AGM Trading Update

RNS Number : 9180A

Gooch & Housego PLC

26 February 2014

 

For immediate release

26 February 2014

Gooch & Housego PLC

("G&H" or the "Company")

AGM Trading Update

"Trading in line with expectations"

At the AGM of the Company to be held today, the Chairman will give the following update on trading: -

Gooch & Housego PLC, the specialist manufacturer of optical components & systems, is pleased to provide an update on trading performance since 1 October 2013, which has been in line with management expectations.

During the first four months of the financial year confidence has gradually built across the main market sectors in which the Company operates. The trading environment in G&H's three largest market sectors - Industrial, Aerospace & Defence and Life Sciences - has followed a modestly improving trend, which is reflected in the level of orders received. The current order book is 11% higher than at the beginning of the year (3% on a like-for-like basis allowing for the acquisition of Spanoptic Ltd.) despite a significant increase in shipments compared with the same period last year. Overall, the Company is well-positioned to respond to increases in demand for its products using existing manufacturing facilities and resources.

G&H acquired Spanoptic Ltd., a Glenrothes, Scotland-based manufacturer of precision optics, on 14 October 2013 and immediately began its integration with the Company's Ilminster-based precision optics business. Operating a single business across two sites, each with highly-complementary capabilities, the integration has progressed well, both internally with staff and externally with customers and partners. The acquisition has been well-received by customers, all of whom have been retained, and G&H has begun to develop a good relationship with Spanoptic's Chinese supplier/partner.

On 25 November 2013 G&H completed the acquisition of Constelex Technology Enablers Ltd. (Constelex), a small, Athens-based developer of optical fibre amplifiers for satellite communications applications. The team is already functionally integrated within the Company's Torquay-based Systems Technology Group (STG), and will be relocating to the Torquay facility in the coming months. Constelex's European Space Agency contracts and European Union funded programmes are in the process of being formally transitioned to G&H. Constelex brings valuable additional skills, experience and business opportunities to the STG, which has in parallel continued to strengthen its team through recruitment. The STG, established just twelve months ago to underpin the Company's strategic goal of moving up the value chain to become a solutions provider, now has a headcount of eleven and is currently managing ten active space programmes, with more in the pipeline.

Gareth Jones, Chief Executive of Gooch & Housego commented: -

"The recent acquisitions have strengthened our core business and will accelerate G&H's push into new applications such as satellite communications, infrared optics and diagnostic instrumentation and systems. Against a background of gradually improving market conditions G&H is well placed to deliver continued growth."

For further information contact: -
Gareth Jones / Andrew Boteler	Gooch & Housego PLC	01460 256440
Tim Thompson  / Gabriella Clinkard	Buchanan	020 7466 5000
Patrick Robb / David Anderson	Investec Bank plc	020 7597 5970

 

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