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(Sharecast News) - Oxford Instruments backed its full-year expectations on Tuesday as it reported a rise in first-half profit and revenue amid strong order momentum.
In the six months to September end, pre-tax profit rose 22% from the same period a year earlier to £30.9m, with revenue up 8.4% to £201.1m and the order intake 44.2% higher at £296m.
Revenue in the imaging and analysis division grew 2.4% to £142.2m, with orders up 11.7% to £163.8m amid strong demand.
In the advanced technologies business, revenue was 26.4% higher at £58.9m and orders rose 125.6% to £132.2m. The company said the primary driver of growth was its compound semiconductor business, responsible for more than 90% of divisional revenues.
For FY28, Oxford Instruments lifted its outlook for the advanced technologies division, pointing to the strength of the order book and expected new order intake. It now expects revenue to grow around 20% and for the margin to move up into its medium target range of 12%-15%.
Chief executive Richard Tyson said: "We have had a very encouraging first half, with strong order momentum. Through the continued delivery of our strategy, our talented teams are building a platform for sustainable growth, significantly extending our commercial customer base, while continuing to enable Nobel Prize-winning academic research.
"We are seeing good momentum in Imaging and Analysis, despite the challenging macro landscape and pressure on US academic spend. We continue to invest in the front end of the business to maximise our opportunities for organic growth into H2 and beyond.
"In Advanced Technologies, high-volume manufacturing customers across the world are choosing our compound semiconductor processes to support the delivery of datacentre and communications infrastructure. We are focusing on ensuring we have the capacity, supply chain and service model needed to execute on this demand.
"While remaining mindful of the ongoing complexity of the external landscape and the challenges of rapid growth, given the growth in our order book, we are confident in our ability to meet market expectations for the full year, and are on track for our medium-term goals."
At 1045 GMT, the shares were up 2.1% at 2,628p.
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