Oxford Instruments Share Price (OXIG)

.wealthoracle.co.uk/company-results

Oxford Instruments closed FY26 slightly ahead of company-compiled consensus, with revenue of £423.2m edging past the £422.1m guidance bar and adjusted operating profit of £73.7m beating the £71.3m steer, even as both metrics declined year-on-year following a disrupted first half. Adjusted basic EPS from continuing operations fell 7.7% to 100.7p and adjusted operating margin slipped 50bps to 17.4% on a reported basis, though stripped of currency and disposal effects the underlying margin advanced 30bps to 18.2% — a more flattering read on the operational story. The headline is the strategic transformation: Advanced Technologies orders surged 28% to £133.1m, with a post-period multi-year compound semiconductor contract leaving FY27 revenue largely covered and visibility now extending into FY28. The Imaging & Analysis division returned to order growth in H2 (+8%), and Belfast restructuring lifted divisional OCC margins 120bps to 23.3%. The £42.4m NanoScience disposal funded a £62.2m buyback while net cash still grew 11% to £94.0m, and the dividend rises 6.3% to 23.6p. Statutory profit before tax jumped 53% to £58.5m, flattered by the non-recurrence of last year's Andor impairment. Management reiterated medium-term targets of 5-8% organic revenue CAGR and a 20%+ margin, with FY27 setting up for high-teens AT revenue growth and meaningful operating leverage — though a £3.2m FX headwind will cap reported margin progression.

.wealthoracle.co.uk/company-results

It's full of surprises this share and I am glad I have held on to mine but must admit I have been close to selling the lot more than once!

Not much of a following on this notice board !

The shares have been very strong in recent days.....probably because :-

Deutsche Bank Research raises Oxford Instruments price target to 2,675 (2,435) pence - 'buy'

Berenberg raises Oxford Instruments price target to 2,700 (2,400) pence - 'buy'

I don't agree, that's more like the price I see them if they were a takeover candidate. I sold half of my holding today and will sell on rising prices. The shares are up by a quarter since November and I've learnt not to be greedy.

JPMorgan raises Oxford Instruments target to 2,600 (2,500) pence - 'overweight'

But remember that JP Morgan are one of OXIG's advisors. Given the current difficulties in their Imaging & Analysis (I&A) division I think we are around fair value today. If I&A improve in the second half and the trading update in January is more optimistic we might see some upside and the share buyback protects (a bit) on the downside.

I listened in to the webcast following the results (now up on their website). The first half was really difficult in the Imaging & Analysis division (75% of group sales) mostly thanks to Trump's tariffs and the cut back in academic budgets to US universities. That said, they took prompt action to remedy the situation as much as they could and the reorganisation at the Belfast plant (which was already underway) came good. Sales, margins and cash conversion all down.

The bright spot was Advanced Technology which received 23% more future orders and improved its (slimmer) margins ,albeit on lower sales. They see the second half making up much of the lost ground but were silent on what the outcome for the year would be. (Trading update in mid January should reveal this. The sale of the NanoScience business is progressing and excluded from these figures. They are seeking a buyout for the DB pension scheme (as Richard did at TTG). The market liked the near 6% increase in the dividend and the doubling of the share buyback to £100m.

I hope "Scousemouse" that you feel better now. Today's share price rise brings them back to fair value in my view and there might not be much to go for in the short term unless someone wants to acquire them.