Gooch & Housego PLC Pushes Up Forecast Despite Currency Headwinds

“There remains substantial long-term growth potential for our photonics technologies and system capabilities in all of our target industries,” the company said.

Gooch & Housego PLC, the specialist manufacturer of photonic components and systems, said profits for the just ended fiscal year will be slightly higher than expected.

The group’s commercial performance in the second half of the year (which ends at the end of September) was good thanks to a further strengthening of demand in the end market, despite headwinds for currencies and certain constraints in the supply chain. , the company told investors.

Demand for industrial lasers remains strong, especially in the semiconductor market, while life science markets are doing well.

Demand for the group’s medical diagnostics remains at high levels previously and orders for its specialty medical laser products have been strong as this market recovers from low levels of elective surgery during the pandemic.

Gooch & Housego completed a number of significant deliveries to its aerospace and defense customers during the year, although it does not expect commercial aerospace volumes to recover before 2023.

The group generated solid operating cash flow throughout the second half of the year and further reduced its debt level.

The new fiscal year is less than a week old and the order book is “solid” with £ 97.8 million in orders, up from £ 92.4 million a year earlier.

“Trading in the second half of the year was strong, reflecting the sustained recovery in industrial and medical lasers and strong performance in telecommunications and life sciences. Our ambitious program to rationalize our manufacturing sites is on track to achieve the earnings improvements previously announced, ”said Mark Webster, CEO of Gooch & Housego.

“There was some ‘slowdown’ in performance due to currency headwinds, self-isolation and supply chain issues. However, it is a much better business environment than last year. and we believe these factors will improve over time.

“We intend to vigorously pursue our long-term strategic objectives of diversification and progression in the value chain, through internal investments and, where appropriate, acquisitions”, he added. .

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