Gooch & Housego PLC (AIM:GHH) shares climbed 7% after the photonic components maker reported that "trading momentum was sustained" in the second half.
Trading was marginally ahead of expectations across the group’s activities, with a pair of recent acquisitions bedding in well.
Cash performance was better than expected, enabling the group to trim borrowings by US$5.5 million from the level immediately following the acquisitions.
At the 30 September year end the order book stood at £124.9 million, representing a 2.5% decline in the second half on an organic, constant currency basis.
On the outlook, destocking is expected to continue in some parts of G&H's industrial markets in the first half of the new financial year, but the A&D and Life Sciences markets are both expected to see revenues grow.
Broker Cavendish said it upgraded 2023 earnings per share forecasts by 1.8%, keeping 2024 and 2025 expectations unchanged.