TIDMOXIG
RNS Number : 0547S
Oxford Instruments PLC
15 November 2011
Release Date: 7am Tuesday 15(th) November 2011
Oxford Instruments plc
Announcement of Half Year Results for 2011/12
Oxford Instruments plc, a leading provider of high technology
tools and systems for industry and research, today announces its
Half Year Results for the six months to 30 September 2011.
Highlights:
-- Order intake up 24% to GBP175 million (2010: GBP141 million)
-- Continued growth in China with orders up 53%
-- Revenue up 41% to GBP159 million (2010: GBP113 million) with organic growth of 30%
-- Adjusted profit before tax* up 76% to GBP18.7 million (2010: GBP10.6 million)
-- Adjusted operating margin* increased to 11.9% (2010: 10.5%)
-- Adjusted EPS* up 62% to 28.2 pence (2010: 17.4 pence)
-- Interim dividend increased by 10% to 2.77 pence (2010: 2.52 pence)
-- Acquisitions of Omicron NanoTechnology GmbH and Omniprobe,
Inc. made in June are integrating well and performing to plan
-- Following the period end, acquisition of Platinum Medical
Imaging LLC for a total consideration of up to US$55 million
-- 7 months into our 14 Cubed growth plan, progress is in line to reach our objectives
* Adjusting items comprise pension scheme curtailment gains,
shareholder earn-out no longer required, impairments, amortisation
of acquired intangibles, unwinding of acquisition related fair
value adjustments to inventory, acquisition costs and mark to
market gains or losses in respect of certain derivatives and the
related amounts of taxation. They also include the utilisation of
the one-off recognition of a deferred tax asset in 2011. See note
2.
Nigel Keen, Chairman of Oxford Instruments plc, said:
"We have delivered a strong result in the first half in line
with our 14 Cubed objectives. Our broad spread of geographies and
technologies, and our strong pipeline of new products should help
us to remain resilient in the event of a global economic downturn.
We are continuing our active pursuit of acquisitions that have the
potential to enhance shareholder value and add to our range of
technical capabilities.
Trading since the period end has remained strong and the Board
believes that performance in the second half of the year is likely
to exceed that of the first half.
The Board remains confident in the continued growth prospects of
Oxford Instruments and the Group's ability to deliver sustained
shareholder value."
Enquiries:
Oxford Instruments plc Tel: 01865 393200
Jonathan Flint, Chief Executive
Kevin Boyd, Group Finance Director
MHP Communications Tel: 020 3128 8100
Rachel Hirst
Ian Payne
Number of pages: 21
For further copies of this Half Year Results Announcement,
please contact Lynn Shepherd at the Group's registered office at
Tubney Woods, Abingdon, Oxon OX13 5QX (email:
lynn.shepherd@oxinst.com)
Half Year Statement
Introduction
The Group delivered an excellent first half result driven by new
product introductions, and a market environment which has remained
robust for our products. Revenue grew by 41% to GBP159 million
(2010: GBP113 million); excluding acquisitions, organic growth was
30%. Adjusted profit before tax grew by 76% to GBP18.7 million
(2010: GBP10.6 million). In the half year our adjusted operating
margin continued to increase, rising to 11.9% from 10.5% in the
prior year in line with our 14 Cubed plan to achieve operating
margins of 14% by 2014. In September 2011, the Group was admitted
to the FTSE250 index.
Group order intake increased to GBP175 million, a rise of 24%,
and the order pipeline and other forward looking indicators remain
strong. Orders in China grew particularly strongly, up 53%. In
recognition of the potential of the India market we have now
appointed a senior executive as a Country Manager for that
region.
Both our research and industrial markets continue to be strong.
We were able to maintain pricing in the period, supported by the
strength of our brand and the quality of our innovative technology.
Our strong organic growth continues to be supported by our focused
R&D programme. In the half year, we increased our R&D cash
spend by 42% to GBP10.5 million, reflecting the opportunities we
see to increase market share through the introduction of new
technologies.
We completed two acquisitions in the first half of the year
financed through a placing of ordinary shares. Omicron, based in
Frankfurt, which employs 206 people in Germany, the UK, USA, Japan
and France, designs and produces advanced microscopes and chemical
analysis instruments for nanotechnology research. Omniprobe, a US
company employing 22 people based in Dallas, designs and produces
tools giving customers nano-scale laboratory capabilities within
electron microscopes. These businesses are integrating well into
the Group and are performing to plan. After the end of the period
we acquired Platinum Medical Imaging, a US company providing high
quality parts and services for MRI and CT medical imaging
instruments. Further commentary is provided in our Service sector
review below.
We are now 7 months into our 14 Cubed growth plan to deliver an
average compound annual growth rate in sales of 14% and a net
return on sales of 14% by 2014. Progress to date is in line with
meeting these objectives.
The Directors declare an interim dividend of 2.772 pence, 10%
higher than the previous year, payable on 10 April 2012 to
shareholders who are on the register on 9 March 2012.
Nanotechnology Tools Sector
2011 2010
GBPm GBPm
----------------- ---- ----
Revenue 70.4 49.2
Operating profit 7.3 5.8
----------------- ---- ----
Our Nanotechnology Tools sector represents 44% of Group revenue.
It produces high performance instruments and systems for customers
working in scientific research and with advanced industrial
processes. The sector comprises four businesses; NanoAnalysis,
Plasma Technology, NanoScience and the recently acquired Omicron
NanoTechnology. This business continues to show solid growth,
despite a reduction in research demand in Japan following the
earthquake in March 2011. With the exception of Japan, which is
expected to return to growth in research spending in 2012, we have
seen no evidence of a reduction in research funding from
governments world-wide.
In April 2011, we launched a new material characterisation
system, Aztec(R) , comprising latest generation Nanoanalysis
detector hardware and multi-tasking software. Aztec orders have
shown strong growth and exceeded expectations. Over-capacity in the
high brightness LED (HBLED) market has led to a softening in demand
for our HBLED fabrication tools but this was more than offset by
the growth in orders for other Plasma Technology products. In
particular, we have seen growth in the research market for next
generation solar cells resulting in significant orders in the USA
and Europe, and in the markets for our MEMS (Micro Electro
Mechanical System) tools.
Omicron NanoTechnology was acquired in June this year and
enables us to offer our customers in the Nanotechnology Tools
sector a broader range of tools and solutions. Omicron supplies
sophisticated, multi-technique systems that includes Scanning Probe
Microscopy (SPM), Electron Spectroscopy and Ultra High Vacuum
solutions for customers working at the cutting-edge of physics
research. This business is performing as expected.
The acquisition of Omniprobe has enhanced our product range by
offering innovative nano-manipulation tools for sample preparation
on electron and ion beam microscopes. Omniprobe has contributed as
expected to the Group.
Industrial Products Sector
2011 2010
GBPm GBPm
----------------- ---- ----
Revenue 64.7 44.3
Operating profit 6.6 2.0
----------------- ---- ----
The Industrial Products sector represents 40% of Group revenue.
It comprises the Industrial Analysis, Magnetic Resonance and
Superconducting Wire businesses. With effect from this half year,
we have reported our Austin Scientific business in this sector
rather than the Service sector due to the growth in orders for
industrial products. This sector showed good growth and a marked
improvement in profitability.
We saw strong growth for handheld X-ray Fluorescence products
and Optical Emission metal analysers. We launched a new portable
analyser which has generated considerable interest from both new
and existing customers and demand for our Industrial Analysis
products in general remains strong. Emerging markets, particularly
India, continue to offer an important growth opportunity for this
business. On 20 October 2011, we rationalised the Industrial
Analysis product offering by disposing of a non-core product line
that we produced for a single customer, to that customer. The
increasing demand for next generation, higher magnetic field
scanners continues to drive growth in our Superconducting Wire
business. Deliveries to the international ITER energy programme
remain on track. In the period we received a further order for wire
from Fusion for Energy, the European procurement Agency for ITER.
The Austin Scientific business won a substantial order for
cryogenic equipment used in advanced materials processing and
shipments have commenced.
Service Sector
2011 2010
GBPm GBPm
----------------- ---- ----
Revenue 24.9 20.9
Operating profit 5.0 4.1
----------------- ---- ----
Our Service business represents 16% of Group revenue. It
comprises activities in the United States and Japan servicing MRI
machines, together with the aftermarket revenues associated with
our Nanotechnology Tools and Industrial Products sectors.
The aftermarket revenues associated with our two manufacturing
sectors are split into three main revenue streams: service
contracts (where customers purchase unlimited support for a fixed
period); billable service (where customers are billed for time and
materials); and the sale of spare parts and consumables. All three
revenue streams are performing well with particular growth coming
from contract sales, especially in the USA. We are also seeing
increasing service revenues from Asia which traditionally has been
slow to accept fixed price, fixed term service contracts.
On 4 November 2011 we completed the acquisition of Platinum
Medical Imaging, our first acquisition within the Service sector.
Platinum is an established US company with 33 staff across two
sites in Florida and California providing high quality parts and
services for MRI (Magnetic Resonance Imaging) and CT (Computed
Tomography) medical imaging instruments. There is a growing
opportunity in this third party service market in the USA due to
healthcare reforms encouraging medical imaging facilities to move
to more cost effective service providers. The combination of
Platinum with Oxford Instruments' existing MRI Service business in
North America significantly strengthens the Group's Service Sector
by providing broader service offerings and the opportunity for the
further development of global service. We expect the acquisition to
be earnings enhancing in the current year.
Financial Review
Orders of GBP174.8 million were GBP33.5 million ahead of the
same period last year. Excluding the contribution from the two
acquisitions made in June, organic order growth was GBP21.4 million
or 15.1%.
Revenues in the half year grew by 40.5% (GBP45.9 million) to
GBP159.1 million. Revenues from acquisitions in the period were
GBP13.3 million, adverse foreign currency exchange rate movements
reduced sales by GBP2.6 million while increasing copper prices
increased sales by GBP1.3 million (there was no impact on profits
as movements in the price of copper are passed on to our
customers). Organic volume growth was 30.0%.
In our Nanotechnology Tools sector, sales grew by GBP21.2
million. Both of the acquisitions made in the half year are in this
sector and sales (excluding service) contributed GBP12.2 million of
the growth. Underlying organic growth was 18.3% with revenue growth
in all businesses.
The Industrial Products sector grew by 46.0%, helped by a full
half year of shipments of superconducting wire to the ITER
programme, which had only begun towards the end of the prior
period, and also by the contract won by our Austin Scientific
business. Austin Scientific has previously been reported as part of
our Service sector but due to its strong growth in physical product
sales, it is now included in the Industrial Products sector. In
line with the other businesses, its service revenues will continue
to be reported in the Service sector.
Service sector revenues grew by 19.1% helped by the increase in
the installed service base over recent years and internal
initiatives to grow sales of fixed price, fixed term service
contracts. Excluding the service revenue from the acquisitions,
organic growth was 13.9%.
The particularly strong performance of Superconducting Wire and
Austin Scientific, two of our lower margins businesses, led to an
adverse mix variance resulting in a drop in average adjusted Group
gross margins from 43.1% to 41.8%. Constant currency operating
expenses, excluding acquisitions, increased by GBP6.6 million, with
the majority of the increase relating to R&D costs. Foreign
exchange effects added GBP0.4 million, while the operating costs of
the acquisitions added GBP3.9 million, resulting in a net increase
of GBP10.9 million in reported operating expenses.
Adjusted operating profit increased by GBP7.0 million to GBP18.9
million, giving an adjusted operating profit margin of 11.9% (2010:
10.5%). Net bank interest reduced by GBP0.3 million to GBP0.5
million, and net interest on the pension fund changed from a charge
of GBP0.5 million to a credit of GBP0.3 million due to the reduced
deficit at the end of March. As a result adjusted profit before tax
rose GBP8.1 million to GBP18.7 million.
The ability to utilise brought forward tax losses in the UK has
kept the adjusted tax rate at 20% (2010: 20%) which leads to
adjusted earnings per share (EPS) of 28.2 pence, an increase of
10.8 pence. Reported EPS fell by 5.1 pence to 15.6 pence due to the
items detailed in note 2, primarily acquisition costs, amortisation
of acquired intangible assets and the utilisation of the large
deferred tax asset that was excluded from adjusted earnings in the
prior year.
At the period end net cash was GBP11.9 million (31 March 2011:
GBP13.1 million, 2010: GBP3.9 million debt). Cash outflow in the
period was GBP1.2 million (2010: GBP6.5 million inflow).
Acquisitions in the period accounted for an outflow of GBP40.7
million while an equity issue of 9.9% of the issued share capital
of the Group in June 2011 raised GBP37.6 million net of fees. The
Group has a committed GBP50 million revolving credit facility with
a club of banks, extendable to GBP70 million by mutual consent,
which expires in December 2014.
As calculated under IAS19, the defined benefit pension deficit
has increased by GBP18.0 million to GBP29.7 million since 31 March
2011. Assets have fallen by 3% to GBP167.4 million while
liabilities have increased by 7% to GBP197.1 million due mainly to
the reduction in corporate bond yields used to discount
liabilities.
Acquisitions and Disposals
On 13 June 2011 the Group made two acquisitions; Omicron
NanoTechnology GmbH for GBP28.3 million and Omniprobe Inc. for
GBP12.3 million. The acquisitions contributed revenues of GBP13.3
million and adjusted operating profit of GBP1.9 million to the
Group's result for the half year.
After the period end, on 20 October the Group disposed of a
product line for consideration of GBP8.1 million, GBP7.1 million
was paid on completion, with a further GBP1.0 million receivable on
the completion of a Transitional Services Agreement.
On 3 November the Group acquired Platinum Medical Imaging LLC
for an initial consideration of US$18 million with a contingent
element of up to US$37 million payable over three years dependent
on performance over that period.
People
We are pleased to welcome further talented people to Oxford
Instruments, who join us from newly acquired businesses and as a
result of our growth. Our wholehearted thanks go to all our people
for their commitment, energy and hard work.
Outlook
We have delivered a strong result in the first half in line with
our 14 Cubed objectives. Our broad spread of geographies and
technologies, and our strong pipeline of new products should help
us to remain resilient in the event of a global economic downturn.
We are continuing our active pursuit of acquisitions that have the
potential to enhance shareholder value and add to our range of
technical capabilities.
Trading since the period end has remained strong and the Board
believes that performance in the second half of the year is likely
to exceed that of the first half.
The Board remains confident in the continued growth prospects of
Oxford Instruments and the Group's ability to deliver sustained
shareholder value.
Nigel Keen Jonathan Flint
Chairman Chief Executive
15 November 2011
Condensed Consolidated Statement of Income - unaudited
Half Year to 30 Sept Half Year to 30 Sept
2011 2010
Before Adjusting Total Before Adjusting Total
adjusting items* adjusting items*
items* items*
Notes
-------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
Revenue 3 159.1 - 159.1 113.2 - 113.2
Cost of sales (92.6) (1.0) (93.6) (64.4) - (64.4)
-------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
Gross profit 66.5 (1.0) 65.5 48.8 - 48.8
Research and development 4 (11.1) - (11.1) (6.9) - (6.9)
Selling and marketing (22.3) - (22.3) (19.1) - (19.1)
Administration
and shared services (14.4) (5.6) (20.0) (10.9) 1.4 (9.5)
Foreign exchange 0.2 - 0.2 - - -
-------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
Operating profit 18.9 (6.6) 12.3 11.9 1.4 13.3
Expected return
on pension scheme
assets 5.4 - 5.4 4.8 - 4.8
Other financial
income - 0.4 0.4 0.1 1.2 1.3
------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
Financial income 5.4 0.4 5.8 4.9 1.2 6.1
(5.1) - (5.1) (5.3)
Interest charge (5.3)
on pension scheme
liabilities -
Other financial (0.9)
expenditure (0.5) - (0.5) (0.9) -
----
Financial expenditure (5.6) - (5.6) (6.2) - (6.2)
Profit before
income tax 3 18.7 (6.2) 12.5 10.6 2.6 13.2
Income tax (expense)/credit 6 (3.8) (0.4) (4.2) (2.1) (0.9) (3.0)
-------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
Profit for the
period attributable
to equity shareholders
of the parent 14.9 (6.6) 8.3 8.5 1.7 10.2
-------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
pence pence pence pence
-------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
Earnings per share
Basic earnings
per share 7 28.2 15.6 17.4 20.7
Diluted earnings
per share 7 27.4 15.1 17.1 20.3
Dividends per
share
Dividends paid 8 2.52 2.40
Dividends proposed 8 2.77 2.52
-------------------------------- ------ ----------- ---------- ------- ----------- ---------- -------
* Adjusting items comprise pension scheme curtailment gains,
shareholder earn-out no longer required, impairments, amortisation
of acquired intangibles, reversal of acquisition related fair value
adjustments to inventory, acquisition costs and mark to market
gains or losses in respect of certain derivatives and the related
amounts of taxation. They also include the utilisation of the
one-off recognition of a deferred tax asset in 2011. See note
2.
Condensed Consolidated Statement of Income - unaudited
Year to 31 March 2011
Before Adjusting Total
adjusting items*
items*
Notes
------------------------------ ------ ----------- ---------- --------
Revenue 3 262.3 - 262.3
Cost of sales (152.8) - (152.8)
------------------------------ ------ ----------- ---------- --------
Gross profit 109.5 - 109.5
Research and development 4 (17.6) - (17.6)
Selling and marketing (39.9) - (39.9)
Administration
and shared services (23.3) (0.6) (23.9)
Foreign exchange (0.6) - (0.6)
------------------------------ ------ ----------- ---------- --------
Operating profit 28.1 (0.6) 27.5
Expected return
on pension scheme
assets 9.9 - 9.9
Other financial
income - 1.1 1.1
----------------------------- ------ ----------- ---------- --------
Financial income 9.9 1.1 11.0
Interest charge
on pension scheme
liabilities (10.6) - (10.6)
Other financial
expenditure (1.2) - (1.2)
--------
Financial expenditure (11.8) - (11.8)
Profit before
income tax 26.2 0.5 26.7
Income tax (expense)/credit 6 (5.7) 11.2 5.5
------------------------------ ------ ----------- ---------- --------
Profit for the
period attributable
to equity shareholders
of the parent 20.5 11.7 32.2
------------------------------ ------ ----------- ---------- --------
pence pence
------------------------------ ------ ----------- ---------- --------
Earnings per share
Basic earnings
per share 7 41.5 65.3
Diluted earnings
per share 7 40.4 63.6
Dividends per
share
Dividends paid 8 8.40
Dividends proposed 8 9.00
------------------------------ ------ ----------- ---------- --------
* Adjusting items comprise pension scheme curtailment gains,
shareholder earn-out no longer required, impairments, amortisation
of acquired intangibles, reversal of acquisition related fair value
adjustments to inventory, acquisition costs and mark to market
gains or losses in respect of certain derivatives and the related
amounts of taxation. They also include the utilisation of the
one-off recognition of a deferred tax asset in 2011. See note
2.
Condensed Consolidated Statement of Comprehensive Income -
unaudited
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
GBPm GBPm GBPm
-------------------------------------------- ---------- ---------- ---------
Profit for the period 8.3 10.2 32.2
Other comprehensive (expense)/income
Foreign exchange translation differences 0.5 (1.1) (0.9)
Actuarial (loss)/gain in respect
of post retirement benefits (20.4) (1.6) 14.4
Net (loss)/gain on effective portion
of changes in fair value of cash
flow hedges, net of amounts recycled (1.2) 0.1 0.3
Tax on items recognised directly
in equity 5.5 0.5 (4.6)
Tax recognised in respect of share
options - - 2.7
-------------------------------------------- ---------- ---------- ---------
Total other comprehensive (expense)/income (15.6) (2.1) 11.9
Total comprehensive (expense)/income
for the period attributable to equity
shareholders of the parent (7.3) 8.1 44.1
-------------------------------------------- ---------- ---------- ---------
Condensed Consolidated Statement of Changes in Equity -
unaudited
Foreign
Share exchange
Share premium Other translation Retained
capital account reserves reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------------- -------- -------- --------- ------------ --------- -------
Balance at 1 April 2011 2.5 22.5 0.4 3.2 64.9 93.5
Total comprehensive income/(expense)
attributable to equity
shareholders of the parent
-Profit - - - - 8.3 8.3
-Other comprehensive income - - (0.8) 0.5 (15.3) (15.6)
Transactions recorded
directly in equity:
- Credit in respect of
employee service costs
settled by award of share
options - - - - 0.3 0.3
- Proceeds from shares
issued 0.3 37.3 - - - 37.6
- Dividends paid - - - - (1.3) (1.3)
----------------------------------------- -------- -------- --------- ------------ --------- -------
Total contributions by
and distributions to equity
shareholders 0.3 37.3 - - (1.0) 36.6
----------------------------------------- -------- -------- --------- ------------ --------- -------
Balance at 30 September
2011 2.8 59.8 (0.4) 3.7 56.9 122.8
----------------------------------------- -------- -------- --------- ------------ --------- -------
Foreign
Share exchange
Share premium Other translation Retained
capital account reserves reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------------------------- -------- -------- --------- ------------ --------- ------
Balance at 1 April 2010 2.5 21.6 0.2 4.1 23.8 52.2
Total comprehensive income/(expense)
attributable to equity
shareholders of the parent
-Profit for the period - - - - 10.2 10.2
-Other comprehensive income - - 0.1 (1.1) (1.1) (2.1)
Transactions recorded
directly in equity:
- Credit in respect of
employee service costs
settled by award of share
options - - - - 0.2 0.2
- Proceeds from shares
issued - 0.3 - - - 0.3
- Dividends paid - - - - (1.2) (1.2)
-------------------------------------- -------- -------- --------- ------------ --------- ------
Total contributions by
and distributions to equity
shareholders - 0.3 - - (1.0) (0.7)
-------------------------------------- -------- -------- --------- ------------ --------- ------
Balance at 30 September
2010 2.5 21.9 0.3 3.0 31.9 59.6
-------------------------------------- -------- -------- --------- ------------ --------- ------
Foreign
Share exchange
Share premium Other translation Retained
capital account reserves reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------------------------- -------- -------- --------- ------------ --------- ------
Balance at 1 April 2010 2.5 21.6 0.2 4.1 23.8 52.2
Total comprehensive income/(expense)
attributable to equity
shareholders of the parent
-Profit for the period - - - - 32.2 32.2
-Other comprehensive income - - 0.2 (0.9) 12.6 11.9
Transactions recorded
directly in equity:
- Credit in respect of
employee service costs
settled by award of share
options - - - - 0.4 0.4
- Proceeds from shares
issued - 0.9 - - - 0.9
- Dividends paid - - - - (4.1) (4.1)
-------------------------------------- -------- -------- --------- ------------ --------- ------
Total contributions by
and distributions to equity
shareholders - 0.9 - - (3.7) (2.8)
-------------------------------------- -------- -------- --------- ------------ --------- ------
Balance at 31 March 2011 2.5 22.5 0.4 3.2 64.9 93.5
-------------------------------------- -------- -------- --------- ------------ --------- ------
Condensed Consolidated Statement of Financial Position -
unaudited
As at As at As at
30 Sept 30 Sept 31 March
2011 2010 2011
GBPm GBPm GBPm
Assets
Non-current assets
Property, plant and equipment 28.2 22.2 23.6
Intangible assets 75.1 46.1 41.6
Deferred tax assets 21.0 12.3 17.4
124.3 80.6 82.6
Current assets
Inventories 65.3 48.1 46.6
Trade and other receivables 68.6 48.9 52.5
Current income tax recoverable 1.4 1.1 1.3
Derivative financial instruments 2.1 1.3 1.0
Cash and cash equivalents 19.5 17.2 24.5
156.9 116.6 125.9
Total assets 281.2 197.2 208.5
--------------------------------------- -------- -------- ---------
Equity
Capital and reserves attributable
to the Company's equity shareholders
Share capital 2.8 2.5 2.5
Share premium 59.8 21.9 22.5
Other reserves (0.4) 0.3 0.4
Translation reserve 3.7 3.0 3.2
Retained earnings 56.9 31.9 64.9
122.8 59.6 93.5
Liabilities
Non-current liabilities
Bank loans 7.0 19.6 10.5
Other payables 0.7 0.8 0.1
Retirement benefit obligations 29.7 29.9 11.7
Deferred tax liabilities 10.7 6.1 4.1
--------------------------------------- -------- -------- ---------
48.1 56.4 26.4
Current liabilities
Bank loans 0.1 0.1 0.1
Bank overdrafts 0.5 1.4 0.8
Trade and other payables 96.5 68.9 76.5
Current income tax payables 3.4 4.3 3.4
Derivative financial instruments 2.6 1.7 1.1
Provisions 7.2 4.8 6.7
--------------------------------------- -------- -------- ---------
110.3 81.2 88.6
Total liabilities 158.4 137.6 115.0
Total liabilities and equity 281.2 197.2 208.5
--------------------------------------- -------- -------- ---------
Condensed Consolidated Statement of Cash Flows - unaudited
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
GBPm GBPm GBPm
--------------------------------------------- ---------- ---------- ---------
Profit for the period 8.3 10.2 32.2
Adjustments for:
Income tax expense/(credit) 4.2 3.0 (5.5)
Net financial (income)/expense (0.2) 0.1 0.8
Curtailment gains - (3.8) (4.1)
Shareholder earn-out no longer required - - (0.6)
Impairment - 0.6 0.6
Reversal of acquisition related fair -
value adjustments 1.0 -
Acquisition related costs 0.7 - -
Amortisation of acquired intangibles 4.9 1.8 4.7
Depreciation of property, plant and
equipment 2.3 1.7 4.0
Amortisation and impairment of capitalised
development costs 2.4 2.0 5.4
--------------------------------------------- ---------- ---------- ---------
Earnings before interest, tax, depreciation
and amortisation 23.6 15.6 37.5
Cost of equity settled employee share
schemes 0.3 0.2 0.4
Acquisition related costs paid (0.5) - -
Cash payments to the pension scheme
more than the charge to operating
profit (2.1) (3.5) (5.6)
--------------------------------------------- ---------- ---------- ---------
Operating cash flows before movements
in working capital 21.3 12.3 32.3
Increase in inventories (4.8) (9.7) (8.2)
(Increase)/decrease in receivables (7.9) 11.3 7.4
(Decrease)/increase in payables and
provisions (2.8) (4.7) 8.8
Increase/(decrease) in customer deposits 4.9 2.9 (1.1)
Cash generated by operations 10.7 12.1 39.2
Interest paid (1.2) (0.4) (0.8)
Income taxes paid (3.4) (0.7) (3.1)
--------------------------------------------- ---------- ---------- ---------
Net cash from operating activities 6.1 11.0 35.3
--------------------------------------------- ---------- ---------- ---------
Cash flows from investing activities
Proceeds from sale of property, plant
and equipment - 0.1 0.1
Acquisition of subsidiaries, net
of cash acquired (40.7) (0.1) (0.1)
Acquisition of property, plant and
equipment (2.1) (2.1) (5.8)
Capitalised development expenditure (0.9) (1.6) (3.0)
--------------------------------------------- ---------- ---------- ---------
Net cash used in investing activities (43.7) (3.7) (8.8)
--------------------------------------------- ---------- ---------- ---------
Cash flows from financing activities
Proceeds from issue of share capital 37.6 0.3 0.9
Repayment of borrowings (6.0) - (19.1)
Increase in borrowings 2.5 - 10.0
Dividends paid (1.3) (1.2) (4.1)
--------------------------------------------- ---------- ---------- ---------
Net cash from financing activities 32.8 (0.9) (12.3)
--------------------------------------------- ---------- ---------- ---------
Net (decrease)/increase in cash and
cash equivalents (4.8) 6.4 14.2
Cash and cash equivalents at beginning
of the period 23.7 9.3 9.3
Effect of exchange rate fluctuations
on cash held 0.1 0.1 0.2
--------------------------------------------- ---------- ---------- ---------
Cash and cash equivalents at end
of the period 19.0 15.8 23.7
--------------------------------------------- ---------- ---------- ---------
Reconciliation of changes in cash and cash equivalents to movement
in net cash/(borrowing)
(Decrease)/Increase in cash and cash
equivalents (4.8) 6.4 14.2
Effect of foreign exchange rate changes
on cash and cash equivalents 0.1 0.1 0.2
---------------------------------------------- ------- -------- -------
(4.7) 6.5 14.4
Cash outflow from decrease in debt 6.0 - 19.1
Cash inflow from increase in debt (2.5) - (10.0)
Movement in net cash/borrowing in
the period (1.2) 6.5 23.5
Net cash/(borrowing) at start of
the period 13.1 (10.4) (10.4)
---------------------------------------------- ------- -------- -------
Net cash/(borrowing) at the end of
the period 11.9 (3.9) 13.1
---------------------------------------------- ------- -------- -------
Notes on the Half Year Financial Statements - unaudited
1 BASIS OF PRESENTATION OF ACCOUNTS
Oxford Instruments plc (the Company) is a company incorporated
in England and Wales. The condensed consolidated half year
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
International Financial Reporting Standard (IFRS) IAS 34 Interim
Financial Reporting as adopted by the EU. 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 2011.
As required by the Disclosure and Transparency Rules of the
Financial Services Authority, the half year financial information
has been prepared applying the accounting policies and presentation
that were applied in the preparation of the Group's consolidated
financial statements for the year ended 31 March 2011, except as
noted below. Additional information has been included in the
Condensed Consolidated Statement of Income in the form of an
adjusting items column which in the opinion of the Directors
enables the performance of the business to be more clearly seen.
The Austin Scientific business has been moved to the Industrial
Products segment (see note 3).
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 2011 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 condensed consolidated half year 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 principal exchange rates used to translate the Group's
overseas results were as follows:
Half year Half year
Period end rates to to Year to
30 Sept 30 Sept 31 March
2011 2010 2011
US Dollar 1.56 1.58 1.60
Euro 1.16 1.15 1.13
Yen 120 131 133
-------------------------------- ---------- ---------- ---------
Average translation rates US Dollar Euro Yen
-------------------------------- ---------- ---------- ---------
Half year to 30 September 2011
Quarter 1 1.63 1.13 132
Quarter 2 1.60 1.14 125
-------------------------------- ---------- ---------- ---------
Year to 31 March 2011
Quarter 1 1.50 1.17 138
Quarter 2 1.55 1.20 133
Quarter 3 1.57 1.17 130
Quarter 4 1.58 1.16 131
-------------------------------- ---------- ---------- ---------
2 NON-GAAP MEASURES
The Directors present the following non-GAAP measure as they
believe it gives a better indication of the underlying performance
of the business.
RECONCILIATION BETWEEN PROFIT BEFORE INCOME TAX AND ADJUSTED
PROFIT
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
GBPm GBPm GBPm
---------------------------------------- ---------- ---------- ---------
Profit before income tax 12.5 13.2 26.7
Pension scheme curtailment gain - (3.8) (4.1)
Shareholder earnout no longer required - - (0.6)
Reversal of acquisition related fair
value adjustments to inventory 1.0 - -
Acquisition related costs 0.7 - -
Impairment of relocation costs - 0.6 0.6
Amortisation of acquired intangibles 4.9 1.8 4.7
Mark to market gain in respect of
derivative financial instruments (0.4) (1.2) (1.1)
---------------------------------------- ---------- ---------- ---------
Adjusted profit before income tax 18.7 10.6 26.2
Share of taxation (3.8) (2.1) (5.7)
---------------------------------------- ---------- ---------- ---------
Adjusted profit 14.9 8.5 20.5
---------------------------------------- ---------- ---------- ---------
Further to the acquisitions of Omicron NanoTechnology and
Omniprobe announced in June 2011 (see Note 5), the Board has
decided to modify the definition of adjusted profit before tax to
exclude the reversal of acquisition-related fair value adjustments
to inventory to provide an adjusted profit measure that will
include results from acquired businesses on a consistent basis over
time to assist comparison of performance. Acquisition related costs
comprise professional fees incurred in relation to mergers and
acquisitions activity.
Under IAS 39, 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 IAS 39 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. Adjusted profit for the year is
stated before changes in the valuation of these instruments so that
the underlying performance of the Group can more clearly be
seen.
In calculating the share of tax attributable to adjusted profit
before tax in the prior year a one-off recognition of deferred tax
assets relating to the Group's UK businesses of GBP11.3m was
excluded. At that time the Group announced its intention to exclude
the reversal of this deferred tax from the calculation of the share
of tax attributable to adjusted profit before tax in the years in
which it reverses. In the current period deferred tax of GBP1.8m
has reversed and consequently been excluded from the tax
attributable to adjusted profit before tax.
During the prior year, the Group's defined benefit pension
schemes in the UK and US were closed to future accrual. This gave
rise to a curtailment gain under IAS 19 as the majority of active
members' accrued benefits are no longer linked to future salary
growth.
During the prior year, the Group recognised other operating
income of GBP0.6m in relation to a shareholder earn-out provided at
the time of the acquisition of Technologies and Devices Inc. and
which is no longer required.
During the prior year, the Group recognised an impairment charge
of GBP0.6m against costs capitalised in relation to the planned
site move of the Plasma Technology business in the UK. This move
will now not take place in the form originally planned.
3 SEGMENT Information
The Group has nine operating segments. The operating results of
each are regularly reviewed by the Chief Operating Decision Maker,
which is deemed to be the Board of Directors. Discrete financial
information is available for each segment and used by the Board of
Directors for decisions on resource allocation and to assess
performance.
These operating segments have been aggregated 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. The Group's internal management structure and financial
reporting systems differentiate the operating segments on the basis
of these economic characteristics and accordingly present these as
three separate reportable segments as discussed below.
- The Nanotechnology Tools segment contains a group of
businesses supplying similar high performance instruments and
systems, characterised by a high degree of customisation and high
unit prices. These are the Group's highest technology products and
are sold to customers working in scientific research and with
advanced industrial processes.
- The Industrial Products segment contains a group of businesses
supplying high technology tools and systems, and components
manufactured in medium volume for industrial customers.
- The Service segment contains the Group's service business as
well as service revenues from other parts of the Group.
Segment results include items directly attributable to a segment
as well as those which can be allocated on a reasonable basis.
Inter-segment pricing is determined on an arm's length basis.
No asset information is presented below as this information is
not allocated to operating segments in reporting to the Group's
Board of Directors.
Due to strong growth in its physical product sales, the
Directors decided during the period that it was no longer
appropriate to regard the Austin Scientific business as a service
business. Consequently, it is now included within the Industrial
Products segment and the comparatives have been restated
accordingly. In line with the other businesses, its service
revenues will continue to be reported in the Service segment.
Half year to 30 September 2011
Nanotechnology Industrial
Tools Products Service Total
GBPm GBPm GBPm GBPm
------------------------- -------------- ---------- ------- -----
External revenue 70.0 64.2 24.9 159.1
Inter-segment revenue 0.4 0.5 -
------------------------- -------------- ---------- -------
Total segment revenue 70.4 64.7 24.9
Segment operating profit 7.3 6.6 5.0 18.9
------------------------- -------------- ---------- ------- -----
Half year to 30 September 2010 (As restated)
Nanotechnology Industrial
Tools Products Service Total
GBPm GBPm GBPm GBPm
------------------------- -------------- ---------- ------- -----
External revenue 49.0 43.3 20.9 113.2
Inter-segment revenue 0.2 1.0 -
------------------------- -------------- ---------- -------
Total segment revenue 49.2 44.3 20.9
Segment operating profit 5.8 2.0 4.1 11.9
------------------------- -------------- ---------- ------- -----
Year to 31 March 2011 (As restated)
Nanotechnology Industrial
Tools Products Service Total
GBPm GBPm GBPm GBPm
------------------------- -------------- ---------- ------- -----
External revenue 121.4 98.5 42.4 262.3
Inter-segment revenue 0.4 2.0 0.1
------------------------- -------------- ---------- -------
Total segment revenue 121.8 100.5 42.5
Segment operating profit 14.6 6.1 7.4 28.1
------------------------- -------------- ---------- ------- -----
Reconciliation of reportable segment profit
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
GBPm GBPm GBPm
------------------------------------------ ---------- ---------- ---------
Operating profit for reportable segments 18.9 11.9 28.1
Shareholder earn-out no longer required - - 0.6
Curtailment gain - 3.8 4.1
Reorganisation costs and impairment - (0.6) (0.6)
Reversal of acquisition related fair
value adjustments to inventory (1.0) - -
Acquisition related costs (0.7) - -
Amortisation of acquired intangibles (4.9) (1.8) (4.7)
Financial income 5.8 6.1 11.0
Financial expenditure (5.6) (6.2) (11.8)
------------------------------------------ ---------- ---------- ---------
Profit before income tax 12.5 13.2 26.7
------------------------------------------ ---------- ---------- ---------
4 RESEARCH AND DEVELOPMENT
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
GBPm GBPm GBPm
---------------------------------------- ---------- ---------- ---------
Research and development expense
charged to the consolidated statement
of income 11.1 6.9 17.6
Less: depreciation of R&D related
fixed assets (0.4) (0.2) (0.6)
Add: amounts capitalised as fixed
assets 0.3 0.5 2.3
Less: amortisation and impairment
of R&D costs previously capitalised
as intangibles (2.4) (2.0) (5.4)
Add: amounts capitalised as intangible
assets 0.9 1.6 3.0
Add: amounts expensed within cost
of sales 1.0 0.6 1.1
---------------------------------------- ---------- ---------- ---------
Total cash spent on research and
development during the period 10.5 7.4 18.0
---------------------------------------- ---------- ---------- ---------
5 ACQUISITIONS
Omicron NanoTechnology GmbH
On 13 June 2011 the Group acquired 100% of the share capital of
Omicron NanoTechnology GmbH. Omicron NanoTechnology GmbH
specialises in the manufacture of very high end microscopes for
nanotechnology research and is headquartered in Taunusstein,
Germany. It has a manufacturing facility in East Grinstead, UK and
sales offices in the US, France and Japan. The book and provisional
fair value of the assets and liabilities acquired is given in the
table below. Provisional values have been used because the initial
accounting is incomplete at
the date of this report. The business has been integrated into the Nanotechnology Tools segment.
Book value Provisional Provisional
adjustments fair value
GBPm GBPm GBPm
---------------------------------- ----------- ------------- ------------
Intangible Fixed Assets - 27.8 27.8
Tangible Fixed Assets 6.2 (1.7) 4.5
Inventories 14.1 (0.5) 13.6
Trade and other receivables 7.2 (0.5) 6.7
Trade and other payables (6.8) - (6.8)
Customer deposits (10.5) - (10.5)
Deferred tax liabilities - (8.0) (8.0)
Cash 1.4 - 1.4
---------------------------------- ----------- ------------- ------------
Net assets acquired 28.7
Goodwill 11.6 17.1 1.0
---------------------------------- ----------- ------------- ------------
Total consideration 29.7
Cash acquired (1.4)
---------------------------------- ----------- ------------- ------------
Net cash outflow relating to the
acquisition 28.3
---------------------------------- ----------- ------------- ------------
The goodwill arising is considered to represent the value of the
acquired workforce.
Omniprobe, Inc.
On 13 June 2011 the Group acquired 100% of the share capital of
Omniprobe, Inc. Omniprobe, Inc. designs and manufactures
nano-manipulators for use within scanning electron microscopes and
is headquartered in Dallas, USA. The book and provisional fair
value of the assets and liabilities acquired is given in the table
below. Provisional values have been used because the initial
accounting is incomplete at the date of this report. The business
has been integrated into the Nanotechnology Tools segment.
Book value Provisional Provisional
adjustments fair value
GBPm GBPm GBPm
---------------------------------- ----------- ------------- ------------
Intangible Fixed Assets 0.2 11.4 11.6
Tangible Fixed Assets 0.6 (0.3) 0.3
Inventories 0.5 - 0.5
Trade and other receivables 0.6 - 0.6
Trade and other payables (0.3) (0.1) (0.4)
Cash 0.3 - 0.3
---------------------------------- ----------- ------------- ------------
Net assets acquired 12.9
Goodwill 1.9 11.0 0.2
---------------------------------- ----------- ------------- ------------
Total consideration 13.1
Cash acquired (0.3)
Deferred consideration (0.5)
---------------------------------- ----------- ------------- ------------
Net cash outflow relating to the
acquisition 12.3
---------------------------------- ----------- ------------- ------------
The goodwill arising is considered to represent the value of the
acquired workforce and the value of patents which it has not been
possible to separately identify.
Together, both acquisitions contributed revenue of GBP13.3m, an
operating loss of GBP1.9m and adjusted operating profit of GBP1.9m
to the Group's result for the period. Had the acquisitions taken
place on 1 April these amounts would have been GBP22.8m, GBP2.7m
and GBP3.2m respectively.
6 TAXATION
The total effective tax rate on profits for the half year is 34%
(2010: 23%). The weighted average tax rate in respect of adjusted
profit before tax (see note 2) for the half year is 20% (2010:
20%).
The Group estimates that its full year weighted average tax rate
in respect of adjusted profit before tax will be 20% (2010:
20%)).
7 earnings per share
a) Basic
The calculation of basic earnings per share is based on the
profit or loss for the period after taxation and a weighted average
number of ordinary shares outstanding during the period, excluding
shares held by the Employee Share Ownership Trust, as follows:
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
Shares Shares Shares
million million million
------------------------------------------ ---------- ---------- ---------
Weighted average number of shares
outstanding 53.0 49.4 49.7
Less: weighted average number of
shares held by Employee Share Ownership
Trust (0.4) (0.5) (0.4)
------------------------------------------ ---------- ---------- ---------
Weighted average number of shares
used in calculation of earnings
per share 52.6 48.9 49.3
------------------------------------------ ---------- ---------- ---------
b) Diluted
The following table shows the effect of share options on the
calculation of both adjusted and unadjusted diluted basic earnings
per share.
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
Shares Shares Shares
million million million
--------------------------------------- ---------- ---------- ---------
Number of ordinary shares per basic
earnings per share calculations 52.6 48.9 49.3
Effect of shares under option 1.6 1.1 1.4
--------------------------------------- ---------- ---------- ---------
Number of ordinary shares per diluted
earnings per share calculations 54.2 50.0 50.7
--------------------------------------- ---------- ---------- ---------
8 dividends per share
The following dividends per share were paid by the Group:
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
pence pence pence
---------------------------------- ---------- ---------- ---------
Previous period interim dividend 2.52 2.40 2.40
Previous period final dividend - - 6.00
---------------------------------- ---------- ---------- ---------
2.52 2.40 8.40
---------------------------------- ---------- ---------- ---------
The following dividends per share were proposed by the Group in
respect of each accounting period presented:
Half year Half year Year to
to to
30 Sept 30 Sept 31 March
2011 2010 2011
Pence pence Pence
------------------ ---------- ---------- ---------
Interim dividend 2.77 2.52 2.52
Final dividend - - 6.48
------------------ ---------- ---------- ---------
2.77 2.52 9.00
------------------ ---------- ---------- ---------
The interim dividend for the year to 31 March 2012 of 2.772
pence was approved by the Board on 15 November 2011 and has not
been included as a liability as at 30 September 2011. The interim
dividend will be paid on 10 April 2012 to shareholders on the
register at the close of business on 9 March 2012.
9 POST BALANCE SHEET EVENTS
On 20 October 2011 the Group disposed of a product line for a
consideration of GBP8.1m. The product line was part of the
Industrial Products segment. The profit on disposal is expected to
be approximately GBP7m.
On 3 November the Group acquired 100% of the capital of Platinum
Medical Imaging LLC for an initial cash consideration of $18m with
a deferred element of up to $37m payable over three years dependent
on its performance over that period. Platinum Medical Imaging LLC
is an established US company providing high quality parts and
services for MRI and CT medical imaging instruments in US markets.
It is based in Florida and California. Some of the disclosure
required by IFRS3 has been omitted since due to the timing of the
acquisition the initial accounting is incomplete at the date of
this publication.
Responsibility Statement of the Directors in respect of the Half
Year Financial Statements
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure 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 set of 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 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.
Jonathan Flint Chief Executive Kevin Boyd Group Finance Director
15 November 2011
Principal Risks and Uncertainties
The Group has in place a risk management structure and internal
controls which are designed to identify, manage and mitigate
risk.
In common with all businesses, Oxford Instruments faces a number
of risks and uncertainties which could have a material impact on
the Group's long term performance.
On page 13 of its 2011 Annual Report and Accounts (a copy of
which is available at www.oxford-instruments.com), the Company set
out what the Directors regarded as being the principal risks and
uncertainties facing the Group's long term performance. These
include technical risks associated with developing advanced
technologies, foreign exchange and commodity risks, risks in
relation to the availability of and integration of acquisition
targets, the risk of supply chain failures through outsourcing and
the risk of fluctuations in the reported pension deficit due to
changes in actuarial assumptions. Many of these risks are inherent
to Oxford Instruments as a global business and they remain valid as
regards their potential impact during the remainder of the second
half of the year.
The impact of the economic and end market environments in which
the Group's businesses operate are considered in the Half Year
Statement of this Half Year Report, together with an indication if
management is aware of any likely change in this situation.
Independent Review Report by KPMG Audit Plc to Oxford
Instruments plc
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2011 which comprises the Condensed
Consolidated Statement of Income, the Condensed Consolidated
Statement of Comprehensive Income, Condensed Consolidated Statement
of Financial Position, Condensed Consolidated Statement of Changes
in Equity, Condensed Consolidated Statement of Cash Flows and the
related explanatory notes. We have read the other information
contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the Disclosure and Transparency Rules ("the DTR")
of the UK's Financial Services Authority ("the UK FSA"). Our review
has been undertaken so that we might state to the company those
matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company
for our review work, for this report, or for the conclusions we
have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with IFRSs as adopted by the EU.
The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2011 is not prepared, in all material respects, in
accordance with IAS 34 as adopted by the EU and the DTR of the UK
FSA.
S Haydn-Jones for and on behalf of KPMG Audit Plc Chartered
Accountants One Snowhill, Snow Hill Queensway
Birmingham, B4 6GH 15 November 2011
Notes to Editors
Oxford Instruments designs, supplies and supports
high-technology tools and systems with a focus on research and
industrial applications. It provides solutions needed to advance
fundamental physics research and its transfer into commercial
nanotechnology applications. Innovation has been the driving force
behind Oxford Instruments' growth and success for over 50 years,
and its strategy is to effect the successful commercialisation of
these ideas by bringing them to market in a timely and
customer-focused fashion.
The first technology business to be spun out from Oxford
University over fifty years ago, Oxford Instruments is now a global
company with over 1300 staff worldwide and a listing on the London
Stock Exchange (OXIG). Its objective is to be the leading provider
of new generation tools and systems for the research and industrial
sectors.
This involves the combination of core technologies in areas such
as low temperature and high magnetic field environments, Nuclear
Magnetic Resonance, X-ray electron and optical based metrology, and
advanced growth, deposition and etching. Oxford Instruments'
products, expertise, and ideas address global issues such as
energy, environment, security and health.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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