Gooch & Housego PLC (AIM:GHH), the specialist manufacturer of photonic components & systems, said profits for the fiscal year just ended will be slightly ahead of expectations.
The group's trading performance in the second half of the financial year (which runs to the end of September) has been good thanks to further strengthening in end-market demand, despite currency headwinds and some supply chain constraints, the company told investors.
Industrial laser demand continues to be strong, especially the semiconductor market, while the life science markets are performing well.
Demand for the group’s medical diagnostics remains at previous high levels and orders for its specialist medical laser products have been strong as this market recovers from the low levels of elective surgery during the pandemic.
Gooch & Housego completed a number of significant deliveries to its aerospace and defence customers during the year, though it does not expect commercial aerospace volumes to recover until 2023.
The group delivered strong operating cash flow through the second half of the financial year and has further reduced its level of borrowings.
The new fiscal year is less than a week old and the order book is “robust” with £97.8mln of orders, up from £92.4mln a year earlier.
"Trading in the second half was strong, reflecting the sustained recovery in industrial and medical lasers and the robust performance of telecommunications and life sciences. Our ambitious programme to streamline our manufacturing sites is on track to deliver the previously announced full-year profit improvements,” said Mark Webster, the chief executive officer of Gooch & Housego.
"There has been some 'drag' on performance due to currency headwinds, self-isolation and supply chain issues. It is though a far better business environment than last year and we believe these factors will improve over time.
"We intend to vigorously pursue our long-term strategic goals of diversification and moving up the value chain, through internal investment and where appropriate, acquisitions,” he added.