Gooch & Housego (GHH) Trading update summary

Trading performance

• Revenue for the second half is delayed due to supplier and customer delivery issues, leading to expected full-year adjusted PBT being about £1.5m lower than previously forecast.

• Order book grew to £116.8m at end of July 2024, up from £115.8m at end of March 2024.

• Bank borrowings reduced to £18.0m and total net debt to £25.5m by end of July 2024.

Strategic initiatives and integration

• Integration of Artemis and GS Optics is progressing well, enhancing system solutions and opening new revenue streams.

• Outsourcing of hi-reliability fused fibre couplers is complete, with more products being qualified for outsourced production.

• Phase one investment in new R&D and engineering at the Rochester NY campus will finish by year-end, with strong customer interest.

• Continuous improvement activities are prioritized to achieve operational efficiency, especially as market recovery is anticipated.

• Steps are being taken to address cost base in response to low-cost competition in the medical laser market.

Outlook

• Preparing for recovery in industrial laser and semiconductor markets in early 2025, with expectations for FY2025 unchanged.

• Healthy order book and strong pipeline provide confidence for next year.