Oxford, UK, June 13: Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today announced its preliminary results for the year to 31 March 2006:

• Orders and revenue of the underlying businesses*, including acquisitions, were £159.9 million (2005 £136.9 million) and  £153.8 million (2005 £135.6 million) respectively; orders were up 16.8% and revenue up 13.4%;
• Trading profit of the underlying businesses*, before non-recurring items and intangible amortisation, was £6.9 million (2005 £9.1 million);
• £3.3 million cash was spent on the product development investment initiative announced in June 2005, and of this £0.6 million was capitalized;
• Underlying trading profit, after adjusting for the extra  £2.7 million development costs charged to revenue, was £9.6 million, up £0.5 million on the previous year;
• Out of the accelerated new product development program two potentially significant new generation products were launched and early customer response has been very encouraging;
• The loss making UK magnet business was restructured and a new combined NanoScience business created, involving restructuring costs of £6.6 million and the expectation of improving trading profit by at least £3.0 million in 2007;
• The pre-tax loss of £0.9 million (2005 profit £0.1 million) reflected the implementation of strategic actions to reposition the Group for growth;
• Continuing basic earnings per share were a loss of 7.2p (2005 loss 3.0p); adjusted basic earnings per share** were 9.1p (2005 13.9p); an unchanged final dividend of 6.0p per share is recommended;
• Net cash at 31 March 2006 was £9.8 million (2005 £26.5 million).

* Group businesses excluding the restructured magnet business
** Before other operating income, amortization of acquired intangibles, restructuring and other non-recurring costs, the trading loss of the restructured magnet business and discontinued operations

Nigel Keen, Chairman of Oxford Instruments plc, said: "Although much remains to be done, we have made important progress in repositioning the Group towards future growth markets by concentrating on tools and systems that enable customers to use our products to transform the Nanoscience they undertake into the Nanotechnology we all use."

"Trading in the first two months of the year is on track.  We are now set on a path which will provide significant opportunities to grow the business and thereby increase value for our shareholders."