Oxford Instruments PLC (AIM:OXIG) said buoyant demand drove growth in revenue and profits in the first half, although supply chain constraints are affecting the conversion of orders into revenue.
Revenue jumped to £170.1mln in the six months to 30 September 2021 from £140.3mln in the same period last year and grew by 13.5% from the first half of pre-pandemic 2019, the high-tech products company said in a statement.
Pre-tax profits were 5.9% higher at 21.4mln, while adjusted operating profit surged by 28% to £30.6mln on a constant currency basis, with the operating margin rising to 18% from 17.3%.
Strong order and revenue growth across commercial and academic customers in the first half reflected buoyant semiconductor, advanced materials and quantum markets, while life science markets saw a recovery, the company said.
Europe, North America and Asia recorded double-digit order growth.
Orders totalled £198.3mln, a rise of 18.3% versus the first half of 2020 and by 26% against the same period in 2019 on a constant currency basis.
However, cash conversion declined to 48% from 97%, reflecting an increase in inventories to support order intake and mitigate supply chain disruption.
Commenting on the results, chief executive Ian Barkshire said: "We have emerged from the pandemic a stronger, more focused and efficient business, even more aligned to the needs of our customers in end markets with structural growth drivers.
“We are increasing our investment to take advantage of these growth opportunities, providing the foundation for good growth and medium-term expansion.”
Barkshire said supply chain pressures will moderate conversion of orders to revenue and drive cost inflation in the second half, but said the group’s “expectations for further progress in the year are unchanged”.
The company upped its interim dividend by 7.3% to 4.4p.
Shares opened 1.67% higher at 2,440.00p.