REG - Gooch & Housego PLC - Full Year Trading Update

Gooch & HousegoAnnouncement

Tue 07:00

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RNS Number : 2811C  Gooch & Housego PLC  07 October 2025

 

     7 October 2025

 

Gooch & Housego PLC

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

 

Full Year Trading Update

and

Notice of Results

 

Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of photonic
components and systems, announces its trading update for the financial year
ended 30 September 2025.

 

Trading Update

 

Following the positive performance in the first half, the Group is pleased to
report that trading momentum was sustained during the second half of the
financial year ended 30 September 2025, despite continuing challenges from the
global macroeconomic environment.

 

Industrial revenues for fibre optic couplers and modules used in subsea data
networks grew, offsetting the broadly flat sales from our industrial laser
customers. Whilst there are early signs of a recovery in demand from the
semiconductor market, we continue to closely monitor the short-term
uncertainty in our industrial markets created by ongoing macroeconomic and
geopolitical challenges. Encouragingly, the medium-term underlying demand
drivers remain positive for our industrial products, and customer activity
increased towards the end of the financial year. We are well positioned to
benefit from the recovery in these markets.

 

Life Sciences revenues in the second half of the financial year benefited from
customer phasing of several medical diagnostic device programmes that are
manufactured in Ashford, Kent. We have seen a positive response to the 'last
time buy' notice for our Pockels Cells going into medical lasers, which will
be delivered over the coming financial year, at which point our Cleveland,
Ohio, facility will transition to further develop its capacity for the growth
of crystals used both within our Group and by external customers for optical
applications.

 

Aerospace & Defence saw further revenue growth in the second half
underpinned by strong demand for our precision optics and advanced sighting
and imaging systems in military platforms. Demand for our ring laser gyro
components in the commercial aerospace sector also remains strong and we
continue to benefit from operational improvements, together with additional
capacity that we have added over the last couple of years.

 

Due to the positive trading performance in the year, enhanced by focused
operational improvements, proactive handling of supply chain disruptions,
investment to further enhance capability and the capitalisation of overheads
in inventory, the Board expects to announce full year revenues and adjusted
profit before tax broadly in line with its expectations, before moderately
higher non-underlying costs of recent acquisitions and restructuring
activities.

 

Integration of Acquisitions

 

The integration of Phoenix Optical and Global Photonics into G&H, both of
which were acquired during the year, is proceeding to plan. The exploitation
of operational and commercial synergies between Phoenix and the rest of the
Group is already well underway with the main focus on germanium fabrication,
and a number of newly combined optical substrate and coating offerings are now
available to customers.

 

Global Photonics brings expertise in cleanroom lithography, photolithographic
reticle fabrication, ion beam etching and advanced thin film coatings that is
hugely complementary to G&H's existing manufacturing capabilities. This,
along with the significant available space at the new Tampa facility, will
help scale the Group's offering into North America to meet the growing demand
from US defence prime contractors, particularly for laser protection
filtering, periscopes and complex optical systems.

 

Both transactions represent 'speed to value' acquisitions for G&H focused
on addressing the growing opportunities in the Aerospace & Defence sector
and have been well received by customers with a number of exciting new
potential orders being pursued.

Cash/Debt

The Group remains in a strong financial position with a robust balance sheet.
Net bank debt excluding IFRS 16 at 30 September 2025 was £30.0m (31 March
2025: £24.1m; 30 September 2024: £16.0m), reflecting good operational
cashflow before non-underlying items, investment in inventory and the
acquisitions of Phoenix Optical and Global Photonics.

 

 

Outlook

 

The Group's order book continues to grow and at 30 September 2025 was £142.3m
(31 March 2025: £121.5m; 30 September 2024: £104.5m). Over 80% of the order
book is for delivery in FY26, which underpins increased trading in the new
financial year including the full year impact of recent acquisitions,
partially offset by an increase in overheads.

 

We are seeing strong demand in the Aerospace & Defence business across the
UK, USA and Europe. Whilst short-term demand outlook in our Industrial and
Life Sciences markets remains subdued with the exact timing of recovery
unpredictable due to supply chain uncertainty and tariff challenges, we still
expect the semiconductor market to start to grow modestly during the
medium-term, where photonics is a key enabler of cutting-edge technologies.

Notice of Full Year Results

The Group expects to announce its full year results for the year ended 30
September 2025 on 2 December 2025.

Charlie Peppiatt, Chief Executive Officer of G&H, commented:

"I am delighted with the positive progress the Group has made in FY25. Our
operational performance has shown sustained improvement and resilience in the
face of a complex and uncertain macroeconomic background, with unprecedented
supply chain and tariff challenges. This is a testament to the positive
progress the Group is making with the deployment of our strategy and the
quality of our workforce.

"The integration of both Phoenix and Global Photonics into G&H is
proceeding to plan. Both businesses are an excellent strategic and operational
fit for the Group. In particular, Global Photonics, acquired in May 2025,
brings strong relationships with U.S. defence primes and complementary
manufacturing capabilities to our growing Optical Systems division in North
America. Both acquisitions are accelerators to G&H becoming a partner of
choice for high-precision optical systems and photonics in the UK, US and
Europe.

"With our growing order book, strengthening market positions and
differentiated photonics expertise aligned to structural growth drivers from
megatrends, we are increasingly confident in the prospects of the company to
deliver our strategy in the medium term."

For further information please contact:

 

 Charlie Peppiatt, Chief Executive Officer                  Gooch & Housego plc      +44 (0) 1460 256440

 Martin Hopcroft, Interim Chief Financial Officer

 Mark Court / Sophie Wills / Abigail Gilchrist              Burson Buchanan          +44 (0) 20 7466 5000

 G&H@buchanan.uk.com (mailto:G&H@buchanan.uk.com)

 Christopher Baird / David Anderson                         Investec Bank plc        +44 (0) 20 7597 5970

 

 

Notes to editors

 

1.     Gooch & Housego is a photonics technology business
headquartered in Ilminster, Somerset, UK with operations in the UK, USA and
Europe. 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 based
upon unaudited management accounts and excludes any exceptional 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.

 

3.     Adjusted profit before tax excludes the amortisation of acquired
intangible assets, impairment of goodwill and acquired intangible assets,
non-underlying items being site closure costs, costs of acquisitions, and
restructuring costs, together with the related tax impact.

 

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