Gooch & Housego PLC AGM Trading Update (9325P)
24 February 2016 - 6:00PM
UK Regulatory
TIDMGHH
RNS Number : 9325P
Gooch & Housego PLC
24 February 2016
For immediate release 24 February 2016
Gooch & Housego PLC
("G&H" or the "Company")
AGM Trading Update
"Full year trading remains in line with management's
expectations"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of optical components & systems, will hold its Annual General
Meeting at 11am this morning at the Company's headquarters in
Ilminster, Somerset. G&H's Chairman Gareth Jones will provide
the following update on trading performance.
Market conditions for the first four months of the current
financial year have been mixed. The previously reported lower
demand from China for lasers used in microelectronic manufacturing
has continued into the new financial year though demand has
improved in recent weeks. This has been partially offset by an
increase in demand for our high reliability fibre components used
in undersea communications.
Our order book is robust, as at 31 January 2016 it stood at
GBP36.7 million, which was 5.3% higher than at the same time last
year.
The relocation of the Company's Palo Alto site to nearby Fremont
provides improved facilities and room for growth. Receipt of local
regulatory licences has taken longer then expected, but the move is
now substantially complete and the site is operational.
The Company expects full year trading to be in line with its
expectations, with a greater weighting in the second half of the
year than in the last financial year.
Revenue in the first half of the year, to 31 March 2016, is
expected to be broadly in line with last year. First half profits
are anticipated to be materially lower than the record period last
year, due to the impact of the previously described mixed market
conditions and costs associated with a more protracted move to
Fremont.
A good second half trading performance is expected to be driven
by orders for our fibre business, in particular high reliability
undersea fibre components, fibre based space satellite
communications and fibre optic sensing, a recovering
microelectronics sector and operational efficiencies.
Our continuous improvement programme is proceeding well.
Operationally the move to a lean manufacturing environment is set
to deliver efficiency savings in 2016 and the drive for fewer more
productive R&D projects combined with enhanced business
development support has started to deliver an increased number of
product opportunities.
The Company's next scheduled announcements are the post close
announcement for the six months ending 31 March 2016, which is due
for release on 5 April 2016 and the interim results announcement on
7 June 2016.
Mark Webster, Chief Executive Officer of Gooch & Housego,
commented:
"The Company remains committed to the twin pillars of our
strategy, namely diversification and moving up the value chain.
Current mixed market conditions have emphasised the value of having
a more diversified business where the strong performance of our
fibre business has allowed us to ameliorate some of the first half
impact and remain on course to meet our expectations for the full
year.
"We will continue to pursue this strategy and invest in our
continuous improvement programme prioritising further operational
excellence,enhanced business development in our key markets and a
more focused R&D portfolio; all of which will underpin our
future performance."
For further information
contact: -
Mark Webster / Andrew Gooch & Housego
Boteler PLC 01460 256440
Mark Court Buchanan 020 7466 5000
Patrick Robb / David Investec Bank
Anderson plc 020 7597 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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