Buoyant bosses at hi-tech firm Oxford Instruments say they are avoiding the effects of the credit crunch.

Chief executive Jonathan Flint said the company's focus on key areas such as the environment had meant the business was being driven by clients being forced to invest as a result of new green legislation.

And a more commercial approach has meant the company working in diverse areas ranging from the braking systems of Formula One cars to the fine art market where techniques are used to gauge the age and authenticity of potentially valuable items.

Mr Flint said: "A few years ago we would have been locked in a physics laboratory but staff now fully realise the commercial benefits of working at the frontiers of technology."

When Mr Flint took over as chief executive two years ago, he announced a five-year plan to revamp and extend the business which had recently cut 60 jobs, closed its Eynsham site and then declared a £700,000 half-year loss.

But today the company, which has its headquarters at Tubney Woods near Abingdon, has been able to post a healthy set of financial results.

Figures published for the Year to March 31 show pre-tax profits rose by 26.7 per cent to £9.5m compared to £7.5m for the previous year.

Mr Flint added: "Our markets are proving very resilient as we are working in very specific niches.

"The company has always had great technologyand great people but we have not been able to commercialise that.

"That is something I have sought to change and we are really making good progress."

The last year also saw the sale of Oxford Insruments' buildings at Eynsham and Abingdon which have added £7.7m to the balance book to be used for further investment.

A total of 278 people now work at the Tubney Woods site with about 30 jobs created in the last year.