REG - Gooch & Housego PLC - Interim Results
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RNS Number : 5488G Gooch & Housego PLC 02 June 2026
2 June 2026
GOOCH & HOUSEGO PLC
("G&H", the "Company" or the "Group")
Interim Results
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of optical
components and systems, today announces its interim results for the six months
ended 31 March 2026 ('H1 2026' or the 'Period').
Key Financials
Period ended 31 March H1 2026 H1 2025 Change
Revenue £81.9m £70.9m +15.5%
Adjusted profit before tax* £5.8m £5.1m +13.9%
Adjusted basic earnings per share* 16.4p 15.0p +9.3%
Net debt excluding IFRS 16 £36.6m £24.1m +£12.5m
Net debt including IFRS 16 £49.8m £35.5m +£14.3m
Statutory profit before tax £3.3m £2.9m +15.8%
Statutory basic earnings per share 9.2p 8.1p +13.6%
Interim dividend per share 4.9p 4.9p -
*Adjusted for amortisation of acquired intangible assets and non-recurring
items.
Key Highlights
§ Revenue increased by 15.5% to £81.9m, or 9.1% on an organic, constant
currency basis.
§ Aerospace & Defence revenue increased by 51.7% to £35.6m (H1 2025:
£23.5m), reflecting strong demand, enhanced capabilities and benefits from
recent acquisitions.
§ Adjusted operating profit increased by 16.9% to £7.2m, with operating
profit margins improving slightly to 8.8% (H1 2025: 8.7%).
§ A&D segment profitability significantly improved to £3.6m,
demonstrating the benefits of the Group's strategic focus and operational
improvement programme.
§ Order book increased to record £167.3m (Sept 2025: £142.4m), up 16.5% on
a constant currency basis, providing near full cover for expected FY2026
revenue.
§ Net debt leverage at 1.5x (Sept 2025: 1.3x). Committed debt facility
increased to $70m.
§ Phoenix Optical and Global Photonics integration now largely complete, with
capacity expanded supporting customer demand.
§ FY2026 expectations unchanged; Board remains confident in further
profitable growth and progress towards mid-teens returns over the medium-term.
Charlie Peppiatt, Chief Executive Officer of Gooch & Housego, commented:
"I am pleased with the positive progress that G&H has made in the first
half of the financial year. The record order book growth in the period
demonstrates the increased confidence our customers have in G&H to provide
them with their most complex photonics and optical systems requirements. This
enlarged order book gives us stronger forward visibility than we have had
historically and reflects the benefits of our strengthened positions in
structurally attractive end-markets. We remain focused on converting this
demand through disciplined capacity expansion, improved operational execution
and continued supply-chain resilience. The strategic actions taken over the
last few years, including important speed-to-value acquisitions, have started
to translate into improved financial and operational performance, and the
Group is well-positioned to meet this increased demand.
"While we continue to navigate the significant macroeconomic uncertainties,
the recovery in our Industrial and Semiconductor markets, coupled with record
demand from US and European Aerospace and Defence sectors, firmly supports our
path to achieving mid-teens returns over the medium term."
Analyst meeting
A meeting for analysts will be held at 9.30 a.m. today at the offices of
Burson Buchanan, Rose Court, 2 Southwark Bridge Road, London SE1 9HS. To
register attendance, please contact Burson Buchanan at:
G&H@buchanan.uk.com (mailto:G&H@buchanan.uk.com) .
An audiocast of the presentation will be made available via the Group's
website at 9.30am today https://gandh.com/investors/
(https://gandh.com/investors/) .
For further information please contact:
Gooch and Housego PLC
Charlie Peppiatt, Chief Executive Officer Tel: +44 (0) 1460 256 440
James Corte, Chief Financial Officer www.gandh.com (http://www.gandh.com)
Burson Buchanan (Financial Communications)
Henry Harrison-Topham / Sophie Wills / Abby Gilchrist Tel: +44 (0) 20 7466 5000
G&H@buchanan.uk.com (mailto:G&H@buchanan.uk.com)
Investec Bank plc (NOMAD and Broker)
Chris Baird / Charles Craven / Carlton Nelson Tel: +44 (0) 20 7597 5970
Notes to editors:
Gooch & Housego is a photonics technology business 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 and Defence, Industrial and
Telecom, and Life Sciences sectors. World-leading design, development and
manufacturing expertise is offered across a broad range of complementary
technologies. It is headquartered in Ilminster, Somerset, UK. For more
information please visit www.gandh.com (http://www.gandh.com) .
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.
Operating and Financial Review
Performance Overview
The Group's revenue for the period totalled £81.9m (H1 2025: £70.9m)
representing 15.5% growth over the prior year comparator period, or 9.1% on an
organic, constant currency basis. Demand from the Group's Aerospace &
Defence ('A&D') market has remained strong and continues to grow. Revenue
from the Group's industrial laser and semiconductor markets also improved with
encouraging signs that the recovery in semiconductors is now underway.
Revenue in the Group's Industrial segment was broadly flat on prior year or
4.6% higher on an organic, constant currency basis. We saw some improvement in
our industrial laser and semiconductor markets in the period. Encouragingly,
order intake across this sector has increased significantly and demand from
our subsea data cable market remains strong.
Revenue into the Group's A&D markets grew by 51.7% or 26.0% on an organic,
constant currency basis, helped by our refocused go-to-market strategy
combined with the commercial synergy benefits arising from recent acquisitions
of Global Photonics and Phoenix Optical. Operational improvements and our
enhanced germanium processing capabilities drove margin improvement, and, for
the first time, this sector was a major contributor to the Group's
profitability in H1 2026.
Revenue in the Group's Life Sciences segment was down by 7.7% or 5.8% on an
organic, constant currency basis. We saw continued disruption to our Pockels
Cells production from materials availability particularly in the first
quarter. Production increased in the second quarter as we qualified
alternative materials suppliers and is expected to continue to ramp up in the
second half. Revenues from our medical diagnostics products were lower due to
phasing of customer demand and are expected to improve throughout H2 2026.
Overall, due to the volume growth and the benefits of our operational
efficiency and supply chain actions, underlying operating profit increased by
16.9% to £7.2m (H1 2025: £6.2m). This represents a return on sales of 8.8%
(H1 2025: 8.7%).
The integration of the Phoenix Optical and Global Photonics businesses is now
largely complete and the enhanced offering the Group now provides has been key
in helping secure new orders from defence customers in the US, UK and Europe.
The Group's order book increased to £167.3 million (30 September 2025:
£142.4 million). The growth on an organic constant currency basis was 16.5%.
The level of enquiries for the Group's products and services remains high,
especially in defence, from both existing and new customers.
Order book growth was not limited to one end-market. Aerospace & Defence
remained particularly strong, supported by customer demand for advanced
optical systems and regional supply assurance. Industrial order intake also
improved, aligned to the recovery in semiconductor-related markets, while Life
Sciences performance remained affected by customer phasing and legacy product
transition activity.
The geopolitical and macroeconomic background remains volatile with fluid
tariff policies, retaliatory measures and continued unrest in Ukraine and the
Middle East. G&H's direct exposure to those countries that have been
subjected to the current most significant tariff increases on imports to the
US is limited, but we remain vigilant to the more general market instability,
potential for order delays and inflationary impacts of increasing global
tariffs. We have been able to re-source our supply of certain key raw
materials where availability has been restricted and continue to hold higher
stock levels. We are passing on cost base increases arising from these
developments through higher pricing where possible. The Group has also
continued to strengthen its position in germanium-related products, which are
important to a number of Aerospace & Defence and Semiconductor
applications. While raw material availability remains variable, actions taken
to optimise sourcing and increase resilience have improved the Group's ability
to support customer demand.
Revenue
Six months ended 31 March 2026 2025
From continuing operations £'M £'M % Change
Industrial 30.3 30.1 0.7%
Aerospace & Defence 35.6 23.5 51.7%
Life Sciences 16.0 17.3 (7.7%)
Group Revenue 81.9 70.9 15.5%
Products and Markets - Industrial
Gooch & Housego's principal industrial markets are industrial lasers,
telecommunications, sensing and semiconductor manufacturing. Industrial lasers
are used in a diverse range of high precision material processing applications
ranging from microelectronics and semiconductors to automotive manufacturing.
Overall, sales of products by the Group into our industrial markets in the six
months ended 31 March 2026 increased by 0.7%, or 4.6% when measured on an
organic, constant currency basis, compared with the equivalent period last
year. The semiconductor market is now showing strengthening signs of a
recovery and we are seeing increased order intake from the semiconductor
processing, sensing and advanced microelectronics markets. The scale and
phasing of this recovery remains under review, but the improvement in order
activity provides greater confidence in the medium-term outlook for the
segment.
Adjusted operating profit was slightly ahead of the prior year at £3.8m, and
the adjusted return on sales percentage was 12.7% (H1 2025: 12.6%).
Products and Markets - Aerospace & Defence ('A&D')
In A&D the Group continues to strengthen and grow well-established
positions in periscopes and sighting systems, target designation and range
finding, ring laser gyroscope navigational systems, advanced opto-mechanical
subsystems and space-based optical communications. The Group is also seeing
increasing involvement in laser directed energy weapon ('LDEW') programmes,
where our precision optical and subsystem capabilities are supporting the
development of next generation defensive technologies for allied naval and
land-based defence applications.
Demand across the sector remains strong as key allied nations continue to
prioritise the enhancement of defensive capabilities in response to the
evolving global security environment. This has resulted in increased demand
for the Group's infrared lens systems and optical assemblies for
counter-unmanned aerial systems ('C-UAS'), short-range air defence ('SHORAD'),
near-Earth orbit and naval applications, areas where our precision optical
expertise and vertically integrated manufacturing capabilities provide a
differentiated offering.
The continued recovery and production ramp within the commercial aviation
market is also driving increased demand for the Group's ring laser gyroscope
('RLG') products, with customers seeking reliable supply partners capable of
supporting higher build rates and long-term programme requirements.
Operational improvements across the Group's precision optics facilities have
enabled increased throughput and enhanced production efficiency to support
this growing demand.
The defence focused investments made through the acquisitions of Artemis
Optical, Phoenix Optical Technologies and Global Photonics (Meopta US)
combined with our existing enhanced capabilities have further strengthened the
Group's defence market position and demonstrated our commitment to expanding
manufacturing capacity and technical capability across multiple regions.
Aligned to the Group's strategy launched in June 2023, these acquisitions have
enhanced our ability to provide customers with a broader integrated optical
solutions offering whilst also supporting increasingly regionalised supply
chain requirements of allied nations. G&H now has manufacturing and
technical capability aligned to UK and European customer requirements as well
as dedicated US-based capability supporting North America's growing demand.
The combination of these businesses with the Group's existing capabilities
continues to support new customer opportunities and reinforces our position as
a strategic supplier within the A&D market. Customers are increasingly
prioritising security of supply, regional manufacturing capability and
vertically integrated optical fabrication, areas where G&H's strengthened
UK, European and US footprint provides a differentiated proposition.
Group revenue into the A&D market grew by 51.7%, or 26.0% on an organic
constant currency basis compared with the first half of FY 2025. Additional
volumes in this segment together with our operational efficiency improvements
resulted in the segment generating an adjusted operating profit in the period
of £3.6m (H1 2025: £0.6m).
Products and Markets - Life Sciences
G&H has established itself as a trusted supplier in the Life Sciences
market, delivering advanced optical components that enhance the performance
and reliability of life science instruments. Our contributions span
applications such as microscopy, medical diagnostics, biomedical imaging, and
laser surgery, where our reputation as a leading provider of advanced optics,
fibre optics, acousto-optics, and electro-optics is well recognised globally.
Revenues from our medical diagnostic markets reduced compared with the first
half of FY2025. This was principally due to customer demand phasing, with
certain customers having procured systems from G&H in FY2025 and moved
into installation and qualification phases during H1 of FY2026. A number of
customer programmes also remain in clinical trial and regulatory approval
phases, with volume production now expected to contribute from FY2027.
As reported in G&H's 2025 Annual Report, the Group has made the decision
to end-of-life the majority of its Pockels Cells product lines for the medical
lasers market. Last-time-buy activity created elevated short-term demand in
these products during the period, which coincided with material supply
constraints and production yield challenges at the Group's Cleveland facility.
Management has taken action to qualify alternative material sources and
improve in-house production performance. Production increased through the
second quarter and is expected to continue to recover in the second half.
While these factors affected margins in H1 2026, the Board expects Life
Sciences margins to improve as production normalises and customer demand
strengthens.
Revenue from the Group's Life Sciences market reduced by 7.7% or 5.8% on an
organic, constant currency basis in H1 2026, compared with H1 2025. The
reduction in revenue combined with the production and supply chain challenges
outlined above, meant that operating profit returns in this segment declined
to 4.6% (H1 2025: 12.0%).
Strategy
G&H's strategy to become an 'innovative customer focused technology
company' delivered responsibly by making a 'better world with photonics',
continues to progress positively and we are now seeing the benefits of having
refocused the whole business on delivering sustainable margin growth in the
medium term. The successful execution of this value creation strategy will
ensure that G&H remains the 'first choice' for all our stakeholders
whether that's for our employees, our customers, our shareholders, our
eco-system partners or the communities in which we operate. We will offer
differentiated performance through four key strategic priorities.
Key Strategic Priorities:
The first-half performance provides clear evidence of progress against the
Group's strategy: stronger exposure to structurally growing A&D markets,
improved operational execution, enhanced regional manufacturing capability,
increased supply-chain resilience, active capacity and efficiency
improvements, and a higher-quality order book.
Financial Review
Group revenue grew by 15.5% or 9.1% on an organic, constant currency basis.
Operating margins progressed slightly to 8.8% from 8.7% in H1 2026, reflecting
the benefits of additional volume and the delivery of the strategic actions we
are implementing, which were partially offset by the impact of certain supply
chain and production challenges particularly in our Life Sciences business.
The Group's spend on R&D totalled £3.9m, up 10.6% on the first half of FY
2025 (H1 2025: £3.5m). We continue to focus on our six vital few R&D
workstreams and progress in these areas has been positive. We have invested in
engineering resource where necessary and continue to expect these projects to
generate in excess of £50m of margin-accretive revenue in the medium term.
The growth in the Group's overheads to £13.0m (H1 2025: £11.9m) reflected
the inclusion of the Global Photonics business and, to a lesser extent, the
full period effect of Phoenix Optical, combined with inflationary increases to
staff salaries.
Underlying operating profit increased by 16.9% to £7.2m (H1 2025: £6.2m).
Reported operating profit grew to £4.9m (H1 2025: £4.2m). Further details of
the adjustments made between underlying and reported profit measures are set
out below.
The Group's interest charges totalled £1.6m (H1 2025: £1.3m). The increased
charge was largely due to additional borrowing taken to fund the acquisition
of the Global Photonics business in June 2025.
The Group's adjusted effective tax rate was 22.4% (H1 2025: 22.9%). Adjusted
earnings per share was 16.4p (H1 2025: 15.0p)
Alternative Performance Measures
In the analysis of the Group's financial performance, alternative performance
measures are presented to provide readers with additional information. The
interim report includes both statutory and adjusted non-GAAP financial
measures. The Directors believe the latter reflect the underlying performance
of the business. Items excluded from the adjusted results, together with their
prior period comparatives, are set out below.
Reconciliation of adjusted performance measures
Operating profit Net finance costs Profit before tax Taxation Profit after tax from continuing operations Earnings per share
Half Year to 31 March 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Pence Pence
Reported 4,874 4,156 (1,552) (1,288) 3,322 2,868 (825) (776) 2,497 2,092 9.2p 8.1p
Amortisation of acquired intangible assets 1,519 1,097 - - 1,519 1,097 (321) (234) 1,198 863 4.4p 3.3p
Restructuring and other costs 385 412 - - 385 412 (67) (80) 318 332 1.2p 1.3p
Acquisition and integration costs 193 426 - - 193 426 (26) (17) 167 409 0.6p 1.6p
Site closure costs - 64 - - - 64 - - - 64 - 0.2p
Local employment litigation costs 227 - - - 227 - (23) - 204 - 0.7p -
Interest on deferred consideration - - 108 184 108 184 (27) (50) 81 134 0.3p 0.5p
Adjusted 7,198 6,155 (1,444) (1,104) 5,754 5,051 (1,289) (1,157) 4,465 3,894 16.4p 15.0p
Cash Flow and Financing
In the six months ended 31 March 2026, G&H generated net cash from
operations of £3.9m, compared with £2.6m in the same period of FY2025.
Working capital levels increased by £4.9m from the end of FY 2025. This was
driven by growth in receivables following high levels of invoicing in March
which have since largely been converted to cash. The Group's inventory also
grew by £1.3m although this was offset by higher trade creditor balances at
the end of March. The Group has chosen to increase its inventory of some
materials such as Germanium in response to continued uncertainty in their
availability as a result of export restrictions imposed by the Chinese
government.
In October 2025, deferred consideration of £1m was paid in respect of the
Artemis Optical business, which was acquired in July 2023. No further deferred
consideration is payable in respect of this acquisition.
Capital expenditure on property, plant and equipment was £3.4m in the period
(H1 2025: £2.5m). The principal areas of investment in H1 2026 were in
increasing capacity in our Tampa, Florida facility by the installation of a
new clean room and optical systems assembly equipment and on additional
production equipment for fibre optic modules in Torquay.
On 12 March 2026, the Group extended its revolving credit facility, which now
comprises a committed facility of US$70m. As at 31 March 2026 the Group had
drawn US$54.8m on its revolving credit facility (September 2025: US$50.2m).
At 31 March 2026 the Group's net debt totalled £49.8m (30 September 2025:
£43.9m) including lease liabilities of £13.2m (30 September 2025: £14.0m).
Consistent with the Group's borrowing agreements, which exclude the impact of
IFRS 16, Leases, our leverage ratio was 1.5 times at 31 March 2026 (30
September 2025: 1.3 times).
Environmental, Social and Governance
In H1 2026, the Group's carbon intensity measure increased by 15.7% due to the
recent acquisitions of Phoenix Optical in North Wales and Global Photonics in
Tampa, Florida. However, on an organic basis the Group achieved a like for
like reduction of 6.4%.
During the period, and as part of the integration of these acquisitions, we
will transition these sites' electricity supplies to renewable sources during
the second half of the year in line with the Group's stated aim of reducing
emissions by 10% per annum.
The Group continues to invest to support its target of being net zero for
Scope 1 and 2 emissions by 2035 and Scope 3 by 2050. We are working with the
landlord of our facility in Tampa, Florida to explore the installation of
solar panels for the onsite generation of electricity.
Our programme to extend ISO 14001 - Environmental Management - to all the
Group's sites continues to schedule. We expect our Moorpark, California and
Tampa, Florida sites to achieve accreditation in the second half of this
financial year and to have all Group's facilities accredited ahead of plan by
the end of FY 2027.
The Group manages its activities in this area through the Sustainability
Committee of the Board. This Committee is chaired by our non-executive
director, Susan Searle. This Committee is supported in its work by a
Sustainability subcommittee staffed with representatives from across the
Group. The remit of the Sustainability Committee includes oversight of the
Group's activities to ensure appropriate adherence to the Group's Ethics &
Anti-Corruption, Equality, Diversity & Inclusion, Trade Compliance and
Cyber Security policies. We are using the Group's new HR Information System to
deliver training content electronically and to use the system to record course
completion by employees.
Dividends
An interim dividend of 4.9p per share (H1 2025: 4.9p) has been declared. This
dividend will be payable to shareholders on the register as at 19 June 2026 on
24 July 2026.
Prospects and Outlook
The Group's strong H1 2026 performance demonstrates the positive progress
the Group continues to make with the deployment of its strategy and highlights
the resilience and depth of experience across our leadership team in
navigating complex market dynamics. Our growing order book, strengthening
market positions and differentiated photonics expertise aligned to structural
growth drivers from megatrends, mean we remain confident in our ability to
deliver further progress on our journey to mid-teens returns over the medium
term and generate value for all our stakeholders.
The Group enters H2 2026 with a record order book, near full revenue cover for
FY2026 and strong demand in Aerospace & Defence. Industrial and
Semiconductor markets are showing encouraging signs of growth, whilst Life
Sciences production disruption is expected to ease through H2 2026.
Although global geopolitical uncertainty and macroeconomic challenges remain,
the Group is proactively managing this increased complexity and volatility in
global supply chains and remains vigilant regarding operations and inventory
planning. Despite these challenges, the Board's expectations for FY2026 are
unchanged, and the Group's strengthened market positions, improved operational
performance and differentiated photonics capabilities reinforce our confidence
in further profitable growth and continued progress to mid-teens returns over
the medium term.
Principal Risks and Uncertainties
The principal risks and uncertainties to which G&H is exposed and our
approach to managing those risks are unchanged from those identified in the
Group's 2025 Annual Report. At the end of 2025 we identified geopolitical
risks and raw materials supply as the two most significant for the Group and
with the rapidly changing geopolitical landscape those risks have affected the
Group in H1 2026.
We continue to strive to limit as much as possible our direct exposure to
supply from China. However, in the first half, as explained above, we needed
to qualify several Chinese suppliers for certain raw materials which has meant
the Group incurred higher tariffs on certain material purchases.
Security of material supply continues to be an important risk for the Group.
Our supply chain team has taken actions to mitigate the impact of export
restrictions imposed by the Chinese government on certain raw materials. This
has ensured continuity of supply overall, although delivery timing has
remained variable in certain instances.
Group Income Statement
Unaudited interim results for the 6 months ended 31 March 2026
Half Year to 31 March 2026 (Unaudited) Half Year to 31 March 2025 (Unaudited) Full Year to 30 September 2025
(Audited)
Note Underlying Non-underlying Total Underlying Non-underlying Total Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 4 81,876 - 81,876 70,878 - 70,878 150,485
Cost of revenue (57,816) - (57,816) (49,310) - (49,310) (103,821)
Gross profit 24,060 - 24,060 21,568 - 21,568 46,664
Research and development (3,911) - (3,911) (3,535) - (3,535) (7,296)
Sales and marketing (4,720) - (4,720) (4,344) - (4,344) (8,870)
Administration (9,097) (2,324) (11,421) (7,857) (1,999) (9,856) (23,910)
Other income and expenses 866 - 866 323 - 323 1,546
Operating profit / (loss) 4 7,198 (2,324) 4,874 6,155 (1,999) 4,156 8,134
Net finance costs (1,444) (108) (1,552) (1,104) (184) (1,288) (2,807)
Profit / (loss) before income tax expense 5,754 (2,432) 3,322 5,051 (2,183) 2,868 5,327
Income tax expense 6 (1,289) 464 (825) (1,157) 381 (776) (1,791)
Profit / (loss) for the period 4,465 (1,968) 2,497 3,894 (1,802) 2,092 3,536
Earnings / (loss) per share
From continuing operations
Basic earnings per share 7 16.4p (7.2p) 9.2p 15.0p (6.9p) 8.1p 13.7p
Diluted earnings per share 7 16.1p (7.1p) 9.0p 14.8p (6.8p) 8.0p 13.3p
Group Statement of Comprehensive Income Half Year to Half Year to Full Year to
31 Mar 2026
31 Mar 2025
30 Sep 2025
(Unaudited)
(Unaudited)
(Audited)
£'000 £'000 £'000
Profit for the period 2,497 2,092 3,536
Other comprehensive (expense) / income
(Losses) / gains on cash flow hedges (149) 18 8
Currency translation differences 683 1,737 137
Other comprehensive income for the period 534 1,755 145
Total comprehensive income for the period 3,031 3,847 3,681
Group Balance Sheet
Unaudited interim results for the 6 months ended 31 March 2026
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited)
(Unaudited)
(Audited)
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 37,450 38,370 36,518
Right of use assets 12,135 10,395 12,956
Intangible assets 65,828 55,495 66,561
115,413 104,260 116,035
Current assets
Inventories 42,380 37,597 40,794
Trade and other receivables 48,625 37,860 42,068
Current asset investments 761 - 761
Cash and cash equivalents 4,423 5,546 7,198
96,189 81,003 90,821
Current liabilities
Trade and other payables (29,223) (22,010) (28,542)
Lease liabilities (2,214) (1,881) (2,234)
Tax liabilities (1,233) (1,992) (2,420)
Deferred consideration - (2,074) -
(32,670) (27,957) (33,196)
Net current assets 63,519 53,046 57,625
Non-current liabilities
Borrowings (41,049) (29,604) (37,066)
Lease liabilities (10,998) (9,591) (11,755)
Provision for other liabilities and charges (2,014) (1,100) (2,031)
Deferred consideration (1,899) (1,682) (959)
Deferred tax liabilities (3,913) (4,809) (4,412)
(59,873) (46,786) (56,223)
Net assets 119,059 110,520 117,437
Shareholders' equity
Called up share capital 5,474 5,159 5,423
Share premium account 16,051 16,051 16,051
Merger reserve 19,589 11,561 19,109
Cumulative translation reserve 5,921 6,838 5,238
Hedging reserve - 159 149
Retained earnings 72,024 70,752 71,467
Total equity 119,059 110,520 117,437
Statement of Changes in Equity
Unaudited interim results for the 6 months ended 31 March 2026
Share capital account Share premium account Merger reserve Retained earnings Hedging reserve Cumulative translation reserve Total equity
£000 £000 £000 £000 £000 £000 £000
At 1 October 2024 5,159 16,051 11,561 70,375 141 5,101 108,388
Profit for the period - - - 2,092 - - 2,092
Other comprehensive income for the period - - - - 18 1,737 1,755
Total comprehensive (expense) / income for the period - - - 2,092 18 1,737 3,847
Dividends - - - (2,140) - - (2,140)
Share based payments - - - 425 - - 425
At 31 March 2025 (unaudited) 5,159 16,051 11,561 70,752 159 6,838 110,520
At 1 October 2025 5,423 16,051 19,109 71,467 149 5,238 117,437
Profit for the period - - - 2,497 - - 2,497
Other comprehensive (expense) / income for the period - - - - (149) 683 534
Total comprehensive income / (expense) for the period - - - 2,497 (149) 683 3,031
Issue of new shares 51 - 480 - - - 531
Dividends - - - (2,272) - - (2,272)
Share based payments - - - 150 - - 150
Tax on share based payments in equity - - - 182 - - 182
At 31 March 2026 (unaudited) 5,474 16,051 19,589 72,024 - 5,921 119,059
Group Cash Flow Statement
Unaudited interim results for the 6 months ended 31 March 2026
Half Year to 31 Mar 2026 (Unaudited) Half Year to 31 Mar 2025 (Unaudited) Full Year to 30 Sep 2025 (Audited)
£'000 £'000 £'000
Cash flows from operating activities
Cash generated from operations 6,035 3,590 11,167
Income tax paid (2,110) (1,040) (1,811)
Net cash generated from operating activities 3,925 2,550 9,356
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired (989) (2,716) (10,060)
Purchase of property, plant and equipment (3,428) (2,463) (4,565)
Sale of property, plant and equipment 75 325 340
Purchase of intangible assets (860) (1,218) (1,744)
Interest received 7 8 14
Net cash used in investing activities (5,195) (6,064) (16,015)
Cash flows from financing activities
Drawdown of borrowings 3,920 7,874 20,662
Repayment of borrowings (560) (1,585) (5,474)
Repayment of lease liabilities (1,162) (794) (1,875)
Interest paid (1,451) (1,112) (2,528)
Dividends paid to ordinary shareholders (2,272) (2,140) (3,469)
Net cash (used in) / generated by financing activities (1,525) 2,243 7,316
Net (decrease) / increase in cash (2,795) (1,271) 657
Cash at beginning of the period 7,198 6,622 6,622
Exchange gains / (losses) on cash 20 195 (81)
Cash at the end of the period 4,423 5,546 7,198
Notes to the Group Cash Flow Statement
Half Year to 31 Mar 2026 (Unaudited) Half Year to 31 Mar 2025 (Unaudited) Full Year to 30 Sep 2025 (Audited)
£'000 £'000 £'000
Profit before income tax from continuing operations 3,322 2,868 5,327
Adjustments for:
- Amortisation of acquired intangible assets 1,519 1,097 2,500
- Amortisation of other intangible assets 654 758 1,451
- Loss on disposal of property, plant and equipment 21 - 133
- Depreciation 3,965 4,046 8,220
- Share based payments 150 425 1,025
- Release of deferred consideration creditor - - (658)
- Non-cash consideration received from customer contracts - - (761)
- Amounts claimed under the RDEC (225) (200) (391)
- Finance income (7) (8) (14)
- Finance costs 1,451 1,112 2,821
- Non cash interest charge included in finance costs 109 184 -
Total adjustments 7,637 7,414 14,326
Changes in working capital
- Inventories (1,284) (5,299) (7,616)
- Trade and other receivables (6,376) (4,884) (8,963)
- Trade and other payables 2,736 3,491 8,093
Total changes in working capital (4,924) (6,692) (8,486)
Cash generated from operating activities 6,035 3,590 11,167
Reconciliation of net cash flow to movements in net debt
Half Year to Half Year to Full Year to 30 Sep 2025
31 Mar 2026
31 Mar 2025
(Audited)
(Unaudited)
(Unaudited)
£'000 £'000 £'000
Decrease in cash in the period (2,795) (1,271) 657
Drawdown of borrowings (3,920) (7,874) (20,662)
Repayment of borrowings 2,096 2,647 7,958
Changes in net debt resulting from cash flows (4,619) (6,498) (12,047)
New leases (215) (414) (2,241)
Acquired leases - (1,631) 609
Translation differences (750) (830) (456)
Non cash movements including leases disposed (397) (347) (3,912)
Movement in net debt in the period / year (5,981) (9,720) (18,047)
Net debt at start of period (43,857) (25,810) (25,810)
Net debt at end of period (49,838) (35,530) (43,857)
Analysis of net debt
At 1 Oct 2025 New leases Cash flow Exchange movement Non-cash movement At 31 Mar
2026
£'000 £'000 £'000 £'000 £'000 £'000
Cash at bank and in hand 7,198 - (2,795) 20 - 4,423
Debt due after one year (37,066) - (3,360) (596) (27) (41,049)
Lease liabilities (13,989) (215) 1,536 (174) (370) (13,212)
Net debt (43,857) (215) (4,619) (750) (397) (49,838)
Notes to the Interim Report
1. Basis of Preparation
The unaudited Interim Report has been prepared under the historical cost
convention as modified by financial assets and financial liabilities at fair
value and in accordance with UK adopted International Accounting Standards and
with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
The Interim Report was approved by the Board of Directors on 2 June 2026. The
Interim Report does not constitute statutory financial statements within the
meaning of the Companies Act 2006 and has not been audited.
Comparative figures in the Interim Report for the year ended 30 September 2025
have been taken from the Group's audited statutory financial statements on
which the Group's auditors, PricewaterhouseCoopers LLP, expressed an
unqualified opinion. The comparative figures to 31 March 2025 are unaudited.
The Interim Report will be announced to all shareholders on the London Stock
Exchange and published on the Group's website on 2 June 2026. Copies will be
available to members of the public upon application to the Company Secretary
at Dowlish Ford, Ilminster, Somerset, TA19 0PF.
There were no changes to accounting policies described in the annual financial
statements for the year ended 30 September 2025 that had a material effect on
the financial statements.
Cash flow projections show that the Group has sufficient funding available to
withstand plausible downside scenarios, and therefore the financial statements
have been prepared on a going concern basis.
2. Estimates
The preparation of interim financial statements requires management to make
estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgments made by management in applying the Company's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements for the year ended 30
September 2025.
3. Financial risk management
The Company's activities expose it to a variety of financial risks, market
risk (including currency risk, cash flow interest rate risk and price risk),
credit risk and liquidity risk.
The interim condensed consolidated financial statements do not include all
financial risk management information and disclosures required in the annual
financial statements and should be read in conjunction with the Company's
annual financial statements as at 30 September 2025. There have been no
changes to the risk management policies since the year end.
4. Segmental analysis
Aerospace & Defence Life Sciences / Biophotonics Industrial Corporate Total
For half year to 31 March 2026 £'000 £'000 £'000 £'000 £'000
Revenue
Total revenue 42,326 16,434 33,007 - 91,767
Inter and intra-division (6,739) (471) (2,681) - (9,891)
External revenue 35,587 15,963 30,326 - 81,876
Divisional expenses (30,498) (14,809) (25,178) (379) (70,864)
EBITDA¹ 5,089 1,154 5,148 (379) 11,012
EBITDA % 14.3% 7.2% 17.0% - 13.4%
Depreciation and amortisation (1,861) (548) (1,551) (659) (4,619)
Operating profit / (loss) before amortisation of acquired intangible assets 3,228 606 3,597 (1,038) 6,393
Amortisation of acquired intangible assets - - - (1,519) (1,519)
Operating profit / (loss) 3,228 606 3,597 (2,557) 4,874
Operating profit / (loss) margin % 9.1% 3.8% 11.9% - 6.0%
Add back non-recurring items 417 136 249 1,522 2,324
Operating profit / (loss) excluding non-recurring items 3,645 742 3,846 (1,035) 7,198
Adjusted operating profit / (loss) 10.2% 4.6% 12.7% - 8.8%
margin %
Aerospace & Defence Life Sciences / Biophotonics Industrial Corporate Total
For half year to 31 March 2025 £'000 £'000 £'000 £'000 £'000
Revenue
Total revenue 25,147 17,760 31,463 74,370
Inter and intra-division (1,681) (470) (1,341) - (3,492)
External revenue 23,466 17,290 30,122 - 70,878
Divisional expenses (21,385) (14,529) (25,325) 418 (60,821)
EBITDA¹ 2,081 2,761 4,797 418 10,057
EBITDA % 8.9% 16.0% 15.9% 14.2%
Depreciation and amortisation (1,748) (927) (1,382) (747) (4,804)
Operating (loss) / profit before amortisation of acquired intangible assets 333 1,834 3,415 (329) 5,253
Amortisation of acquired intangible assets - - - (1,097) (1,097)
Operating (loss) / profit 333 1,834 3,415 (1,426) 4,156
Operating (loss) / profit margin % 1.4% 10.6% 11.3% - 5.9%
Add back non-recurring items 266 245 391 1,097 1,999
Operating (loss) / profit excluding non-recurring items 599 2,079 3,806 (329) 6,155
Adjusted operating (loss)/profit 2.6% 12.0% 12.6% - 8.7%
margin %
¹EBITDA = Earnings before interest, tax, depreciation and amortisation.
All of the amounts recorded are in respect of continuing operations.
4. Segmental analysis continued
Analysis of revenue from continuing operations by destination
Half year to Half year to
31 Mar 2026 31 Mar 2025
(Unaudited) (Unaudited)
£'000 £'000
United Kingdom 21,807 24,064
North and South America 34,023 22,864
Continental Europe 16,419 13,107
Asia-Pacific 9,627 10,843
81,876 70,878
5. Non-underlying items
Half Year to Half Year to Full Year to
31 Mar 2026
31 Mar 2025
30 Sep 2025
(Unaudited)
(Unaudited)
(Audited)
£'000 £'000 £'000
Profit before tax from continuing operations 3,322 2,868 5,327
Amortisation of and impairment of acquired intangible assets 1,519 1,097 2,500
Restructuring and other costs 385 412 3,169
Acquisition and integration costs 193 426 995
Release of deferred contingent consideration - - (658)
Site closure costs - 64 78
Local employment litigation 227 - 200
Interest on deferred consideration 108 184 293
Adjusted profit before tax 5,754 5,051 11,904
The restructuring costs in the period ended 31 March 2026 relate to
non-recurring costs arising from our manufacturing streamlining activities.
6. Tax expense
Analysis of tax charge in the period
Half Year to Half Year to Full Year to 30 Sep 2025 (Audited)
31 Mar 2025
31 Mar 2026
(Unaudited)
(Unaudited)
£'000 £'000 £'000
Current taxation
UK Corporation tax 1,396 1,368 2,819
Overseas tax (94) (181) (467)
Adjustments in respect of prior year tax charge - - 257
Total current tax 1,302 1,187 2,609
Deferred tax
Origination and reversal of temporary differences (477) (411) (161)
Adjustments in respect of prior years - - (657)
Total deferred tax (477) (411) (818)
Tax expense / (credit) per income statement 825 776 1,791
The tax charge for the six months ended 31 March 2026 is based on the
estimated effective rate of the tax for the Group for the full year to 30
September 2026. The estimated rate is applied to the profit before tax.
The adjusted effective tax rate on profit from continuing activities is 22.4%
(H1 2025: 22.9%).
7. Earnings per share
The calculation of earnings per 20p Ordinary Share is based on the profit for
the period using as a divisor the weighted average number of Ordinary Shares
in issue during the period. The weighted average number of shares is given
below.
Half Year to Half Year to Full Year to 30 Sep 2025
31 Mar 2026
31 Mar 2025
(Audited)
(Unaudited)
(Unaudited)
No. No. No.
Number of shares used for basic earnings per share 27,228,141 25,786,397 25,897,092
Dilutive shares 490,600 487,379 608,376
Number of shares used for dilutive earnings per share 27,718,741 26,273,776 26,505,468
A reconciliation of the earnings used in the earnings per share calculation is
set out below:
Half Year to Half Year to Full Year to
31 Mar 2026 (Unaudited)
31 Mar 2025
30 Sep 2025
(Unaudited)
(Audited)
£'000 p per £'000 p per £'000 p per
share
share
share
Basic earnings per share from continuing operations 2,497 9.2p 2,092 8.1p 3,536 13.7p
Adjustments net of income tax expense:
Amortisation of acquired intangible assets 1,198 4.4p 863 3.3p 1,969 7.6p
Acquisition costs 167 0.6p 410 1.6p 951 3.7p
Site closure costs - - 64 0.2p 78 0.3p
Restructuring costs 318 1.2p 331 1.3p 2,882 11.0p
Unwind of discount on deferred consideration 81 0.3p 134 0.5p 220 0.8p
Release of deferred consideration creditor - - - - (658) (2.5p)
Litigation costs 204 0.7p - - 200 0.8p
Total adjustments net of income tax expense 1,968 7.2p 1,802 6.9p 5,642 21.7p
Adjusted basic earnings per share 4,465 16.4p 3,894 15.0p 9,178 35.4p
Basic diluted earnings per share 2,497 9.0p 2,092 8.0p 3,536 13.3p
Adjusted diluted earnings per share 4,465 16.1p 3,894 14.8p 9,178 34.6p
Adjusted earnings per share before amortisation of acquired intangible assets
and adjustments has been shown because, in the opinion of the Directors, it
more accurately reflects the trading performance of the Group.
8. Dividend
The Directors have declared an interim dividend of 4.9p per share for the half
year ended 31 March 2026 (2025: 4.9p).
Half Year to Half Year to Full Year to
31 Mar 2026
31 Mar 2025
30 Sep 2025
(Unaudited)
(Unaudited)
(Audited)
£'000 £'000 £'000
Final 2025 dividend: 8.3p per share (Final 2024 dividend paid in 2025: 8.3p) 2,272 2,140 2,140
2025 Interim dividend of 4.9p per share (2024: 4.9p per share) - - 1,329
2,272 2,140 3,469
9. Borrowings
31 March 2026 31 March 2025 £000 30 September 2025
£000
£'000
Current:
Leases 2,214 1,881 2,234
2,214 1,881 2,234
Non-current:
Bank borrowings 41,049 29,604 37,066
Leases 10,998 9,591 11,755
52,047 39,195 48,821
Total borrowings 54,261 41,076 51,055
G&H's primary lending bank is NatWest Bank. The Group's facilities were
extended on 12 March 2026 and now comprise a US$70m (£52.9m) dollar revolving
credit facility. At 31 March 2026, the balance drawn on the revolving credit
facility was US$54.8m (£41.3m) (September 2025: US$50.2m (£37.3m)).
The revolving credit facility is committed until 31 March 2030 and attracts an
interest rate of between 1.45% and 1.95% above rates specified by the bank
dependent upon the Company's leverage ratio, payable on rollover dates.
The Group's banking facilities are secured on certain of its assets including
land and buildings, property plant and equipment and inventory.
Maturity profile of bank borrowings
31 March 31 March 30 September 2025
£'000
2026 2025
£000
£000
Between one and five years 41,049 29,604 36,536
41,049 29,604 36,536
Maturity profile of lease liabilities
31 March 31 March 30 September 2025
£'000
2026 2025
£000
£000
Within one year 2,874 2,442 2,926
Between two and five years 9,247 7,602 10,635
After five years 3,621 3,263 3,225
15,742 13,307 16,786
10. Called up share capital
31 Mar 2026 30 Sep 2025 31 Mar 2026 30 Sep 2025
No. No. £'000 £'000
Allotted, issued and fully paid
Ordinary share of 20p each 27,370,726 27,115,033 5,474 5,423
- ENDS -
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