Full Year Trading Update
Summary by AI BETAClose X
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7 October 2025 |
Gooch & Housego PLC
("G&H" or the "Company" or the "Group")
Full Year Trading Update
and
Notice of Results
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of photonic components and systems, announces its trading update for the financial year ended 30 September 2025.
Trading Update
Following the positive performance in the first half, the Group is pleased to report that trading momentum was sustained during the second half of the financial year ended 30 September 2025, despite continuing challenges from the global macroeconomic environment.
Industrial revenues for fibre optic couplers and modules used in subsea data networks grew, offsetting the broadly flat sales from our industrial laser customers. Whilst there are early signs of a recovery in demand from the semiconductor market, we continue to closely monitor the short-term uncertainty in our industrial markets created by ongoing macroeconomic and geopolitical challenges. Encouragingly, the medium-term underlying demand drivers remain positive for our industrial products, and customer activity increased towards the end of the financial year. We are well positioned to benefit from the recovery in these markets.
Life Sciences revenues in the second half of the financial year benefited from customer phasing of several medical diagnostic device programmes that are manufactured in Ashford, Kent. We have seen a positive response to the 'last time buy' notice for our Pockels Cells going into medical lasers, which will be delivered over the coming financial year, at which point our Cleveland, Ohio, facility will transition to further develop its capacity for the growth of crystals used both within our Group and by external customers for optical applications.
Aerospace & Defence saw further revenue growth in the second half underpinned by strong demand for our precision optics and advanced sighting and imaging systems in military platforms. Demand for our ring laser gyro components in the commercial aerospace sector also remains strong and we continue to benefit from operational improvements, together with additional capacity that we have added over the last couple of years.
Due to the positive trading performance in the year, enhanced by focused operational improvements, proactive handling of supply chain disruptions, investment to further enhance capability and the capitalisation of overheads in inventory, the Board expects to announce full year revenues and adjusted profit before tax broadly in line with its expectations, before moderately higher non-underlying costs of recent acquisitions and restructuring activities.
Integration of Acquisitions
The integration of Phoenix Optical and Global Photonics into G&H, both of which were acquired during the year, is proceeding to plan. The exploitation of operational and commercial synergies between Phoenix and the rest of the Group is already well underway with the main focus on germanium fabrication, and a number of newly combined optical substrate and coating offerings are now available to customers.
Global Photonics brings expertise in cleanroom lithography, photolithographic reticle fabrication, ion beam etching and advanced thin film coatings that is hugely complementary to G&H's existing manufacturing capabilities. This, along with the significant available space at the new Tampa facility, will help scale the Group's offering into North America to meet the growing demand from US defence prime contractors, particularly for laser protection filtering, periscopes and complex optical systems.
Both transactions represent 'speed to value' acquisitions for G&H focused on addressing the growing opportunities in the Aerospace & Defence sector and have been well received by customers with a number of exciting new potential orders being pursued.
Cash/Debt
The Group remains in a strong financial position with a robust balance sheet. Net bank debt excluding IFRS 16 at 30 September 2025 was £30.0m (31 March 2025: £24.1m; 30 September 2024: £16.0m), reflecting good operational cashflow before non-underlying items, investment in inventory and the acquisitions of Phoenix Optical and Global Photonics.
Outlook
The Group's order book continues to grow and at 30 September 2025 was £142.3m (31 March 2025: £121.5m; 30 September 2024: £104.5m). Over 80% of the order book is for delivery in FY26, which underpins increased trading in the new financial year including the full year impact of recent acquisitions, partially offset by an increase in overheads.
We are seeing strong demand in the Aerospace & Defence business across the UK, USA and Europe. Whilst short-term demand outlook in our Industrial and Life Sciences markets remains subdued with the exact timing of recovery unpredictable due to supply chain uncertainty and tariff challenges, we still expect the semiconductor market to start to grow modestly during the medium-term, where photonics is a key enabler of cutting-edge technologies.
Notice of Full Year Results
The Group expects to announce its full year results for the year ended 30 September 2025 on 2 December 2025.
Charlie Peppiatt, Chief Executive Officer of G&H, commented:
"I am delighted with the positive progress the Group has made in FY25. Our operational performance has shown sustained improvement and resilience in the face of a complex and uncertain macroeconomic background, with unprecedented supply chain and tariff challenges. This is a testament to the positive progress the Group is making with the deployment of our strategy and the quality of our workforce.
"The integration of both Phoenix and Global Photonics into G&H is proceeding to plan. Both businesses are an excellent strategic and operational fit for the Group. In particular, Global Photonics, acquired in May 2025, brings strong relationships with U.S. defence primes and complementary manufacturing capabilities to our growing Optical Systems division in North America. Both acquisitions are accelerators to G&H becoming a partner of choice for high-precision optical systems and photonics in the UK, US and Europe.
"With our growing order book, strengthening market positions and differentiated photonics expertise aligned to structural growth drivers from megatrends, we are increasingly confident in the prospects of the company to deliver our strategy in the medium term."
For further information please contact:
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Charlie Peppiatt, Chief Executive Officer Martin Hopcroft, Interim Chief Financial Officer |
Gooch & Housego plc |
+44 (0) 1460 256440 |
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Mark Court / Sophie Wills / Abigail Gilchrist |
Burson Buchanan |
+44 (0) 20 7466 5000 |
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Christopher Baird / David Anderson |
Investec Bank plc |
+44 (0) 20 7597 5970 |
Notes to editors
1. Gooch & Housego is a photonics technology business headquartered in Ilminster, Somerset, UK with operations in the UK, USA and Europe. The company researches, designs, engineers and manufactures advanced photonic systems, components and instrumentation for applications in the Aerospace & Defence, Industrial, Life Sciences and Scientific Research sectors. World leading design, development and manufacturing expertise is offered across a broad range of complementary technologies.
2. All financial information included in this announcement is based upon unaudited management accounts and excludes any exceptional items. This announcement contains certain forward-looking statements that are based on management's current expectations or beliefs as well as assumptions about future events. These are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which G&H operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results, and G&H's plans and objectives, to differ materially from those currently anticipated or implied in the forward-looking statements. Investors should not place undue reliance on any such statements. Nothing in this announcement should be construed as a profit forecast.
3. Adjusted profit before tax excludes the amortisation of acquired intangible assets, impairment of goodwill and acquired intangible assets, non-underlying items being site closure costs, costs of acquisitions, and restructuring costs, together with the related tax impact.
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