Orders and sales are up at Oxford Instruments, which said its recent cost-cutting exercise and restructuring was starting to pay off, writes Maggie Hartford.

After cutting 150 jobs this year, the group saw half-year operating profits up 300,000 to 500,000, excluding the costs of restructuring and stripping out the results for Oxford-based subsidiary CL, which was sold earlier this year to US company Roper Industries.

Pre-tax profit for continuing operations was down 100,000 to 300,000.

Turnover was up four per cent to 78m and orders increased 16 per cent to 92m.

Chief executive Andrew Mackintosh said: "We set out in September 1999 to accelerate the improvement in our service to customers and reduce our cost base through a streamlining of our organisation.

"Our improving results indicate that we have made progress in many areas towards this goal.

Chairman Nigel Keene said the business was returning to profitability. "The recent order level has been encouraging and all our businesses are maximising their capacity to deliver increased volumes in the second half," he said.

"By the end of the year our major site relocations will be complete and we already have an active programme of building disposals under way."

Over the past year, the group, based in Eynsham, has reorganised its ten subsidiaries into three divisions, with new managing directors.

Two Oxford Instruments buildings in Abingdon are up for sale. Industrial Analysis, built just two years ago at Abingdon Business Park at a cost of 6m, is moving to High Wycombe by next March. Medical Systems, in Kimber Road, is for sale at 4.5m.