Shares in Oxford Instruments PLC (LSE:OXIG) rose 10% after the FTSE 250 company said hiked its dividend and share buyback, buoyed by expectations of an improved second-half performance due to recovering order momentum and increased cost discipline.
While first-half adjusted operating profit fell 22.9% to £24.7 million and revenue declined 7.9% to £185.5 million, order intake rose 1.4%, with a strong rebound in Q2 offsetting earlier macroeconomic disruption.
The company reported a 25.3% increase in orders at its Advanced Technologies division, driven by demand from large commercial customers in the augmented reality and datacomms sectors.
Imaging & Analysis saw a weaker first quarter, but order momentum returned to flat in Q2, with management expecting a stronger second half.
The board raised the interim dividend 5.9% to 5.4p and expanded its ongoing share buyback by £50 million to £100 million. By the end of October, £32 million had been executed.
The group ended the period with net cash of £45.1 million and expects proceeds of around £57 million from the pending sale of its NanoScience business in the third quarter.
Management reiterated that full-year expectations remain unchanged from October’s trading update.