Interim Management Statement


 

TIDMOXIG 
 
RNS Number : 1968N 
Oxford Instruments PLC 
12 February 2009 
 

 
 
Oxford Instruments plc 
Interim Management Statement 
 
 
Oxford Instruments plc, a leading provider of high technology tools and systems 
for industry and research, issues today an Interim Management Statement which 
covers the period from 1 October 2008 to 12 February 2009 as required by the UK 
Listing Authority's Disclosure and Transparency Rules. 
 
 
Performance in the period was in line with the Board's expectations and above 
the same period in the prior year with revenues being aided by favourable 
currency movements. Our superconducting wire business delivered a strong trading 
performance. Also, those businesses driven by emerging technologies, such as 
next generation photovoltaic devices, have showed continued growth. This has 
compensated for a slowdown in order intake in our businesses serving industrial 
markets. 
 
 
The current economic environment creates more uncertainty as our supply chain 
partners come under pressure within their own businesses and customers 
re-examine the timing of their purchases. To respond to the uncertainty created 
by the global downturn, we have taken steps to reduce our cost base: 
 
 
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The net effect of the above restructuring and other streamlining across the 
Group will be a reduction in headcount of 230 which is 15% of the Group's 
workforce. The cash outflow associated with the above restructuring to date has 
been GBP1.7 million with an additional GBP1.8 million to be spent this year and 
GBP1.9 million falling into the next financial year. Cash savings from these 
changes are anticipated to be in the region of GBP11.4 million for the financial 
year to March 2010. The one off charge to the Income Statement of these 
redundancies and associated write downs is expected to be of the order of GBP7.8 
million in this financial year. 
 
Net debt at the end of January stood at GBP36.4 million. This is supported by 
a 5 year revolving credit facility of GBP50 million which runs until July 2012 
and additional overdraft facilities totalling GBP15 million. As the Group has 
historically held its debt in Euro and US dollar, the decline in Sterling in the 
period covered by this IMS has had the effect of increasing our net debt 
expressed in Sterling by GBP9.4 million. In January the Group converted its debt 
into Sterling to prevent further erosion of facility headroom due to currency 
movements. 
 
In November, the Group announced the retirement from the Board of Steven Parker 
and the appointment of Jock Lennox as an independent non-executive director. The 
appointment will take effect from 1 April 2009, with a view to Jock Lennox 
succeeding Peter Morgan as Chairman of the Audit Committee. 
 
We are acting decisively in response to the downturn in industrial markets and 
in anticipation of difficult conditions ahead. Our reduced cost base and more 
efficient operating structure should mitigate the impact on profits if we suffer 
a decline in revenues. This, together with the expected positive effects of the 
current level of Sterling, means that the business is well positioned during the 
downturn and will benefit swiftly from a future strengthening of demand. 
 
 
  - Ends - 
 
 
Enquiries: 
 
 
 
 
Oxford Instruments plc                                                  Tel: 
01865 393200 
Jonathan Flint, Chief Executive 
Kevin Boyd, Group Finance Director 
 
 
Hogarth Partnership Limited                                          Tel: 020 
7357 9477 
Rachel Hirst / Andrew Jaques / Ian Payne 
 
 
 
 
This Interim Management Statement contains certain forward-looking statements 
which have been made by the Directors in good faith using information available 
up until the date they approved the Statement. Forward-looking statements 
should be regarded with caution as by their nature such statements involve risk 
and uncertainties relating to events and circumstances that may occur in the 
future. Actual results may differ from those expressed in such statements, 
depending on the outcome of these uncertain future events. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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