RNS Number : 9583G

Oxford Instruments PLC

11 November 2025

Oxford Instruments plc half-year results 2025/26

Challenging trading conditions in Q1 impacting first half; positive momentum returning

Oxford Instruments plc, a leading provider of high technology products and systems
 for industry and research, today (11 November 2025) announces its interim results
for the six months to 30 September 2025.

Summary of half year¹

·    The business is recovering following significant macroeconomic disruption in Q1, with order momentum improved in Q2, back to levels in line with last year

·    Actions taken within Imaging & Analysis (I&A) in H1, including adjusting some assembly locations and restructuring Belfast cameras and microscopy cost base, alongside successful re-pricing of US open order book to mitigate tariff impact

·    Positive momentum in Advanced Technologies (AT) compound semiconductor business, with new clean room fully operational. Strong order demand, driven by US and European commercial customers, has resulted in full order cover to support another year of strong growth

·    Completion of sale of NanoScience business expected in Q3 once regulatory approvals received

·    The Group's H1 actions and a recovery in order intake are expected to lead to a full-year performance consistent with our October trading update²

·    Current buyback programme to be increased by a further £50m, to £100m. As at 31 October, £32m already completed

Financial highlights

			Adjusted3				Statutory
	Half year 2025/26			Half year 2024/25		OCC change4	Half year 2025/26	Half year 2024/25
Orders	£205.2m			£204.9m		1.4%
Revenue	£185.5m			£204.3m		(7.9%)	£185.5m	£204.3m
Operating profit	£24.7m			£35.3m		(22.9%)	£20.0m	£32.7m
Operating profit margin	13.3%			17.3%		(280) bps	10.8%	16.0%
Operating profit margin OCC	14.5%					(280) bps
Profit before taxation	£25.4m			£36.0m		(22.5%)	£20.3m	£33.3m
Basic earnings per share	33.0p			46.6p		(29.2%)	26.1p	43.8p
Normalised cash conversion	41%			44%
Free cash flow	£0.2m			(£7.1m)
Net cash	£45.1m			£39.3m
Dividend per share (interim)	5.4p			5.1p		5.9%

·    Order intake up 1.4% OCC year-on-year; Q1 orders down 3.0% OCC followed by 5.7% OCC growth in Q2; Book-to-bill at 1.1x⁵:

-    Greater Q1 order disruption in Imaging & Analysis, our relatively higher margin, shorter lead time division, followed by recovering momentum to flat Q2, leading to H1 orders down 6%

-    25.3% OCC order growth in Advanced Technologies, led by augmented reality and datacomms compound semiconductor applications and six-fold expansion into higher volume commercial customers

·    Revenue down 7.9% OCC as business recovers from repricing order books and delayed shipments; Q2 order recovery supports a stronger H2 revenue performance

·    High gross margin consistent with prior year; overheads slightly down on prior year following restructuring in Belfast and good cost management. Strong operational leverage expected in H2 as the benefits come through

·    Revenue shortfalls in H1 dropped through to Group adjusted operating profit (£24.7m, down 22.9% OCC), and adjusted operating profit margin (13.3%, -280bps OCC)

·    Strong balance sheet with £45.1m net cash (2024: £39.3m) at half year. Sales proceeds from NanoScience sale expected in Q3 (c. £57m); as at 31 October, £32m of £50m share buyback programme executed

·    Normalised cash conversion 41% (2024: 44%), following profile of H1 revenue; expected to materially improve in H2

·    FX headwind in H1 of £2.6m on adjusted operating profit. Full year impact expected to be £5.5m, in line with recent trading update and reflected in full-year guidance

·    5.9% increase in the interim dividend to 5.4p (2024: 5.1p)

Current trading and outlook

The business is recovering well following significant disruption in the early weeks of H1. Second half Imaging & Analysis order momentum is in line with expectations, with cost control actions taken in H1, notably in Belfast, underpinning expected margin improvement. A number of product launches are also expected to contribute to a stronger H2 for the division.

Within Advanced Technologies, strong positive momentum within the compound semiconductor business, driven by large commercial customers, has resulted in a robust order book to support another year of strong growth.

We expect to provide a further trading update on 15^th January 2026.

Richard Tyson, Chief Executive Officer of Oxford Instruments plc, said:

"During the first half we have made further progress in our strategic aims to simplify the Group, improve commercial execution and realign our regional presence.  Our trading performance reflects that we, like others, have had to navigate the impacts of tariffs and the related global economic disruption.

"We expect trading performance in Imaging & Analysis to be stronger in the second half than the first, benefitting from increased order momentum and adjustments made to some product assembly locations, coupled with the impact of margin enhancement actions we took in the first half.  In Advanced Technologies, we have had very strong order growth, with our new Bristol facility and leading technology helping us to secure orders from our target large commercial customers. We therefore expect the division to deliver another year of strong growth and improved margins supported by a full order book.

"I'm very proud of the commitment and drive shown by our teams globally. Thanks to their proactive response to disruption in our markets and the positive outcomes from our ongoing strategic programme, we expect to deliver an improved performance in the rest of the year."

Notes:

1.      Excludes all revenues and costs directly related to the NanoScience business which will exit the Group upon final deal closing. Any costs previously allocated to the NanoScience business which will not exit the business at deal close are presented within continuing operations. All prior year comparators are presented on the same basis. For reference, a pro-forma consolidated statement of income for FY25 for continuing operations is included in the Finance review.

2.      Trading update issued Monday 13 October, guiding to full year revenue, adjusted operating profit (AOP) and AOP margin similar to FY24/25 on an organic constant currency basis.

3.    Adjusted items exclude the amortisation and impairment of acquired intangible assets, acquisition items, business reorganisation costs, other significant nonrecurring items, and the mark-to-market movement of financial derivatives. A full definition of adjusted numbers can be found in the Finance review.

4.       Organic constant currency (OCC) numbers are prepared on a month-by-month basis using the translational and transactional exchange rates which prevailed in the previous year rather than the actual exchange rates which prevailed in the year. Transactional exchange rates include the effect of our hedging programme. They also exclude the impact of acquisitions and divestment made in the comparator periods.

5.      Book-to-bill is defined as orders received in the period divided by revenue in the period.

The financial information in this preliminary announcement has been prepared in accordance with UK adopted international accounting standards. The Group has applied all accounting standards and interpretations issued relevant to its operations and effective for accounting periods beginning on 1 April 2025. The UK adopted IFRS accounting policies have been applied consistently to all periods.

LEI: 213800J364EZD6UCE231

Oxford Instruments management will present its interim results at Deutsche Numis, 45 Gresham Street, London EC2V 7BF, to analysts and investors at 9:00 today (11 November 2025). The presentation will be streamed live at https://brrmedia.news/OXIG_HY25/26 and a recording will be made available later today at www.oxinst.com/investors/financial-reports-and-presentations .

Enquiries:

Oxford Instruments plc Richard Tyson, Chief Executive Officer Paul Fry, Chief Financial Officer
Stephen Lamacraft, Head of Investor Relations	07776 433916 stephen.lamacraft@oxinst.com
MHP Group Katie Hunt/Tim Rowntree/Veronica Farah	07710 117517 oxfordinstruments@mhpgroup.com

Notes to Editors

About Oxford Instruments plc

Oxford Instruments provides academic and commercial organisations worldwide with market-leading scientific technology and expertise across its key market segments: materials analysis, semiconductor, and healthcare & life science.

Innovation is the driving force behind Oxford Instruments' growth and success, supporting its core purpose to accelerate the breakthroughs that create a brighter future for our world. The vigorous search for new ways to make our world greener, healthier and more productive is driving unprecedented levels of R&D investment in new materials and techniques to support productivity and decarbonisation worldwide, creating a significant opportunity for Oxford Instruments to grow.

Oxford Instruments holds a unique position to anticipate global drivers and connect academic researchers with commercial applications engineers, acting as a catalyst that powers real world progress.

Founded in 1959 as the first technology business to be spun out from Oxford University, Oxford Instruments is now a global, FTSE250 company listed on the London Stock Exchange (OXIG).

For more information, visit www.oxinst.com  

Chief Executive Officer's Review

In common with many of our peers, and the wider market, we have faced a challenging external environment in the first half of the year. This impact was primarily felt in our Imaging & Analysis division, where announcements on tariffs and US academic funding, coupled with the resulting broad economic uncertainty, affected demand patterns. We took decisive action to ensure that orderbooks were repriced to take account of the new tariff regime and rapidly renegotiated new business opportunities to restore order flow.

The main impact was in the first quarter, as customers sought to clarify their funding sources and reduce their spending forecasts. Whilst opportunities continued to grow in H1, customers have taken longer to convert confirmed interest into firm orders.

For I&A, the resulting order book is recovering, with a growing pipeline and positive quarter-on-quarter momentum. Despite the turbulent start to the year, we expect to see an improved second half performance in I&A, as revenue returns to prior year levels, and the benefit of Belfast cost savings and other margin improvement initiatives flow through to adjusted operating profit (AOP) and AOP margin.

Our Advanced Technologies division has experienced very strong order growth of 25% OCC in the period, as our compound semiconductor business continues its expansion into volume manufacturing and benefits from tailwinds in its chosen market segments. With our new Severn Beach facility now fully operational, and with several important customer wins, we are seeing the benefits of our growth strategy as we continue to expand our reach into commercial customers. AT's full-year order book provides a clear line of sight to H2 revenue and AOP margin growth.

Further detail on each division's performance is given in the divisional overviews below.

The volatile trading landscape has impacted the Group's results for the half year. However, our teams have responded with focus and agility, and we are embarking on the second half with improved momentum, with book-to-bill above 1.

Navigating volatile global trading dynamics

We have been proactive in our response to the dynamic tariff situation, successfully mitigating direct impacts by working with customers, primarily in Imaging & Analysis (I&A), to reprice our open order book where there have been additional tariffs applied to trading regimes. The impact of tariffs has been less marked in our Advanced Technologies division, due to exemptions for semiconductor fabrication systems.

The actions we have taken, together with cost controls and efficiencies, have helped us to maintain strong contribution margins. Work has also been carried out across the Group to build provisions for tariffs into future contracts.

We have undertaken two key initiatives in I&A, to expand our manufacturing footprint and improve our resilience to changes in the global trading landscape, as well as addressing customer demand for locally produced products:

·      Working with a UK key supply chain partner, we are now able to manufacture part of our detector line for electron microscopy in China. This is a significant step for us, allowing customers based in China to buy locally produced products, supported by local government policy. This is expected to provide us with a helpful competitive advantage locally as we look to protect and extend our market share. 

·      Moving some of the manufacture of our atomic force microscopes (AFM) from the US to Germany. Teams from our AFM production line in Santa Barbara have trained technicians at our Ulm site to produce a range of products, with orders for 'Made in Germany' AFM now flowing into the order book and the first unit shipped from Ulm in early November.

Both initiatives bring multiple benefits, including addressing customer demand for local production, boosting supply chain resilience and reducing lead times.

We continue to pursue further opportunities to reshape our manufacturing footprint, with a proportion of nanoindentation production to be moved to the UK from Switzerland in the second half as this recently acquired product line continues to grow in importance.

New Chinese controls on the export of rare earth materials have also presented a challenge in the first half of the year for I&A, with many of our products containing strong magnets. Magnets produced in China frequently include trace elements of heavy rare earths covered by the controls. However, heavy rare earths are not required for our products, and we have been able to substantially mitigate the impact of the controls through R&D adaptations and alternative sourcing. We continue to monitor developments on this issue following recent positive discussions between the US and China.

Continued progress to medium-term targets

Despite the difficult start to FY26, our strategic actions taken last year, and continuing in the first half of this year, give us continued confidence in our medium-term financial targets. Throughout the period, we have continued to simplify and streamline the Group and optimise its growth and margin potential, pursuing separate action plans in each division in line with their individual characteristics.

Our planned medium-term targets remain unchanged and are as follows:

·    Organic revenue growth of 5-8% CAGR

·    Adjusted operating margin improvement to 20%+

·    Cash conversion of over 85%

·    Continuing to invest in growth, including 8-9% of revenue on R&D

·    Return on capital employed of over 30% (FY25: 27%)

·    Selective acquisitions bringing complementary capabilities.

By successfully repricing the order book and focusing on cost control, the fundamental margin structure of the I&A division is well positioned to respond to growth in revenues as demand recovers from our core, structurally growing markets. We continue to invest in R&D at targeted levels to support sustained growth, with several new product launches this year.

In AT, higher average selling prices and a shift to larger, commercial systems, underpin confidence in the margin expansion trajectory for the division that we set out last year. The investment in Severn Beach is playing a key role in our ability to drive new customer interest, and to improve execution.

Our Operational Excellence programme continues to be a key contributor to the Group's medium-term margin and cash conversion goals. Our focus to date has been in Belfast, home to our scientific cameras and microscopy business, and on helping to bring NanoScience back to profit prior to our decision to divest.

Satellite teams are now leading similar programmes in High Wycombe, home to our electron microscopy and nuclear magnetic resonance product lines, and in Severn Beach, home to our compound semiconductor business. Given the strong existing operational performance at these sites, these initiatives are intended to take the sites 'from good to great', and are expected to generate stronger order book execution, growth capacity and margin improvement.

Service is another key lever in delivering our medium-term goals, with an opportunity to grow above-average margin revenues, as well as to generate increased customer loyalty and brand reputation. We have continued to invest in our service capability across the Group, with service revenue now accounting for 20% of Group revenues (H1 FY25: 18%).

Finally, we continue to strengthen the role of the regions in driving product and service growth, and in bringing together a more cohesive EMEAI commercial structure under new leadership. This build out will continue during H2, but we already see a number of positive opportunities to improve our commercial execution across the region.

Capital allocation priorities

We have a strong balance sheet, with a net cash position at the half year of £45.1m. We returned £25.5m of cash to shareholders via our share buyback programme in H1, and we expect to receive proceeds from the sale of NanoScience in H2.

Cash conversion and free cash flow generation are expected to be strong in H2, and to accelerate into FY27 as the business grows, restructuring costs fall away, capital expenditure normalises and our defined benefit pension contributions cease.

Our primary capital allocation priorities are i) organic investment and ii) dividends. Our organic investment programme encompasses both R&D, to which we are committed to continuing to invest 8-9% of revenue, and other growth opportunities, most recently our investment in Severn Beach. We remain committed to our dividend programme, and we are again growing our interim dividend, by 5.9% to 5.4p.

After these two priorities we will then consider inorganic growth opportunities and returns of capital to our shareholders alongside each other. We continue to actively review M&A opportunities, mainly focused on our I&A division. However, we are disciplined in our approach to assessing these opportunities to ensure they provide clear strategic advantages and meet our investment return threshold.

In the current capital market environment, and given the current limited number of available near-term M&A options, the Board now expects to increase the current buyback programme by a further £50m, to £100m. As at 31 October, £31.9m of this programme has been completed.

Imaging & Analysis

The Imaging & Analysis division develops and manufactures microscopes, scientific cameras, analytical instruments and software, with manufacturing bases in the UK (High Wycombe and Belfast), Europe (Aix-en-Provence, Ulm and Zurich) and the USA (Santa Barbara). 

Key highlights 

Imaging & Analysis	Half year 2025/26	Half year 2024/25	growth	OCC growth1
Orders	£146.6m	£157.5m	(6.9%)	(5.8%)
Revenue	£138.9m	£153.9m	(9.7%)	(8.5%)
Adjusted2 operating profit	£23.7m	£34.6m	(31.5%)	(24.9%)
Adjusted2 operating margin	17.1%	22.5%	(540bps)
OCC adjusted2 operating margin	18.4%			(410bps)
Statutory operating profit	£17.5m	£29.9m	(41.5%)
Statutory operating margin	12.6%	19.4%	(680bps)

1.        For definition refer to note above.  

2.         Details of adjusting items can be found in note 2 to the financial statements. 

Created in 2024, the Imaging & Analysis (I&A) division brings together the Group's extensive capabilities in imaging and analysis, where we offer highly sophisticated, but relatively small-scale scientific instruments to a wide range of customers from academic research institutions to commercial R&D teams and volume manufacturers. The division generates strong margins and runs on a shorter order cycle than our Advanced Technologies division, where we typically sell larger scale capital equipment with longer lead times and structurally lower, albeit growing, margins.

As set out above, the division had a disrupted start to the year, with orders down in Q1 as customers sought to confirm their budgets in light of tariffs and announcements on academic funding from the US administration.

As a result of the actions we have taken, and with order momentum having returned in the second quarter (including in the US), we expect to see a strong positive second half weighting.

Imaging & Analysis market dynamics

We have a strong divisional presence in each of our three main markets: materials analysis, semiconductors and healthcare & life science, with our differentiated product ranges and continual innovation driving the demand for our products. The challenging start to H1 impacted revenue in all three markets, with materials analysis down 7% CC, semiconductor down 10% CC, and healthcare & life science down 9% CC. Whilst opportunities continued to grow in H1, customers have taken longer to convert confirmed interest into firm orders. However, orders are now ahead of revenue in all three markets, and our expectation is for revenue to return to prior year levels in H2.

In materials analysis, our products and software facilitate analysis by both academic and commercial customers, with a wide variety of end uses, including structural materials R&D, the development of new, advanced materials such as graphene and other 2D materials (where our ability to analyse at the nanoscale is key), and applications in automotive, energy generation and storage, environment and food technology, among others.

More broadly, we also provide instruments for service labs for core facilities, increasingly popular centralised shared resources where cutting-edge equipment is made available for scientists to carry out a wide range of analysis. Here, as elsewhere, the ease of use, accuracy and speed of the results generated by our tools are key differentiators.

We also have extensive semiconductor analysis capabilities in our Imaging & Analysis division, where customers use our instruments to carry out a wide range of analysis across the semiconductor cycle, from early-stage research to quality control, semiconductor packaging, and failure analysis. Divisional orders for semiconductor applications have remained robust in difficult market conditions.

Following a slower start to the half year for semiconductor in this division, we have seen momentum returning, in part as a result of the dynamic global trade environment, with semiconductor packaging diversifying and companies continuing to establish new product manufacturing lines across Asia, Europe and the USA.

In healthcare & life science, we work with customers across a wide range of disciplines, from pure academic research into cellular behaviour and the development of new treatments for diseases such as cancer and dementia, to quality control in pharmaceuticals. In common with many of our peers, we have been reporting weakness in the global market for several reporting periods, driven by OEM and wider destocking post-Covid, and a challenging period for academia. This continued into the first half of the year. With revenue down 9% and orders down 8% CC on the prior half year, demand continues to be weak. However, we see some positive signs from our actions, with a book to bill at 1.17 and growth returning in the US and China.

Our differentiated technology is a key source of strength for Oxford Instruments, and continued investment in innovation is central to our growth plans. New product development is key to us growing and maintaining market share, even in difficult market conditions such as those in healthcare and life science.

New launches in Imaging & Analysis this year include:

·      an easier-to-use, more budget-friendly extension to our atomic force microscopy range, which delivers excellent capabilities at a more attractive price point for customers, extending our market reach;

·      a significantly updated benchtop nuclear magnetic resonance instrument which has enabled us to regain technology leadership in the space;

·      a new suite of high-speed, high-resolution, visible light and UV scientific cameras created by the team that joined Oxford Instruments as part of the acquisition of First Light Imaging in 2024; and

·      a refreshed core Raman microscope line with a groundbreaking new spectrometer, which together offer customers greater speed, ease-of-use and flexibility in obtaining research-grade results.

Imaging & Analysis: strategic and operational progress

The Imaging & Analysis division has been actively addressing a number of priorities in the first half of the year. We have dealt with the impacts of tariffs and wider global trading dynamics, as set out above, while also delivering organisational change and laying foundations to restore our Belfast facility to its expected level of profitability.

We have further integrated the division during the year, uniting six sites across the UK, Europe and the US under a single leadership team to align strategic focus and leverage synergies across teams and customer bases. The benefits of greater alignment have been clear as we worked across the division to agree approaches to tariffs, and to move part of the production of our atomic force microscopy lines from our existing Santa Barbara site in California to our base in Ulm in Germany. Our 'Made in China' project, where we are manufacturing detectors though a supply chain partner in China, has also benefitted from division-wide expertise.

Over the half year we have also worked with regional teams around the business to realign our operating model, bringing sales and service leadership closer to our customers.

Our Belfast cameras and microscopy site has required special focus as we address historical operational and quality issues and seek to grow revenue and margin in the face of a challenging healthcare & life science market. In light of reduced demand, we rightsized our workforce over the summer, reducing headcount by 20%. Together with other cost reductions, this is expected to generate c. £4m of benefit in the second half of the year. A year-on-year reduction in inventory of £4m will also benefit working capital in H2.

Our operational excellence programme in Belfast continues to deliver benefits in terms of increased productivity, quality and timely delivery to customers. Labour efficiency continues to trend upwards, with a 60% increase in productivity in our cameras workstream versus a year ago.

We have concluded the reshaping of our Belfast product portfolio to deprioritise those which were not sufficiently profitable in order to concentrate on marketing products with core leading technology. We are also focusing on rebuilding our OEM order book, which had been impacted by quality and lead time issues, as well as the downturn in the wider market. This work is beginning to gain traction, with two significant OEM framework orders placed in H1 and further success with an order placed early in H2.

We have successfully launched several products since April, as set out above.  Across the division we continue to align our innovation roadmap, and to optimise new product launches with a consistent approach. To further leverage the synergies across the division, and improve our customer reach, we have realigned our social media channels from a product line approach to a market-led approach and are beginning to see the benefits in terms of engagement and lead generation.

Advanced Technologies

The Advanced Technologies division develops and manufactures compound semiconductor fabrication capital equipment (Severn Beach, UK) and X-ray tubes (Scotts Valley, USA). 

Key highlights 

	Advanced Technologies	Half year 2025/26	Half year 2024/25			growth	CC growth1
	Orders	£58.6m	£47.4m			+23.6%	+25.3%
	Revenue	£46.6m	£50.4m			(7.5%)	(6.2%)
	Adjusted2 operating profit	£1.0m	£0.7m			+42.9%	+71.4%
	Adjusted2 operating margin	2.1%	1.4%			+70bps
	CC adjusted2 operating margin	2.5%					+110bps
Statutory operating profit		£1.7m	£0.3m
Statutory operating margin		3.6%	0.6%			+300bps

1.        For definition refer to note above.

2.        Details of adjusting items can be found in note 2 to the financial statements. 

The Advanced Technologies division has a different profile from Imaging & Analysis, with a largely separate customer base. Our growing compound semiconductor business (representing more than 90% of divisional revenue) sells much lower product volumes of larger-scale complex systems, while our small X-ray tube manufacturer (which accounts for the remainder of revenue) focuses on consumables.

Our strategic priorities for Advanced Technologies are to grow our commercial customer revenues by expanding our reach with corporate R&D and volume manufacturers, while improving productivity and profitability to achieve increased margins.

Orders increased by 25.3% CC growth in H1, which is testament to the progress we have made over the past 18 months. Since setting out our strategy in June 2024, we have completed our move to the new Severn Beach compound semiconductor facility, successfully growing our reach with volume manufacturers.

Divisional revenue for the period was down 6.2% CC year on year, partly due to the timing of finished goods shipments, but also reflecting the more substantial shift in the semiconductor equipment order book from small, single chamber systems to large, multi-chamber systems which have longer delivery lead times. This transition is expected to feed back into revenue growth in H2.

Margin was up 70bps to 2.1% reported (2.5% OCC), with a significant uplift forecast in the second half of the year as we deliver on the division's full order book, with its positive mix of higher margin business, while maintaining a tight focus on overheads.

Compound semiconductor market dynamics

Our positive momentum is driven by our successful targeting of key niches within the AI and augmented reality ecosystems, where compound semiconductors are playing a crucial and growing role in advancing major companies' technology roadmaps. In particular, we focus on the critical layers within semiconductor devices which determine their functionality, supporting customers to achieve greater data transfer speeds, better optoelectronic properties and lower power consumption, in end markets including consumer technology, automotive and AI datacentres. These critical layers account for around two thirds of order intake.

Our leading-edge capabilities in critical layer technology give us pricing power to command both a higher price and a higher margin than those typically achieved for more standardised processes. We enable next generation device architectures for better performance, helping our industrial customers to accelerate their own growth by improving wafer performance, yield and therefore cost per wafer.

Our market applications range from datacomms to augmented reality, next generation power electronics and quantum, providing resilience to demand fluctuations in any single area.

We continue to see strong growth in applications for datacentres, including a significant and ongoing partnership with global advanced chips manufacturer Coherent Corp. to support its 6" indium phosphide fab ramp for AI datacentres in Europe and the US.

Augmented reality is a further key growth area. We are working with globally recognised customers to advance their technology roadmaps for products such as augmented reality glasses, in applications including microLED, meta lenses, wireless charging and 3D sensors.

We are also playing a role in the transition of quantum technology from academic research to corporate R&D. From leading universities and start-ups to blue chip global technology companies, we provide products and applications to support the fabrication of qubits, and the acceleration of capabilities in quantum sensing and quantum communications. We were delighted to win a significant repeat order from a Tier 1 customer in the half as part of its quantum programme.

Gallium nitride applications (GaN), which enable customers to increase power and drive efficiency in datacentres and next generation AI smartphones, are a further focus area for the business, and we are seeing increased customer interest in validating applications.

The silicon carbide market remains weak globally. However, we continue to be active in the sector, and are focusing on applications that enable next generation devices, winning a small number of orders in the period.

Strategic and operational update

The move to our new compound semiconductor site at Severn Beach, outside Bristol, is now fully complete, with all fabrication and metrology tools installed and operational in the facility's ISO 5-standard cleanroom, enabling an increased volume of customer demonstrations and internal R&D work to be carried out.

Following the transfer of tools via a phased programme over the summer months, our legacy site at Yatton, in North Somerset, was sold in early September for £4.8m.

The increased capacity of the Severn Beach facility - up to three times that of the previous site - together with its world-class cleanroom, is key to the business's ability to address structural growth in datacomms, power electronics, and augmented reality. With state-of-the-art equipment, improved capacity and the productivity enhancements enabled by the new, purpose-designed space, the move marks a step change in our ability to meet production manufacturers' needs. We have seen a six-fold increase in order value from volume production customers year on year.

Overall demand indicators continue to be strong, with a growing pipeline of qualified compound semiconductor opportunities. Conversion rates are also up, most notably where the sales process is supported by a demonstration. Our new cleanroom dramatically increases our ability to do so, and we have seen a particularly strong uplift in post-demo conversion for our target critical layer processes.

In tandem with the move to the new site, and the strategic decision to focus on the technologies where we have a significant competitive edge, we continue to generate efficiencies by streamlining the product portfolio of this business. In this half year, more than 90% of system orders (up from 75% at full year FY25) have been generated from sales of three core platforms - Plasma Pro, IonBeam and ALD (atomic layer deposition) - with modular assembly carried out in dedicated bays, and fewer complex and resource intensive one-off products. The production of fully automated production systems has grown significantly as a proportion of overall system orders year on year, supporting our strategy of growing our reach within compound semiconductor production markets.

Sale of NanoScience

The sale of Oxford Instruments NanoScience to Quantum Design International is progressing well and is expected to complete in the third quarter of FY26, subject to receipt of UK government approval. The business is currently held for sale and is reported as a discontinued operation within our financial statements. Its divestment further enables the Group to focus its capital deployment on business capabilities with higher margin and potential for shareholder returns, and is consistent with our focus on our three main markets: materials analysis, semiconductor, and healthcare and life science.

Talented and resilient global workforce

Our teams all around the world have demonstrated a high degree of resilience and ingenuity throughout a volatile start to the year, working with each other and with our customers to deliver solutions at pace to emerging challenges. They have done so while continuing to make excellent progress with our existing strategic priorities, collaborating across regions and business units to deliver further streamlining and simplification of our operational structure and to improve our operational performance. My thanks, and those of the whole Board, go to all our colleagues for their commitment, drive and talent.

Summary and outlook

During the first half we have made further progress in our strategic aims to simplify the Group, improve commercial execution and realign our regional presence.  Our trading performance reflects that we, like others, have had to navigate the impacts of tariffs and the related global economic disruption.

We expect trading performance in Imaging & Analysis to be stronger in the second half than the first, benefitting from increased order momentum and adjustments made to some product assembly locations, coupled with the impact of margin enhancement actions we took in the first half.  In Advanced Technologies, we have had very strong order growth, with our new Bristol facility and leading technology helping us to secure orders from our target large commercial customers. We therefore expect the division to deliver another year of strong growth and improved margins supported by a full order book.

I'm very proud of the commitment and drive shown by our teams globally. Thanks to their proactive response to disruption in our markets and the positive outcomes from our ongoing strategic programme, we expect to deliver an improved performance in the rest of the year.

We expect to provide a further trading update in mid-January 2025.

RICHARD TYSON

Chief Executive Officer

10 November 2025

Finance Review

In June 2025 Oxford Instruments announced that it had entered into a binding agreement to sell Oxford Instruments NanoScience ("NanoScience"), its quantum-focused business. As a result of this agreement NanoScience has been classified as held for sale in the FY26 financial statements, with all revenues and costs directly related to the NanoScience business being reported within discontinued operations both for the current year and prior year. All financial information reported below relates to continuing operations, unless otherwise stated.

	Adjusted1			Statutory
From continuing operations	Half year 2025/26	Half year 2024/25	OCC2 Change	Half year 2025/26	Half year 2024/25	Change
Revenue	£185.5m	£204.3m	(7.9%)	£185.5m	£204.3m	(9.2%)
Gross margin	55.0%	55.4%	(20) bps	55.0%	55.4%	(40) bps
Operating profit	£24.7m	£35.3m	(22.9%)	£20.0m	£32.7m	(38.8%)
Profit before tax	£25.4m	£36.0m	(22.5%)	£20.3m	£33.3m	(39.0%)
Operating margin	13.3%	17.3%	(280) bps	10.8%	16.0%	(520) bps
Normalised cash conversion3	41%	44%
Free cash flow4	£0.2m	(£7.1m)
Basic earnings per share	33.0p	46.6p	(29.2%)	26.1p	43.8p	(40.4%)
Dividend per share	5.4p	5.1p	+5.9%

Key highlights

¹ Removing the effect of adjusting items; See Note 3 to the financial statements for further analysis of adjusting items

² Organic constant currency basis

³ Normalised cash conversion excludes the impact of the Severn Beach facility, the purchase of land and buildings adjacent to our High Wycombe site, and proceeds from the sale of the building in Yatton

⁴ Free cash flow before acquisitions and other corporate development

Certain Alternative Performance Measures (APMs) have been included within the half-year results. These APMs are used by management and the Board to help it effectively monitor the performance of the Group as they consider that these represent a more consistent measure of underlying performance. Note 3 provides further analysis of the adjusting items in reaching adjusted profit measures. Definitions of the Group's material alternative performance measures, along with reconciliation to their equivalent IFRS measure are included within the Finance Review. Unless stated otherwise, movements in orders, revenue and adjusted operating profit are given on an organic and constant currency (OCC) basis, removing the impact of acquisitions, disposals and currency movements in the year. 

Orders

The period saw contrasting order dynamics across our two divisions, with market turbulence, primarily due to tariffs and resulting global economic uncertainty, having a greater impact on order intake in our Imaging and Analysis division than previously anticipated. In our Advanced Technologies division, market tailwinds in the compound semiconductor market, and our expansion into volume manufacturing customers, have continued to drive very strong order growth.

At Group level, this has resulted in a first half order intake of £205.2m (FY25: £204.9m), up 1.4% OCC versus prior year, with a Q1 decline of 3.0%, followed by growth of 5.7% in Q2. I&A order intake in Q1 was down 11.4%, and Q2 approximately flat on prior year (-0.5%). AT order intake grew 25.5% in Q1 and 25.9% in Q2. Our half-year book-to-bill ratio is 1.1 (1.0 H1 prior year).

Whilst most I&A end markets showed declines in order intake in H1, the largest impacts were in healthcare and life sciences (-7.6%), which continues to show weakness primarily impacting our Belfast imaging business. The academic research sector accounted for most of the I&A decline, also down 7.6%. US academia grew 0.9%, offset by a 11.7% decline in academia outside of the US.

Orders in our AT division grew 25.3% OCC in the period, with strong growth from commercial customers (+34%) for datacomms and augmented reality applications. Commercial customers accounted for 55% of orders in the half. US academia order intake fell 9.7% in the period, but we saw significant growth in academia outside of the US (+24.8%), mainly in Europe for semiconductor applications in quantum computing.

Revenue

Revenue declined 7.9% OCC for the period to £185.5m (FY25: £204.3m). Revenue for our I&A division was down 8.5% OCC for the period (-9.7% statutory), with Q1 down 8.7% OCC following the imposition of tariffs leading to delays in both order receipt and shipping. Revenue in Q2 showed recovery for delayed shipping in the core detector business, but low order intake in Q1 affected Q2 shipments in other areas of the division, leading to a revenue decline of 8.3% OCC in Q2.

Revenue in the AT division declined by 6.2% OCC (-7.5% statutory) in the period, down by 12.7% in Q1 and again by 2.1% in Q2. Revenue for AT in the first half was partially impacted by delays in shipping of finished goods, which are expected to resolve in H2. The shape of the semiconductor orderbook has also been a factor, with the inflection to very strong order growth occurring from Q4 FY25 which, given the longer lead times for this equipment, has yet to fully pull through to revenue.

Broadly speaking, we have seen significant order book growth coming from commercial manufacturers, mainly in the US and Europe for larger, multichambered systems. These systems command a higher average selling price, but also have longer build lead times. This shift in the orderbook delivery profile has also led to lengthening of time to revenue recognition in the first half. However, H2 revenue growth is expected to return to double digit.

£m	Imaging & Analysis	Advanced Technologies	Total
Revenue: half year 2024/25	153.9	50.4	204.3
Constant currency growth	(13.1)	(3.1)	(16.2)
Growth through acquisition	1.4	-	1.4
Currency	(3.3)	(0.7)	(4.0)
Revenue: half year 2025/26	138.9	46.6	185.5
Revenue growth: reported	(9.7%)	(7.5%)	(9.2%)
Revenue growth: organic constant currency	(8.5%)	(6.2%)	(7.9%)

Geographic revenue growth

On a geographical basis, the US continues to be the Group's largest market, accounting for 26% of revenues. Whilst all regions have shown a revenue decline in H1, our US business has proved to be resilient across a number of product lines, with order growth up 12.3% OCC, driven by good growth across both divisions.

China revenue has declined 5.3% OCC in the period, but this has mainly been driven by lower AT revenues due to the shipping delays and generally lower demand for compound semiconductor systems.

Revenue in Europe fell 5.1% OCC in the period, where the decline in shipments of large healthcare and life science-related equipment offset growth in revenues from materials analysis applications. Compound semiconductor system academic revenue growth has lagged order growth as the size of systems and associated lead times have also grown.

Asia revenue declined 14.9% OCC in H1, with I&A revenues staying relatively resilient, and AT revenues declining more significantly as we transition channel partners in Japan. However, pipeline opportunities remain strong across the Asia region.

	Half year 2025/26 £m	Half year 2024/25 £m	Change	Change OCC
United States	47.9	52.4	(8.6%)	(5.2%)
China	43.5	47.0	(7.4%)	(5.3%)
Asia (ex. China)	38.3	45.7	(16.2%)	(14.9%)
Europe	47.6	48.8	(2.5%)	(5.1%)
Rest of World	8.2	10.4	(21.2%)	(16.3%)
	185.5	204.3	(9.2%)	(7.9%)

R&D

Total R&D expenditure charged to the income statement in the period was £17.2m (FY25: £19.1m). In addition, £1.5m of R&D expense was capitalised in the period (FY25: £0.5m), mainly related to four new I&A products launching in FY26 and compound semiconductor process developments to be commercialised.

Adjusted operating profit and margin

Adjusted operating profit of £24.7m (FY25: £35.3m) was 22.9% lower than last year in organic constant currency terms (Statutory: -38.8%). Adjusted operating profit margin was 13.3% (FY25: 17.3%). On an organic constant currency basis adjusted operating margin was down 280 bps versus the prior year.

The I&A division continues to be the more profitable of the Group's two divisions, as a result of high gross margins which have been largely preserved despite the tariff challenges faced and a negative mix effect this year. The adjusted operating profit (AOP) of the division is very sensitive to declines in volume, which have been partially offset by price increases and cost savings, mainly in our Belfast facility. Overall overheads are slightly down versus the prior year, but as a percentage of revenue are higher, accounting for all of the AOP margin erosion in H1.

The AT division has improved profitability slightly despite lower revenues and the increase in depreciation associated with the new Severn Beach facility (£0.4m in H1). Gross margins have improved, in part due to higher average selling prices, but will return to similar levels to the prior year once the full depreciation and maintenance charges for the new facility are incurred in H2. However, we expect to see a strong operational leverage impact on operating margins in H2, leading to a marked improvement in full year divisional margin versus the prior year.

£m	Imaging & Analysis	Advanced Technologies	Total
Adjusted operating profit: half year 2024/25	34.6	0.7	35.3
Constant currency growth	(8.6)	0.5	(8.1)
Growth through acquisition	0.1	-	0.1
Currency	(2.4)	(0.2)	(2.6)
Adjusted operating profit: half year 2025/26	23.7	1.0	24.7
Adjusted operating margin1: half year 2024/25	22.5%	1.4%	17.3%
Adjusted operating margin1: half year 2025/26	17.1%	2.1%	13.3%
Adjusted operating margin1 (OCC): half year 2025/26	18.5%	2.5%	14.5%

1. Adjusted operating margin is calculated as adjusted operating profit divided by revenue. Adjusted operating margin at constant currency is defined as adjusted operating profit at constant currency divided by revenue at constant currency. Stranded costs have been allocated to the divisions in the current and prior year comparator (H1 FY26: £1.6m; H1 FY25: £1.3m)

Adjusting items

The following adjusting items are excluded from statutory profit in order to give a clearer picture of the underlying profitability of the Group:

·      Amortisation of acquired intangibles relates to intangible assets recognised on acquisitions, being the value of technology, customer relationships and brands.  This value was slightly lower than the prior year at £4.2m (FY25: £4.7m) due to acquired intangibles becoming fully amortised.

·      Restructuring costs of £5.4m (FY25: £2.2m), of which £2.8m related to relocation of the compound semiconductor business to Severn Beach, and £2.6m related to one-off restructuring within the Group, mostly connected to our Belfast site. Full year non-recurring expenses are expected to be £7m-£8m.

·      Profit on disposal of £3.7m arising from the sale of premises in Yatton following the move of the compound semiconductor business to Severn Beach.

·      The Group uses derivative products to hedge its short-term exposure to fluctuations in foreign exchange rates. Net movements in the value of unrealised mark-to-market derivatives are disclosed in the Income Statement as foreign exchange and excluded from our calculation of adjusted profit before tax. In the year this amounted to a gain of £1.2m (FY25: £2.7m).

·      The unwind of discount in respect of contingent consideration on the acquisition of FemtoTools of £0.4m (FY25: £0.1m), reported under net finance income.

In the prior year adjusting items also included a release of contingent consideration (£2.1m) following a review of expected performance of First Light Imaging versus the earn out targets agreed at acquisition, and £0.5m of transaction-related costs. Non-recurring costs associated with the disposal of the NanoScience business are reported within Discontinued Operations for the current and prior year.

Net finance income

Adjusted net finance income for the Group was flat at £0.7m (FY25: £0.7m), following an average cash balance consistent with the prior half year period, and following a share buyback of £25.5m.

Taxation

The adjusted tax charge of £6.3m (FY25: £9.0m) represents an effective tax rate of 24.8% and is consistent with the prior year (FY25: 25.0%). Half-year tax rates are calculated based on the expected effective tax rate for the year, based on certain assumptions about where profits will arise.  

The statutory tax charge of £5.2m (FY25: £7.9m) represents an effective tax rate of 25.6% (FY25: 23.7%). The increase has arisen as a result of certain non-deductible accounting costs relating to the FemtoTools acquisition and certain costs related to the move to the new Severn Beach facility. Additionally, the prior year benefitted from non-taxable income arising on the release of the First Light Imaging earn-out consideration.

The half-year tax rate has been calculated based on the expected effective tax rate for the year of 24.8% (having made certain assumptions about where profits will arise).  

Cash tax paid in the period was £3.7m (2025: £11.3m); the decrease was due to the reallocation of prior year UK tax overpayments to the current period meaning that no additional UK tax payments were required to be made in the period.

Earnings per share from continuing operations

Adjusted basic earnings per share decreased by 29.2% to 33.0p (FY25: 46.6p); adjusted diluted earnings per share decreased by 28.9% to 32.7p (FY25: 46.0p). Basic earnings per share decreased by 40.4% to 26.1p (FY25: 43.8p); diluted earnings per share decreased by 40.2% to 25.9p (FY25: 43.3p).

The number of undiluted weighted average shares decreased to 57.9m (FY25: 58.0m). As at 30th September, 56.9m shares were in issue.

Currency

The Group faces transactional and translational currency exposure, most notably against the US dollar, euro and Japanese yen. For the period, approximately 11% of Group revenue was denominated in sterling, 52% in US dollars, 26% in euros, 8% in Japanese yen and 4% in other currencies. Translational exposures arise on the consolidation of overseas subsidiary results into sterling. Transactional exposures arise where the currency of sale or purchase transactions differs from the functional currency in which each subsidiary prepares its local accounts.

The Group's translation and transaction foreign currency exposure for the half year FY26 is summarised below:

£m equivalent	Revenue	Adjusted operating profit
Sterling	19.6	(62.0)
US Dollar	96.5	63.0
Euro	47.7	15.0
Japanese Yen	14.9	8.9
Chinese Renminbi	3.2	(0.5)
Other	3.6	0.3
	185.5	24.7

Our guidance for the FY26 full-year currency impact has been updated to reflect hedging currently in place and forecast currency rates. Our guidance for the full year is a headwind of £8.8m to revenue and £5.6m to operating profit versus FY25 (based on a GBP: USD rate of 1.34). Previous guidance was £9.0m and £4.5m respectively, based on an GBP:USD rate of 1.33. A one cent movement in the GBP to USD exchange rate is expected to have an approximately £0.2m impact on adjusted operating profit.

£m equivalent	Half year 2025/26 blended rate	Half year 2024/25 blended rate	% change
US Dollar	1.32	1.27	(3.9%)
Euro	1.14	1.19	+4.2%
Japanese Yen	195	196	(0.5%)

 

Balance sheet

Intangible assets

Intangible assets net book value decreased by £7.5m versus the prior year end. The decrease was largely due to classifying the NanoScience business as held-for-sale which held £7.7m of intangibles, as well as £4.4m of amortisation during the period.  This was offset by £1.5m of R&D capitalised as intangible assets during the period and movements in FX (£3.1m).

Property, plant and equipment

Additions to property, plant and equipment were £3.9m in the period. The semiconductor facility in Yatton was sold for £4.8m and generated a profit on disposal of £3.7m. The depreciation charge for the half year was £3.0m, of which £0.4m relates to Severn Beach. Depreciation in respect of Severn Beach is expected to be £1.5m for the full year, and approximately £2.1m per annum for FY27 onwards.

Working capital

Working capital has increased by £16.2m from the year end, to £61.0m. Inventories increased mainly due to reduced or delayed shipments at period end, as well as building inventory in line with the increased order book in Advanced Technologies. Payables increased by £9.9m reflecting a typical H1 pattern for the Group. Working capital was down 11% versus H1 of the prior year, and remains a key area of focus for the remainder of the year.

Pensions

The Group provides a defined benefit pension scheme in the UK. This has been closed to new entrants since 2001 and closed to future accrual from 2010.

Scheme liabilities decreased slightly to £194.5m (31 March 2025: £194.8m). Company contributions of £4.5m in the period were offset by market conditions that reduced the scheme's assets during the period to £217.2m (31 March 2025: £218.2m). On an IAS 19 basis, the surplus arising from our UK defined benefit pension scheme obligations on 30 September 2025 decreased slightly to £22.7m (31 March 2025: £24.4m). Contributions to date in FY26 have been £5.25m.

Following a review in the period of future funding requirements for the scheme, the company has ceased further contributions in FY26. The probability that the company will need to resume contributions to the scheme is now considered very low.

Cash and liquidity

The Group ended the half year with £45.8m in cash or cash equivalents (£45.1m net cash). Adjusted cash from operations, including capital expenditure, was £12.9m (FY25: £10.4m) and represents a cash conversion of 52% (FY25: 29%). Cash conversion is calculated as adjusted cash from operations divided by adjusted operating profit. Excluding capital expenditure relating to our new semiconductor systems facility, the sale of the previous facility, and the purchase of land and buildings adjacent to our facility in High Wycombe, cash conversion on a normalised basis was 41%, similar to the prior year (FY25: 44%).

Free cash flow (FCF) was +£0.2m in the period (FY25: -£7.1m). As a result of reduced adjusted operating profit, operating cash flows were lower in the period by £8.6m. The change in FCF versus the prior year is mainly due to the reduction in capital expenditure associated with the new Severn Beach compound semiconductor facility, the receipt of proceeds from the sale of the Yatton site in H1, and a reduction in cash tax following overpayments in the prior year.

Capital expenditure net of the Yatton proceeds is expected to be around £5m-£7m, and from FY27 is expected to be around £8m-10m per annum.

During the period the Group made purchases of its own shares amounting to £25.5m, and paid dividends of £9.9m, ending the period with a net cash balance of £45.1m. Proceeds from the sale of NanoScience are expected to be £57m. The transaction is expected to close before the end of the calendar year. A tax charge on the proceeds of £4m is expected to be paid in FY26 (~£3m) and FY27 (~£1m).

The Group Consolidated Statement of Cash Flows is summarised below:

		Half year 2025/26	Half year 2024/25
		£m	£m
	Adjusted operating profit	24.7	35.3
	Depreciation and amortisation	5.8	5.3
	Adjusted EBITDA1	30.5	40.6
	Working capital movement	(16.2)	(20.3)
	Non-recurring cash items	(5.4)	(2.7)
Equity settled share schemes		1.5	1.5
	Pension scheme payment above charge to operating profit	(4.0)	(4.1)
	Cash generated by operations	6.4	15.0
	Add /(deduct):
	Net interest income	0.4	0.6
	Tax paid	(3.7)	(11.3)
	Capitalised development expenditure	(1.5)	(0.5)
	Expenditure on tangible and intangible assets	0.9	(8.4)
	Payments made in respect of finance leases	(2.3)	(2.5)
	Free Cash Flow (FCF)2	0.2	(7.1)
	Acquisition of subsidiaries, net of cash acquired	-	(15.4)
	Share buyback	(25.5)	-
	Dividends paid	(9.9)	(9.2)
	Proceeds from issue of share capital	0.1	-
	Decrease in borrowings	(0.2)	(0.6)
	Net decrease in cash and cash equivalents from continuing operations	(35.3)	(32.3)
	Net decrease in cash and cash equivalents from discontinued operations	(2.4)	(10.3)
	Net decrease in cash and cash equivalents	(37.7)	(42.6)
	Effect of exchange rate fluctuations on cash held	(1.8)	(2.5)
	Closing cash and cash equivalents	45.8	40.4
	Borrowings	(0.7)	(1.1)
	Net cash	45.1	39.3

¹Adjusted EBITDA is defined as Adjusted operating profit before depreciation and amortisation of capitalised development costs.

² Free cash flow is reported before acquisitions or similar corporate development activity

Reconciliation of cash generated from operations to adjusted operating cash flow:

	Half year 2025/26	Half year 2024/25
	£m	£m
Cash generated by operations	6.4	15.0
Add back /(deduct):
Pension scheme payment above charge to operating profit	4.0	4.1
Non-recurring items	5.4	2.7
Capitalised development expenditure	(1.5)	(0.5)
Net proceeds/(expenditure) on tangible and intangible assets	0.9	(8.4)
Payments made in respect of finance leases	(2.3)	(2.5)
Adjusted cash generated by operations	12.9	10.4
Cash conversion1	52%	29%
Normalised cash conversion2	41%	44%

¹Cash conversion = adjusted cash generated by operations divided by adjusted operating profit.

²Cash conversion calculated on a normalised basis excludes expenditure in the period of £0.7m (FY25: £5.3m) relating to the new semiconductor systems facility in Severn Beach, £1.3m purchase of land and buildings adjacent to our facility in High Wycombe, and proceeds from the sale of the previous semiconductor systems facility in Yatton of £4.8m.

The Group maintains an unsecured multi-currency revolving facility agreement which expires in June 2029. An option to extend the facility from March 2028 to June 2029 was exercised during the period. A further 12-month extension option at the end of the second year remains available. The facility is supported by four banks and comprises a euro-denominated multi-currency facility of €95.0m (£83m) and a US dollar-denominated multi-currency facility of $150.0m (£111m).

Debt covenants are net debt to EBITDA less than 3.0 times and EBITDA to interest greater than 4.0 times.

Dividend

The Group's dividend policy takes into account changes to underlying earnings, dividend cover, movements in currency and demands on our cash. The Board remains confident in the long-term performance of the business and has proposed an interim dividend of 5.4p (half year FY25: 5.1p) per share, a growth of 5.9%.

The interim dividend will be paid, subject to shareholder approval, on 9 January 2026 to shareholders on the register as at 28 November 2025.

Outlook

Full-year expectations have not changed since the recent Trading Update. Full-year adjusted operating profit (AOP) is expected to be broadly in line with the prior year on an organic constant currency basis, and including an expected FX headwind of £5.6m, reported AOP is expected to decline by 6%-9% on the prior year.

Following challenging conditions in the first half, H2 reported revenue is expected to be in line with the H2 of the prior year. Constant currency revenue for the I&A division is expected to be in line with H2 of the prior year, with margin benefiting from around £4m of cost reductions arising from restructuring at our Belfast site.  We expect the AT division to grow revenue by double digits in H2 versus the prior year, with a high drop through to adjusted operating profit.

Forward-looking statements

This document contains certain forward-looking statements. The forward-looking statements reflect the knowledge and information available to the company during the preparation and up to the publication of this document. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future, thereby involving a degree of uncertainty. Therefore, nothing in this document should be construed as a profit forecast by the company.

PAUL FRY

Chief Financial Officer

10 November 2025

Addendum - Continuing operations full-year comparator

Following the classification of NanoScience as held for sale, all revenues and costs directly related to the NanoScience business will be reported within Discontinued Operations both for the current year and prior year. Full audited financial statements for FY25 and FY26, including these adjustments, will be published at the time of the Group's annual results next year. However, to support users of our financial statements we have provided below a full-year pro-forma consolidated statement of income for the prior year, as well additional divisional analysis. This statement and divisional analysis are unaudited and may be subject to change.

	Full year to 31 March 2025
Pro-Forma (unaudited)	Adjusted	Adjusting items	Total
	£m	£m	£m
Revenue	443.4	-	443.4
Cost of sales	(199.1)	-	(199.1)
Gross profit	244.3	-	244.3
Research and development	(38.7)	-	(38.7)
Selling and marketing	(73.3)	-	(73.3)
Administration and shared services	(53.7)	(41.6)	(95.3)
Foreign exchange gain/(loss)	0.9	(0.3)	0.6
Operating profit	79.5	(41.9)	37.6
Financial Income	2.6	-	2.6
Financial expenditure	(1.4)	(0.6)	(2.0)
Profit/(loss) before income tax	80.7	(42.5)	38.2
Income tax (expense)/credit	(17.4)	4.2	(13.2)
Profit/(loss) for the period from continuing operations	63.3	(38.3)	25.0
Profit/(loss) from discontinued operations after tax	1.9	(0.9)	1.0
Profit/(loss) for the year attributable to shareholders	65.2	(39.2)	26.0
Basic earnings per share (in pence)
Continuing operations	109.1		43.1
From profit for the year (incl. discontinued operations)	112.4		44.8
Diluted earnings per share (in pence)
Continuing operations	107.8		42.6
From profit for the year (incl. discontinued operations)	111.1		44.3

Full prior year results for continuing operations by division:

£m	Imaging & Analysis	Advanced Technologies	Total
Revenue	330.5	112.9	443.4
Adjusted operating profit	73.9	5.6	79.5
Adjusted operating margin	22.4%	5.0%	17.9%

Condensed consolidated statement of income

Half year to 30 September 2025

		Half year to 30 September 2025 (Unaudited)					Half year to 30 September 2024 (Unaudited)
		Adjusted	Adjusting items (Note 3)		Total		Adjusted		Adjusting items (Note 3)			Total
	Note	£m	£m		£m		£m		£m			£m
Revenue	2	185.5	-		185.5		204.3		-			204.3
Cost of sales		(83.4)	-		(83.4)		(91.2)		-			(91.2)
Gross profit		102.1	-		102.1		113.1		-			113.1
Research and development	4	(17.2)	-		(17.2)		(19.1)		-			(19.1)
Selling and marketing		(37.5)	-		(37.5)		(35.3)		-			(35.3)
Administration and shared services		(23.0)	(5.9)		(28.9)		(24.3)		(5.3)			(29.6)
Foreign exchange gain		0.3	1.2		1.5		0.9		2.7			3.6
Operating profit		24.7	(4.7)		20.0		35.3		(2.6)			32.7
Financial income		1.6	-		1.6		1.6		-			1.6
Financial expenditure		(0.9)	(0.4)		(1.3)		(0.9)		(0.1)			(1.0)
Profit/(loss) before income tax	2/3	25.4	(5.1)		20.3		36.0		(2.7)			33.3
Income tax (expense)/credit		(6.3)	1.1		(5.2)		(9.0)		1.1			(7.9)
Profit/(loss) for the period from continuing operations		19.1	(4.0)		15.1		27.0		(1.6)			25.4
Loss from discontinued operations after tax		(2.2)	(0.9)		(3.1)		(1.1)		(0.2)			(1.3)
Profit/(loss) for the period attributable to equity shareholders of the parent		16.9	(4.9)		12.0		25.9		(1.8)			24.1
Earnings per share (in pence)	7
Basic earnings per share
From continuing operations		33.0p		26.1p				46.6p			43.8p
From discontinued operations		(3.8)p		(5.4)p				(1.9)p			(2.2)p
From profit for the period		29.2p		20.7p				44.7p			41.6p
Diluted earnings per share	7
From continuing operations		32.7p		25.9p				46.0p			43.3p
From discontinued operations		(3.8)p		(5.3)p				(1.9)p			(2.2)p
From profit for the period		28.9p		20.5p				44.1p			41.1p

The attached notes form part of these Financial Statements.

Condensed consolidated statement of comprehensive income

Half year to 30 September 2025

	Half year to 30 September 2025 (Unaudited)	Half year to 30 September 2024 (Unaudited)
	£m	£m
Profit for the period	12.0	24.1
Other comprehensive income/(expense):
Items that may be reclassified subsequently to Consolidated Statement of Income
Foreign exchange translation differences	1.6	(4.4)
Items that will not be reclassified to Consolidated Statement of Income
Remeasurement loss in respect of post-retirement benefits	(6.2)	(1.4)
Tax credit on items that will not be reclassified to Consolidated Statement of Income	1.6	0.4
Total other comprehensive expense	(3.0)	(5.4)
Total comprehensive income for the period attributable to equity shareholders of the parent	9.0	18.7

Condensed consolidated statement of financial position

As at 30 September 2025

		As at 30 September 2025 (Unaudited)	As at 31 March 2025
	Note	£m	£m
Assets
Non-current assets
Property, plant and equipment		77.0	85.6
Intangible assets		114.3	121.8
Right-of-use assets		27.7	29.9
Long-term receivables		0.9	1.0
Derivative financial instruments	10	1.5	0.3
Retirement benefit asset	11	22.7	24.4
Deferred tax assets		9.9	11.1
		254.0	274.1
Current assets
Inventories		78.6	99.1
Trade and other receivables		101.0	126.2
Tax receivable		7.2	9.4
Derivative financial instruments	10	2.3	1.9
Cash and cash equivalents		72.3	94.1
Current assets excluding assets classified as held for sale		261.4	330.7
Assets of discontinued operations held for sale		61.8	-
Total current assets		323.2	330.7
Total assets		577.2	604.8
Equity
Capital and reserves attributable to the company's equity shareholders
Share capital		2.8	2.9
Share premium		62.7	62.6
Other reserves		0.3	0.2
Translation reserve		7.0	5.4
Retained earnings		278.5	305.0
		351.3	376.1
Liabilities
Non-current liabilities
Bank loans		0.4	0.5
Lease liabilities		25.9	26.7
Retirement benefit obligations	11	0.9	0.9
Derivative financial instruments	10	0.2	-
Provisions		1.2	1.3
Deferred tax liabilities		14.7	16.7
		43.3	46.1
Current liabilities
Bank loans and overdrafts		26.8	9.2
Trade and other payables		117.7	157.7
Lease liabilities		3.4	4.5
Tax payable		4.5	6.0
Derivative financial instruments	10	0.9	0.6
Provisions		3.3	4.6
Current liabilities excluding liabilities classified as held for sale		156.6	182.6
Liabilities of discontinued operations held for sale		26.0	-
Total current liabilities		182.6	182.6
Total liabilities		225.9	228.7
Total liabilities and equity		577.2	604.8

Condensed consolidated statement of changes in equity

Half year to 30 September 2025

	Share capital		Share premium		Other reserves		Translation reserve		Retained earnings		Total
	£m		£m		£m		£m		£m		£m
As at 1 April 2025	2.9		62.6		0.2		5.4		305.0		376.1
Profit for the period	-		-		-		-		12.0		12.0
Foreign exchange translation differences	-		-		-		1.6		-		1.6
Remeasurement loss in respect of post-retirement benefits	-		-		-		-		(6.2)		(6.2)
Tax credit on items that will not be reclassified to Consolidated Statement of Income	-		-		-		-		1.6		1.6
Total comprehensive income	-		-		-		1.6		7.4		9.0
Share-based payment transactions	-		-		-		-		1.5		1.5
Income tax on share-based payment transactions	-		-		-		-		-		-
Proceeds from shares issued	-		0.1		-		-		-		0.1
Share buyback (1)	(0.1)		-		0.1		-		(25.5)		(25.5)
Dividends	-		-		-		-		(9.9)		(9.9)
Total transactions with owners:	(0.1)		0.1		0.1		-		(33.9)		(33.8)
As at 30 September 2025 (Unaudited)	2.8		62.7		0.3		7.0		278.5		351.3
As at 1 April 2024	2.9		62.6		0.2		7.4		292.6		365.7
Profit for the period	-		-		-		-		24.1		24.1
Foreign exchange translation differences	-		-		-		(4.4)		-		(4.4)
Remeasurement loss in respect of post-retirement benefits	-		-		-		-		(1.4)		(1.4)
Tax credit on items that will not be reclassified to Consolidated Statement of Income	-		-		-		-		0.4		0.4
Total comprehensive (expense)/income	-		-		-		(4.4)		23.1		18.7
Share-based payment transactions	-		-		-		-		1.5		1.5
Income tax on share-based payment transactions	-		-		-		-		-		-
Proceeds from shares issued	-		-		-		-		-		-
Proceeds from shares issued	-		-		-		-		-		-
Dividends	-		-		-		-		(9.2)		(9.2)
Total transactions with owners:	-		-		-		-		(7.7)		(7.7)
As at 30 September 2024 (Unaudited)	2.9		62.6		0.2		3.0		308.0		376.7

(1) During the period ended 30 September 2025, 1,382,978 ordinary shares were repurchased and cancelled by the Group as part of the £50 million share buyback programme announced on 10 June 2025, resulting in a cash outflow of £25.5 million. The remaining amount of share buyback is expected to complete in the second half of the year ended 31 March 2026.

Condensed consolidated statement of cash flows

Half year to 30 September 2025

		Half year to 30 September 2025 (Unaudited)	Half year to 30 September 2024 (Unaudited)
	£m		£m
Cash flows from operating activities
Profit for the period		12.0	24.1
Loss for the period from discontinued operations		3.1	1.3
Profit for the period from continuing operations		15.1	25.4
Adjustments for:
Income tax expense		5.2	7.9
Net financial income		(0.3)	(0.6)
Fair value movement on financial derivatives		(1.2)	(2.7)
Release of contingent consideration		-	(2.1)
Amortisation of right-of-use assets		2.6	2.4
Depreciation of property, plant and equipment		3.0	2.6
Amortisation and impairment of intangible assets		4.4	5.0
Profit on disposal of plant, property and equipment		(3.7)	-
Charge in respect of equity-settled employee share schemes		1.5	1.5
Contributions paid to the pension scheme more than the charge to operating profit		(4.0)	(4.1)
Increase in inventories		(7.8)	(6.2)
Decrease/(increase) in receivables		1.5	(6.0)
Decrease in payables and provisions		(15.5)	(10.3)
Increase in customer deposits		5.6	2.2
Cash generated from operations		6.4	15.0
Interest paid		(0.6)	(0.6)
Income taxes paid		(3.7)	(11.3)
Net cash from operating activities - continuing operations		2.1	3.1
Net cash from operating activities - discontinued operations		(1.0)	(9.6)
Net cash from/(used in) operating activities		1.1	(6.5)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		4.8	0.1
Purchase of property, plant and equipment		(3.9)	(8.5)
Acquisition of subsidiaries, net of cash acquired		-	(15.4)
Capitalised development expenditure		(1.5)	(0.5)
Interest received		1.0	1.2
Net cash generated from/(used in) investing activities - continuing operations		0.4	(23.1)
Net cash generated used in investing activities - discontinued operations		(1.4)	(0.6)
Net cash used in investing activities		(1.0)	(23.7)
Cash flows from financing activities
Proceeds from issue of share capital		0.1	-
Interest paid on lease liabilities		(0.3)	(0.3)
Payment of lease liabilities		(2.0)	(2.2)
Repayment of borrowings		(0.2)	(0.6)
Share buyback		(25.5)	-
Dividends paid		(9.9)	(9.2)
Net cash used in financing activities - continuing operations		(37.8)	(12.3)
Net cash used in financing activities - discontinued operations		-	(0.1)
Net cash used in financing activities		(37.8)	(12.4)
Change in cash and cash equivalents		(37.7)	(42.6)
Cash and cash equivalents at beginning of the year		85.3	85.5
Effect of exchange rate fluctuations on cash held		(1.8)	(2.5)
Cash and cash equivalents at end of the period		45.8	40.4

Comprised of:
Cash and cash equivalents as per the Consolidated Statement of Financial Position	72.3	53.0
Bank overdrafts	(26.5)	(12.6)
	45.8	40.4

Notes to the half-year financial statements

Half year to 30 September 2025

1 Basis of preparation

Reporting entity

Oxford Instruments plc is a company incorporated in England and Wales. The condensed consolidated half-year set of Financial Statements consolidate the results of the Company and its subsidiaries (together referred to as the "Group".) They have been prepared and approved by the Directors in accordance with UK adopted IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual Financial Statements, and should be read in conjunction with the consolidated Financial Statements of the Group for the year ended 31 March 2024. The Group Financial Statements were prepared in accordance with UK adopted International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006 and interpretations issued by the IFRS Interpretations Committee (IFRIC) applicable to companies reporting under UK adopted IFRS.

The financial information contained herein is unaudited and does not constitute statutory accounts as defined by Section 435 of the Companies Act 2006. The comparative figures for the financial year ended 31 March 2024 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

The Board of Directors approved the Condensed Consolidated Interim Financial Statements on 11 November 2025.

Significant accounting policies

As required by the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the condensed set of Financial Statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated Financial Statements for the year ended 31 March 2025.

Changes in accounting standards

The IASB (International Accounting Standards Board) issued a new Standard, IFRS 18 Presentation and Disclosure in Financial Statements, on 9 April 2024 that will replace IAS 1 Presentation of Financial Statements. The purpose of the new standard is to provide more consistent presentation of financial information across preparers as it is acknowledged that existing standards have given flexibility to present information in different ways. IFRS 18 will not impact the recognition or measurement of items in the financial statements. Many of the existing presentation principles in IAS 1 are retained, but there are some more specific requirements that will require the Group to make some changes in its future Annual Report and Interim Financial Statements.

The new Standard is not yet endorsed by the UK Endorsement Board 'UKEB' but is expected to be applicable for reporting periods beginning on or after 1 January 2027. Comparative information for 2026 will need to be restated when the 2027 Interim Financial Statements and Annual Report and Accounts are published and early adoption is expected to be permitted.

The Group has started an initial review of the Standard and expects changes to the presentation of the income statement. The process of assessing the financial impact on the Consolidated Financial Statements will continue during 2025 and 2026.

There are no other new standards or interpretations issued by the IASB that had a significant impact on the Consolidated Financial Statements.

There are no standards or amendments that are not yet effective and that would be expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

Estimates

The preparation of half-year Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these half-year Financial Statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the Consolidated Financial Statements as at and for the year ended 31 March 2025, with one exception. On 10 June 2025, the Group entered into a binding agreement to sell the trade and assets of Oxford Instruments NanoScience. In accordance with IFRS 5 Non-current Assets Held-for-Sale and discontinued Operations, the conditions for an asset to be classified as held-for-sale were met, and the assets were classified as held-for-sale on that date. For further information, refer to accounting policies (b) for details of all other significant estimates and judgements, and Note 13 for the sensitivity analysis on the Andor CGU in the 2025 Report and Financial Statements.

Going concern

The Financial Statements have been prepared on a going concern basis based on the Directors' opinion, after making reasonable enquiries, that the Group has adequate resources to continue in operational existence for the foreseeable future.

The Finance Review discloses information relevant to the Group's financial position, its cash flows, borrowing facilities and liquidity.

The directors have considered the appropriateness of the going concern basis of preparation following a detailed assessment of the risks to the Group as outlined above, and have a reasonable expectation that the Group will be able to continue operating and meet its liabilities as they fall due over a period of 12 months from approval of these half year financial statements.

On 19 March 2024 the Group entered into a new multi-currency revolving facility agreement, which is committed until June 2029. An option to extend the facility from March 2028 to June 2029 was exercised during the period. A further 12-month extension option at the end of the second year remains available. The facility has been entered into with four banks and comprises a Euro-denominated multi-currency facility of €95m and a US Dollar denominated multi-currency facility of $150m. Debt covenants are net debt to EBITDA less than 3.0 times and EBITDA to interest greater than 4.0 times. At the date of approving these financial statements, the facility remains undrawn.

The relatively diverse nature of the Group together with its current financial strength provides a solid foundation. In its going concern assessment, the directors considered several scenarios, including base case and downside scenarios. The assessment is based on board approved budget, incorporating severe but plausible scenarios in the forecast. These scenarios reflected a 25% reduction in group's performance, a 25% increase in working capital and a third scenario of incorporating both. In each scenario the Group's cash balances remained positive and the facility remains undrawn throughout the going concern period to 11 November 2026.

Based on this assessment, incorporating a review of current position, the scenarios, the principal risks and mitigation, the Directors have a reasonable expectation that the group will be able to continue operating and meet its liabilities as they fall due over a period of 12 months from approval of these half year financial statements and there are no material uncertainties which may cast significant doubt over its ability to continue as a going concern.

2 Segment information

The Group has nine operating segments. These operating segments have been combined into two aggregated operating segments to the extent that they have similar economic characteristics, with relevance to products and services, type and class of customer, methods of sale and distribution, and the regulatory environment in which they operate. Each of these two aggregated operating segments is a reportable segment. The aggregated operating segments are as follows:

 - The Imaging & Analysis segment comprises a group of businesses focusing on microscopy, cameras, analytical instruments and software.

 - The Advanced Technologies segment comprises a group of businesses focusing on compound semiconductor fabrication equipment and X-ray tubes.

The Group's internal management structure and financial reporting systems differentiate the two aggregated operating segments based on the economic characteristics discussed above.

Reportable segment results include items directly attributable to a segment as well as those which can be allocated on a reasonable basis. The operating results of each are regularly reviewed by the Chief Operating Decision Maker, which is deemed to be the Executive Directors. Discrete financial information is available for each segment and used by the Executive Directors for decisions on resource allocation and to assess performance. No asset information is presented below as this information is not presented in reporting to the Group's Executive Directors.

On 28 June 2024, the Group acquired 100% of the issued share capital of FemtoTools which has been integrated into the Imaging & Analysis segment. Further information can be found in Note 8.

The NanoScience business is classified as a discontinued operation and is not included in the segment results, further information can be found in Note 9. It was previously reported within the Advanced Technologies segment. The reported segment results are from continuing operations.

Results

Half year to 30 September 2025	Imaging & Analysis	Advanced Technologies	Total
	£m	£m	£m
External product revenue	109.9	38.4	148.3
External service revenue	29.0	8.2	37.2
Total external revenue	138.9	46.6	185.5
Inter-segment product revenue	-	-
Total segment revenue	138.9	46.6
Segment adjusted operating profit	23.7	1.0	24.7

Half year to 30 September 2024	Imaging & Analysis	Advanced Technologies	Total
	£m	£m	£m
External product revenue	126.0	41.5	167.5
External service revenue	27.9	8.9	36.8
Total external revenue	153.9	50.4	204.3
Inter-segment product revenue	-	-
Total segment revenue	153.9	50.4
Segment adjusted operating profit	34.6	0.7	35.3

No individual customer accounts for more than 10% of revenue.

Reconciliation of reportable segment profit

Half year to 30 September 2025	Imaging & Analysis	Advanced Technologies	Unallocated Group items	Total
	£m	£m	£m	£m
Segment adjusted operating profit	23.7	1.0	-	24.7
Restructuring costs and charges associated with management changes	(2.0)	(3.0)	(0.4)	(5.4)
Profit on disposal of assets	-	3.7	-	3.7
Amortisation of acquired intangibles	(4.2)	-	-	(4.2)
Fair value movement on financial derivatives	-	-	1.2	1.2
Financial income	-	-	1.6	1.6
Financial expenditure	-	-	(1.3)	(1.3)
Profit before income tax	17.5	1.7	1.1	20.3

Half year to 30 September 2024	Imaging & Analysis	Advanced Technologies	Unallocated Group items	Total
	£m	£m	£m	£m
Segment adjusted operating profit	34.6	0.7	-	35.3
Transaction-related costs	(0.5)	-	-	(0.5)
Restructuring costs and charges associated with management changes	(1.6)	(0.4)	(0.2)	(2.2)
Amortisation of acquired intangibles	(4.7)	-	-	(4.7)
Fair value movement on financial derivatives	-	-	2.7	2.7
Financial income	-	-	1.6	1.6
Financial expenditure	-	-	(1.0)	(1.0)
Release of contingent consideration	2.1	-	-	2.1
Profit before income tax	29.9	0.3	3.1	33.3

The Group's revenue by destination of the end user is as follows:

Revenue	Half year to 30 September 2025 (Unaudited)	Half year to 30 September 2024 (Unaudited)
	£m	£m
UK	6.1	6.4
China	43.5	47.0
Japan	16.3	14.9
USA	47.9	52.4
Germany	17.0	20.4
Rest of Europe	24.5	22.0
Rest of Asia	22.0	30.8
Rest of World	8.2	10.4
	185.5	204.3

3 Adjusting items

In the preparation of adjusted numbers, the Directors exclude certain items in order to assist with comparability between peers and to give what they consider to be a better indication of the underlying performance of the business. In determining whether an event or transaction is an adjusting item, the Directors consider quantitative as well as qualitative factors such as the frequency or predictability of occurrence.

These adjusting items are excluded in the calculation of adjusted operating profit, adjusted profit before tax, adjusted profit for the period, adjusted EPS, adjusted cash conversion and adjusted effective tax rate. Details of adjusting items are given below.

The calculation of adjusted EPS can be found in Note 7. Adjusted effective tax rate is calculated by dividing the share of tax attributable to adjusted profit before tax by adjusted profit before tax. The definition of cash conversion is set out in the Finance Review.

Information about adjusting items included in discontinued operations can be found in Note 9.

Reconciliation between operating profit and profit before income tax and adjusted profit

	Half year to 30 September 2025		Half year to 30 September 2024
	Operating profit	Profit before income tax	Operating profit	Profit before income tax
	£m	£m	£m	£m
Statutory measure	20.0	20.3	32.7	33.3
Transaction-related costs	-	-	0.5	0.5
Impairment of goodwill	-	-	-	-
Restructuring costs and charges associated with management changes	5.4	5.4	2.2	2.2
Profit on disposal of assets	(3.7)	(3.7)	-	-
Amortisation of acquired intangibles	4.2	4.2	4.7	4.7
Fair value movement on financial derivatives	(1.2)	(1.2)	(2.7)	(2.7)
Unwind of discount in respect of contingent consideration	-	0.4	-	0.1
Release of contingent consideration	-	-	-	(2.1)
Total adjusting items	4.7	5.1	4.7	2.7
Adjusted measure	24.7	25.4	37.4	36.0
Adjusted income tax expense		(6.3)		(9.0)
Adjusted profit	24.7	19.1	37.4	27.0
Adjusted effective tax rates		24.8%		25.0%

Transaction-related costs

In the prior year, these represent the costs of one-off charges incurred at the Statement of Financial Position date relating to the acquisitions of First Light Imaging and FemtoTools.

Restructuring costs and charges associated with management changes

In the current year, these represent £2.8m of costs associated with the relocation of production facilities within the Plasma Technology business, £2.0m of one-off restructuring within the Andor Technology business and other restructuring costs of £0.6m in Head Office as a result of relocating the office from the NanoScience business as it is expected to be sold. In the prior year, these represent the costs of one-off restructuring within the group.

Profit on disposal of assets

In the current year, this represents the profit on disposal of the Yatton site by the Plasma Technology business following their move to Severn Beach.

Amortisation and impairment of acquired intangibles

Adjusted profit excludes the non-cash amortisation and impairment of acquired intangible assets.

Fair value movement on financial derivatives

Under IFRS 9, all derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition, they are also measured at fair value. In respect of instruments used to hedge foreign exchange risk and interest rate risk, the Group does not take advantage of the hedge accounting rules provided for in IFRS 9 since that standard requires certain stringent criteria to be met in order to hedge account, which, in the particular circumstances of the Group, are considered by the Board not to bring any significant economic benefit. Accordingly, the Group accounts for these derivative financial instruments at fair value through profit or loss. To the extent that instruments are hedges of future transactions, adjusted profit for the period is stated before changes in the valuation of these instruments so that the underlying performance of the Group can be more clearly seen.

Unwind of discount in respect of contingent consideration

This represents the unwind of the discount in respect of the contingent consideration on the acquisition of FemtoTools (Note 8).

Release of contingent consideration

In the prior year, this represents the release of the earn-out provision in respect of the acquisition of First Light Imaging.

Adjusted income tax expense

Statutory income tax is adjusted for the income tax impact on the adjusting items described above.

4 Research and development (R&D)

The total research and development spend by the Group is as follows:

	Half year to 30 September 2025	Half year to 30 September 2024
	£m	£m
R&D expense charged to the condensed consolidated statement of income	17.2	19.1
Less: amortisation of R&D costs previously capitalised as intangibles	(0.1)	(0.3)
Add: amounts capitalised as intangible assets	1.5	0.5
Total cash spent on R&D during the period	18.6	19.3

5 Taxation

The total effective tax rate on profits for the half year is 25.6% (prior half year: 23.7%). The weighted average tax rate in respect of adjusted profit before tax (see Note 3) for the half year is 24.8% (prior half year: 25.0%).

For the full year the Group expects the tax rate in respect of adjusted profit before tax to be 24.8%.

6 Dividends

The following dividends per share were paid by the Group:

	Half year to 30 September 2025	Half year to 30 September 2024
	pence	pence
Previous period final dividend	17.1	15.9
Current period interim dividend	-	-
	17.1	15.9

The following dividends per share were proposed by the Group in respect of each accounting period presented:

	Half year to 30 September 2025	Half year to 30 September 2024
	pence	pence
Interim dividend	5.4	5.1
Final dividend	-	-
	5.4	5.1

The interim dividend for the year to 31 March 2025 of 5.1 pence per share was approved by a sub-committee of the Board on 11 November 2024 and was paid on 10 January 2025. The final dividend for the year to 31 March 2025 of 17.1 pence per share was approved by Shareholders at the Annual General Meeting on 28 July 2025 and paid on 19 August 2025.

The interim dividend for the year to 31 March 2026 of 5.4 pence per share was approved by a sub-committee of the Board on 10 November 2025 and has not been included as a liability as at 30 September 2025. The interim dividend is expected to be paid on 9 January 2026 to Shareholders on the register on the record date of 28 November 2025, with an ex-dividend date of 27 November 2025 and with the last date of election for the Dividend Reinvestment Plan (DRIP) being 16 December 2025.

7 Earnings per share

Basic earnings per ordinary share (EPS) is calculated by dividing the profit attributable to equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares held by the Employee Benefit Trust, which have been treated as if they had been cancelled.

For the purposes of calculating diluted and diluted adjusted EPS, the weighted average number of ordinary shares is adjusted to include the weighted average number of ordinary shares that would be issued on the conversion of all potentially dilutive ordinary shares expected to vest, relating to the company's share-based payment plans. Potential ordinary shares are only treated as dilutive when their conversion to ordinary shares would decrease EPS.

The following table shows the weighted average number of shares used in the calculation and the effect of share options on the calculation of diluted earnings per share:

	Half year to 30 September 2025	Half year to 30 September 2024
	shares	shares
	million	million
Weighted average number of shares outstanding	57.9	58.0
Less: weighted average number of shares held by Employee Benefit Trust	-	-
Weighted average number of shares used in calculation of basic earnings per share	57.9	58.0
Effect of shares under option	0.5	0.7
Number of ordinary shares per diluted earnings per share calculations	58.4	58.7

Basic and diluted EPS are based on the profit for the period attributable to equity shareholders of the parent, as reported in the Consolidated Statement of Income. Adjusted and diluted adjusted EPS are based on adjusted profit for the period, as reported in Note 3:

	Half year to 30 September 2025		Half year to 30 September 2024
	£m	Pence	£m	Pence
Profit for the period from continuing operations	15.1	26.1	25.4	43.8
Loss from discontinued operations after tax	(3.1)	(5.4)	(1.3)	(2.2)
Profit attributable to equity shareholders of the parent/Basic EPS	12.0	20.7	24.1	41.6
Total underlying adjustments to profit before tax (Note 3)	5.1	8.8	2.7	4.7
Related tax effects	2.0	3.5	0.2	0.3
Adjusted profit attributable to equity shareholders of the parent/adjusted EPS	19.1	33.0	27.0	46.6
Diluted basic EPS		20.5		41.1
Diluted adjusted EPS		32.7		46.0

8 Acquisitions

Acquisition of FemtoTools

On 28 June 2024, the Group acquired 100% of the issued share capital of FemtoTools AG ('FemtoTools') on a cash-free, debt-free basis for consideration of CHF 17.9m (£15.8m), with a further CHF 5.5m (£4.8m) which was conditional on trading performance over a period of 33 months from the acquisition. The conditions for the contingent consideration were meeting certain revenue, order and margin thresholds. In the calculations below, it has been assumed that these thresholds will be met.

The book and fair value of the assets and liabilities acquired is given in the table below. Fair value adjustments have been made to better align the accounting policies of the acquired business with the Group accounting policies and to reflect the fair value of assets and liabilities acquired.

	Book value	Adjustments	Fair value
	£m	£m	£m
Intangible assets	-	10.5	10.5
Property, plant and equipment	0.3	-	0.3
Inventories	0.6	-	0.6
Trade and other receivables	0.9	-	0.9
Deferred tax	0.1	(2.1)	(2.0)
Trade and other payables	(0.9)	-	(0.9)
Retirement benefit obligations	(0.3)	-	(0.3)
Provisions	(0.1)	-	(0.1)
Cash	1.1	-	1.1
Net assets acquired	1.7	8.4	10.1
Goodwill			9.5
Total consideration			19.6
Net cash acquired			(1.1)
Contingent consideration after discounting to transaction date			(3.6)
Net cash outflow relating to the acquisition			14.9

The goodwill arising is considered to represent the value of the acquired workforce and the value of technology that has not been individually fair valued.

Acquisition-related costs in the prior period of £0.3m were expensed to the Consolidated Statement of Income as an adjusting item in the administration and shared services cost line. There were no acquisition-related costs in the current period in relation to this acquisition.

The acquisition contributed revenue of £2.2m, adjusted operating profit of £0.6m and a statutory loss before tax of £0.6m in the prior period.

If the acquisition had occurred on the first day of the prior year the acquisition would have contributed revenue of £3.5m, adjusted operating profit of £0.4m and a statutory profit before tax of £0.4m in the prior period.

9 Discontinued operations

At 30 September 2025, the Group's NanoScience business was classified as held-for-sale and as a discontinued operation, given it was a major class of business and highly probable that the sale will take place within 12 months of the statement of financial position date. The Group's results have been re-presented to reflect the NanoScience business as discontinued operations.

Results of discontinued operations	Half year to 30 September 2025	Half year to 30 September 2024
	£m	£m
Revenue	19.0	21.5
Expenses	(21.8)	(22.9)
Income tax credit	0.6	0.3
Adjusted loss after tax	(2.2)	(1.1)
Adjusting items:
Transaction related costs related to sale of NanoScience business	(0.9)	(0.2)
Loss from discontinued operations after tax	(3.1)	(1.3)

Earnings per share from discontinued operations	Half year to 30 September 2025	Half year to 30 September 2024
	pence	pence
Adjusted basic earnings per share	(3.8)p	(1.9)p
Adjusted diluted earnings per share	(3.8)p	(1.9)p
Total diluted earnings per shares	(5.3)p	(2.2)p

The disposal group consists of the following assets and liabilities, held in accordance with IFRS 5 at the lower of carrying value and fair value less costs to sell:

Assets of disposal group held for sale		Half year to 30 September 2025
		£m
Property, plant and equipment		9.3
Intangible assets		7.7
Trade and other receivables		15.6
		61.8

Liabilities of disposal group held for sale		Half year to 30 September 2025
		£m
Trade and other payables		24.8
Provisions		1.2
		26.0

10 Financial instruments

Fair values of financial assets and liabilities

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

		As at 30 September 2025		As at 30 September 2024		Year to 31 March 2025
	Fair value hierarchy	Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount	Fair value
		£m	£m	£m	£m	£m	£m
Financial assets measured at fair value
Derivative financial assets:
- Foreign currency contracts	2	3.8	3.8	5.2	5.2	2.2	2.2
Financial assets measured at amortised cost
Long-term receivables		0.9		1.2		1.0
Trade receivables		75.9		82.2		97.5
Other receivables and accrued income		11.4		16.9		14.5
Cash and cash equivalents		72.3		53.0		94.1
Financial liabilities measured at fair value
Derivative financial liabilities:
- Foreign currency contracts	2	(1.1)	(1.1)	(0.1)	(0.1)	(0.6)	(0.6)
- Contingent consideration	3	(3.9)	(3.9)	(3.1)	(3.1)	(4.0)	(4.0)
Financial liabilities measured at amortised cost
Trade and other payables		(46.6)		(58.9)		(76.8)
Bank overdrafts		(26.5)		(12.6)		(8.8)
Borrowings		(0.7)		(1.1)		(0.9)

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the above table.

Derivative financial instruments

Derivative financial instruments are marked-to-market using market prices.

Fixed and floating rate borrowings

The fair value of fixed and floating rate borrowings is estimated by discounting the future contracted principal and interest cash flows using the market rate of interest at the reporting date.

Trade and other receivables/payables

For receivables/payables with a remaining life of less than one year, the carrying amount is deemed to reflect the fair value. All other receivables/payables are discounted to determine their fair value. Advances received are excluded from other payables above as these are not considered to be financial liabilities. Tax-related receivables and payables are excluded from the above table as these are not considered to be financial assets and liabilities.

Fair value hierarchy

The table above gives details of the valuation method used in arriving at the fair value of financial instruments. The different levels have been identified as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.

- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie. as prices) or indirectly (ie. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data.

There have been no transfers between levels during the period.

11 Retirement benefit assets and obligations

The Group operates a defined benefit plan in the UK. A full actuarial valuation of the UK plan was carried out as at 31 March 2024 which, for reporting purposes, has been updated to 30 September 2025 by a qualified independent actuary.

At 31 March 2025, the scheme actuary calculated a retirement benefit asset of £24.4m, being the net of £219.2m of assets and a present value of future liabilities of £194.8m.

In the period to 30 September 2025, asset returns have been lower than the discount rate leading to a small decrease in the net surplus. The scheme obligations have decreased to £194.5m (31 March 2025: £194.8m). There have been no material changes to the demographic assumptions associated with the scheme.

The deficit recovery payment for the period was £4.5m (year to 31 March 2025: £8.7m). However, changes in market conditions reduced the scheme's assets during the period. As a result, the fair value of plan assets decreased to 217.2m (31 March 2025: £218.2m).

The overall effect is that for the purposes of IAS 19 the surplus on the scheme decreased from £24.4m to £22.7m.

On acquisition of FemtoTools AG on 28 June 2024, the Group now operates a defined benefit pension scheme in Switzerland. At 30 September 2025 the overall position of the scheme is a deficit of £0.9m which comprises a defined benefit obligation of £2.9m and a fair value of plan assets of £2.0m.

12 Related parties

There have been no related party transactions in the first six months of the current financial year which have materially affected the financial position or performance of the Group.

Related parties are consistent with those disclosed in the Group's annual report for the year ended 31 March 2025.

Principal risks and uncertainties

Information regarding the risk management process in place at the Group is set out on pages 69 to 71 of the 2025 Report and Financial Statements.

The principal risks and uncertainties identified through that process are set out on pages 72 to 78 of the 2025 Report and Financial Statements and can be found on the Group's website at www.oxinst.com.

In keeping with the risk management process, the Group has performed a quarterly update of its risk register as at 30 September 2025. It has evaluated the disclosures made on pages 72 to 78 of the 2025 Annual Report and has concluded that all of the risks identified remain relevant for the remainder of the year ending 31 March 2025.

Further it considers that there are no additional significant risks to be disclosed.

A summary of the risks and uncertainties identified in the 2025 Report and Financial Statements is set out below:

• Geopolitical risk;

• Operational transformation risk;

• Supply chain risk;

• Routes to market risk;

• New Product Introduction (NPI) risk;

• Macroeconomic risk;

• Cyber/information technology risk;

• Legal and regulatory compliance risk;

• People and capability risk;

• Business interruption risk; and

• Climate change risk.

Responsibility statement of the directors in respect of the half-year financial statements

The Directors confirm that, to the best of their knowledge:

• the condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the UK; and

• the interim management report includes a fair review of the information required by:

(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so.

RICHARD TYSON	PAUL FRY
Chief Executive Officer	Chief Financial Officer

10 November 2025

Cautionary statement

Certain statements in this announcement constitute, or may be deemed to constitute, forward-looking statements, projections and information (including beliefs or opinions) with respect to the Company and its subsidiary undertakings ("the Group"). An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They include, without limitation, statements regarding the Group's future expectations, operations, financial performance, financial condition and business. Such forward looking statements are based on current expectations and are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from any expected future results in forward-looking statements. These risks, uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement.

Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the UK Listing Rules, Disclosure and Transparency Rules of the Financial Conduct Authority) no undertaking is given by the Group to update any forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise. Accordingly, no assurance can be given that any particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking statements.

This announcement has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to the Group when viewed as a whole.

Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this announcement.

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