Oxford Instruments’ AGM update has maintained guidance for the full year, but with a weighting to H2. Revenues and profits for the first five months are down at constant exchange rates, driven by lower sales of optical microscopy products and a change in mix towards magnetic and cryogenic systems which have longer lead times. Revenues for the first five months are flat post FX gains. Management expects a stronger H2 performance due to a combination of normal seasonal bias, plus the impact of new product introductions and FX gains. The shares have been good performers in 2017, reflecting the group’s progress in repositioning the business for growth. However the FY18 profile of a H1 decline and dependence on H2 is unlikely to reassure investors.
