Gooch & Housego PLC Full Year Trading Update (9754N)
05 October 2021 - 5:00PM
UK Regulatory
TIDMGHH
RNS Number : 9754N
Gooch & Housego PLC
05 October 2021
For immediate release 5 October 2021
Gooch & Housego PLC
("G&H" or the "Company")
Full Year Trading Update
" Trading slightly ahead of expectations"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of photonic components & systems, announces that profits for
the year ended 30 September 2021 are slightly ahead of management's
previous expectations. The Company will announce its results for
the year ended 30 September 2021 on 30 November 2021.
Trading
The Group's trading performance in the second half of the
financial year has been good thanks to further strengthening in end
market demand, despite currency headwinds and some supply chain
constraints.
Industrial laser demand continues to be strong, in particular
the semiconductor market where we have a range of growth
opportunities. Life science markets are performing well. Demand for
our medical diagnostics remains at previous high levels and orders
for our specialist medical laser products have been strong as this
market recovers from the low levels of elective surgery during the
pandemic. We completed a number of significant deliveries to our
aerospace and defence customers, though we do not expect commercial
aerospace volumes to recover until 2023.
The streamlining of the Group's manufacturing facilities is
progressing well. At the beginning of FY2021 we had 12
manufacturing sites and we now have 9. We have moved our Baltimore,
Maryland production to our Boston site creating a single US fibre
optic facility. In the UK we have moved our Glenrothes, Scotland
and St Asaph, Wales production into Ilminster, Somerset, creating a
UK precision optics hub. Our world leading optical systems
engineering team has been relocated to an innovation hub in St
Asaph and they remain focused on target development projects.
Outsourcing of our Ilminster acousto optic production to a South
East Asian manufacturer is well advanced and the final product
transfers are expected to be complete over the next few months.
G&H's strong revenue performance in the second half of the
financial year together with the benefits of our streamlining
programme mean that Group profits are expected to be slightly ahead
of management's previous expectations.
The Group delivered strong operating cashflow through the second
half of the financial year and has further reduced its level of
borrowings.
Outlook
G&H has entered its new financial year with a robust order
book. As at 30 September 2021 it stood at GBP97.8 million (30
September 2020: GBP92.4 million), 5.6% higher than same period
previous year, or 8.4% on a constant currency basis. The strength
of the order book provides the Group with good momentum as its
enters the new financial year. Industrial and medical lasers are
demonstrating sustained recovery, while telecommunications and life
sciences continue to perform well.
The streamlining of our manufacturing sites is on track to
deliver the previously announced full year profit improvements.
We have an active development portfolio, targeted at our key
growth sectors and we are working closely with many of our
customers on their next generation products. There remains
susbstantial long term growth potential for our photonic
technologies and system capabilities in all of our target sectors.
G&H is well placed to execute on acquisitions that support our
strategy.
Mark Webster, Chief Executive Officer of Gooch and Housego,
commented:
"Trading in the second half was strong, reflecting the sustained
recovery in industrial and medical lasers and the robust
performance of telecommunications and life sciences. Our ambitious
programme to streamline our manufacturing sites is on track to
deliver the previously announced full year profit improvements.
"There has been some 'drag' on performance due to currency
headwinds, self isolation and supply chain issues. It is though a
far better business environment than last year and we believe these
factors will improve over time.
"We intend to vigoursly pursue our long term strategic goals of
diversification and moving up the value chain, through internal
investment and where appropriate, acquisitions."
For further information
contact: -
Gooch & Housego
Mark Webster/Chris Jewell PLC 01460 256440
Mark Court/Sophie Wills Buchanan 020 7466 5000
Chris Baird/David Anderson Investec Bank 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,Europe and China. 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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