Oxford Instruments profits to be at top end

High-tech tool manufacturer Oxford Instruments said it expects full year profits to come in at the top end of analysts' forecasts.

In a trading update the firm said it continued to make good progress in line with its "14 Cubed" objectives - targeting compound revenue growth of 14% and a target return on sales of 14% by 2014.

"The company...currently expects adjusted profit before tax for the year to 31 March 2012 to be at the upper end of market expectations," the firm said.

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In November Oxford announced first half pre-tax profits fell to £12.5m from £13.2m the year before but predicted an improved second half.

At the time the group, which makes and supplies tools and systems with a focus on research and industrial applications, said revenue surged over 40% in a 'robust' market environment and as it introduced new products.

Revenue for the six months to 30 September 2011 rose 41% to £159m with organic growth of 30%.

Adjusted profit before tax rose to £18.7m from £10.6m before.

Last month the firm offloaded its loss-making TDI subsidiary to US display technologies firm Ostendo, though it will retain the rights to royalties on sales of items using TDI's technology.