Bosses at hi-tech firm Oxford Instruments are predicting profits of £10m for the first six months of the year.

Speaking at the company’s annual general meeting, chairman Nigel Keen said there was strong demand in the company’s reseach markets, while the recession-hit industrial markets were seeing demand returning to pre-recession levels.

Mr Keen said: “Performance to date for the first half has exceeded our expectations. We currently expect adjusted profit before tax for the first six months of the year to be not less than £10m.

“We remain confident in the growth potential of Oxford Instruments and our ability to produce sustained shareholder value.”

In June, the company, which employs more than 200 staff at Tubney Woods, near Abingdon, reported pre-tax profits of £11.9m for the year to March 31.