Gooch & Housego PLC Full Year Trading Update (9053C)
October 04 2018 - 1:00AM
UK Regulatory
TIDMGHH
RNS Number : 9053C
Gooch & Housego PLC
04 October 2018
For immediate release 4 October 2018
Gooch & Housego PLC
("G&H" or the "Company")
Full Year Trading Update
"Trading in line with management's expectations"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of optical components & systems, today announces that trading
for the year ended 30 September 2018 is expected to be in line with
management's previous guidance. The Company will announce its
results for the year ended 30 September 2018 on 27 November
2018.
During the financial year ended 30 September 2018, the business
has benefited from positive market conditions in the industrial
sector, in particular critical components used in microelectronic
manufacturing and, during H2, high reliability fibre couplers for
undersea cables. We have long been aware of the potential risks
associated with the cyclical nature of the microelectronics sector
and more recently with the impact of US/ China tariff changes. Our
long standing response is to continue to manage these risks by
diversifying our business and moving up the value chain. One third
of our business is now in the Aerospace and Defence sector.
In August and September 2018 we acquired VITL Ltd ("ITL") and
Gould Fiber Optics ("GFO") respectively. ITL is a UK based
specialist in the design, development and manufacture of high
quality medical devices. It enables G&H to double its life
science business and move up the value chain, as all of ITL's sales
come from system based products. GFO is a US based market leading
supplier of key enabling components to tier 1 US Aerospace and
Defence customers. It provides a platform for G&H to access
business that has been largely denied to the Company, due to
International Trade in Arms (ITAR) regulations. Both acquisitions
are very recent but, to date, we are pleased with their integration
and contribution.
In September 2018 we shut down our Orlando, Florida, light
measurement business. Most of the trade and assets of the business
have been sold. It is a non-core business and in the recent past
has delivered marginal returns. This business made a small loss in
FY 2018 and its disposal will have limited impact on future
earnings.
G&H has entered its new financial year with a record year
end order book, which, as at 30 September 2018, stood at GBP96.1
million, an increase of 33% compared with the same time last year.
Excluding the impact of foreign exchange and
acquisitions/disposals, this represents an increase of 17% on the
year end order book last year.
The Company remains in a strong financial position, which will
allow us to make further investments in the business.
Mark Webster, Chief Executive Officer of Gooch & Housego,
commented:
"G&H has had another good financial year. We have been able
to take advantage of positive market conditions and execute on our
long term strategy.
"Our strong performance has enabled us to continue to invest in
manufacturing capacity and R&D and to bring complementary new
technologies and customers into G&H through acquisitions.
"While we remain aware of potential macroeconomic and political
risks, our robust order book combined with greater diversification
means the Board remains confident that the Group is well positioned
for further growth."
For further information
contact: -
Gooch & Housego
Mark Webster / Andrew Boteler PLC 01460 256440
Mark Court / Sophie Wills Buchanan 020 7466 5000
Patrick Robb / 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
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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