Oxford Instruments (www.oxford-instruments.com) reports that it lost around £8 million in annual revenues due to the EU’s trade sanctions against Russia (imposed as a result of the situation in Ukraine).

Chief executive Jonathan Flint said: “There was an unexpected tightening of EU exports in January. As a result, the UK Government rescinded some export licences that Oxford Instruments held with Russia and blocked the issuing of new licences. No one really knows if the situation will improve.”

Mr Flint said that the Oxford-based supplier of high-tech tools and systems for industry and research had experienced “quite a difficult year”. Total revenues grew by 7% year-on-year to £386 million in the 12 months to 31 March, while adjusted pre-tax profits fell by 24% to £36 million.

He added that the company had also faced weaker demand in Japan and was affected by adverse currency movements due to its exposure to the US dollar, which resulted in a £2.8 million profits hit.

The management has increased cost-cutting measures, which are expected to result in £8 million of savings in the 2015-16 financial year. The company ‘lost’ 160 staff — 7% of its workforce — in 2014-15. It currently employs 250 people at its Oxford site, which houses its nano-science business and parts of its industrial analysis division.