are cautioned not to place undue
reliance on the forward-looking statements.
This announcement has been prepared for the Group as a whole and therefore
gives greater emphasis to those matters which are significant to the Group
when viewed as a whole.
Any forward-looking statements made by or on behalf of the Group speak only as
of the date they are made and are based upon the knowledge and information
available to the Directors on the date of this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
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