Oxford Instruments Group Plc has spent the past six months restructuring, and this is reflected in its interim results which show pre-tax profit up 96% at over UKP9m, on turnover down nearly 20% at a little over UKP38m. First of all the group formed a joint venture with Siemens AG to manufacture Magnetic Resonance Imaging magnets at Eynsham; secondly it acquired the Link Scientific Group. Oxford’s MRI magnet business has seen a profit downturn lately, which has brought the group’s overall performance down, therefore, it was with some relief that the contract was signed with Siemens. For it means that Oxford is no longer so reliant on magnets, as well as giving it some extra funds, since a profit of UKP5.4m was gained from the sale of the assets of Oxford Magnet Technology Ltd. Meanwhile the MRI joint venture has started shipping products such as the 1.5 Tesla Active-Shield magnet and appears to be prospering. The Link Scientific Group cost Oxford UKP47.5m just after the interim period but it expects this to be offset by the traditionally stronger cash inflow in the second half of the year. The acquisition was undertaken because of Link’s acknowledged expertise in microanalysis, its ability to widen Oxford’s products through its nuclear instrumentation arm, and its penetration of the US market. The synchrotron project (to make wafer production more precise) is reported to be making good progress, although Oxford warns that it is running over its scheduled timetable, and may cost more than the UKP2.5m allotted. All these activities have yet to contribute to group profits but Oxford’s prospects look good and it believes that trading improvement from the non-magnetic resonance imaging units will show through in the second half.
