Gooch & Housego (GHH) Trading update summary

Trading performance

• Second half trading was strong, with improved volumes in fibre optic modules for industrial markets as programs moved to volume production.

• Aerospace and Defence saw revenue growth from precision optics and advanced sighting systems, with strong demand for ring laser gyro components.

• Medical diagnostic instrument volumes increased due to customer program phasing, and medical laser deliveries began to recover as destocking ended.

• Full year revenue and adjusted pre-tax profit are expected to be in line with market expectations.

Cash and financial position

• Cash generation was strong in the second half, enabling a $3.9m reduction in borrowing.

• Net debt (pre-IFRS 16) at year-end is expected to be slightly better than market expectations.

Order book and outlook

• Order book at 30 September 2024 stood at £104.5m, down 5% organically from the prior year.

• Declines in medical laser and industrial markets were partially offset by strong growth in Aerospace and Defence orders.

• Early signs of recovery in medical laser and industrial markets, with sustained recovery expected next year.

• Teams are focused on converting a healthy pipeline of new Aerospace and Defence prospects.