TIDMGHH
RNS Number : 4379O
Gooch & Housego PLC
03 October 2023
3 October 2023
Gooch & Housego PLC
("G&H" or the "Company" or the "Group")
Full Year Trading Update
and
Notice of Results
" Trading ahead of expectations. Integration of the two recent
acquisitions progressing well"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of photonic components & systems, announces that trading in the
second half of the financial year has been strong, continuing the
positive trends reported in its interim results. Revenues for the
financial year have marginally exceeded market expectations.
Trading Update
Following the positive performance in the first half, the Group
is pleased to report that trading momentum was sustained during the
second half of the year.
In our Industrial markets volumes of our fibre and acousto optic
assemblies used in advanced lithography systems grew more than
offsetting the effects of some de-stocking by our customers in our
industrial laser markets. Demand for our hi reliability fibre
couplers used in subsea data cables has been stable and we expect
demand to increase in the new financial year as our customers' new
infrastructure projects are delivered.
In our A&D business we saw a number of fibre optic assembly
programmes transition into full scale production. In the second
half of the year, we made good progress on design and development
activities for a number of customers for our embedded imaging
periscope systems which has the potential to unlock significant
orders based upon forecast vehicle build rates. In the commercial
aerospace market there is sustained recovery in demand for our ring
laser gyro components and we are steadily adding capacity to meet
our customers' increased needs.
Revenues in the second half the year for our medical diagnostic
devices grew thanks to deliveries for new customer programmes
commencing. Our engineering team in Ashford is fully utilised
supporting our customers new instrument development and
qualification programmes.
In light of the positive trading performance in H2, enhanced by
the focused operational improvements and capability investment over
the last year, the Board expects the strong revenue performance to
translate into a full year adjusted pre-tax profit above the
current market expectations.
Acquisitions Update
The integration of GS Optics and Artemis into the G&H Group
is proceeding to plan. Our ITL US business, focused on medical
diagnostic devices, has now been relocated to GS Optics' facility
in Rochester, NY and our expansion programme at that site is
underway. We are adding new team members to our manufacturing and
engineering teams there to support our US Life Sciences expansion
plans as outlined in our new strategy.
The exploitation of commercial synergies between the newly
acquired Artemis business and the rest of the G&H Group is
already underway with a number of combined optical substrate and
coating offerings now available to customers.
Cash
Cash generation in the second half of the financial year has
been strong and allowing the Group to reduce its borrowing by $5.5m
from its level immediately following the completion of the two
acquisitions. Net debt (pre-IFRS 16) at the financial year end is,
therefore, expected to be slightly better than market
expectations.
Outlook
As at 30 September 2023 the Group's order book stood at
GBP124.9m (30 September 2022: GBP147.7 million and 31 March 2023:
GBP124.4m). Following the normalisation of the order book in the
first half of the financial year there was a small order book
decline in the second half of around 2.5% when measured on an
organic, constant currency basis. Whilst destocking in some parts
of our Industrial market is expected to impact in FY2024,
especially in the first half, our A&D and Life Sciences
revenues are both expected to grow. Around 75% of the order book is
for delivery in FY2024 and this provides a good underpin for
trading in the new financial year.
Notice of Results
The Company will announce its audited results for the year ended
30 September 2023 on 5 December 2023.
Charlie Peppiatt, Chief Executive Officer of Gooch and Housego,
commented:
"I am delighted with the positive progress the Group has made in
FY2023. Our operational performance has shown sustained improvement
with on time delivery and lead times both improving
significantly.
"The integration of GS Optics and Artemis into the G&H Group
is on track. Both businesses are already benefitting from the
additional market access and investment that being part of G&H
brings.
"The detailed activities supporting the delivery of our recently
announced strategic plan are now in place and support our budgeted
plans for FY2024."
For further information please contact:
Charlie Peppiatt, Chief Executive
Officer
Chris Jewell, Chief Financial Gooch & Housego +44 (0) 1460
Officer PLC 256440
Mark Court / Sophie Wills
/ Abigail Gilchrist +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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END
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