Gooch & Housego PLC Half Year Trading Update (2222V)
04 April 2023 - 4:00PM
UK Regulatory
TIDMGHH
RNS Number : 2222V
Gooch & Housego PLC
04 April 2023
For immediate release 4 April 2023
Gooch & Housego PLC
("G&H" or the "Company" or the "Group")
Half Year Trading Update
"Trading in line with management's expectations"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of photonic components & systems, provides an update on trading
for the six months ended 31 March 2023.
Trading
In the first half of the financial year the Group made good
progress in adding additional capacity to our production
facilities. Output levels have increased and we have made steady
progress in reducing the level of our overdue order book.
Revenue for the six month period is expected to be circa GBP71.0
million (31 March 2022: GBP54.1 million) supported by favourable
exchange rate movements and the effects of price increases to
offset cost input inflation. As previously reported, the progress
we have made with recruitment and the supply chain actions we have
taken, mean we expect trading this year to be more evenly weighted
between the two halves of the financial year than in prior
years.
New orders for the Group's products from our semiconductor, data
communications and next generation industrial laser markets have
continued to be strong. We have secured important new programme
positions with medical diagnostic customers which will replace
other programmes that are now coming to the end of their life
cycle. Requests for quotations for the replenishment of equipment
that has been deployed into Ukraine are accelerating and we
anticipate some of these will convert to new orders shortly. As
previously communicated, whilst there is evidence that some of the
Group's customers in certain industrial and medical laser sub
markets are overstocked we expect this position to rectify itself
in the second half of the financial year due to underlying end
market demand.
As at 31 March 2023 our order book stood at GBP124.4 million (31
March 2022: GBP119.9 million), an increase of 3.8%, or a reduction
of 0.1% at constant currency, compared with the same time last
year. This order book provides good coverage for our expected
second half revenues.
The Group continues to experience high input cost inflation. In
order to ensure we remain competitive in the employment market we
have made further upward adjustments to salary levels. We have also
seen continued cost inflation from our supply chain. Our commercial
team remain focused on passing on these higher costs through
pricing and this will support the Group's performance in the second
half of this financial year.
We remain in a strong financial position with a robust balance
sheet and low net debt. At the half year net debt was circa GBP19m
and the Group had $46.2m available from existing committed and
uncommitted debt facilities to fund its future growth
activities.
We expect trading for the full year to be in line with
management's previously reported expectations.
Review of the Group's strategy and interim results date
The review of the Group's strategy is progressing according to
plan. Initial findings have been shared with the Board and we
expect to provide more information when the Group's interim results
for the six months ended 31 March 2023 are announced on 6 June
2023.
Charlie Peppiatt, Chief Executive Officer of Gooch &
Housego, commented:
"I am pleased with the progress that has been made in the first
half of the financial year with increasing operational output to
better address the demand for our products as well as continued
positive levels of customer engagement on next generation
programmes and new product opportunities in all our main end
markets. This is thanks to the hard work of our employees across
the Group and means we are well placed to meet management's
expectations for the full year.
"We are on track with our review of the Group strategy and
expect to be able to provide more information along with the
interim results in June 2023."
For further information please contact:
Charlie Peppiatt, Chief Executive
Officer
Chris Jewell, Chief Financial Gooch & Housego +44 (0) 1460
Officer PLC 256440
Mark Court / George Cleary +44 (0) 20 7466
G&H@buchanan.uk.com Buchanan 5000
Christopher Baird / David +44 (0) 20 7597
Anderson Investec Bank plc 5970
Notes to editors
1. Gooch & Housego is a photonics technology business
headquartered in Ilminster, Somerset, UK with operations in the USA
and Europe. A world leader in its field, the company researches,
designs, engineers and manufactures advanced photonic systems,
components and instrumentation for applications in the Aerospace
& Defence, Industrial, Life Sciences and Scientific Research
sectors. World leading design, development and manufacturing
expertise is offered across a broad range of complementary
technologies.
2. All financial information included in this announcement is
sourced from unaudited management accounts and excludes any
specific items. This announcement contains certain forward-looking
statements that are based on management's current expectations or
beliefs as well as assumptions about future events. These are
subject to risk factors associated with, amongst other things, the
economic and business circumstances occurring from time to time in
the countries and sectors in which G&H operates. It is believed
that the expectations reflected in these statements are reasonable
but they may be affected by a wide range of variables which could
cause actual results, and G&H's plans and objectives, to differ
materially from those currently anticipated or implied in the
forward-looking statements. Investors should not place undue
reliance on any such statements. Nothing in this announcement
should be construed as a profit forecast.
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