JOB cuts and restructuring will return embattled Oxford Instruments to profitability, its boss told shareholders, writes Maggie Hartford.

Announcing an 800,000 loss, chairman Nigel Keen said: "Our businesses continue to occupy very strong technology and market positions in worldwide markets.

"Our TopFlight re-engineering programme is creating an organisation that can better meet customer needs in our markets from a lower cost base.

"Our top priority is to succeed with this programme, which will return the group to profitability."

The company has announced more than 100 job losses over the past year and has merged its UK subsidiaries into three new businesses.

Mr Keen said the re- organisation had cost 7.3m this year and 1.6m next year, but would save 4m next year.

More than a third of the company's site space would be sold or otherwise disposed of next year, he said.

Turnover was up to 160.1m from 159.7m last year. He said the loss, which contrasted with a 12.7m profit last year, reflected reduced margins on old, technically-complex long-term projects. The business was hit by the weakness of the euro and the recession in Japan.

Worst hit was Superconductivity, which reported a 5.3m loss on turnover of 71.3m, down three per cent on last year.

But he said the other two subsidiaries, Analytical and Medical, reported a profit in the second half of the year.

Chief executive Andrew Mackintosh said: "Whilst I am disappointed with this year's outcome, we are making real progress."