Latest news with #operatingprofit
Reuters
2 days ago
- Business
- Reuters
British recruiter Hays forecasts 57% annual profit slump on hiring slowdown
June 19 (Reuters) - British recruiter Hays (HAYS.L), opens new tab on Thursday projected a more than 57% drop in annual operating profit to around 45 million pounds ($60.23 million), falling short of market view of 56.4 million pounds, according to company-compiled estimates. Political and economic turmoil in Germany and the UK, both key markets for Hays, along with the impact of U.S. President Donald Trump's extensive tariffs, have pulled down confidence and sentiment of employers and job seekers. Hays reported broad weakness in permanent hiring, while noting that temporary hiring and contracting remained more resilient. The company reiterated that current market challenges are expected to persist into its 2026 fiscal year. ($1 = 0.7471 pounds)
Yahoo
7 days ago
- Business
- Yahoo
Oxford Instruments PLC (OXINF) (FY 2025) Earnings Call Highlights: Strong Revenue Growth and ...
Revenue Growth: 6.5% increase, particularly strong in the second half. Group Margin: Improved to 17.8% at constant currency. Semiconductor Growth: Strong double-digit growth. Cash Conversion: Rebounded to 89% from a low prior year result. Adjusted Operating Profit: Nearly 11% growth. Imaging and Analysis Margin: Improved by 60 basis points to 24.7%. Advanced Technologies Margin Improvement: 360 basis points increase. Nanoscience Sale: Sold for GBP60 million, expected to improve group margin by 190 basis points. Free Cash Flow: Nearly GBP32 million, up from GBP13.5 million last year. CapEx Expectation for FY26: Around GBP10 million to GBP12 million. Dividend Growth: Increased in a material and sustainable way. Share Buyback Program: GBP50 million announced. R&D Investment: GBP41 million, 8.2% of revenue. Order Book Visibility: Robust with orders up and backlog in line with historical norms. Warning! GuruFocus has detected 1 Warning Sign with OXINF. Release Date: June 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Oxford Instruments PLC (OXINF) reported a strong year with 6.5% revenue growth and nearly 11% growth in adjusted operating profit. The company announced the sale of its quantum-focused nanoscience business for GBP60 million, which is expected to positively impact group margins by around 190 basis points. The company achieved a significant uplift in group margin to 17.8% at constant currency, with strong double-digit growth in the semiconductor sector. Oxford Instruments PLC (OXINF) has simplified its structure, creating two new divisions, which allows for more focused investment in areas with better value creation potential. The company has a robust order book, providing good visibility for the year ahead, with orders up and order backlog in line with historical norms. There was continued weakness in the healthcare and life sciences sectors, with no recovery seen in the second half of the year. The company faced a nearly GBP19 million fall in revenues from China due to changes in the export licensing regime. Oxford Instruments PLC (OXINF) experienced significant currency headwinds, particularly affecting US-denominated revenues. The company took an impairment charge of around GBP26 million related to its Belfast-based imaging business, which faced operational challenges. There is continued uncertainty in the US academic sector, which represents a significant portion of the company's revenues, due to federal budget uncertainties. Q: Can you provide more detail on the momentum with commercial customers in the healthcare and life science sector? A: Richard Tyson, CEO: There are several moving parts in healthcare and life science. We are not calling it an uptick yet, but it is pleasing that it has stabilized and returned to a positive book-to-bill ratio. We are not assuming a big improvement for the year ahead but expect to improve profitability based on actions taken in Belfast. Q: How are you ensuring that pruning the portfolio does not affect the trickle-down of high-level research into more profitable products? A: Richard Tyson, CEO: We are retrenching and moving more into partnerships. The core technology is loved by customers, and OEMs want to partner with us. This strategy allows us to focus on products with more volume potential and reduces the drag on engineering resources. Q: Why sell the nanoscience business now rather than wait for more growth? A: Richard Tyson, CEO: The decision was based on the business's historical performance and future potential. We saw limited margin improvement and growth over the next five years. The inbound interest and market check indicated we got full value for it, and we are happy with the sale. Q: Why is Oxford Instruments outperforming the semiconductor market? A: Richard Tyson, CEO: The compound semiconductor business is driving growth, supported by hyperscale data centers, quantum activity, and next-gen power chips. On the silicon side, our detector business benefits from supply chain relocations and new product launches. Our regional sales efforts also contribute to this growth. Q: How does the M&A pipeline look, and what are your thoughts on buybacks if M&A is quieter? A: Richard Tyson, CEO: We have refreshed the M&A pipeline and are looking at a range of targets. We are not looking to turn things around but seek quality businesses that fit our model. Regarding buybacks, we are starting a GBP50 million program and will consider further buybacks if M&A does not progress. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
7 days ago
- Business
- Yahoo
Oxford Instruments PLC (OXINF) (FY 2025) Earnings Call Highlights: Strong Revenue Growth and ...
Revenue Growth: 6.5% increase, particularly strong in the second half. Group Margin: Improved to 17.8% at constant currency. Semiconductor Growth: Strong double-digit growth. Cash Conversion: Rebounded to 89% from a low prior year result. Adjusted Operating Profit: Nearly 11% growth. Imaging and Analysis Margin: Improved by 60 basis points to 24.7%. Advanced Technologies Margin Improvement: 360 basis points increase. Nanoscience Sale: Sold for GBP60 million, expected to improve group margin by 190 basis points. Free Cash Flow: Nearly GBP32 million, up from GBP13.5 million last year. CapEx Expectation for FY26: Around GBP10 million to GBP12 million. Dividend Growth: Increased in a material and sustainable way. Share Buyback Program: GBP50 million announced. R&D Investment: GBP41 million, 8.2% of revenue. Order Book Visibility: Robust with orders up and backlog in line with historical norms. Warning! GuruFocus has detected 1 Warning Sign with OXINF. Release Date: June 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Oxford Instruments PLC (OXINF) reported a strong year with 6.5% revenue growth and nearly 11% growth in adjusted operating profit. The company announced the sale of its quantum-focused nanoscience business for GBP60 million, which is expected to positively impact group margins by around 190 basis points. The company achieved a significant uplift in group margin to 17.8% at constant currency, with strong double-digit growth in the semiconductor sector. Oxford Instruments PLC (OXINF) has simplified its structure, creating two new divisions, which allows for more focused investment in areas with better value creation potential. The company has a robust order book, providing good visibility for the year ahead, with orders up and order backlog in line with historical norms. There was continued weakness in the healthcare and life sciences sectors, with no recovery seen in the second half of the year. The company faced a nearly GBP19 million fall in revenues from China due to changes in the export licensing regime. Oxford Instruments PLC (OXINF) experienced significant currency headwinds, particularly affecting US-denominated revenues. The company took an impairment charge of around GBP26 million related to its Belfast-based imaging business, which faced operational challenges. There is continued uncertainty in the US academic sector, which represents a significant portion of the company's revenues, due to federal budget uncertainties. Q: Can you provide more detail on the momentum with commercial customers in the healthcare and life science sector? A: Richard Tyson, CEO: There are several moving parts in healthcare and life science. We are not calling it an uptick yet, but it is pleasing that it has stabilized and returned to a positive book-to-bill ratio. We are not assuming a big improvement for the year ahead but expect to improve profitability based on actions taken in Belfast. Q: How are you ensuring that pruning the portfolio does not affect the trickle-down of high-level research into more profitable products? A: Richard Tyson, CEO: We are retrenching and moving more into partnerships. The core technology is loved by customers, and OEMs want to partner with us. This strategy allows us to focus on products with more volume potential and reduces the drag on engineering resources. Q: Why sell the nanoscience business now rather than wait for more growth? A: Richard Tyson, CEO: The decision was based on the business's historical performance and future potential. We saw limited margin improvement and growth over the next five years. The inbound interest and market check indicated we got full value for it, and we are happy with the sale. Q: Why is Oxford Instruments outperforming the semiconductor market? A: Richard Tyson, CEO: The compound semiconductor business is driving growth, supported by hyperscale data centers, quantum activity, and next-gen power chips. On the silicon side, our detector business benefits from supply chain relocations and new product launches. Our regional sales efforts also contribute to this growth. Q: How does the M&A pipeline look, and what are your thoughts on buybacks if M&A is quieter? A: Richard Tyson, CEO: We have refreshed the M&A pipeline and are looking at a range of targets. We are not looking to turn things around but seek quality businesses that fit our model. Regarding buybacks, we are starting a GBP50 million program and will consider further buybacks if M&A does not progress. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
GB Group PLC (GBGPF) Full Year 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GB Group PLC (GBGPF) reported a revenue increase of 3% on a constant currency basis, indicating growth despite challenging macroeconomic conditions. The company achieved a 9.5% increase in adjusted operating profit, with margins expanding to 23.7%, showcasing improved operational efficiency. Cash conversion remained strong at 91.3%, allowing GB Group PLC (GBGPF) to reduce net debt by over 32 million pounds year on year. The launch of GBG Go, an identity orchestration platform, has already signed customers in key regions and built a strong pipeline, indicating positive market reception. The company maintained a high level of repeatable revenue streams, with 95% of revenue coming from these sources, ensuring stability and predictability in income. Revenue growth was slightly below initial expectations, reflecting ongoing challenges in certain market sectors. The fraud segment experienced a 4% decline in revenue on a constant currency basis, primarily due to timing differences in revenue recognition. The Americas identity business showed flat performance, indicating ongoing challenges in this region despite operational improvements. The company anticipates a similar level of exceptional costs in FY26 as it continues transformation initiatives, which may impact short-term profitability. There is a potential headwind from FX translation expected to affect reported growth in FY26, which could impact financial performance. Warning! GuruFocus has detected 5 Warning Signs with GBGPF. Q: Can you provide more details on the strategic review of global fraud solutions and the decision-making process? Also, how is the competitive landscape in the US changing, and what are the pricing dynamics across your products, particularly in the Americas? A: We evaluated various options for our global fraud solutions and decided to structure it as a single global business, focusing on geographic expansion and leveraging our tier-one customer base. In the US, we are focusing on our execution rather than the competition, targeting areas where we have a strong product-market fit. Regarding pricing, we have been proactive, deploying pricing experts to manage significant customer negotiations and renewals, which has helped maintain our gross margin. (Respondent: CEO and CFO) Q: What are the right sectors for GBG in the US, and how are you managing the transition to a subscription model? Also, how is GBG Go currently priced? A: Our right-to-win sectors include businesses that value global coverage, such as gaming operators. The transition to a subscription model has seen little pushback, as it aligns with market standards. GBG Go is priced with a platform fee and customization based on customer needs, ensuring a productive conversation around their requirements. (Respondent: CEO and CFO) Q: Can you explain the slowdown in momentum in the second half of the year and the outlook for future growth? A: The second half growth was slower due to lapping a strong Q4 and some customer project volumes in identity. However, we are confident in the underlying momentum for FY26, expecting growth to be second-half weighted. We are focused on building growth levers into the business, and the acceleration in growth expected by analysts aligns with our outlook. (Respondent: CFO) Q: How are you managing the risk of customer churn with the transition to new strategic products and the introduction of GBG Go? A: GBG Go was developed based on customer feedback, and we anticipate uplift potential rather than churn risk. The platform offers more value, allowing customers to grow with it, which should enhance net revenue retention (NRR). We are focused on ensuring customers receive the best possible value from the platform. (Respondent: CEO and CFO) Q: What is the strategy behind the move from AIM to the main market, and how will it impact your investor base? A: The move to the main market is intended to increase access to broader pools of capital. We are considering how to make the transition seamless, learning from others who have made similar moves. We have capital optionality, which could be used to address any overhang from the transition. (Respondent: CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
08-06-2025
- Business
- Yahoo
This FTSE stock's just crashed 28%! Is it time to take advantage?
On Thursday (5 June), the Wizz Air Holdings (LSE:WIZZ) share price plunged nearly 28% following the release of the FTSE 250 airline's results for the year ended 31 March 2025 (FY25). Given that it reported a 61% fall in operating profit — over 30% lower than analysts were expecting — the reaction of investors isn't surprising to me. The problem is that the group's been badly affected by the grounding of some of its aircraft. Of a fleet of 231 planes, 37 are unable to fly due to problems with their engines. Worryingly, 34 are still expected to be out of action by the end of September. Each repair takes around 300 days. During FY25, the airline received credits and compensation from suppliers of €354m. However, it's not specified how much of this came from Pratt & Whitney, the manufacturer of the engines. Whatever the figure, I think it's unlikely to be enough to cover all of the lost earnings. Of most concern, the press release accompanying the results said: 'We are not giving guidance for FY26 at this time of the year given the lack of visibility across our trading seasons.' In other words, the directors don't want to make any public predictions for fear of getting it badly wrong. The results were so disappointing that RBC Capital Markets revealed it was 'throwing in the towel'. It downgraded its price target from 2,400p to 1,500p. And it cut its FY26 net profit forecast by 31%. The broker said: 'We think the risk-reward is more attractive in other low-cost carriers, where we have greater confidence that fuel and foreign exchange tailwinds will translate into earnings upgrades.' Since June 2024, the Wizz Air share price has fallen 50%. But there could be worse to come. The engine problems are expected to affect operations for another two to three years. However, despite its problems, the results announcement contained some good news. Passenger numbers were at record levels and it was the airline's second consecutive year of being profitable. Compared to FY24, its load factor increased by 1.1 percentage points to 91.2%. RASK (revenue per available seat kilometre) was up 3.9%. Looking ahead, it should continue to benefit from lower oil prices. Fuel costs accounted for 35% of operating expenses in FY25, compared to 40% in FY24. Also, the airline's load factor is expected to increase further. But the group's net debt has risen to €4.96bn at 31 March 2025. This is equivalent to 4.4 times EBITDA (earnings before interest, tax, depreciation, and amortisation). For comparison, at the same date, easyJet reported a small net cash position. Even though I'm prepared to take a long-term view, I fear things are going to get worse before they (hopefully) improve. There's too much uncertainty for my liking. The company's chief executive recently told Reuters: 'You look at the performance of the supply chain, of the industry, and there are cracks all over the place.' When considered alongside the airline's FY25 results, this doesn't fill me with much confidence. Therefore, I don't want to invest. The post This FTSE stock's just crashed 28%! Is it time to take advantage? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Beard has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
