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Oxford Instruments shares plunge as Russia sanctions bite

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Sanctions on Russia have claimed a UK victim as tech group Oxford Instruments (LON:OXIG) blamed them for a profit warning.

The medical technology supplier, which makes maintenance systems for CT and MRI scanners among a range of tech products, saw its market capitalisation contract by £180mln, or more than a quarter of its value, in early deals.

Traders hit the sell button as chief executive Jonathan Flint said full year profit would be down 26% on the previous year and close to £35mln.

The firm had taken “significant orders” for delivery in Russia, but the recent tightening of trade sanctions and the cancelling of certain export licences means it no longer expects to convert the orders to sales.

“We now assume that no sales can be made to Russia for the remainder of this year and we are also assuming no sales to Russia next year,” said Flint.

A slowdown in Japan’s economic recovery has also caused a headache for the FTSE 250-listed maker of hi-tech tools.

It now expects revenues for the second half to fall short of market expectations.

Flint said site closures and job cuts are likely to form part of a possible as part of a £6mln cost saving plan to make up for the lost sales.

Shares were down 28% to 790p.

Quick facts: Oxford Instruments plc

Price: 1272 GBX

AIM:OXIG
Market: AIM
Market Cap: £7.36 m
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