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Investing.com -- Shares of Oxford Instruments (LON:OXIG) fell more than 3% on Friday after the company posted full-year results that were broadly in line with expectations but included signs of slowing order momentum and increased currency headwinds.
The group reported adjusted EBITA of £82.2 million for fiscal 2025, up 10.8% on an organic basis.
Revenue totaled £500.6 million, reflecting 6.5% organic growth, though the company cited a 4% headwind from China.
Adjusted earnings per share rose 3% to 112.4p. Operating margins declined by 70 basis points to 16.4%.
The book-to-bill ratio, a key indicator of future revenue, stood at 0.93x, compared with 1.03x a year earlier and 1.01x at the half-year mark. In the Imaging and Analysis division, the ratio was 0.96x, while in Advanced Technologies it dropped to 0.85x.
Analysts at Jefferies said the decline in the ratio could raise concerns about visibility into fiscal 2026.
Order intake for the year was £464 million, up 1% year over year on a reported and constant currency basis.
The company said some of the decline in orders was due to the timing of contract awards in its Nanoscience business, which it announced earlier in the week it would divest.
Imaging and Analysis delivered £330.5 million in revenue, flat on an organic constant currency basis and up 1% on a reported basis.
EBITA in the division rose 3% on an organic basis to £76.2 million, though it fell 3.5% on a reported basis. Orders were up 3% year over year on an organic constant currency basis.
Advanced Technologies recorded £170.1 million in revenue, an increase of 21% in constant currency and 20% on a reported basis.
EBITA rose 487% year over year in constant currency to £6 million. Orders in the division fell 3.3% in constant currency terms.
The company reported a year-end net cash position of £84.4 million, in line with £83.3 million in the prior year.
Cash conversion reached 89%, above the group’s medium-term target of 85%, aided by inventory management.
Foreign exchange is now expected to have a £4.4 million EBITA headwind, compared with £2.8 million estimated at the mid-year.
Jefferies analysts said they spoke with management and confirmed the recent delay in auditor sign-off did not result in any changes to reported figures.
Oxford Instruments said it expects “attractive profitable” growth in fiscal 2026. On Tuesday, the company announced a £50 million share buyback.