Gooch & Housego PLC Streamlining of Manufacturing (7659E)
March 03 2020 - 2:00AM
UK Regulatory
TIDMGHH
RNS Number : 7659E
Gooch & Housego PLC
03 March 2020
For immediate release 3 March 2020
Gooch & Housego PLC
("G&H" or the "Group")
Streamlining of Acousto Optic and Precision Optic
Manufacturing
"Consolidation of resource enhances our ability to deliver cost
competitive products"
Gooch & Housego PLC (AIM:GHH), the specialist manufacturer
of optical components and systems, announces that as part of its
ongoing performance improvement programme it plans to streamline
its Acousto Optic (AO) and Precision Optic (PO) manufacturing.
Under current plans an AO hub would be created at our Fremont,
California site, which would combine the AO capabilities of our
Fremont and Ilminster facilities. Fremont would assume
responsibility as the global AO design authority and lead the
Group's AO technological roadmap.
In support of this approach we are actively exploring
outsourcing AO manufacturing with established contract
manufacturers who have facilities in South East Asia. They would
manufacture a significant portion of the Group's AO Q-switches and
other critical industrial laser components, which are currently
manufactured at Ilminster and Fremont. These plans will enable us
to consolidate design, engineering and R&D resources and to
continue to provide high quality, cost competitive products to the
industrial laser market.
Our PO business has strong future growth potential from
components and sub-assemblies, selling into A&D and
semiconductor markets. In order to fully exploit these
opportunities it is important we aspire to lead in terms of cost,
quality and delivery performance. We are therefore planning on
establishing a single UK PO hub at our Ilminster facility fashioned
from our two current PO sites at Ilminster and Glenrothes. As part
of this plan we would transfer Glenrothes PO manufacturing
resources and capabilities into Ilminster and the Glenrothes site
will be closed.
The above mentioned transfer programmes are expected to be
completed during the second half of FY2021.The total investment is
expected to be c. GBP5 million across FY2020 and FY2021 and the one
off income statement impact will be excluded from adjusted profit
before tax. Savings are expected to build over time, with the aim
of achieving a positive benefit in the second half of FY2021 and an
annualised benefit of c. GBP1.25 million by FY2022.
Mark Webster, Chief Executive Officer of Gooch & Housego,
commented:
" The streamlining of our AO and PO manufacturing is part of an
ongoing programme of performance improvement that will enable the
Group to continue to provide high quality, cost competitive
products to the industrial laser and A&D sectors.
" These plans will enable us to consolidate resources and
enhance our ability to deliver cost competitive products to our
target markets. By creating hubs which would manage the day to day
design, engineering and manufacturing for AO and PO we would be
able to better focus on our customers' emerging product needs and
provide them with market leading levels of quality and delivery
performance."
For further information
contact: -
Gooch & Housego
Mark Webster/Chris Jewell PLC 01460 256440
Mark Court /Charlotte Slater Buchanan 020 7466 5000
Chris Baird/ 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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