Gooch & Housego (GHH) Investor presentation summary

Business overview and strategy

• FY2024 revenue reached £136M, with 50% from Industrial & Telecom, and 25% each from Life Sciences and Aerospace & Defence.

• Focus on photonics-enabled solutions for medical, industrial, and defense applications, emphasizing customer relationships and specialized, high-performance products.

• Strategy centers on innovation, operational excellence, technology leadership, and targeted investment for both organic and inorganic growth.

• Over 1,000 employees across 10 global manufacturing and design sites, with recent acquisition of Phoenix Optical to enhance precision optics capabilities.

Financial performance

• Revenue grew 0.7% to £136.0m; adjusted operating profit declined 13.1% to £10.5m due to lower industrial volumes.

• Gross margin improved to 30.6% from 29.8%, reflecting operational efficiency gains.

• Net debt reduced to £25.8m, with leverage at 0.9x and available bank facilities of $39.6m.

• Free cash flow was £4.8m, and a final dividend of 8.3p per share was proposed.

Segment performance

• Industrial & Telecom revenue fell 9.1% to £67.9m, impacted by customer destocking; recovery expected in H2 CY2025.

• Aerospace & Defence revenue rose 26% to £34.5m, with improved margins and strong demand for optics and laser protection filters.

• Life Sciences revenue increased 1.8% to £33.6m, driven by medical diagnostics and new customer wins, despite inventory corrections.