(Adds analysts' comments, share move, details)
By Noor Zainab Hussain
April 10 Technology tools maker Oxford
Instruments Plc said it expects full-year performance
to be similar to that of the previous year as a strong pound
offset gains from the company's acquisition of imaging
specialist Andor Technology.
Oxford Instruments shares fell as much as 3.6 percent on the
London Stock Exchange, making them the top percentage loser on
the FTSE-250 Midcap Index on Thursday morning.
Some analysts feared that a strengthening pound would
continue to hurt the company, which gets only 9 percent revenue
from the UK.
"The only real thing to grab hold of in the statement is
that forex comment," Peel Hunt analyst Henry Carver told
"Some analysts did not have forex headwinds for 2015
accounted in their numbers. This maybe guiding down their
Carver had estimated in a note last week a 2 million pound
($3.35 million) hit to the company's revenue for the year ended
March 31 due to a stronger pound.
The analyst has also predicted a 12 million pounds setback
for the company in its current financial year.
Some other analysts have also said the stock may face
pressure after rising more than 10 percent in the two weeks to
The pound hit a five-year high against a host of currencies
including the dollar in mid-February on expectations that the
Bank of England would be the first major central bank to raise
The pound appreciated 9.45 percent against the dollar
in the year through March 2014.
Oxford, which makes CT and MRI maintenance systems and
parts, cryogenic systems and nanotechnology tools, gets about 25
percent of its revenue from North America.
The company reported an adjusted pretax profit of 48.2
million pounds on revenue of 350.8 million pounds in the year to
Analysts on average expected a pretax profit of 47.15
million pounds ($78.97 million) for the year ending March 31,
2014, according to Thomson Reuters I/B/E/S.
Oxford, which bought AIM-listed Andor Technology in December
for about 175 million pounds, said trading was strong in the
Shares in the company were down 1.7 percent at 1405 pence at
($1 = 0.5971 British Pounds)
(Editing by Joyjeet Das)