Oxford Instruments has reported strong pre-tax interim profits up 51% to UKP6.1m – if last year’s UKP5.4m profit on an asset disposal is stripped out – on turnover up 29% to UKP49m, but the merging of its medical products division has led to 50 job losses, and rationalisation at Link Analytical has caused a further 40 redundancies. The company says that scientific research businesses have had a good first half, especially the MRI magnet joint venture with Siemens. However, semiconductor processing has been unsatisfactory, partly because of market conditions and partly because of management problems. The two operations – Ion Beam and Plasma Technology – have now been completely merged and management teams restructured. As regards synchrotron development, the company says that the prototype will be shipped and installed at IBM’s East Fishkill facility by the end of January. The cumulative provisions that Oxford made for the UKP4m cost over-runs, not covered by its three-year fixed contract with IBM, have not been adjusted and the company does not expect further provisions will be necessary. Peter Williams, chief executive officer, says that he expects to announce an order for the $25m synchrotron by the summer, and he is currently in discussion with several semiconductor manufacturers. Link Scientific only managed to break even with sales of UKP11m in the first six months, but Williams believes that the rationalisation measures and a strong order book will return it to profit by year end. Exchange rate fluctuations aside, Oxford remains bullish.
