Oxford Instruments warns over weak Russia and Japan trading

Joseph Millis
OXFORD Instruments issued a profit warning yesterday, citing weak trading in Russia and Japan.

The company, which makes maintenance systems and parts for CT and MRI scanners, warned of a nearly 26 per cent fall in full-year profit.

It added that it expects revenue for the second half to be below market expectations. Shares in the company plunged nearly 30 per cent in London as a result, wiping off more than £180m of its market value.

Oxford Instruments said its Russian operations suffered due to the recent sanctions and cancellation of certain export licences, following Moscow’s annexation of Crimea and its support for separatists in eastern Ukraine. “We now assume that no sales can be made to Russia for the remainder of this year and we are also assuming no sales to Russia next year,” the company said in a statement.

“Consensus is sure to drop significantly today. It becomes harder to remain positive about a share that has delivered so many reversals,” Investec analysts said in a note.