Gooch & Housego in line with expectations

Gooch & Housego, the specialist manufacturer of optical components and systems, expects trading for the year ended 30 September to be in line with its previous guidance.

In its 5 April trading update and 7 June half year results it reported an improving market for industrial lasers and said it expected a strong second half, leading to a higher second half weighting than last year.

Today's update says: "Since June we have seen that demand strengthening further, in parallel with record orders for our fibre based products. Recent investment in infrastructure and capital equipment, as well as benefits derived from our performance improvement initiative, have enabled us to respond effectively to these increased levels of demand.

"The current positive trading environment is driven by orders for our fibre based business, in particular high reliability undersea fibre couplers, fibre based satellite communications, fibre sensing and critical components used in microelectronic manufacturing.

"This is reflected in a robust order book, which, as at 30 September 2016, stood at £52.8 million, an increase of 45.5% compared with the same time last year. Excluding the impact of acquisitions this represents an increase of 10.5%." In July the company acquired two businesses. G&H acquired the entire share capital of Kent Periscopes Ltd, a UK based specialist supplier of periscopes, vehicle sights and related equipment for land based armoured fighting vehicles. Kent has a proven capability in providing system level optical products for use in harsh environments to an impressive international customer list. It has a strong market position and a committed, long-term order book, which helps to underpin future revenues. Kent will benefit from G&H's greater global reach and complementary technologies.

G&H also acquired the trade and assets of Alfalight Inc, a designer and manufacturer of high reliability, laser based, electro-optic systems for defence and security applications, based in Madison, Wisconsin. It is highly complementary to G&H's existing Boston, Massachusetts, business and will be incorporated into this business unit. G&H will benefit from Alfalight's deep ties with key defence customers

The company expects to announce its audited results for the year ended 30 September on 29 November. .