Highlights

  • OXIG’s FY25 revenue surpasses GBP 500 million for the first time, up 6.5% YoY at constant currency.
  • The company’s adjusted operating profit increased 10.8% to GBP 82.2 million during the period.
  • OXIG to divest NanoScience unit for GBP 60 million and initiate a share buyback of up to GBP 50 million.

Oxford Instruments plc (LSE: OXIG), is a UK-headquartered provider of advanced instrumentation and systems for industry and research. Its products support customers in sectors such as semiconductors, quantum, materials science, and life sciences. The company operates through two primary divisions: Imaging & Analysis and Advanced Technologies.

In the financial year 2025( FY25) company’s revenue exceeded GBP 500 million for the first time, growing 6.5% YoY on a constant currency basis, primarily driven by stronger demand in its semiconductor and materials analysis businesses, which helped offset continued softness in the healthcare and life sciences segment.

Commercial customer revenue, which now accounts for approximately 50% YoY of total revenue ,up from 45% YoY in FY2024 , delivered double-digit growth as Oxford Instruments expanded its application of core technologies beyond academia into applied and industrial markets. Regionally, the company achieved growth across North America, Europe, and Asia, with progress in refocusing its China strategy following recent market disruptions.

Adjusted operating profit rose 10.8% YoY to GBP 82.2 million at constant currency, representing a margin of 17.8% YoY, a 70-basis-point increase over the prior year. Profitability was supported by operational efficiencies and a restructured organisational framework. Imaging & Analysis delivered an adjusted operating margin of 24.7% YoY, a 60-basis-point improvement, while Advanced Technologies achieved a margin of 4.5% YoY, up 360 basis points, reflecting performance gains in its compound semiconductor and quantum segments.

Oxford Instruments reported net cash of GBP 84.4 million as of March 31, 2025, up slightly from GBP 83.8 million in FY2024, after spending GBP 15.4 million on acquisitions. Cash conversion normalised at 89% YoY, up from 64% YoY the prior year. However, the company noted an GBP 8.5 million headwind to adjusted operating profit from foreign exchange movements, largely due to a weakening US dollar.

In a strategic move to refocus its business, Oxford Instruments announced a binding agreement to sell its NanoScience division, which includes its quantum business, for a total consideration of GBP 60 million, of which GBP 3 million is deferred. The divestiture aligns with management’s strategy to concentrate resources on higher-margin areas and is expected to accelerate the group’s path toward its medium-term margin targets. The transaction is expected to incur one-off costs of GBP 2 million to GBP 3 million.

The company will use proceeds from the sale, along with its existing cash position, to initiate a share buyback programme of up to £50 million. Management said the buyback will begin shortly and reflects confidence in the company’s current financial position and ability to generate returns for shareholders. The total dividend for FY2025 was increased by 6.7% to 22.2 pence per share, up from 20.8 pence in FY2024.

On the Dundee side, its board has received financial advice from BMO and recommends that its shareholders vote in favour of the issuance of new shares. Dundee directors and executives holding 0.19% of shares have committed to voting in favour of the resolution.

The deal will require approvals from shareholders of both companies, the UK court, the Toronto Stock Exchange, and Bosnia’s competition authority. The scheme document and associated materials are expected to be distributed to Adriatic shareholders shortly. The transaction is expected to close by the end of 2025, subject to meeting all conditions.

If approved, the combination would result in a company with diversified production and development assets across Europe and Latin America, with a broader shareholder base and increased exposure across equity markets in Canada, the UK, and Australia.