Gooch & Housego PLC Full Year Trading Update and Results Notification (9038O)
October 07 2019 - 2:00AM
UK Regulatory
TIDMGHH
RNS Number : 9038O
Gooch & Housego PLC
07 October 2019
For immediate release 7 October 2019
Gooch & Housego PLC
("G&H" or the "Company")
Full Year Trading Update
"Trading in line"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of optical components & systems, announces that trading for the
year ended 30 September 2019 is expected to be in line with
management's previous expectations. The Company will announce its
results for the year ended 30 September 2019 on 3 December
2019.
Trading during the financial year ended 30 September 2019
reflected trends we have previously reported. There has been a
downturn in demand for critical components used in industrial
lasers for microelectronic and semiconductor manufacturing,
particularly from China. In contrast demand for fibre optic
products, hi-reliability fibre couplers used in undersea networks
and our life science products are at record levels.
As previously stated, G&H has long been aware of the risks
associated with cyclical downturn in microelectronic and semi
conductor manufacturing and more recently the impact of the US/
China trade dispute. G&H believes that technological innovation
in end market applications, such as 5G and the introduction of new
manufacturing techniques, combined with our market leading position
will ultimately drive improved demand for our industrial laser
products.
Our fibre optics business has performed strongly. In particular
hi-reliability fibre couplers are experiencing a multi-year growth
phase and we have invested accordingly to take advantage of our
market leading position in this area.
Our life sciences business has now established itself as a
substantial sector within G&H. This has been driven by growth
in our existing life science market areas, strongly supported by
the addition of ITL, which has performed ahead of expectations
since its acquisition in August 2018.
G&H has entered its new financial year with a good order
book which, at 30th September 2019, stood at GBP94.4 million (30
September 2018: GBP96.1 million), 1.8% lower compared with the same
time last year, or a reduction of 5.1% excluding the impact of
foreign exchange. The order book reflects strong demand for fibre
optics, hi-reliability fibre couplers and our A&D and life
sciences capabilities, whilst industrial laser demand is yet to
recover to more normalised levels.
The Company remains in a strong financial position, which will
allow us to make further investments in our business.
Mark Webster, Chief Executive Officer of Gooch & Housego,
commented:
"Trading for the year ended 30 September 2019 reflects trends we
have previously reported. G&H has long been aware of the risks
associated with the cyclical nature of the microelectronics and
semiconductor sector and more recently with the impact of the US /
China trade dispute.
"Recent contract wins in our US A&D sector and the ongoing
strength of fibre optics, hi- reliability fibre couplers and life
science orders contrast with industrial laser demand which is still
yet to recover to more normalised levels.
"Technological innovation in industrial laser end markets, such
as 5G and new manufacturing techniques, combined with our market
leading position means that we believe the industrial laser market
sector will continue to provide attractive long term growth
opportunities for the Company.
"G&H is committed to its twin strategic pillars of further
diversification and moving up the value chain. We will continue to
invest in R&D, leverage the benefits of ITL's system based
capabilities across the group and where appropriate make
acquisitions in order to support these strategic objectives."
Results notification and analyst meeting
Gooch & Housego's preliminary results for the year ended 30
September 2019 will be announced on Tuesday 3 December 2019. A
meeting for analysts will be held at 9.30 am on the day of the
results at the offices of Buchanan, 107 Cheapside, London EC2V
6DN.
For further information
contact: -
Gooch & Housego
Mark Webster / Chris Jewell 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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