Oxford Instruments warns of ongoing 'severe disruption'

Industrial and scientific high-technology products supplier Oxford Instruments said on Wednesday that, given the current uncertainty from the Covid-19 coronavirus pandemic and the subsequent impact on trading, it was issuing its pre-close for the 2020 financial year earlier than usual.

The FTSE 250 company said the “severe disruption” as a result of the outbreak had impacted its customers, with a number of product shipments and installations in the final quarter of the financial year being delayed, in addition to an enforced site closure in California.

It said that, while it was seeing some reopening of customer sites in China, the situation in Europe and North America was deteriorating.

As a result, it currently expected adjusted operating profit for the full year of between £47m to £50m.

Looking ahead, it said it expected current events to adversely impact trading during the first half of the 2021 financial year, but at this stage there remained “considerable uncertainty”.

“The group has a strong balance sheet and substantial liquidity, with net cash of over £50m,” the board said in its statement.

“We operate in robust markets with a well-positioned portfolio of products and solutions for attractive end markets.

“We remain committed to our strategy and would expect trading to recover in line with a reduction in disruption from Covid-19.”

Oxford Instruments said its results for the year ended 31 March would be released on 9 June.

At 0910 GMT, shares in Oxford Instruments were down 4.48% at 959p.