Half Year Trading Update

RNS Number : 5384J

Gooch & Housego PLC

08 April 2015

 



For immediate release

8 April 2015

Gooch & Housego PLC

("G&H" or the "Company")

Half Year Trading Update

"Trading slightly ahead of expectations"

Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of optical components & systems, today announces that trading in the six months ended 31 March 2015 was slightly ahead of management expectations.  Interim Results will be announced on 9 June 2015.

Following our AGM trading update released on 26 February 2015, the Company has performed well, in particular in the industrial sector, where demand has been strong for both solid state and fibre optic lasers and telecommunication systems. Underlying sales growth was higher than expected, driven by encouraging customer demand and in addition has been helped by the strength of the US Dollar compared with Sterling. The current order book is 5.8% higher than at the beginning of the financial year.

As we had previously reported G&H has now completed the closure of its Melbourne, Florida facility and the business has been successfully consolidated into its Palo Alto, California and Ilminster sites.  

The previously announced move of the Company's Palo Alto site to nearby Fremont, in order to provide improved facilities and room for further growth, remains on track to be completed by the end of the financial year.  The business in Palo Alto is currently building inventory reserves to satisfy expected customer requirements while the new facility is brought on line.

G&H has strengthened its financial position since 1 October 2014 and remains well positioned to make further investment in the business.

Mark Webster, Chief Executive Officer of Gooch & Housego commented:

"The Company has performed ahead of expectations in the first six months of the financial year against a background of generally improving market conditions and remains well placed for future growth. We remain focused on delivering our financial goals through our twin strategies of diversification and moving up the value chain. The new management team has put in place a performance improvement programme prioritising operational excellence, business development and R&D; it is progressing well and will help underpin future performance."  

For further information contact: -
Mark Webster / Andrew Boteler	Gooch & Housego PLC	01460 256440
Mark Court  / Gabriella Clinkard	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.

 

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