Oxford Instruments has released a positive H2 trading update. Key highlights include positive organic growth and momentum, margins to be c.100bps lower y-o-y (this is slightly ahead of consensus), and FY24 profit to be in-line with expectations. Trading summary H2 trading was as anticipated with FY24 revenues expected to be 6% higher y-o-y (+9% at cc) reflecting positive momentum and driven by growth in all geographies and key end markets, including advanced materials, life science and semiconductors. Orders were lower y-o-y against tough comparators and a slowdown in life science OEM orders, however the book-to-bill remains positive. Outlook FY24 operating profit is anticipated to be in-line with expectations (INVe £77.3m – FactSet consensus £77.2m) with FY24 margins set to be c.100bps lower y-o-y (consensus -130bps) due to China losses and operational investment. The group enters FY25 with a strong order book and a robust growth pipeline while cost actions should support profits. Next catalysts – FY24 results are scheduled on 11 June 2024 and a site visit on 10 July 2024 to its new operational etch and deposition systems facility in Bristol, focusing on the product and services provided within the compound semiconductor industry.