Half Year Trading Update

RNS Number : 7430B

Gooch & Housego PLC

08 April 2013

 



For immediate release

8 April 2013

Gooch & Housego PLC

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

Half Year Trading Update

"Trading in line with expectations"

Gooch & Housego PLC, the specialist manufacturer of optical components & systems, today announces that trading for the six months ended 31 March 2013 was in line with management expectations.

The encouraging trend in orders, as reported in the trading update released on 27 February, has continued, with the order book at the end of the period standing at £29.6m, which is 19% higher than at the start of the year. Overall, trading conditions have been mixed, reflecting current economic uncertainties, with some sectors performing well and others less so. As expected, the US Aerospace & Defence sector has continued to be challenging, with budget cuts and threats of sequestration adversely affecting decision making. In contrast, G&H has been successful in winning significant orders from European Aerospace & Defence customers during the same period. In the Industrial and Life Sciences sectors market conditions have been similarly mixed but, as in Aerospace & Defence, we have focussed on innovative product development to differentiate us from competitors and address an increasingly diverse range of applications.

During the past six months, space photonics has emerged as a significant new application area in which G&H has the opportunity to develop a market leading position by leveraging its unique expertise in fibre optics, semiconductor lasers and precision optics. These skills are particularly sought in the rapidly evolving field of satellite laser communications, guidance and control systems.  With support and encouragement from UK, European and US space agencies, G&H has successfully bid on several development programmes, and has more in the pipeline. Our recently established Systems Technology Group has been instrumental in realising these opportunities, which are focussed on the application of our core photonic component technologies in complex sub-systems as we seek to move up the value chain. This is consistent with our strategy of delivering growth by migrating from component supplier to solutions provider at the systems level.

In recognition of the increasing importance of Far Eastern markets, G&H has recently established a Japanese subsidiary, Gooch & Housego Japan KK, opened a sales office in Singapore and strengthened our team in China. The establishment of a subsidiary in Japan will allow G&H to provide enhanced support to its customers and local distribution partners, and demonstrates further commitment to this important market.

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

"Against a backdrop of continuing economic uncertainty, Gooch & Housego is focussing on delivering growth through the provision of innovative photonic technology solutions in specialised applications where we can take a leading or dominant position in a global market."

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

 

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