REG - Gooch & Housego PLC - Results for the year ended 30 September 2025
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RNS Number : 7836J Gooch & Housego PLC 02 December 2025
2 December 2025
GOOCH & HOUSEGO PLC
("G&H", the "Company" or the "Group")
RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of optical
components and systems, today announces its audited results for the year ended
30 September 2025.
Key Financials
Year ended 30 September (Continuing operations) 2025 2024 Change
Revenue (£m) 150.5 136.0 10.7%
Adjusted operating profit (£m) 14.4 10.5 37.3%
Adjusted profit before tax (£m) * 11.9 8.1 46.8%
Adjusted basic earnings per share (pence) * 35.4p 25.5p 38.8%
Statutory profit before tax (£m) 5.3 4.2 26.6%
Basic earnings per share (pence) 13.7p 12.7p 7.9%
Total dividend per share (pence) 13.2p 13.2p -
Net bank debt excluding IFRS 16 (£m) 29.9 16.0 13.9
Net debt (£m) 43.9 25.8 18.1
Group leverage 1.3 0.9 0.4
* Adjusted figures exclude the amortisation of acquired intangible assets,
amortisation of acquired intangible assets, non-underlying items being site
closure costs, costs of acquisitions, release of deferred consideration,
restructuring and litigation costs, together with the related tax impact.
Key Points
· Strategy - Strong progress delivering the strategic changes that will
support mid-teen returns on sales in the medium-term.
· Revenue - up 10.7% to £150.5m (FY2024: £136.0m) or 5.6% on an
organic constant currency basis. Aerospace & Defence up 52.1%; Industrial
down 5.3%; Life Sciences flat
· Profit - adjusted operating profit up 37.3% to £14.4m (FY2024: £10.5m)
reflecting an improved adjusted operating margin of 9.6% (FY2024: 7.7%).
Statutory profit before tax at £5.3m (FY2024: £4.2m).
· Order book - order book closed at £142.4m, up 36.2% (FY2024:
£104.5m) and with over 80% billable in FY26 complemented by a strong order
pipeline, particularly for our A&D business. Order intake was £178.6m.
· Debt - net debt increased to £43.9m (FY2024: £25.8m) following
£10.1m spent on acquisitions and £7.5m strategic investment in
inventory.
· Portfolio - 'speed to value' acquisitions of Phoenix Optical in
October 2024 and Global Photonics in June 2025, both of which continue to
strengthen and support the Group's transformation journey.
· Outlook - Underpinned by our strategy which is making G&H a
better, more sustainable business, the Board's expectations for FY2026 are
unchanged and we are confident that the Group will continue to deliver
profitable growth in the medium term.
Charlie Peppiatt, Chief Executive Officer of Gooch & Housego, commented:
"I am delighted with the substantial progress the Group has made in FY2025.
Our operational performance has shown sustained improvement and resilience in
the face of a complex and uncertain macroeconomic environment, 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 to
deliver sustainable growth and to the quality of our workforce. With our
growing order book and differentiated photonics expertise aligned to markets
with structural growth from megatrends, we remain confident in our ability to
deliver further progress."
Analyst meeting
A meeting for analysts will be held at 10.30 a.m. today at the offices of
Burson Buchanan, 107 Cheapside, London EC2V 6DN. To register attendance,
please contact Burson Buchanan at G&H@buchanan.uk.com
(mailto:G&H@buchanan.uk.com) .
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 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.
2. 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.
Chairman's Statement
Introduction
I am delighted with the significant progress we are making on delivering our
strategy. Despite the macroeconomic challenges, we have been able to report
record revenue and an increase of 46.8% in adjusted profit before tax from
£8.1m for FY2024 to £11.9m for FY2025.
Our People
The Board is committed to supporting inclusive, collaborative and safe ways of
working at G&H. I am very pleased to see the progress that is being made
to foster a "one team" culture through regular all employee briefing sessions
supported by high quality published materials and materials available on the
new HR information system that share information with our people about
activities in other parts of the Group.
Meeting with our employees throughout the year I am always impressed by their
commitment to the business and the skill with which they conduct their
day-to-day operations. I would like to thank them all for their contribution.
The progress that we have made in the year would not have been possible
without their continued hard work and support.
The Board
Having served on the Board since 2019, Chris Jewell stepped down as Chief
Financial Officer on 30 September 2025. On behalf of the Board, I would like
to express our thanks for his substantial contribution to the company's
development over the last six years. He has supported the business through
operational and strategic changes, including the last four acquisitions and
the divestment of EM4 in Boston.
The Company appointed Martin Hopcroft as Interim CFO and Company Secretary,
effective from 28 July 2025 to enable a handover period. Martin, a seasoned
finance leader with significant experience supporting listed companies through
transition periods, has executive responsibility for the finance function
while the Board makes good progress in its search for a permanent Chief
Financial Officer.
As a Board we take our governance responsibilities very seriously and I am
pleased to see the further progress with our assessment scores since we
engaged with two new agencies, CDP and EcoVadis, in addition to MSCI, to
provide our stakeholders with independent validation of the processes and
controls that we have put in place.
On a more personal note, it is my intention to stand down from the Board in
the coming year. The Nomination Committee has already begun the process to
identify my successor and they expect an appointment will be made during
FY2026.
Dividend
Given the Group's progress on delivering its strategy and the long-term
positive outlook for the business, the Board is proposing an unchanged final
dividend of 8.3 pence per share for approval at the Company's Annual General
Meeting on 27 February 2026, representing a total dividend for the year of
13.2 pence. Payment of the dividend will be made on 6 March 2026, to
shareholders on the register as at 30 January 2026.
Outlook
Underpinned by our strategy, which is making G&H a better, more
sustainable business, the Board's expectations for FY2026 are unchanged and we
are confident that the Group will continue to deliver profitable growth in the
medium term.
Gary Bullard
Chairman
Chief Executive Officer's Statement
Group overview
I am pleased with the significant progress the Group continues to make with
delivering our transformative strategy. Last year we acquired and have
successfully integrated the Phoenix Optical and Global Photonics businesses,
both further strengthening our optical systems and thin film coating
capabilities. We have also seen positive progress with our self-help
activities with improved operational performance, additional outsourcing and
successful new product introductions. These actions help ensure that the Group
can offer our customers differentiated products and technologies, generate
synergies with other parts of G&H and support the Group's journey to
mid-teen returns in the medium term.
The Group delivered strong profit growth and margin expansion despite the
significant macroeconomic and geopolitical disruptions. G&H was impacted
in the year by supply chain disruption resulting from raw materials and
component restrictions due to retaliatory measures from China in response to
US tariffs. Despite this there has been encouraging take up of newly
developed products generated from a more focused portfolio, which continue to
be recognised for their superior performance and reliability. I was
particularly pleased by the substantial growth in the Group's order book
during the year, reflecting the increasing demand for our photonics and
optical systems solutions, especially in Aerospace and Defence.
We have continued to accelerate the transfer of certain product lines to
selected outsourced manufacturing partners at the same time as successfully
ramping new products in several of our own factories. I have been particularly
impressed by the continuing transformation and expansion of our activities in
Torquay, Ilminster and St Asaph during the last year. The Torquay site has now
completed the transfer of all its hi-reliability fused fibre production to its
supply partners and repurposed production for the manufacture of more complex
fibre optic modules and, aligned to our strategy, we are securing greater
market share of these products. This is an excellent example of the margin
accretive changes being implemented across the Group and which will position
G&H well to profit from the recovery we expect in our Industrial and Life
Sciences markets.
Continued investment
We have continued to be disciplined in supporting the business with the
focused investments it needs to grow. We have strengthened our leadership,
sales and engineering group during the year with highly capable and
experienced new team members. We have fully implemented a new HR information
system (HRIS) across the Group allowing managers and the HR function to better
support the global workforce in each region.
The Group acquired Phoenix Optical and Global Photonics which were both the
culmination of many months of hard work by our team involved in the
acquisition process and integrations. It has been great to be able to welcome
such talented and experienced employees from both businesses to G&H. Both
companies, which are highly regarded suppliers of precision optics and optical
systems in their respective regions and end-markets, are highly complementary
to the Group and I look forward to seeing them prosper under G&H
ownership.
A sustainable business
At G&H we are focused on making our business sustainable and supporting
the transition to a net zero carbon economy. With direction and oversight
from the G&H Sustainability Committee, our employees are pleased to be
playing their part in moving to a more sustainable and healthier world. Our
medical diagnostic products support the earlier diagnosis of disease and
illness, and our sensing products are an enabler to deliver clean and
renewable energy with efficiency. Within our own business we are committed to
achieving net zero for our Scope 1 and 2 emissions by 2035 and I am pleased to
report that we made further positive progress towards that target in the
financial year.
It is important for us to support the communities in which we operate. Our
facilities provide high quality employment opportunities in the towns and
cities where we are located, and our teams often host visits from local
schools and colleges to foster excitement amongst their students to pursue
careers in photonic technologies and advanced engineering. G&H employees
are also active in supporting charities local to the sites in which they work,
often matching with monies from G&H the amounts that have been raised.
G&H delivered a strong performance in the second half of the year
underpinned by solid demand for our Life Sciences and A&D products, also
reflecting the significant operational improvements that were made across the
Group despite continuing challenges from the global macroeconomic
environment.
Full year revenue increased by 10.7% to £150.5m (FY2024: £136.0m) or 5.6% on
an organic constant currency basis with A&D revenues up 52.1%, Industrial
down by 5.3% and Life Sciences broadly flat. Building on a positive first
half, the further growth in revenue in the second half and the continued
strong order intake reflects multi-year programme wins and the positive
structural trends evident in many of our end markets. Albeit with Industrial
revenues down slightly due to the recovery of the semiconductor market still
not evident and now expected in the second half of FY2026. Whilst there are
early signs of some recovery in demand from areas of the semiconductor market,
we continue to closely monitor the short-term uncertainty in our Industrial
markets created by ongoing macroeconomic and geopolitical challenges.
Our teams across the Group have executed exceptionally well in a challenging
environment, given the significant supply chain and cost headwinds, to deliver
a robust trading performance in the second half of the year in line with
expectations that supports improved profit growth in FY2026. I am pleased with
the continued foundational progress that has been made across the business
through the collective hard work of the workforce which is now being harnessed
effectively through a more focused and fully deployed strategy to deliver
sustainable margin growth for the Group.
A significant cornerstone of our strategy is for the Group to become a more
customer focused business and to deliver an exceptional customer experience
when doing business with G&H. I am pleased to see how this is being
embraced across the whole Company and the progress that is being made through
a more disciplined focus on internal and external customer experience. It was
encouraging to see progress in many of our customer metrics and the upgrade of
our customer service, sales and product management teams during the year that
resulted in increased orders, a growing pipeline of new business opportunities
and demonstrated that our customers are recognising the changes we continue to
make with this key strategic priority for the Company.
I am proud that G&H's products and technology are playing a part in
building a better more sustainable world. Many of our products contribute
directly to the reduction of energy consumption and the more efficient use of
materials. In our own facilities we are also making great strides in reducing
our impact on the environment. In FY2025 we achieved a 31.1% reduction in our
emissions intensity measure as we work towards our goal of being net zero on
our Scope 1 and 2 emissions by 2035.
Business Performance
Following the positive performance in the first half of the year, the Group
continued to deliver strong trading momentum during the second half of the
year with H2 revenue up 10.0% enabled by the focused operational improvements
and capability investment made over the last year and careful proactive
management of unforeseen supply challenges resulting from tariff disruptions
and retaliatory measures. For the full financial year 2025, G&H achieved
revenue from continuing operations of £150.5m which was up on the previous
year by 10.7% (FY2024: £136.0m), or on an organic, constant currency basis
with the full year benefits of Phoenix Optical and Global Photonics excluded,
revenues were up 5.6%. Adjusted profit before tax from continuing operations
was £11.9m, an increase of 46.8% over last year (FY2024: £8.1m).
Following the transfer of our acousto-optic products from our Ilminster
facility to our Asian contract manufacturing partner, we have now qualified
and successfully transferred the manufacture of our full hi-reliability fibre
coupler business to that same partner. During FY2025 we were able to
accelerate the preparations for the transfer of further fibre optics and other
products, where technological sovereignty is not a differentiator, building
upon a proven model that has now been established with our selected contract
manufacturing partners. During 2025 we also qualified an additional contract
manufacturing partner in India to support with some of our in-country demand
in that region.
We have continued to invest in our technology roadmaps albeit with a greater
focus following the strategic review in 2023 and our R&D teams are working
closely with many of our customers on the accelerated development of their
next generation products. Total investment on product development activities
was £7.3 million in FY2025 (FY2024: £7.8m).
During the year, the Group's net capital expenditure was to £6.0 million
compared with £5.2 million in the previous year aligned to our strategic
objectives. Notably spend in the period was focused on the integration of the
new acquisitions, GS Optics and Phoenix Optical as well as establishing
additional capability and capacity for our fibre optic business in Torquay.
With our contract manufacturing partner carefully selected capital investment
is also planned for our optical systems and precision optics business to
address bottlenecks and meet increased Defence customer demand alongside the
operational efficiency activities underway at these sites.
The Group retained high levels of inventory during FY2025 that are still above
pre-pandemic levels, however, this reflects the additional inventory from
acquisitions and the decision to increase inventory of some materials such as
germanium in response to the uncertainties in the availability of these
materials as a result of export restrictions imposed by the Chinese
government. We also closed the year with an increase in past due backlog
created by supply chain constraints that negatively impacted inventory levels.
Inventory closed the year at a high-water mark, but as supply chains normalise
and with greater focus on inventory management disciplines being implemented
across the Group, we expect to see a reduction during FY2026.
Excluding lease liabilities, net debt at 30 September 2025 was £29.9m (30
September 2024: £16.0m), up £13.9m from the prior year end reflecting the
two acquisitions and the increased inventory holdings. Our leverage as
measured for our banking covenant stands at 1.3x (2024: 0.9x), which along
with available committed and uncommitted bank facilities of $19.8m places
G&H in a strong position to pursue our strategic goals.
During FY2025 the Group's order book continued to grow and at 30 September
2025 was £142.4m (31 March 2025: £121.5m; 30 September 2024: £104.5m). On
an organic constant currency basis the order book grew by 15.3%. Over 80% of
the order book is for delivery in FY2026, which underpins increased trading in
the new financial year including the full year impact of recent acquisitions,
partially offset by an increase in overheads.
Our order book grew in each of our three end markets with modest year on year
increases in Life Sciences and an encouraging recovery in orders for our
Industrial markets. However, the most significant increase came from our
A&D customers where we saw strong growth, especially in the second half of
the financial year thanks to increased demand from both our commercial and
defence customers assisted by the enhanced value proposition we are able to
offer into this buoyant end market. Our teams in the UK and US are focused on
converting a healthy pipeline of new A&D prospects and there has been
further extension of the order book following the year end.
Strategy
G&H is a business with outstanding products, enormous technical capability
and highly talented people and as a result of the disciplined rigour with
which our strategy for sustainable margin growth is being implemented we are
starting to see the foundational benefits from greater focus on operational
execution, customer experience, employee engagement and better prioritisation
of our R&D technology and investment.
This strategy continues to refocus the whole business on delivering
sustainable margin growth and transforming G&H to become an 'innovative
customer focused technology company' delivered responsibly by making a 'better
world with photonics'. We are making good progress to ensure that G&H
becomes and remains the 'first choice' for all our stakeholders including our
employees, our customers, our shareholders, our eco-system partners or the
communities where we operate. We are offering a more differentiated
performance through the four pillars of our strategy centred around, firstly,
our people by establishing dynamic high-performance teams and a purpose-led
culture; secondly, through self-help activities to deliver exceptional
customer service and superior operational execution; thirdly, through value
creation from our technology and photonics expertise; and, finally, by focused
investment, both organic and inorganic, to accelerate accretive growth.
Acquisitions and Portfolio
The Group's strategy has identified a path to mid-teen returns over the medium
term that includes benefits from our 'portfolio' activities achieved through
addressing non-performers in combination with pursuing 'speed to value'
acquisitions. Following the successful integration of the two synergistic
acquisitions of GS Optics and Artemis Optical in the summer of 2023, we have
made further good progress with two additional strategic acquisitions, Phoenix
Optical at the end of October 2024 followed by Global Photonics, formerly
Meopta US, announced in May 2025.
The integration of both Phoenix Optical and Global Photonics into G&H 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 for our defence customers, 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, helps 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.
Aligned to our strategy to review our portfolio to address non-performing or
non-core parts of the Group, we took the proactive decision to exit the
manufacture of Pockels Cells for medical lasers that are supplied from our
facility in Cleveland, Ohio. The introduction of lower cost Asian manufactured
products in this product segment means that over time these specific products
supplied from G&H's Cleveland factory would not remain sufficiently
differentiated to generate the level of returns needed to support the Group's
journey to mid-teen returns. Following our announcement at the beginning of
2025 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 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.
Our Markets
Industrial
G&H's principal industrial markets are industrial lasers,
telecommunications, sensing and semiconductor manufacturing. Industrial lasers
are used in a diverse range of precision material processing applications
ranging from microelectronics and semiconductors to automotive manufacturing.
Industrial revenues in FY2025 at £64.3m declined by 5.3% from the prior year
(FY2024: £67.9m) due to the continued subdued semiconductor market and
protracted destocking in our Industrial markets. Despite these challenges in
the year, volumes of our fibre optic modules and assemblies used in both next
generation advanced lithography systems and subsea data networks remained
robust with growth in the second half as new programmes ramped up to volume
production and demand picked up for our long-standing hi-reliability fibre
couplers and module solutions. The increased output of these more complex
fibre optic assemblies has been enabled by the full transfer to our contract
manufacturing partner of the build of our hi-reliability fibre couplers mainly
for submarine applications. The successful execution of this part of our plan
has meant that production space and skilled operators in Torquay have been
transitioned to this new higher value more complex work.
Revenue from our industrial laser customers was weaker than the prior year
remaining broadly flat through FY2025 and whilst some early signs of a pick-up
in demand were evident towards the end of the year, we continue to watch
developments closely and work with our key partners in this space to assess
changes to demand visibility. Any sustained recovery from our broader
industrial laser and semiconductor markets is now not expected until the
second half of 2026.
Aerospace & Defence
A&D revenue in FY2025 continued to grow to £52.4m up 52.1% (FY2024:
£34.5m) and on an organic constant currency basis grew by 27.2% compared with
the prior year. The significant volume growth in Aerospace & Defence was
underpinned by improved productive capacity at several of our sites, a more
focused go-to-market strategy from the business development teams in all
regions and the introduction of a number of new projects moving into volume
production. This was complemented by the commercial synergy benefits from our
A&D focused acquisitions of the Artemis Optical and Phoenix Optical
starting to be realised especially around advance laser protection and
germanium processing capabilities that we can now offer alongside our superior
optical systems products. Our imaging and sighting systems business for
armoured vehicles and UAVs continues to progress well with a number of
multi-year new programme wins during FY2025 where the conflict in Ukraine is
fuelling increased demand and greater urgency of supply. This was particularly
evident from the second half revenue growth from deliveries of precision
optics and advanced sighting systems into both air and land military platform
programmes. In the commercial aerospace market demand for our ring laser gyro
components remains particularly strong and the Group continued to benefit from
productivity improvements and the additional capacity we have added to meet
this increased demand. 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.
Life Sciences
The Life Sciences business performed well overall with FY2025 revenues at
£33.7m broadly flat on prior year (FY2024: £33.6m) on a constant currency
basis. In H2 output of our Pockels Cells for medical lasers was negatively
impacted by a number of supply challenges resulting from US tariff measures
and retaliatory measures from China which frustratingly constrained our
ability to ramp production as originally planned. However, we saw continued
growth in demand for our medical diagnostic products. Two good examples of
this were, firstly a cancer care product initially designed by our customer
and then productionised by our engineering team and secondly an advanced organ
transplant and care device manufactured by G&H for our customer, both of
which migrated through US FDA regulatory approvals and ramped production
during the year to meet increased end user demand. We expect to see further
growth from these and other product platforms in FY2026 and beyond.
Our Life Sciences R&D team remained engaged in supporting customers with
the design and regulatory accreditations of their next generation instruments
which are expected to convert to production revenue for the Group in the
coming years. We also received the first purchase orders for initial design
and production orders for our North American Life Sciences Centre of
Excellence in Rochester NY which was established during 2024 and has already
received ISO13484 certification for the manufacture of medical devices. We
expect this facility to be a complementary part of our growth strategy for our
Life Sciences business in the future.
Research and Development (R&D)
G&H continues to work closely within the global photonics ecosystem and
with a range of tier one key partners to develop their next generation
products. During FY2025 we introduced 79 new products (FY2024: 48) and
delivered £31.7 million of revenue (FY2024: £25.3 million) from new
products. Following our decision to end of life our Pockels Cells for medical
lasers during 2025, we have reduced the vital few areas of R&D focus from
seven down to six. These six R&D workstreams are proactively prioritised
by our global R&D efforts and investment:
1. Expansion of AO technologies into semiconductor market and EUV
eco-system.
2. Advanced fibre optics technology and systems supporting submarine
networks.
3. Imaging and sighting systems, especially focused on the A&D market,
for periscopes, sights and other optical sub-systems.
4. Precision optics added value and advanced coatings and laser protection
filtering capabilities.
5. Moving up the value chain in fibre-optics with a focus on sensing,
modules, LiDAR.
6. Medical diagnostics and bio-photonics IVD solutions with strategic
focus on expanding our offering into the US Life Sciences market.
During FY2025 technology roadmaps and R&D activities have focused around
these six 'vital few' areas for the Group to drive 'value creation'. Progress
is positive in all of these defined areas of focus. There has been investment
to strengthen acoustic-optic engineering and product line teams with the
addition of technical and product development capability. In the Fibre optics
business, we continued to see strong progress with the customer-led
development of next generation systems for semi fab, submarine network and
medical diagnostics with several new programs successfully awarded during 2025
in line with our plans. The precision optics and optical systems technology
teams have been enhanced by the advanced coatings and germanium fabrication
engineering teams that joined the Group with the acquisitions of Artemis and
Phoenix. We are also starting to see the positive results from the disciplined
refocus of our highly talented optical systems engineering team in St Asaph,
North Wales with successful new program engagement with both existing and new
customers. The successful launch and formal opening of our US Centre of
Excellence in Rochester NY during FY2025 is promising for the future. These
R&D projects are expected to contribute more than £50m of incremental
margin accretive revenue over the plan period.
Corporate Responsibility and Sustainability
The Board is accountable to its shareholders and is committed to the highest
standards of corporate governance. To this end the Group has adopted the UK
Corporate Governance Code (2018). In order to ensure the Group is meeting the
most up to date standards, regular reviews of policy are held by the relevant
committees of the Board of Directors. During the year the Board undertook a
self-assessment to identify opportunities for improvement and incorporate a
greater focus on ESG. Susan Searle, Non-Executive Director, with her wealth of
experience in many of the markets in which we operate and particularly
sustainability matters, has successfully Chaired the Sustainability Committee
and this relatively new Committee is already providing greater clarity and
alignment to our activities in this area.
G&H is committed to creating a safe, engaging, diverse and inclusive place
to work for the Group's employees and all stakeholders. We continue to
establish a culture that proactively works towards reducing harm and promotes
equality, diversity and inclusion across the company. The Group remains
focused on providing equal employment opportunities for all and aims to
improve diversity at all levels of the organisation. Our recruitment partners
have been instructed to ensure that they include a diverse range of candidates
in all shortlist applications, and we are actively engaged with encouraging
International Women in Engineering.
G&H is committed to conducting our business in an environmentally
responsible and sustainable manner. We are investing in order to generate our
electricity in a sustainable manner and to reduce our overall energy usage.
Each of our sites has an energy reduction plan that it is working to. In the
year we reduced our Scope 1 and 2 carbon emissions by 26.1%, and on a LFL
basis excluding acquisitions this was 38.4%, another major step forward in
achieving our target of being net zero on this measure by 2035. It was
particularly encouraging to see our facility in Torquay remain the first Scope
1 and 2 net neutral site across the Group, continuing to lead the way for
other to follow in the future.
We were also proud to see a further two sites, Plymouth and Rochester (FY2025)
join Ashford and Keene (FY2024), Ilminster and Torquay (FY2023) and Fremont
sites with certification to the environmental ISO14001 standard. This now
means that 64% of the Group's global footprint is covered by this
environmental accreditation and 74% of our employees including new
acquisitions. This was a core commitment when we launched our new strategy in
June 2023, and we are making good progress to achieve the deployed road map to
roll this same initiative out across all our manufacturing sites by 2027. The
Executive Directors and senior leadership team all have specific environmental
management and carbon reduction goals in their remuneration schemes.
Outlook
During FY2025 the Group made further positive progress in establishing strong
foundations to deliver our strategic priorities and enhance market share with
our customers, many of whom are demonstrating a growing confidence in G&H.
Despite the challenges the Group faced during the year from the macroeconomic
environment and the changing geopolitical landscape that disrupted supply
chains, reduced demand in our industrial market and subdued medical device
demand, encouragingly, the medium-term underlying demand drivers remain
positive for our industrial products, and customer activity increased towards
the end of the financial year. G&H is well positioned to benefit from
recovering demand levels in these markets when they turn as expected. In the
second half underpinned by a strong fourth quarter performance, we delivered
the expected top line growth for the Group demonstrating the improvements in
operational execution from both our own factories and those of our contract
manufacturing partners. A solid order book, which reflects a significant
number of new customer wins, incremental business opportunities with existing
customers and continuing market share gains is also a positive signal that our
strategy is gaining traction.
Our teams across the Group have performed exceptionally well in a year
characterised by further significant and unpredictable change, ongoing supply
chain issues, tariffs and continued cost inflation. I would like to extend
my thanks to all our employees for their hard work and highlight the positive
way the whole organisation has embraced the transformational changes underway
across the Company.
G&H is well-aligned with the prevailing global mega trends, many
underpinned by the next frontier of photonics, which is driving demand from
high-growth markets. The current unprecedented surge of demand in the A&D
markets is expected to last for several years with increased investments in
the UK, across Europe and North America and G&H is positioned particularly
well with our existing capabilities and through the addition of enhancing
technologies through recent acquisitions that are being successfully
integrated into the Group.
G&H continues to make progress on delivering the self-help, technology and
portfolio activities that underpin our strategic plan. We saw a sustained
improvement in on time delivery performance in FY2025 despite the supply chain
challenges and customer feedback is now trending in a positive direction. The
Group is now better positioned to benefit from the anticipated recovery in our
end markets over the coming years thanks to the disciplined implementation of
our strategy. This has been further underlined by the recent successful
acquisition and integration of Global Photonics providing the facilities,
talent and processing capabilities to credibly scale our business in the US
where 'Made in America' is a critical differentiator.
Despite this positive overall outlook for the Group, we remain cautious about
supply chain uncertainties, commercial headwinds and changing end market
dynamics in the near term. The labour market for talent in both the UK and
US remains competitive leading to some supply side challenges that continue to
frustrate the recruitment of certain required talent, especially in
engineering and technical positions. Global supply chain constraints continue,
compounded by an inflationary environment for wages, raw materials and energy
that all require diligent attention and agility. Whilst price increases and
the majority of tariff on-costs have been passed onto customers in FY2025
addressing most of these cost increases, cost inflation continues to impact
the business and the ability to fully offset all cost base inflation through
pricing actions is becoming more difficult in certain areas.
While mindful of the persistent macroeconomic and geopolitical uncertainties
that exist, G&H remains well positioned for growth with a robust pipeline
across all our end markets. The business will invest to ensure G&H can
capitalise on the accelerating deployment of photonics technologies into
continuously expanding areas of the Industrial, Life Sciences, A&D markets
underpinning the future growth potential of the Group.
The Board's expectations for FY2026 are unchanged, including an H2 weighting
and with Germanium again a key variable.
With our growing order book, strengthening market positions and differentiated
photonics expertise aligned to structural growth drivers from megatrends, I am
increasingly confident in the prospects of the Company to deliver our strategy
in the medium term. G&H is on a path to becoming a more resilient and
agile higher margin business over the coming years for all our stakeholders,
enabling us to realise our clear vision of 'A Better World with Photonics'.
Charlie Peppiatt
Chief Executive Officer
Financial Review
Revenue
Group full year revenue increased by 10.7% to £150.5m (2024: £136.0m),
reflecting a balance between organic and acquisitive growth, with continuing
momentum and seasonality in activity through the year.
Revenue increased by 11.4% to £70.9m (2024 H1: £63.6m) in the first half of
the year, and by 10.0% to £79.6m (2024 H2: £72.4m) in the second half of the
year, with a split of 47%/53% between the first and second half.
REVENUE BY INDUSTRY
2025 2024
Year ended 30 September £'000 % £'000 %
Industrial 64,344 42.8% 67,947 50.0%
A&D 52,409 34.8% 34,459 25.3%
Life Sciences 33,732 22.4% 33,584 24.7%
Revenue 150,485 100.0% 135,990 100%
Industrial was lower, as uncertainty is restraining investment in the
semiconductor market, but remains the most dominant and profitable segment.
There has been strong growth in A&D, reflecting the increasingly
geopolitical environment. Life Sciences has been flat, as activity is subject
to external regulatory milestones. The new tariff regime took effect during
the year, and we have been seeking to pass on incremental costs to customers
to protect margins.
REVENUE BY GEOGRAPHY
2025 2024
Year ended 30 September £'000 % £'000 %
North America 49,713 32.5% 46,601 34.3%
United Kingdom 48,882 33.0% 36,849 27.1%
Continental Europe 32,060 21.3% 27,202 20.0%
Asia Pacific and Other 19,830 13.2% 25,338 18.6%
Revenue 150,485 100.0% 135,990 100.0%
Our markets in North America and the United Kingdom are thriving and reflect
the geopolitical and macroeconomic landscape, which is expected to continue.
Profit
Gross profit increased by 12.0% to £46.7m (2024: £41.6m), with gross profit
to sales increasing to 31.0% (2024: 30.6%), reflecting higher revenues,
changes in mix and other benefits.
Research and development expenses decreased to £7.3m (2024: £7.8m), being
4.8% of revenue (2024: 5.8%), with continuing expenditure to develop
engineering solutions for customers.
Adjusted operating profit increased by 37.3% to £14.4m (2024: £10.5m), being
9.6% of revenue (2024: 7.7%), reflecting higher revenue on restrained cost,
overheads and bonuses together with operational improvements.
Net adjusted finance charges were £2.5m (2024: £2.4m), reflecting slightly
reduced interest rates on increased debt.
Adjusted profit before tax increased by 46.8% to £11.9m (2024: £8.1m), being
7.9% of revenue (2024: 6.0%), reflecting higher operating profits on unchanged
finance charges.
RECONCILIATION OF ADJUSTED PERFORMANCE MEASURES
Operating profit Net finance charges Profit before tax Taxation Earnings per share Operating Cash flow
Year ended 30 September 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
£000 £000 £000 £000 £000 £000 £000 £000 pence Pence £000 £000
Adjusted 14,418 10,502 (2,514) (2,395) 11,904 8,107 (2,726) (1,537) 35.4p 25.5p 13,995 16,704
Amortisation of acquired intangible assets (2,500) (2,002) - - (2,500) (2,002) 531 462 (7.6p) (5.9p) - -
Restructuring and site closure costs (3,247) (1,460) - - (3,247) (1,460) 286 59 (11.3p) (5.5p) (1,833) (2,323)
Acquisition costs (337) (228) (293) (209) (630) (437) 118 85 (2.0p) (1.4p) (995) (134)
Litigation costs (200) - - - (200) - - - (0.8p) - - -
Reported 8,134 6,812 (2,807) (2,604) 5,327 4,208 (1,791) (931) 13.7p 12.7p 11,167 14,247
Non-underlying items before taxation of £6.6m (2024: £3.9m) include £2.5m
(2024: £2.0m) of amortisation of acquired intangible assets and £0.3m (2024:
£0.2m) of net acquisition costs as the business acquired Phoenix Optical
Technologies Limited and Global Photonics in the year, as well as £3.2m
(2024: £1.5m) of restructuring and site closure costs including the necessary
decision to end-of-life the majority of the Pockels cells products, and £0.2m
(2024: £nil) of potential litigation costs from localised employment issues.
Profit before tax increased to £5.3m (2024: £4.2m) and adjusted basic
earnings per share from continuing operations increased to 35.4p per share
(2024: 25.5p per share).
Dividends
In determining the level of dividend, the directors consider the future
earnings and investment requirements, as well as risks and uncertainties.
Furthermore, the ability to pay a dividend is dependent on the distributable
reserves available in the parent Company, which operates as a holding company
that derives its net income from the dividends of its subsidiary companies.
The Board is proposing an unchanged final dividend of 8.3p per share (2024:
8.3p per share), giving a total of 13.2p per share (2024: 13.2p per share) for
the year when combined with the 4.9p per share (2024: 4.9p per share) paid as
an interim dividend in July 2025. The total value of the proposed final
dividend is £2.3m (2024: £2.1m).
The Board is continuing to review its dividend policy to assess whether some
element of the dividend should be reinvested in the business to generate
higher returns for shareholders. The final dividend is unchanged in view of
the planned increase in capital expenditure to deliver on the growing order
book.
Cash flow
Cash generated from operating activities declined to £11.2m (2024: £14.2m),
reflecting an increase in working capital of £8.5m (2024: £3.6m) from peak
seasonal trading and a conscious decision to increase the inventory of some
materials such as germanium in response to uncertainties in the availability
of materials, particularly those subject to export restrictions.
Investment in property, plant and equipment increased to £4.6m (2024:
£3.5m), reflecting higher activity including investment in heavy water for
crystal growth, while investment in intangible assets was maintained at £1.7m
(2024: £1.7m), with transition of the new acquisitions to the integrated
management and reporting systems.
Deferred, contingent consideration was payable by the Group on its purchase of
the GS Optics and Artemis Optical businesses. The GS Optics business did not
achieve the levels required for an earnout payment to be made, and no further
amounts are now due in respect of that acquisition. For the purchase of the
Artemis Optical business, the first deferred consideration for the year ended
31 July 2024 resulted in a payment of £343k, and the second and final
deferred consideration for the year ended 31 July 2025 resulted in a payment
of £989k in October 2025.
Dividend payments to shareholders totalled £3.5m in the year (2024: £3.4m).
Funding & Liquidity
The Group's credit facility comprises a $60m revolving credit facility (RCF)
with a further $10m uncommitted accordion facility, which mature in April
2030.
At 30 September 2025, the Group had drawn $50.2m (30 September 2024: $30.4m),
leaving undrawn committed facilities of $9.8m (30 September 2024: $19.6m) At
30 September 2025, the Group had net bank debt excluding IFRS16 of £29.9m
(30 September 2024: £16.0m), and net debt including IFRS16 of £43.9m
(30 September 2024: £25.8m).
The Group's main financial covenants in its bank facilities require that net
bank debt excluding IFRS 16 lease liabilities must be a maximum of 2.5 times
adjusted EBITDA, and adjusted EBITDA must be a minimum of 4.5 times interest
charges excluding interest on pension schemes. At 30 September 2025, net bank
debt to adjusted EBITDA was 1.3 times (30 September 2024: 0.9 times), and
interest cover was 8.9 times (30 September 2024: 5.9 times). The Group
continues to operate well within its banking covenants and facilities.
Financial Risk Management
The main financial risks relate to funding, liquidity, interest rate
fluctuations and currency exposures. The Group has used financial instruments
to manage financial risks arising from underlying business activities.
Foreign Currency
There is exposure to translational and transactional currency risk, which are
partially mitigated through matching the currency of sales and purchases. The
remaining net risk may be covered through forward hedge contracts to reduce
volatility that might affect the Group's cash balance and income statement.
The average and closing rates of the foreign currencies that have the most
impact on the translation of the Group's Income Statement and Balance Sheet
are as follows.
Average rate Closing rate
2025 2024 2025 2024
USD/GBP 1.31 1.27 1.34 1.34
Euro/GBP 1.18 1.17 1.15 1.20
The Group's net results are not significantly affected by movements in the
USD/GBP exchange rates.
Martin Hopcroft
Interim Chief Financial Officer
Group Income Statement
For the year ended 30 September 2025
2025 2024
Note Underlying Non-underlying Total Underlying Non-underlying Total
Continuing operations (Note 4) (Note 4)
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 2 150,485 - 150,485 135,990 - 135,990
Cost of revenue (103,821) - (103,821) (94,341) - (94,341)
Gross profit 46,664 - 46,664 41,649 - 41,649
Research and development expense (7,296) - (7,296) (7,828) - (7,828)
Sales and marketing expenses (8,870) - (8,870) (8,474) - (8,474)
Administration expenses (17,626) (6,284) (23,910) (15,674) (3,690) (19,364)
Other income 1,546 - 1,546 829 - 829
Operating profit 14,418 (6,284) 8,134 10,502 (3,690) 6,812
Finance income 14 - 14 40 - 40
Finance costs (2,528) (293) (2,821) (2,435) (209) (2,644)
Profit before income tax expense 11,904 (6,577) 5,327 8,107 (3,899) 4,208
Income tax expense 3 (2,726) 935 (1,791) (1,537) 606 (931)
Profit from continuing operations 9,178 (5,642) 3,536 6,570 (3,293) 3,277
Loss after tax from discontinued operations - - - - (9,654) (9,654)
Profit / (loss) for the year 9,178 (5,642) 3,536 6,570 (12,947) (6,377)
Earnings / (loss) per share
From continuing operations
Basic earnings per share 5 35.4p (21.7p) 13.7p 25.5p (12.8p) 12.7p
Diluted earnings per share 5 34.6p (21.3p) 13.3p 25.1p (12.6p) 12.5p
From continuing and discontinued operations
Basic earnings / (losses) per share 5 35.4p (21.7p) 13.7p 25.5p (50.2p) (24.7p)
Diluted earnings / (losses) per share 5 34.6p (21.3p) 13.3p 25.1p (49.8p) (24.7p)
Group Statement of Comprehensive Income
For the year ended 30 September 2025
2025 2024
£000 £000
Profit / (loss) for the year 3,536 (6,377)
Other comprehensive income / (expense) - items that may be reclassified
subsequently to profit or loss
Gains on cash flow hedges 8 126
Exchange differences on translation of foreign operations 137 (4,844)
Exchange differences on translation of discontinued operation - 132
Other comprehensive income / (expense) for the year net of tax 145 (4,586)
Total comprehensive income / (expense) for the year attributable to the 3,681 (10,963)
shareholders of Gooch & Housego PLC
Arising from:
Continuing operations 3,681 (1,441)
Discontinued operations - (9,522)
Total comprehensive income / (expense) for the year attributable to the 3,681 (10,963)
shareholders of Gooch & Housego PLC
Group Balance Sheet
As at 30 September 2025
2025 2024
£000 £000
Non-current assets
Property, plant and equipment 36,518 37,915
Right of use assets 12,956 9,180
Intangible assets 66,561 51,051
116,035 98,146
Current assets
Inventories 40,794 30,631
Trade and other receivables 42,068 30,908
Current asset investments 761 -
Cash and cash equivalents 7,198 6,622
90,821 68,161
Current liabilities
Trade and other payables (28,542) (18,075)
Borrowings - (10)
Lease liabilities (2,234) (1,289)
Income tax liabilities (2,420) (2,005)
(33,196) (21,379)
Net current assets 57,625 46,782
Non-current liabilities
Borrowings (37,066) (22,563)
Lease liabilities (11,755) (8,570)
Provisions for other liabilities and charges (2,031) (1,429)
Deferred consideration (959) -
Deferred income tax liabilities (4,412) (3,978)
(56,223) (36,540)
Net assets 117,437 108,388
Shareholders' equity
Capital and reserves
attributable to equity shareholders
Called up share capital 5,423 5,159
Share premium account 16,051 16,051
Merger reserve 19,109 11,561
Cumulative translation reserve 5,238 5,101
Hedging reserve 149 141
Retained earnings 71,467 70,375
Total equity 117,437 108,388
Group Statement of Changes in Equity
For the year ended 30 September 2025
Note Called up share Share Merger Retained earnings Hedging Cumulative translation reserve £'000 Total
capital
premium
reserve
£000
account
£000 Reserve equity
£000
£000
£000 £000
At 1 October 2023 5,159 16,051 11,561 79,415 15 9,813 122,014
Loss for the financial year - - - (6,377) - - (6,377)
Other comprehensive income / (expense) for the year - - - - 126 (4,712) (4,586)
Total comprehensive (expense) / income for the year - - - (6,377) 126 (4,712) (10,963)
Dividends 6 - - - (3,378) - - (3,378)
Share-based payments - - - 715 - - 715
Total contributions by and distributions to owners of the parent recognised - - - (2,663) - - (2,663)
directly in equity
At 30 September 2024 5,159 16,051 11,561 70,375 141 5,101 108,388
At 1 October 2024 5,159 16,051 11,561 70,375 141 5,101 108,388
Profit for the financial year - - - 3,536 - - 3,536
Other comprehensive income for the year - - - - 8 137 145
Total comprehensive income for the year - - - 3,536 8 137 3,681
Issue of share capital 264 - 7,548 - - - 7,812
Dividends 6 - - - (3,469) - - (3,469)
Share-based payments - - - 1,025 - - 1,025
Total contributions by and distributions to owners of the parent recognised 264 - 7,548 (2,444) - - 5,368
directly in equity
At 30 September 2025 5,423 16,051 19,109 71,467 149 5,238 117,437
Group Cash Flow Statement
For the year ended 30 September 2025
2025 2024
Note £000 £000
Cash flows from operating activities
Cash generated from operations 7 11,167 14,247
Income tax paid (1,811) (62)
Net cash generated from operating activities 9,356 14,185
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired (10,060) (351)
Disposal of subsidiaries, net of cash disposed - 1,665
Purchase of property, plant and equipment (4,565) (3,526)
Sale of property, plant and equipment 340 -
Purchase of intangible assets (1,744) (1,716)
Interest received 14 40
Net cash used in investing activities (16,015) (3,888)
Cash flows from financing activities
Drawdown of borrowings 20,662 4,731
Repayment of borrowings (5,474) (8,046)
Principal elements of lease payments (1,875) (1,715)
Interest paid (2,528) (2,487)
Dividends paid to ordinary shareholders (3,469) (3,378)
Net cash generated from / (used in) financing activities 7,316 (10,895)
Net increase / (decrease) in cash 657 (598)
Cash at beginning of the year 6,622 7,294
(81) (74)
Exchange losses on cash
Cash at the end of the year 7,198 6,622
Notes to the Preliminary Report
1. Basis of Preparation
The Preliminary Report has been prepared under the historical cost convention
and in accordance with International Accounting Standards.
The Preliminary Report does not constitute statutory financial statements
within the meaning of section 434 of the Companies Act 2006.
Comparative figures in the Preliminary Report for the year ended 30 September
2024 have been taken from the Group's audited statutory financial statements
on which the Group's auditors, PricewaterhouseCoopers LLP, expressed an
unqualified opinion, and which have been filed with the registrar of
companies.
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 30 September 2025, as described in
those financial statements, on which the Group's auditors,
PricewaterhouseCoopers LLP have expressed an unqualified opinion, but which
have not yet been filed with the registrar of companies.
There was no statement in the audit report for either the year ended 30
September 2025 or 2024 relating to section 498(2) or 498(3) of the Companies
Act 2006.
2. Segmental analysis
Cognisant of the requirements of IFRS8 Operating Segments, during the year the
Board reviewed the Group's segmental reporting to ensure it is appropriately
aligned to the latest way in which its results are reported internally and
used by the CODM which is considered to be the Executive Team. The Board
concluded that because of the Group's matrix structure, there is significant
overlap in responsibility across the market sectors and therefore business
performance is monitored for the business as a whole as one segment. The
Board agreed to continue to report revenue by market sector to ensure
sufficient information is provided to the user of the financial statements.
Analysis of revenue by type and market:
For the year ended 30 September 2025 Industrial Life Sciences A&D Total
£000 £'000 £000
£'000
Revenue from long term contracts 3,214 253 1,972 5,439
Revenue from products recognised at point of sale 61,130 33,479 50,437 145,046
Total revenue 64,344 33,732 52,409 150,485
For the year ended 30 September 2024 Industrial Life Sciences A&D Total
£000 £'000 £000
£'000
Revenue from long term contracts 1,718 154 1,963 3,835
Revenue from products recognised at point of sale 66,229 33,430 32,496 132,155
Total revenue 67,947 33,584 34,459 135,990
Analysis of revenue from continuing operations by destination:
2025 2024
£000 £000
North America 49,713 46,601
United Kingdom 48,882 36,849
Continental Europe 32,060 27,202
Asia Pacific and Other 19,830 25,338
Total revenue 150,485 135,990
Analysis of net assets by location:
2025 2025 2025 2024 2024 2024
Assets Liabilities Net Assets Assets Liabilities Net Assets
£000 £000 £000 £000 £000 £000
United Kingdom 97,007 (64,760) 32,247 79,846 (35,743) 44,103
USA 109,682 (24,640) 85,042 86,276 (22,013) 64,263
Continental Europe 81 (6) 75 83 (148) (65)
Asia Pacific 86 (13) 73 102 (15) 87
206,856 (89,419) 117,437 166,307 (57,919) 108,388
For the year to 30 September 2025 non-current asset additions were £3.4m
(2024: £3.0m) for the UK and for the USA £4.7m (2024: £7.0m). There were no
additions to non-current assets in respect of Europe (2024: £nil) or the Asia
Pacific region (2024: £nil). The value of non-current assets in the USA was
£64.4m (2024: £64.3m) and in the United Kingdom £51.6m (2024: £44.1m).
There were no non-current assets in Europe or the Asia-Pacific region.
3. Tax expense
Analysis of tax charge / (credit) in the year
2025 2024
£000
£000
Current taxation
UK Corporation tax 2,819 1,963
Overseas tax (467) (212)
Adjustments in respect of prior years 257 107
Total current tax 2,609 1,858
Deferred tax
Origination and reversal of temporary differences (161) (321)
Adjustments in respect of prior years (657) (606)
Total deferred tax (818) (927)
Income tax expense per income statement 1,791 931
Income tax on discontinuing operations - (222)
4. Non-underlying items
2025 2024
£000
£000
Included within administration expenses
Amortisation of acquired intangible assets 2,500 2,002
Acquisition costs 995 228
Release of deferred contingent consideration (658)
Restructuring costs 3,169 911
Site closure costs 78 549
Local employment litigation 200 -
6,284 3,690
Included within finance costs
Unwind of discount on deferred consideration 293 209
293 209
Included within taxation
Tax effect of the non-underlying items above (935) (606)
(935) (606)
Acquisition costs of £1.0m (2024: £0.2m) include costs incurred in relation
to the acquisitions of Phoenix Optical Technologies Limited and Global
Photonics in the year ended 30 September 2025. The costs incurred in the
year ended 30 September 2024 related to the acquisitions of GS Optics and
Artemis in the year ended 30 September 2023.
The release of deferred contingent consideration of £0.7m related to the earn
out on the acquisition of Artemis. The final payment was made in early
October 2025, which led to a release of the creditor reflecting the actual
performance of the acquired business in the earn out period.
Restructuring costs of £3.2m (2024: £0.9m) were associated with the
restructuring of the Group's operating model, in particular the changes
necessitated by the decision to end-of-life the majority of our Pockels Cells
products. They also include CFO succession costs and the cost of effecting a
reduction in the size of the workforce.
Site closure costs of £0.1m (2024: £0.5m) related to the wind down of the
Group's small facility in Shanghai which is now complete.
Provision for litigation relates to our estimate of the potential costs
arising from local employment litigation matters. The Group has insurance in
place for these claims and the provision recorded relates to the deductible
amounts which might become payable by the Group.
5. Earnings per share
The calculation of earnings per 20p Ordinary Share is based on the profit for
the year using as a divisor the weighted average number of Ordinary Shares in
issue during the year. The weighted average number of shares for the year
ended 30 September 2025 is given below:
2025 2024
Number of shares used for basic earnings per share 25,897,092 25,786,397
Number of dilutive shares - impact of share options granted 608,376 394,682
Number of shares used for dilutive earnings per share 26,505,468 26,181,079
A reconciliation of the earnings used in the earnings per share calculation is
set out below:
2025 2024
£000 pence £000 pence
per share per share
Basic earnings per share from continuing operations 3,536 13.7p 3,277 12.7p
Amortisation of acquired intangible assets (net of tax) 1,969 7.6p 1,540 5.9p
Acquisition costs (net of tax) 951 3.7p 195 0.8p
Site closure costs (net of tax) 78 0.3p 658 2.6p
Restructuring costs (net of tax) 2,882 11.0p 743 2.9p
Unwind of discount on deferred consideration (net of tax) 220 0.8p 157 0.6p
Release of deferred consideration creditor (658) (2.5p) - -
Provision for litigation 200 0.8p
Total adjustments net of income tax expense 5,642 21.7p 3,293 12.8p
Adjusted basic earnings per share 9,178 35.4p 6,570 25.5p
Basic diluted earnings per share 3,536 13.3p 3,277 12.5p
Adjusted diluted earnings per share 9,178 34.6p 6,570 25.1p
Basic and diluted loss per share from discontinuing operations - - (9,654) (37.4p)
Basic and diluted earnings per share before amortisation and other adjustments
has been shown because, in the opinion of the Directors, it provides a useful
measure of the trading performance of the Group.
6. Dividend
2025 2024
£000
£000
Final 2024 dividend: 8.3p per share (Final 2023 dividend paid in 2024: 8.2p) 2,140 2,114
2025 Interim dividend of 4.9p per share (2024: 4.9p per share) 1,329 1,264
3,469 3,378
The Directors have proposed a final dividend of 8.3p per share making the
total dividend paid and proposed in respect of the 2025 financial year 13.2p.
(2024: 13.2p per share). The total value of the proposed final dividend is
£2,258,000 (2024: £2,140,000).
7. Reconciliation of cash generated from operations
2025 2024
£000 £000
Profit before income tax from continuing operations 5,327 4,208
Loss before income tax from discontinued operations - (9,876)
Adjustments for:
- Amortisation of acquired intangible assets 2,500 2,002
- Amortisation of other intangible assets 1,451 1,755
- Loss on disposal of subsidiary - 8,910
- Loss on disposal of property, plant and equipment 133 128
- Depreciation 8,220 7,732
- Share based payment charge 1,025 715
- Release of deferred consideration creditor (658) -
- Non cash consideration received from customer contracts (761) -
- Amounts claimed under the RDEC (391) (392)
- Finance income (14) (40)
- Finance costs 2,821 2,696
Total 14,326 23,506
Changes in working capital
- (Increase) / decrease in inventories (7,616) 257
- (Increase) / decrease in trade and other receivables (8,963) 863
- Increase / (decrease) in trade and other payables 8,093 (4,711)
Total (8,486) (3,591)
Cash generated from operating activities 11,167 14,247
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