Optos eyeing growth as order book swells

Optos, the Fife-based eye-scanning specialist, has presented a bright outlook as it ­continues to focus on expanding its global customer base.

Chief executive Roy Davis pointed to good growth potential in North American. Picture: TSPL

Unveiling a doubling in annual pre-tax profits and another record year for new product installations, chief executive Roy Davis said the group was “well-placed” to grow in the current financial year.

He pointed to “good growth potential” in the key North American market, where the firm derives about 70 per cent of its business, meaning that it reports its results in dollars. ­Further business in Asia is also on the cards.

While the company’s overall staff numbers fell by about 40 to 391 during the year, its Dunfermline headquarters’ headcount of about 160 actually grew as a result of consolidating its European customer service function.

The results for the year to 30 September showed that adjusted profit before tax rose to­
$18.5 million (£11.8m), from $9.2m in the previous 12 months. Revenue and other operating income grew by 7 per cent to $170.6m.

Optos said it had completed more than 1,500 new product installations, taking its installed base up to 7,376, a rise of 24 per cent on the year before.

Davis said: “We are confident Optos is well-placed to drive customer growth, continue improvements in profitability and sustain cash generation [in the current year]. We remain excited by the prospects for our future.”

Raising their target price on the stock to 265p from 250p, analysts at brokerage Peel Hunt said: “The shares currently trade at a 20 per cent discount to global peers that Optos is clearly out-performing.”

Optos shares closed 5p or 2.3 per cent higher at 220p.

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