Oxford Instruments

Website: Oxford Instruments
Index: FTSE 250
EPIC: OXIG
Supersector: Industrial Goods and Services
Sector: Electronic and Electrical Equipment
Subsector: Electronic Equipment
Market Cap: £1.15B
Payout Frequency: Semi-Annual

Oxford Instruments Dividend Analysis and Summary

Headline dividend details

Type: Interim dividend
Amount: 5.4p per share (up 5.9% year-on-year from 5.1p)
Ex-dividend date: 27/11/2025
Record date: 28/11/2025
Payment date: 09/01/2026 (subject to shareholder approval)
DRIP last election date: 16/12/2025
Coverage (H1 basis): Adjusted EPS 33.0p vs interim dividend 5.4p (~6.1x cover); statutory EPS 26.1p (~4.8x cover)
Policy/signals: Board “remains confident” and is “committed to our dividend programme”; policy considers underlying earnings, dividend cover, FX and cash demands

Context and support for the dividend

Balance sheet: £45.1m net cash at half year; expected ~£57m cash proceeds from NanoScience disposal in Q3 FY26
Cash flow: H1 free cash flow £0.2m; normalised cash conversion 41% (expected to materially improve in H2)
Earnings/operations: H1 revenue down 7.9% OCC; adjusted operating profit down 22.9% with margin at 13.3% (down 280 bps). Management guides to full-year AOP broadly in line with FY25 on OCC, with reported AOP down 6–9% due to FX
H2 setup: Recovering orders (Group book-to-bill 1.1x); cost actions in Belfast to add ~£4m to H2; Advanced Technologies has full order cover supporting another year of strong growth
Capital allocation: Priorities are organic investment and dividends; R&D maintained at 8–9% of revenue. Pension contributions expected to cease (improving medium-term cash). Capex to normalise; cash generation expected to accelerate into FY27

Structural changes and other factors relevant to future dividends

Divestment: Sale of Oxford Instruments NanoScience to Quantum Design International expected to complete in Q3 FY26; business classified as discontinued. Proceeds of ~£57m bolster liquidity
Share buyback: Programme increased by £50m to £100m; c. £32m completed by 31 Oct 2025. Buybacks are accretive to per-share metrics and can support dividend growth per share
Operational footprint: Move to the Severn Beach facility (compound semiconductors) complete; sale of the Yatton site. Manufacturing footprint rebalanced (China/Germany/UK) to mitigate tariffs and improve resilience
No share consolidation or demerger disclosed

Dividend sustainability and growth view

Coverage is strong on H1 earnings metrics (c. 6x on adjusted EPS), and the Group remains in net cash with further cash inflow from the planned divestment
Management’s reaffirmed capital allocation puts dividends as a top priority alongside organic investment; ongoing buybacks signal confidence
Near term, H1 softness in cash conversion and margin pressure are manageable if H2 order-to-revenue conversion and cost savings land as guided
Medium term, cessation of pension contributions, normalising capex and targeted margin expansion underpin a progressive dividend trajectory

Risks and flags to dividend stability

Execution risk on H2 weighting: H1 saw lower revenue and cash conversion; outlook relies on a stronger H2 (order conversion, cost benefits, shipping timing)
FX headwind: Guided ~£5.6m drag on FY26 operating profit; continued GBP/USD moves can affect earnings and cover
Macro/trade exposure: Tariffs, rare-earth export controls and US academic funding uncertainty have disrupted I&A demand; healthcare & life science remains weak
Longer lead times in AT: Mix shift to larger multi-chamber systems extends time-to-revenue recognition, adding timing risk
Non-recurring costs: Restructuring/relocation charges of £7–8m expected for the full year, though these should fade post-H2

Bottom line

The 5.4p interim dividend (ex-div 27/11/2025) is well covered by H1 earnings and supported by a net cash position, pending disposal proceeds, and a clear capital allocation hierarchy prioritising dividends
While H1 softness and macro/FX risks persist, the expected H2 rebound, cost actions, and buyback-enhanced per-share metrics provide a credible base for maintaining a progressive dividend

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
28/11/2024	10/01/2025	Interim	5.10p	GBX
10/07/2025	19/08/2025	Final	17.10p	GBX

Total (Annual Dividends Per Share): 22.20p

Dividend Yield = Annual Dividends Per Share (22.20p) ÷ Share Price (2050p) = 1.08%

Ex Dividend Date	Payment Date	Type	Amount	Currency
27/11/2025	09/01/2026	Interim	5.4000p	GBX
10/07/2025	19/08/2025	Final	17.10p	GBX
28/11/2024	10/01/2025	Interim	5.10p	GBX
11/07/2024	20/08/2024	Final	15.90p	GBX
30/11/2023	12/01/2024	Interim	4.90p	GBX
03/08/2023	12/10/2023	Final	14.90p	GBX
13/07/2023	22/08/2023	Final	14.90p	GBX
01/12/2022	13/01/2023	Interim	4.60p	GBX
14/07/2022	23/08/2022	Final	13.70p	GBX
02/12/2021	14/01/2022	Interim	4.40p	GBX
09/09/2021	15/10/2021	Final	12.90p	GBX
04/03/2021	14/04/2021	Interim	4.10p	GBX
05/03/2020	14/04/2020	Interim	4.10p	GBX
12/09/2019	18/10/2019	Final	10.60p	GBX
28/02/2019	08/04/2019	Interim	3.80p	GBX
13/09/2018	19/10/2018	Final	9.60p	GBX
22/02/2018	06/04/2018	Interim	3.70p	GBX
21/09/2017	19/10/2017	Final	9.30p	GBX
09/03/2017	07/04/2017	Interim	3.70p	GBX
22/09/2016	20/10/2016	Final	9.30p	GBX
10/03/2016	08/04/2016	Interim	3.70p	GBX
24/09/2015	22/10/2015	Final	9.30p	GBX
05/03/2015	09/04/2015	Interim	3.70p	GBX
24/09/2014	23/10/2014	Final	9.04p	GBX
05/03/2014	07/04/2014	Interim	3.36p	GBX

Year	Interim	Final	Currency	Total	Change
2024	5.100	15.900	GBX	21.000	-39.480
2023	4.900	29.800	GBX	34.700	89.610
2022	4.600	13.700	GBX	18.300	-14.480
2021	8.500	12.900	GBX	21.400	421.950
2020	4.100		GBX	4.100	-71.520
2019	3.800	10.600	GBX	14.400	8.270
2018	3.700	9.600	GBX	13.300	2.300
2017	3.700	9.300	GBX	13.000	0.000
2016	3.700	9.300	GBX	13.000	0.000
2015	3.700	9.300	GBX	13.000	4.830
2014	3.360	9.040	GBX	12.400

Number of Shares:

Payment	Paid	Amount
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