RNS No 5401f
OXFORD INSTRUMENTS PLC
12th November 1998
OXFORD INSTRUMENTS PLC
ANNOUNCEMENT OF 1998/99 INTERIM RESULTS
Oxford Instruments plc, the advanced instrumentation company, today announced
Consolidated Interim Results (Unaudited) for the half year to 30 September
1998 as follows:
Group turnover, excluding share of joint venture #78.7 million (#81.4 million)
Profit on ordinary activities before taxation #5.1 million (#7.3 million)
Earnings per share (basic) 7.0 pence (10.0 pence)
Dividend per share 2.4 pence (2.3 pence)
Enquiries:
Oxford Instruments plc Sir Peter Williams, Chairman
Andrew Mackintosh, Chief Executive
Martin Lamaison, Financial Director
0171 382 8464 (before 11.15am on 12 November 1998)
01865 884666 or 01865 881437 (thereafter)
John Rudofsky, Citigate Communications Plc
0171 282 8000
Chairman's statement
Sir Peter Williams, Chairman of Oxford Instruments plc, said today:-
Financial Summary
Firm demand for our products worldwide has seen the moving annual total of new
orders (excluding the joint venture) at #166 million increase by 2% on the
rate at the previous year end. However, shipments in the six months to 30
September 1998 at #78.7 million have not kept pace to a satisfactory extent.
After excluding the effects of the Medical Systems acquisition and the sale of
Helios 2, sales for the half year were down by 6%, due in part to the mix and
timing in the order book. Pre-tax profit was down by 30% at #5.1 million.
The effect of foreign exchange and the strength of Sterling was to depress
sales and pre-tax profits in the half year by #3.6 million and #0.4 million
respectively.
This performance, even with due regard to external factors, is disappointing.
A number of measures have therefore been implemented to control costs, improve
management and to restore the momentum in the business.
Cash inflow for the half year was #3.3 million, up #3.6 million on the same
half last year. In view of the company's significant cash balance and in
order to enhance earnings per share your Board decided to use the powers
granted at the recent Annual General Meeting to repurchase 5% of the company's
issued equity. After allowing for this, closing cash was #9.4 million.
Dividend
Given both the company's potential for future growth and the continuing
positive cash flows from operations, your Directors have recommended an
Interim Dividend of 2.4p, up by 4.3% on the prior half year.
Operations
Oxford Magnet Technology
As I forecast, Oxford Magnet Technology (OMT) has made a strong recovery in
the half year. This resulted both from the leading market positions of OMT's
major customers and from the clear design benefits in OMT's new range of
products introduced last November. After delays in the previous half year
following this development programme, output has now risen to record levels
with the annualised rate of shipments now just over #100 million. Demand for
OMT's products is firm and prospects for the next twelve months are good,
despite the continuing regulatory and economic pressures which require ever
increasing efficiencies and cost effectiveness. OMT remains the clear world
leader in its field.
Medical Systems
The benefits of the acquisition of the Neurology businesses from Vickers last
December are already clear. Considerable rationalisation has taken place with
substantial cost savings in both the original Oxford Instruments business and
in the acquired companies. This was fully provided for in last year's
exceptional charge. Sales at #18.9 million are up by #11.9 million and
operating profits moved ahead by #1.3 million. Based on performance during
our period of ownership, we estimate likely full year orders at around #40
million. While much remains to be done to improve the absolute rate of return
on capital employed, a good start has been made.
Superconductivity
In contrast, the recovery in our Research Instruments business has been at a
slower rate than planned as a result of further delays to shipments. Changes
to senior management in this business have therefore been necessary and I am
confident that under the new Managing Director and Production Director the
second half should see improved results.
Similarly, our NMR Instruments business also experienced production
difficulties which impacted sales in the half year. These problems were
mainly of a technical nature, but good progress is now being made under a new
Managing Director. Following the launch of several new products during the
half year, our market share remains strong. The next test of the prototype
900 MHz system under development for a major US customer is expected to take
place during the second half.
Our superconducting wire business, world leader in its field, performed well
and while shipments from our Accelerator Technology business fell behind plans
in the half year, new orders were encouraging.
Instrumentation
Our Instrumentation businesses are typically more rapidly affected by
industrial market cycles than those in superconductivity, which are more
sensitive to Government and public sector expenditure. In this regard, the
Microanalysis business has felt the effects of the cut backs on investment in
the semiconductor industry which has impacted both orders and sales. However,
the release in the half year of a novel microanalysis product, 'INCA', which
builds on the market leadership of its predecessor, 'ISIS', has enhanced our
competitiveness and will restore our momentum in this sector. Early
indications are of an enthusiastic reception from customers which will be
central to the recovery in performance in this business.
Demand for our Industrial Analysis products remains soft, partly as a result
of our exposure to the Asian economic situation. However, new product
introductions in industries as diverse as cement and petrochemicals should
restore opportunities for growth in this area. Our other instrumentation
businesses all moved ahead relative to the prior half year.
Innovation and Future Growth
Our central strategy remains the profitable exploitation of organic growth
opportunities, complemented by acquisitions where appropriate. Following the
successful medical acquisition, we are placing increased emphasis on the
search for further such opportunities and, in parallel, we are re-examining
our approach to internal developments in order to deliver greater
effectiveness in our Research and Development programmes. In line with this,
we have increased our already strong commitment to R&D, with an expenditure of
#5.9 million in the six months' period. Only by continuing to enhance our
leading position at the cutting edge of technology can we develop new
world-beating products. Our task is then to translate this competitive
advantage into more profitable performance.
Prospects
In the coming months many of the benefits of the management changes and
rationalisations we have instigated will start to be felt in an improved
overall performance around the Group. Rigorous attention will continue to be
given to the cost base of the company. We remain concerned regarding the
global markets in which we operate, but looking ahead we see sufficient
opportunities to enable us to begin to move forward again in the current year
and beyond. I am confident that we shall achieve that aim.
Consolidated Profit and Loss Account (Unaudited)
Half year to Half year to Year to
30 Sep 98 30 Sep 97 31 Mar 98
Notes #000 #000 #000
-----------------------------------------------------------------------------
1 Turnover
Group and share of joint venture 103,736 94,009 199,336
2 Less: share of joint venture's turnover (25,026) (12,605) (27,126)
---------- --------- ---------
1 Group turnover 78,710 81,404 172,210
Cost of sales (51,332) (54,352) (111,049)
---------- --------- ---------
Gross profit 27,378 27,052 61,161
Net operating expenses (26,036) (22,326) (49,205)
---------- --------- ---------
1 Group operating profit 1,342 4,726 11,956
2 Share of operating profit of joint venture 3,660 1,734 2,659
---------- --------- ---------
5,002 6,460 14,615
Net interest receivable 138 833 1,223
---------- --------- ---------
Profit on ordinary activities before tax 5,140 7,293 15,838
4 Tax on profit on ordinary activities (1,673) (2,334) (4,801)
---------- --------- ---------
5 Profit for the period attributable to
shareholders 3,467 4,959 11,037
6 Dividends (1,138) (1,128) (4,029)
---------- --------- ---------
Retained profit for the period 2,329 3,831 7,008
---------- --------- ---------
pence pence pence
5 Earnings per share - basic 7.0 10.0 22.2
- diluted 7.0 9.9 22.1
---------- --------- ---------
6 Dividend per share 2.4 2.3 8.1
---------- --------- ---------
All turnover and operating profits are derived from the Group's continuing
operations.
Statement of Total Recognised Gains and Losses (Unaudited)
Half year to Half year to Year to
30 Sep 98 30 Sep 97 31 Mar 98
#000 #000 #000
-----------------------------------------------------------------------------
Profit after tax for the period 3,467 4,959 11,037
Currency translation differences on foreign (386) 293 (768)
currency net investments ---------- --------- ---------
Total recognised gains and losses for the 3,081 5,252 10,269
period ---------- --------- ---------
Consolidated Balance Sheet (Unaudited)
As at As at As at
30 Sep 98 30 Sep 1997 31 Mar 1998
#000 #000 #000
------------------------------------------------------------------------------
Fixed assets
Tangible assets 43,314 35,029 42,279
Investments
Share of gross assets of joint venture 15,483 10,452 14,340
Share of gross liabilities of joint (10,733) (5,903) (12,140)
venture ---------- --------- ---------
Net investment in joint venture 4,750 4,549 2,200
Other investments 813 659 460
---------- --------- ---------
5,563 5,208 2,660
---------- --------- ---------
Total fixed assets 48,877 40,237 44,939
---------- --------- ---------
Current assets
Stocks 34,070 31,880 33,863
Debtors 55,287 48,560 62,018
Cash at bank and in hand 11,015 26,797 14,816
---------- --------- ---------
100,372 107,237 110,697
---------- --------- ---------
Creditors: amounts falling due within one year
Bank loans and overdrafts (1,606) (2,719) (3,500)
Other creditors (51,587) (46,485) (52,729)
---------- --------- ---------
(53,193) (49,204) (56,229)
---------- --------- ---------
Net current assets
Due within one year 45,408 56,291 53,737
Debtors due after more than one year 1,771 1,742 731
---------- --------- ---------
47,179 58,033 54,468
---------- --------- ---------
Total assets less current liabilities 96,056 98,270 99,407
Provisions for liabilities and charges - (1,586) -
---------- --------- ---------
Net assets employed 96,056 96,684 99,407
---------- --------- ---------
Shareholders' funds 96,056 96,684 99,407
---------- --------- ---------
Movements in Shareholders' Funds (Unaudited)
Half year to Half year to Year to
30 Sep 98 30 Sep 97 31 Mar 98
#000 #000 #000
-----------------------------------------------------------------------------
Profit for the period 3,467 4,959 11,037
Dividends (1,138) (1,128) (4,029)
Repurchase of own shares (5,309) - -
Other recognised gains and losses (386) 293 (768)
New share capital subscribed 38 185 810
Goodwill written off during the period (23) (40) (58)
---------- --------- ---------
Net movements in shareholders' funds (3,351) 4,269 6,992
Opening shareholders' funds 99,407 92,415 92,415
---------- --------- ---------
Closing shareholders' funds 96,056 96,684 99,407
---------- --------- ---------
Consolidated Cash Flow Statement (Unaudited)
Half year to Half year to Year to
30 Sep 98 30 Sep 97 31 Mar 98
Notes #000 #000 #000
-----------------------------------------------------------------------------
7 Net cash inflow from operating activities 8,140 4,590 14,580
Dividend from joint venture - - 2,946
7 Returns on investments and servicing
of finance 627 808 1,461
Taxation (1,444) 337 (3,411)
7 Capital expenditure and financial
investment (3,992) (5,977) (12,440)
Acquisitions - - (12,993)
Equity dividends paid - - (3,825)
---------- --------- ---------
Cash inflow (outflow) before management 3,331 (242) (13,682)
of liquid resources and financing
7 Management of liquid resources 482 2,000 14,000
7 Financing (5,271) 185 810
---------- --------- ---------
(Decrease) increase in cash in the period (1,458) 1,943 1,128
---------- --------- ---------
Reconciliation of Net Cash Flow to Movement in Net Funds (Unaudited)
Half year to Half year to Year to
30 Sep 98 30 Sep 97 31 Mar 98
#000 #000 #000
-----------------------------------------------------------------------------
(Decrease) increase in cash in the period (1,458) 1,943 1,128
Change in liquid resources (482) (2,000) (14,000)
Translation difference 33 (48) 5
---------- --------- ---------
Movement in net funds in the period (1,907) (105) (12,867)
Opening net funds 11,316 24,183 24,183
---------- --------- ---------
Closing net funds 9,409 24,078 11,316
---------- --------- ---------
Analysis of Net Funds (Unaudited)
As at Exchange Cash As at
30 Sep 98 rate movement in 31 Mar 98
effect period
#000 #000 #000 #000
-----------------------------------------------------------------------------
Cash at bank on demand 5,015 (18) (1,783) 6,816
Bank overdrafts (958) (22) 325 (1,261)
--------- -------- -------- --------
Net cash 4,057 (40) (1,458) 5,555
Cash on deposit 6,000 - (2,000) 8,000
Debt due within one year (648) 73 1,518 (2,239)
--------- -------- -------- --------
Net funds 9,409 33 (1,940) 11,316
--------- -------- -------- --------
Notes on the Interim Financial Statements
1. Accounting policies and results by business groups
The consolidated profit and loss account and balance sheet for the half
years ended 30 September 1998 and 30 September 1997 have been prepared
on a basis consistent with the accounting policies disclosed in the
Group's Report and Accounts 1998. No operations were discontinued
during the period. The results analysed by business groups were as follows:
Turnover Operating Profit (Loss)
Half year to Half year to Half Year to Half Year to
30 Sep 98 30 Sep 97 30 Sep 98 30 Sep 97
#000 #000 #000 #000
-----------------------------------------------------------------------------
Medical Systems 18,885 6,954 605 (660)
Superconductivity 34,837 48,007 206 3,244
Instrumentation 24,988 26,443 531 2,142
-------- -------- ------- --------
78,710 81,404 1,342 4,726
Share of OMT
jv(49%) 25,026 12,605 3,660 1,734
-------- -------- ------- --------
103,736 94,009 5,002 6,460
-------- -------- ------- --------
2. Joint venture
The Group owns 49% of the issued share capital of Oxford Magnet
Technology Limited ('OMT') of 3,000,000 #1 ordinary shares. It is
engaged in advanced instrumentation and is registered and operates in
England. The Group has accounted for its interest in OMT as a joint
venture under Financial Reporting Standard (FRS) 9.
3. Exchange Rates
The principal exchange rates used to translate the Group's overseas
results were as follows:-
Half year to Half year to Year to
30 Sep 98 30 Sep 97 31 Mar 98
Average Period End Average Period End Average Period End
------------------------------------------------------------------------------
US Dollar 1.66 1.70 1.63 1.62 1.65 1.67
German Mark 2.95 2.84 2.86 2.85 2.92 3.10
Yen 231 231 196 195 203 223
------------------------------------------------------------------------------
4. Taxation
The tax charge for the half year ended 30 September 1998 has been based on the
estimated effective rate for the full year.
5. Earnings per share
Earnings per share (EPS) has been calculated using earnings of #3,467,000
(1997 #4,959,000) and weighted average shares of 49,577,137 (1997 49,607,407)
for basic EPS and 49,720,002 (1997 49,981,020) for diluted EPS respectively.
6. Dividends per share
An interim dividend of 2.4p (1997 2.3p) will be paid on 8 April 1999 to
shareholders registered at the close of business on 5 March 1999, the record
date. The shares will be marked 'ex-dividend' on 1 March 1999.
7. Cash flows netted in the consolidated cash flow statement
Half year to Half year to Year to
30 Sep 98 30 Sep 97 31 Mar 98
#000 #000 #000
-----------------------------------------------------------------------------
Operating profit 1,342 4,726 11,956
Depreciation charges and amortisation 2,572 1,897 4,468
Change in stocks (291) 3,561 8,790
Change in debtors 7,046 (381) (4,008)
Change in creditors (2,529) (5,213) (6,626)
---------- --------- ---------
Net cash inflow from operating activities 8,140 4,590 14,580
---------- --------- ---------
Interest received 665 837 1,627
Interest paid (38) (29) (166)
---------- --------- ---------
Net cash inflow from returns on
investments and servicing of finance 627 808 1,461
---------- --------- ---------
Purchase of fixed assets (3,638) (5,625) (12,445)
Sale of fixed assets 177 132 449
Investments acquired (531) (484) (444)
---------- --------- ---------
Net cash outflow for capital expenditure
and financial investment (3,992) (5,977) (12,440)
---------- --------- ---------
Decrease in term deposits 2,000 2,000 14,000
Decrease in term loans (1,518) - -
---------- --------- ---------
Net cash inflow from management of
liquid resources 482 2,000 14,000
---------- --------- ---------
Issue of ordinary shares including
share premium 38 185 810
Repurchase of own shares (5,309) - -
---------- --------- ---------
Net cash (outflow) inflow from financing (5,271) 185 810
---------- --------- ---------
8. Report and Accounts 1998
The comparative figures for the financial year ended 31 March 1998 are
extracted from 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 unqualified and
did not contain a statement under section 237 (2) or (3) of the Companies Act
1985. Copies of the Report and Accounts 1998 are available from the Company's
registered office by applying to the Company Secretary, Oxford Instruments
plc, Old Station Way, Eynsham, Witney, Oxon, OX8 1TL.
The Company is registered in England Number 775598
For further copies of this Interim Results announcement please contact Lisa
Cooper at the Company's registered office at Old Station Way, Eynsham, Witney
Oxon OX8 1TL.
END
IR FFMFWFUAUFDF
Oxford Instruments (LSE:OXIG)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Oxford Instruments (LSE:OXIG)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
