OXFORD Instruments has lost about £8m in annual revenue due to ongoing EU trade sanctions against Russia prompted by the country’s intervention in the Ukraine.

Chief executive Jonathan Flint said: “In January there was an unexpected tightening of EU exports.”

He said that, as a result, the UK government rescinded some export licences that Oxford Instruments previously held with Russia, and blocked the issuing of new licences.

“No one really knows if the situation will improve.”

He said the provider of high-technology tools and systems for industry and research had, for the time being, ruled out any revenues from Russia, which were expected to be £8m in 2015-16.

The EU sanctions against Russia contributed to a difficult year for the Oxford-based company, which has a market capitalisation of about £600m. Total revenue grew by 7 per cent year-on-year to £386m in the 12 months to March 31, 2015, while adjusted profit before tax fell by 24 per cent to £36m.

Mr Flint said: “It was quite a difficult year and we had a number of issues.”

The company 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 £2.8m hit on profit.

The management has ramped up cost-cutting measures, expected to produce £8m in savings in 2015-16. The company shed 160 staff – seven per cent of its workforce – in 2014-15, including the loss of 34 jobs at its Oxford office.

Oxford Instruments currently employs 250 staff at its Oxford premises, which houses its nanoscience business and parts of its industrial analysis division.