by
Brendon Nafziger, DOTmed News Associate Editor | June 12, 2012
Oxford Instruments plc. posted strong revenue gains for its past fiscal year, an eventful one that saw the British high-tech tools company strengthen its North American CT and MRI service business with the acquisition of Platinum Medical Imaging.
In preliminary results shared Tuesday for its most recent fiscal year, which ended March 31, Oxford posted revenues of 337.3 million pounds ($524.8 million), up 28.6 percent on 2010-2011 fiscal year revenues of 262.3 million pounds ($408.1 million). Oxford also said it enjoyed adjusted earnings per share of 61.6 pence (96 cents), up 48.4 percent from 41.5 pence (64 cents).
The company took in adjusted pre-tax profits of 42 million pounds ($65.4 million), up 60.3 percent over the previous year's 26.2 million pounds ($40.8 million).
Its service sector, which includes the CT and MRI service business in North America and Asia as well as services for Oxford's other segments, enjoyed revenues of 56.3 million pounds ($87.6 million), up 32 percent over the previous year's 42.5 million pound ($66.1 million) haul. The sector's operating profit was 11 million pounds ($17.1 million), over 7.4 million pounds ($11.5 million) during the previous year.
The service sector also had a 19.5 percent return on sales, up from 17.4 percent. Overall, return on sales across all three business segments was 12.5 percent, up from 10.7 percent, the company said.
As part of the company's so-called 14 Cubed plan, which started last fiscal year, the group hopes to achieve compound annual growth of 14 percent and a return on sales of 14 percent by 2014.
In its financial report, Oxford credited
the purchase last November of Platinum Medical Imaging LLC, a U.S. CT and MRI service company, with helping them win new customers while strengthening their existing MRI service brand.
"Structural changes in the U.S. health care market continue to benefit this business," the company said in the report. "Recognition of the Oxford Instruments brand has increased customer confidence in the Platinum offering and helped to further grow market share in North America."
Although Oxford's service business grew, the bulk of the company's revenue came from its other two segments, nanotechnology tools and industrial products. Nanotechnology, the big breadwinner, took in 153.9 million pounds ($239.5 million) in revenue, up from 121.8 million pounds ($189.5 million) from the previous fiscal year, for an adjusted operating profit of 17.3 million pounds ($26.9 million), up from 14.6 million pounds ($22.7 million) the year before. And industrial products posted 129.1 million pounds ($200.9 million) in revenue, up from 100.5 million pounds ($156.4 million) in 2010-2011. It had an adjusted operating profit of 13.8 million pounds ($21.5 million), up from 6.1 million pounds ($9.5 million).
"We are aware that we are operating in uncertain times," Nigel Keen, Oxford's chairman, said in a statement. "We have the right people in place to maximize the opportunities and tackle the challenges of the coming years."
Oxford is based in Abingdon, UK.
