TIDMGHH
RNS Number : 7412X
Gooch & Housego PLC
02 September 2020
For immediate release 2 September 2020
Gooch & Housego PLC
("G&H" or the "Company")
Trading Update
"Trading in line with expectations"
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of photonic components & systems, provides an update for the 10
months ended 31 July 2020. Overall, trading remains in line with
management's expectations for the full year ending 30 September
2020.
Trading
The Group's manufacturing locations in the UK, USA and China are
now fully open, thanks to measures that were quickly and
efficiently put in place by our site teams, minimising the
disruption of the COVID-19 pandemic for our customers whilst
keeping our employees safe. Most recently, our Torquay site in the
UK has returned to full capacity.
Trading levels in June and July reflected the recovery in the
Company's manufacturing capacity and some of our larger customers'
manufacturing sites reopening.
Orders for fibre optics, hi- reliability fibre couplers for
undersea cables and our A&D and life science capabilities
remain robust. There continues to be improved demand for medical
diagnostics, in particular for ventilator systems. As previously
communicated, industrial laser demand remains at below "normalised"
levels, although the semiconductor subsector has demonstrated
sustained improvement.
The previously announced cost control measures have been
implemented and will support the Group's profitability in H2 FY '20
and beyond.
Priorities in the COVID-19 emergency
Our primary concern during the emergency is the health and
safety of our staff, customers and suppliers. Extensive measures
have been put in place at all of our sites to ensure we rigorously
meet social distancing and cleanliness requirements and all other
relevant guidelines and regulations.
Financial strength
The Company remains in a good financial position with a strong
balance sheet and liquidity levels that have continued to improve
during the period. Total headroom increased to GBP28.1 million;
this included a $10 million extension to the Group's revolving
credit facility taking the total to $50 million, as announced in
April 2020.
Outlook
There remains significant global economic uncertainty due to the
COVID-19 emergency in the short term. That said, our
telecommunications, A&D and life sciences businesses have held
up well during the period, though the timing and pace of the
industrial laser market recovery remains difficult to predict.
Improved industrial laser demand will be driven by technical
innovation such as 5G and new laser based manufacturing techniques.
There remains substantial long term growth potential for our
photonic technologies and system capabilities in all of our target
sectors.
The streamlining of our manufacturing sites is on schedule and
will deliver the profit improvements previously announced.
Mark Webster, Chief Executive Officer of Gooch and Housego,
commented:
"We are proud of the way that our staff and management have
responded to the COVID-19 emergency. All of our sites in the UK,
USA and China are now open and fully compliant with all relevant
health and safety requirements. This has been achieved, quickly,
efficiently and most importantly, safely.
"While there remains considerable short term economic
uncertainty our order book remains robust, the Company's balance
sheet has strengthened during the period and we have continued to
invest in our high priority R&D targets.
"The COVID-19 emergency has validated G&H's long term
strategy of diversification and moving up the value chain. We will
continue to pursue this policy through internal investment and
where appropriate, acquisitions."
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.
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