Oxford Instruments grows after job cuts

Nigel Keen, chairman of the Abingdon, Oxfordshire-based business said: "In 2006 we announced a five year objective to double the size of the business and improve our margins significantly. Despite the difficulties in some of our end user markets, we have shown another full year of progress toward this objective. It is difficult to predict the impact and duration of the current economic downturn but we have taken extensive management action to ensure that we are well positioned to meet our targets as markets improve. Trading so far in the current year has been in line with our expectations. Oxford Instruments celebrates 50 years of scientific excellence and innovation this year. Our business model has proven resilient to the current economic downturn as we have a broad spread of customers, applications and geographic markets. We are confident that we will be able to deliver long term profitable growth providing sustainable value for our shareholders." During the year, the company instigated a wide-ranging restructuring of the business in anticipation of the more difficult times. In January, it announced a 15% reduction in headcount (228 staff), reducing operating costs by £11 million. In the current half-year, the group plans a further 30 job losses. "Although these changes affect most of our sites worldwide, we have been able to retain key skills and capabilities. Relocation of products and staff has enabled us to close two operating sites. These initiatives, together with a focus on cost control, have helped to protect earnings in the face of reduced sales volumes since November 2008. We will continue to monitor our markets and flex our capacity accordingly," Keen concluded. For the year to 31 March, order intake was up 13% to £204.2 million (2008: £180.2m), revenue rose 17% to £206.5 million (£176.5m) and adjusted pre-tax profit came in at £11.1 million up 17% from £9.5 million in 2008.