Gooch & Housego PLC Half Year Trading Update (5047V)
09 April 2019 - 4:00PM
UK Regulatory
TIDMGHH
RNS Number : 5047V
Gooch & Housego PLC
09 April 2019
For immediate release 9 April 2019
Gooch & Housego PLC
("G&H" or the "Company")
Half Year Trading Update
"Trading in line"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of photonic components & systems, announces that trading in the
six months to 31 March 2019 was in line with management's
expectations.
Current trading and outlook
Trading in the last six months has reflected trends we have
previously reported. The business has seen a downturn in demand for
critical components used in industrial lasers for microelectronic
manufacturing, particularly from China. In contrast demand for
fibre optic products and hi- reliability fibre couplers used in
undersea networks is strong.
As previously stated, G&H has long been aware of the
potential risks associated with the cyclical nature of the
microelectronics sector and more recently the impact of the
US/China trade tariffs. We continue to expect the industrial laser
market to pick up during the second half of the financial year.
G&H believes that hi- reliability fibre couplers are about
to experience a multi year growth phase. As a result we are
investing in further capacity to take advantage of our market
leading position in this area. The benefits of the first phase of
this growth should become apparent in the second half of the
current financial year.
Management continues to expect full year trading to be in line
with the guidance given in our trading update dated 20 February
2019, including a significant second half weighting.
At 31 March 2019 we had a strong order book of GBP93.2 million
(31 March 2018: GBP84.7 million).
Financial strength
The Company remains in a strong financial position, which will
allow us to continue to make further investments in the business in
keeping with our strategic objectives.
The Company's Interim Results, for the six months ended 31 March
2019, are expected to be announced on Tuesday 4 June 2019.
A Capital Markets event for institutional investors and analysts
is being hosted this afternoon in London and will focus on
technology and the markets we serve. No new material information
will be disclosed. The presentations from the event will be
available on the investors section of Company's website at the
close of business today.
Mark Webster, Chief Executive Officer of Gooch & Housego,
commented:
"G&H has long been aware of the risks associated with the
cyclical nature of the electronics sector and more recently the
impact of the US/ China trade tariffs. During the first six months
we experienced a cyclical downturn in demand for industrial lasers
used in microelectronic manufacturing, though we expect demand to
pick up during the second half of the financial year.
"Our fibre optics business is performing well and we are
investing in further capacity to take advantage of the strong
growth in demand for hi- reliability fibre couplers.
'We remain confident in the potential of the industrial laser
sector and our other markets to provide attractive long term
growth.
"G&H is committed to further diversification and moving up
the value chain. We will continue to invest in R&D and where
appropriate make acquisitions in order to meet these strategic
objectives."
For further information contact:
-
Gooch & Housego
Mark Webster / Andrew Boteler PLC 01460 256440
Mark Court / Sophie Wills
/ Catriona Flint Buchanan 020 7466 5000
Investec Bank
Patrick Robb / David 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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