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Oxford Instruments PLC on Thursday reported order growth during the first half of its financial year, however global supply chain challenges continued to impact results.
Oxford Instruments is an Abingdon, England-based manufacturing and research company.
During the half year ended September 30, the company said it made ‘good’ progress, with strong demand for its products and services.
On a constant currency basis, orders were ahead of revenue during the period and ahead of orders for the first half of last year.
On a reported basis, the company expects strong revenue and adjusted operating profit growth for the first six months of the year, supported by a currency tailwind.
However, Oxford Instruments said that constant currency growth has been ‘tempered’ by global supply chain challenges. Additionally, price rises have not yet offset inflationary pressures due to the phasing of the order book.
It explained that it has addressed cost inflation through active price management, but has continued to see good order growth during this period.
‘We continue to invest in the business to drive future growth, including new product development, as well as enhancements to operational delivery and service to support our growing business,’ it added.
Oxford Instruments' balance sheet remains strong. Net cash, excluding leases, at September 30 was around £94 million, up from £86 million on March 31.
Looking ahead, the company said its pipeline remains ‘robust’ across all of its end markets. It expects higher production in the second half of its financial year, combined with the positive impact of recent price increases as we convert our record order book.
Based on this, Oxford Instruments expects an improvement in trading in the second half, with full year trading at constant currency remaining in line with expectations.
Oxford Instruments plans to publish its half year results ended September 30 on November 8.
Shares in Oxford Instruments were up 4.3% to 1,794.00 pence each in London on Thursday morning.
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