Oxford Instruments has promised to return to its roots with a £5m investment in the cutting edge of science.

Chief executive Jonathan Flint, 44, who took over the Eynsham-based company in April, said: "I am launching a renewed emphasis on innovation.

"This will include an award scheme for staff who come up with innovative ideas."

Asked whether this meant the company was returning to its roots as a research business, he said: "Innovation is something that is in Oxford Instruments' genes, but we are not moving backwards, we are moving forwards.

"It is no good having a bright idea unless you can bring it to market and generate wealth."

Turnover for the year to March 2005 was £156.5m, compared to £147.6m in the previous year. Pre-tax profit was £7.9m, up £0.1m.

The group exports heavily to the US, and lost £1.9m last year because of the fall in value of the dollar.

The Superconductivity subsidiary, based at Tubney Woods, near Eynsham, saw operating profit fall to £0.8m from £4.2m.

Earlier this year 25 Superconductivity jobs were axed, following an earlier reorganisation last year in which another 25 jobs were lost. But Mr Flint said the efficiency savings had now been completed and the group was now on a sound footing.

The £5m investment is on top of the company's normal research spending, and will be used to develop instruments for exciting cutting-edge science.

Chairman Nigel Keen said: "We are now ready to accelerate the pace of growth and our future strategy is focused on building upon our capabilities in the high-growth sectors of nanotechnology, molecular bioscience and environmental monitoring.

"The execution of this strategy will involve a level of investment that will impact profits for the next two years.

"The emerging markets coupled with our talents and infrastructure will provide significant opportunities to drive the business forward and increase value for our shareholders."