Gooch & Housego Share Discussion Threads

[simon gordon] 08/11/2024 15:30

GHH covered from 46-minute mark:

Vox Markets - 8/11/24

The Exchange with Chris McVey of Octopus Investments

[simon gordon] 06/11/2024 11:23

ASML issued a warning a few weeks ago.

Trump's tariffs could dampen industrial investment until there’s a clearer path forward. Given the current uncertainty, I’ve reduced my position and plan to hold off until 2025 to see how things develop.

[simon gordon] 06/11/2024 09:09

Yesterday, MGAM warned of weaker demand, I think their materials are used in the Industrial sector:

2024 Outlook

Market conditions have weakened during the second half and we are now seeing a further deterioration in our outlook for the fourth quarter. Our outlook for constant currency revenue growth for the full financial year is now around 3%. Together with additional FX headwinds, we now expect an adjusted operating profit margin for the year of c.11.4%.

[simon gordon] 31/10/2024 21:05

One of the GHH team in the Photonics 100:

Stuart MacFarquhar

Another product of the prolific Optoelectronics Research Centre at the University of Southampton, Stuart MacFarquhar works in advanced photonics research and design at G&H Photonics, the celebrated Somerset-based manufacturer established as long ago as the 1940s to make crystal optical components used in microscopes and binoculars.

Dr. MacFarquhar is working on two projects funded through the EU Horizon and UK Innovate programmes. The VISSION project is developing the heterogeneous integration of active devices with silicon nitride PIC devices using micro-transfer-printing technology, while Next-2Digits focuses on the fabrication of silicon photonic chips with graphene photodetectors. For end-of-project applications, it is hoped the transfer from free-space or fibre-optic systems to a PIC platform will represent a vast decrease in device scale.

Stuart MacFarquhar’s published papers include 'Nonlinear Characterisation of Laser Processed Polysilicon Waveguides for Integrated Photonics' and 'Nonlinear properties of laser-processed polycrystalline silicon waveguides for integrated photonics'.

[simon gordon] 31/10/2024 16:39

With the AIM IHT uncertainty now resolved, the stock may have room to advance, especially following a stable trading update and recent acquisition. At 11.5x 25, the valuation appears attractive if the numbers are proven up, with 26 being the likely inflection point where the new strategy could begin to deliver tangible results.

[simon gordon] 31/10/2024 07:00

EIN Preswire - 30/10/24

Opterro, Inc. and Gooch & Housego (G&H) Sign Memorandum of Understanding for Cooperation in Fiber-Optic Sensing

SILICON VALLEY, CA, UNITED STATES, October 30, 2024 /EINPresswire.com/ -- Opterro, Inc. (www.opterro.com), a leader in advanced fiber-optic sensing solutions, and Gooch & Housego PLC (G&H) (www.gandh.com), the specialist manufacturer of photonic components and systems, are pleased to announce the signing of a Memorandum of Understanding (MoU) to explore cooperative opportunities in fiber-optic sensing technology. This collaboration aims to combine Opterro’s expertise in fiber-optic distributed systems with G&H’s high-volume manufacturing capabilities for high-reliability applications, addressing the needs of industry and government customers across various sectors.

Under the terms of the MoU, the two companies will focus on leveraging Opterro’s i*Sense® product line, including its popular d*Sense®, LiteSense™, UltraSense™, FiberBlade™ and FyberSpace® solutions, to serve a wide array of applications, ranging from industrial monitoring and defense to energy management and medical diagnostics. The partnership will initially investigate commercial feasibility, with the intent to develop a long-term supply agreement that facilitates the expanding global distribution of Opterro’s advanced sensing systems and end-to-end solutions.

In conjunction with this MoU, Dr. Stratos Kehayas will join Opterro’s board of directors as an observer, contributing with his extensive experience in photonics and fiber-optics.

[simon gordon] 30/10/2024 09:21

Cavendish - 30/10/24

-In FY25E the acquisition will contribute for 11 months and is expected to generate £7.0m in revenues. The business is expected to have and adj EBITDA of £0.4m, which after £0.1m of depreciation and additional interest of £0.3m will results in the acquisition washing its face.

—Phoenix has a strong and growing order book and GHH is expected to facilitate an acceleration of delivery schedules. The anticipated synergies in St Asaph, plus cross selling and supply chain opportunities are expected to materialise during FY26E.

—We increase FY25E net debt by the initial consideration of £3.4m to £15.0m, with little anticipated effect on net working capital.

[simon gordon] 30/10/2024 07:18

Phoenix Optical

[simon gordon] 27/10/2024 19:12

WSJ TV - 15/10/24

This $10M U.S. Army Laser Melts Drones With $3 Beams | WSJ Equipped

In Ukraine and the Red Sea, low-tech drones are changing the way wars are fought. The U.S. and other countries are investing in a new and inexpensive way to retaliate: lasers. Compared with traditional weapons, lasers present some key challenges: they have a shorter range, limited power and can be harder to fix when issues arise.

WSJ explains how the BlueHalo LOCUST laser weapon system works and why the tech is so difficult to perfect.

[simon gordon] 25/10/2024 19:45

One of G&H ITL's customers, Endomag, was taken out for $310m.

Endomag - 25/7/24

Hologic, Inc. (Nasdaq: HOLX), a global leader in women’s health, has completed its previously announced acquisition of Endomagnetics Ltd (Endomag), for approximately $310 million.




G&H ITL

At the start of the project, Endomag was a small, UK-based start-up spun out from University College London (UCL) and University of Houston, Texas. They had developed an initial concept which, whilst highly sensitive, required the use of liquid nitrogen and a superconducting quantum interface device (SQUID). ITL was tasked with transforming the proof of principle prototype into a commercially viable, production-ready, benchtop medical device.




Could be a good in to Hologic a $19bn US healthcare company:

[simon gordon] 25/10/2024 14:17

Shweta Jadhav - 25/10/24

𝐀𝐜𝐨𝐮9852;𝐭Ү48;-𝐨⻐9;𝐭𝐢𝐜 𝐃𝐞𝐯𝐢9836;𝐞Ү52; 𝐌𝐚𝐫𝐤9838;𝐭 𝐢𝐬 𝐞𝐱𝐩𝐞9836;𝐭Ү38;𝐝 𝐭𝐨 𝐫𝐞𝐚𝐜9841; 𝐔𝐒𝐃 𝟗𝟒𝟖.𝟓
20784; 𝐌𝐧. 𝐛𝐲 𝟐𝟎𝟑𝟎, 𝐚𝐭 𝐚 𝐂𝐀𝐆𝐑 𝐨𝐟 𝟕.𝟐𝟒% 𝐝𝐮𝐫𝐢9847;𝐠 𝐭𝐡𝐞 𝐟𝐨𝐫𝐞9836;𝐚Ү52;𝐭 𝐩𝐞𝐫𝐢9848;𝐝.

𝐅𝐨𝐫 𝐟𝐮𝐫𝐭9841;𝐞Ү51; 𝐢𝐧𝐟𝐨9851;𝐦Ү34;𝐭𝐢;𝐨𝐧, 𝐜𝐥𝐢𝐜9844; 𝐭𝐡𝐞 𝐟𝐨𝐥𝐥9848;𝐰Ү42;𝐧𝐠; 𝐥𝐢𝐧𝐤:


The acousto-optic devices market is growing rapidly, driven by demand for advanced optical modulation and laser systems across telecommunications, medical, and defense sectors. These devices, which use sound waves to modulate light, are valued for their precision and reliability in applications like signal processing, laser scanning, and material processing.

Innovations in acousto-optic materials and improved device efficiency are further expanding the market's applications. As industries seek compact and versatile optical solutions, acousto-optic devices are expected to play a pivotal role in enhancing system performance and enabling new technological advancements.

𝑪𝒐𝒎𝒑9942;𝒕ү46;𝒕𝒊;𝒗𝒆 𝑳𝒂𝒏𝒅9956;𝒄ү38;𝒑𝒆;:
1. G&H (Gooch & Housego)
2. Isometric
3. Brimrose Corporation of America
4. Harris Corporation
5. AMS Technologies AG

[jailbird] 09/10/2024 07:20

Bought my first tranche yesterday.Excellent recovery stick now I remember the days this was 40p!

[wiltowin] 08/10/2024 10:07

Glad to see them turning the A&D arm around, it had been the problem arm of the business prior, I might get back in here but as mentioned before I'll keep my powder dry until after the Reeves budget.

[value viper] 08/10/2024 06:03

Can't really argue with the update.

[value viper] 06/10/2024 07:03

Trading update this week yes chaps ?

[simon gordon] 05/10/2024 11:19

Value,

Yes, it's a sitting duck.

I hope it doesn’t happen, and they can have the opportunity to grow and push the share price beyond its previous all-time highs.

[simon gordon] 05/10/2024 11:14

I don't know if GHH is involved with this but it's the kind of deal that Stuart Widdowson flagged on his last appearance on Vox Markets in August. It was a post liked by a GHH employee on LinkedIn.

Excelitas Technologies Corp - September 2024

We’re delighted to announce that Defence Equipment & Support (DE&S) and Qioptiq, an Excelitas Technologies Corp. company, have signed a 7-year framework contract to deliver the ARILLS fused sighting capability to the UK MoD.

The contract, which will be delivered by the Dismounted Close Combat team within DE&S, has a potential value of up to £120m ex. VAT. The framework allows the continued delivery of the proven TALON fused weapon sight. TALON brings together the benefits of both image intensified and thermal imaging technologies in a compact package providing users with 24/7 fighting capability. Critical In-Service Support for the sights will be managed through the Surveillance and Target Acquisition Support (STAS) contract, which Excelitas also delivers for the UK MoD.

Initial orders worth around £30m are set to be placed, with future options to procure up to 10,000 systems over the contract life. Peter White, Managing Director at Excelitas, said, “We’re delighted that the British Army and DE&S continue to recognize the enhanced fighting capability that our TALON fused weapon sight delivers. We look forward to delivering this world leading system for the end users for many years to come, supported by our 650 skilled employees at our facility in North Wales.”

[value viper] 05/10/2024 10:09

SG agree with your points about the self help potential, improving markets etc for them. But these situations are also what PE looks for. With shares low etc it's possible something happens.

[essentialinvestor] 05/10/2024 09:27

On a wider point, do posters consider the damage to AIM stocks will be about done before the budget?.

[simon gordon] 05/10/2024 08:50

Value,

Laird was taken out in 2018, Charlie joined Stadium in 2011.

Why would the BoD sell out now when they are so lowly valued and entering a period of strong growth and increased margins?

It'd be sad to see another UK company sold cheaply.

For instance, E2V installed a new management who focused the R&D and increased margins, Teledyne bought them and in the coming years, profits increased three times.

OXIG is one of the rare ones where UK shareholders didn't chase a quick buck.

GHH has a lot of potential and if shareholders are patient will be rewarded. If you look at the business and not the share price it has the ingredients of an E2V or OXIG.

If UK shareholders had held onto ARM they'd be up five times now. Why are the British so keen to sell everything and not hold on to long-term wealth creation, we should look to the Swiss for inspiration. We are selling ourselves short. Also, the British fixation on dividends is limiting our growth potential.

Here's what Stuart Widdowson said about the company - 31/7/24:

"When we saw them in June, I don't think they've ever been more bullish about the medium- to long-term prospects. They have the order book to deliver sales this year through September, but as Ed mentioned, they are reliant on other people delivering materials to allow them to complete their work. Frankly, whether they miss their numbers this year slightly—by 5% or maybe 10%—is somewhat irrelevant for the long-term story. In fact, it's probably a massive buying opportunity.

The bizarre thing is that everyone knows this might be the case, yet people are holding off, thinking there might be an issue. But in our experience, when that happens, because everyone is aware, they all rush in, and you might not be able to get any stock. So it's quite an interesting situation.

The company's EV/sales ratio is, I believe, below one again. It should comfortably make a 15% margin. Historically, it has traded at two times EV/sales, which implies very significant re-rating potential. However, it does seem vulnerable right now if people don't start buying the stock.

If I were on the company's board, I'd be dusting down my defense documents."




Stuart Widdowson - 26/7/24

"The Holy Grail is finding a self-help situation in what is perceived, and has been, a low-growth business, and then actually getting it back up to intrinsic value while changing the dynamic. A really good example was E2V Technologies, which was the biggest contributor to performance in SEC. It was a global market leader with super niche technology, but had always underperformed in organic growth relative to its potential. They were spending the right amount on R&D, but much of it went to pet projects that never got commercialized.

One of the key things the management team did, aside from operational improvements like implementing lean manufacturing—which improved gross margin, cash conversion, inventory turnover, and return on capital employed—was to refocus the 7% of sales spent on R&D. They stopped funding pet projects, which were essentially hobbies, and redirected those resources into initiatives with a very high likelihood of generating good commercial revenue within two to five years. This led to an inflection point in organic growth.

That’s ultimately why Teledyne bought the business. Unfortunately for us, I recently found out that Teledyne tripled the profits over the next five years after acquiring the company. So, it was likely sold too early. But that’s where you get the real home runs. To give you an idea of the numbers, from the time of investment to the exit and takeover, the shares went up sixfold, including dividends. So, if you can find a self-help situation and transform it from a low-growth business into a high-growth one, that's where you make the real home runs."

[value viper] 05/10/2024 07:15

The BPR anxiety means it keeps being drip sold as with many other AIM companies.Question is would a potential acquirer strike before the end of the month just in case BPR isn't removed ....of course it may not be bid for at all.

[value viper] 05/10/2024 07:12

I'm guessing / hoping it gets bought out frankly. I made a few £ when Stadium was bid for and have also kept an eye on Peppiatt's movements. Seems he tends to take jobs at companies that then get acquired. Laird also of course.OIT now being largest holder says a lot to me NOT they get them all right - FLO and DIA for example.

[simon gordon] 05/10/2024 06:11

Morning RP19,

Maybe the Prelims in December or the TU in February will give a clearer picture of how 2025 is shaping up.

I am enthused by the quality of the hires he has made.

I like this quote from the book Intelligent Fanatics Project:

"Leaders are not necessarily born with the highest IQs, or the most drive to succeed, or the greatest people skills. Instead, the best leaders are adaptive -- they understand the necessity of pulling bright, energetic people into their world and tapping their determination and drive."

I believe that through his work at TTG, he expanded his network in America, which brought in individuals like Melinda Chudleigh and Bryan Bothwell to the team, and possibly Bill Keating as well. I'm not sure when or where he met Sarabjit, who looks fantastic.

[rp19] 04/10/2024 20:50

Fair enough Simon, time will tell Trading update next week, see what else they have to say about the H2 weighting.

[simon gordon] 04/10/2024 20:23

RP19,

I agree with you. The issue with Stadium was that it was a sub-scale, low-margin business. However, he seems to have had a solid track record at Laird. His ambitious nature likely drove him to take the opportunity to become a CEO of a PLC at 41, after a successful sixteen-year career at Laird.

TTG thought highly of him and decided to keep him on.

Now, at 54, he has likely built a deep network, and his extensive operational experience could be exactly what GHH needs to improve margins. Through his people network, he may be able to reshape GHH.

One could argue that he is now in his prime.