Gooch & Housego Share Discussion Threads

[z1co] 05/10/2023 15:43

Up another 2p today to take the share price to £5.50.

[wiltowin] 05/10/2023 13:46

The global armoured vehicles market will continue to grow due to rising tensions worldwide.

The report was put together as part of Defence iQ's International Armoured Vehicles conference, returning to Twickenham Stadium, London on 22-25 January 2024.

Good for GHH who supply the viewing equipment for these AV's.

[wiltowin] 05/10/2023 12:06

FTSE AIM all-share now at multi year lows due a bounce sometime and I wouldn't want not to be holding GHH when that happens especially with the positive trading update two days ago.

[z1co] 04/10/2023 15:57

Quite a few sells today but shares still managed to finish slightly higher.

[z1co] 04/10/2023 07:33

Gooch and Housego hails ‘strong’ second half trading

The Somerset-based tech components firm forecast profits to be ahead of expectations

By Andrew Arthur
09:48, 3 OCT 2023

Bosses at tech components company Gooch and Housego (G&H) have said they expect profits for this year to be ahead of expectations after “strong” trading in the second half.

The AIM-listed firm, which makes photonic systems used in the aerospace and defence sectors as well as for scientific research, said “momentum was sustained”, after it reported revenue of £71.3m and a statutory pre-tax profit of £3.3m during the first six months of its current financial year.

The business, which has its global headquarters in Somerset, said volumes of its parts used in advanced lithography systems grew more than offsetting the effects of some de-stocking by its customers in industrial laser markets.

The board said G&H had made “good progress” with its embedded imaging periscope systems, which it said had the potential to unlock “significant orders” based on its forecasts. Revenues from medical diagnostic devices also grew as clients started new programmes over the last six months.

G&H said its performance had been enhanced by “operational improvements and capability investment” over the last year, as it looked to reduce lead times after increasing production capacity.

Bosses said the integration of two acquisitions it had made during the period were “proceeding to plan”. In June the 75-year-old business bought US-based GS Optics in a deal worth up to $15.7m (£12.9m), and in July it snapped up Plymouth-based coatings company Artemis for £8.9m.

G&H said its medical diagnostic devices business ITL had been relocated to GS Optics’ facility in Rochester, New York, as part of expansion plans for the site, where it plans to grow its engineering and manufacturing workforce.

The group said “strong” cash generation during the second half had allowed it to reduce its borrowing by $5.5m (£4.5m) from the level immediately following the completion of its two purchases.

G&H’s order book stood at £124.9m at the end of September, marginally up from the first half of the year but down from £147.7m recorded at the end of September 2022. Around 75% of its order book is for work set for delivery in FY2024, which bosses said would provide “a good underpin” for trading in the new financial year.

Chief executive Charlie Peppiatt said: "I am delighted with the positive progress the group has made in FY2023. Our operational performance has shown sustained improvement with on time delivery and lead times both improving significantly.

"The integration of GS Optics and Artemis into the G&H Group is on track. Both businesses are already benefiting from the additional market access and investment that being part of G&H brings. The detailed activities supporting the delivery of our recently announced strategic plan are now in place and support our budgeted plans for FY2024."

G&H will announce audited results for its full financial year on December 5.

[z1co] 04/10/2023 07:22

Broker Cavendish has upgraded 2023 earnings per share forecasts by 1.8%, keeping 2024 and 2025 expectations unchanged.

[z1co] 03/10/2023 15:38

Finished strongly , a lot of buys coming in well above £5.40.

Closed at £5.46 UP 9.2%

[wiltowin] 03/10/2023 12:34

Gooch & Housego operating in futureproof industries

[value viper] 03/10/2023 10:14

Happy with this - globally renowned photonics technology specialist products and back on track now it seems - said before, who might be looking to acquire this - odyssean have proven very savvy owners of many companies that have been subsequently acquired

[z1co] 03/10/2023 10:00

A new thread at the beginning of a new bull run.

First target is £10

[z1co] 03/10/2023 09:55

===============================================================================

03 October 202

Full Year Trading Update:

In light of the positive trading performance in H2, enhanced by the focused operational improvements and capability investment over the last year, the Board expects the strong revenue performance to translate into a full year adjusted pre-tax profit above the current market expectations.

Cash generation in the second half of the financial year has been strong and allowing the Group to reduce its borrowing by $5.5m from its level immediately following the completion of the two acquisitions. Net debt (pre-IFRS 16) at the financial year end is, therefore, expected to be slightly better than market expectations.

==============================================================================


.

[1c3479z] 03/10/2023 09:19

note Odyssean slightly increased holding yesterday, results look good apart from the slight decline in the order book which may partly be explained by ability to fulfil orders more quickly now that the supply chain for components has eased.

[wiltowin] 03/10/2023 07:51

Not only are profits ahead of market expectations but the future profits will be underpinned by the recent acquisitions plus 75% of the backdated orders are due for delivery within the next fiscal year.

[value viper] 03/10/2023 06:04

That will do nicely - sitting duck potential remains - NRI

[wiltowin] 28/9/2023 19:22

Laser or optical communication is an exciting technology that’s been in the works on both commercial and government sides for many years. We’re getting to an inflection point where we’re seeing satellites that would normally be talking to each through radio frequencies, or RF, now able to talk in the optical frequencies, or lasers.

Above taken from a recent defence article.

Yet another revenue stream for GHH.

[wiltowin] 27/9/2023 09:05

Got some sub 500p with more buy orders placed. Cheap as chips.

[wiltowin] 27/9/2023 06:11

The Bundeswehr, Germany’s unified armed forces, has announced the successful conclusion of Laser Weapon Demonstrator (LWD) trials conducted onboard the German frigate Sachsen.

Notably, during this demonstration, the LWD successfully shot down a drone. The event was also attended by representatives from the British, Netherlands, and Norwegian navies.

Highlighting its potential applications, the press release mentioned that an operational laser weapon system is ideal for “countering the threat from drones, drone swarms, speedboats and possibly missiles at close to very close range.” It also hinted at future enhancements which could make it capable of neutralizing supersonic missiles, rockets, and mortar and artillery rounds.

[wiltowin] 26/9/2023 17:55

This was the headline ten years ago,

Ilminster-headquartered Gooch & Housego has posted record results driven by acquisitions and "unprecedented" demand in its core industrial market.

My money is on the company doing even better this time around and the aerospace/defence arm gaining momentum.

FY update next month.

[value viper] 14/9/2023 11:32

Been big price retrace of 20% from early summer - suspect this is probably over done

[wiltowin] 09/9/2023 07:30

G&H to Showcase Advanced Defence Solutions at DSEI 2023

G&H’s portfolio closely aligns with future technologies identified in the UK’s Defence Command Paper, released in July 2023. These technology areas include LDEW and advanced materials, which the UK MoD states, “will be critical to the delivery of military capability and national security tasks”. G&H is a leader in these areas and their proven ability in opto-mechanical design, precision optical component manufacture, coating, build and test continues to play a key role in the development of generation-after-next technologies for defence prime contractors worldwide.

G&H’s substantial work in LDEW includes opto-mechanical design; High Laser Damage Threshold optics; critical next-generation mounting and bonding techniques; full Finite Element Analysis; and more. These technologies are central elements for the successful employment of future laser systems.

As a UK-headquartered company, G&H is strengthening the UK’s sovereign industrial capability to engineer and manufacture critical systems and components for the UK armed forces and allied nations. This further aligns with the UK MoD’s ambition to maximise the use of ‘home-grown217; technologies, and investments in areas such as the Optical Systems Innovation Hub in St Asaph, Wales, ensure that G&H remains an international leader in optical solutions and technologies for many years to come.

[wiltowin] 06/9/2023 14:44

If you recall H1 revenues were 30% higher than the previous year so I'm hopeful for momentum to have continued. The management are doing a wonderful job with the company focusing more on end products rather than components thus increasing profits.

[wiltowin] 06/9/2023 14:09

Been drifting lower over the summer on low volume but doubt that'll be the case next month when the positive trading update arrives. I've took the opportunity and acquired a few more.

[garth] 05/9/2023 10:15

Wiltowin,

Against all of that background, to what do you attribute the continued weight of downtrend in the share price?

At 650p I thought we were away and heading for £8...

G.

[wiltowin] 04/9/2023 16:54

The Ministry of Defence has issued a Prior Information Notice to industry, signalling an intent to “accelerate and exploit at pace DEW as an emerging technology.”
The notice serves as an advisory for a potential upcoming contract to tender for the MOD’s Directed Energy Weapons (DEW) programme.

According to the official DEW Industry Briefing Note 1, the programme aims to “deliver a range of benefits for the UK connected to DEW by leading and commissioning the required work.”

It specifically focuses on the Transition Phase of the programme, highlighting three main DEW projects:

“Laser Directed Energy Weapon (LDEW) in a Maritime Air Defence application”
“LDEW in Ground Based Air Defence applications”
“RFDEW in Counter-Unmanned Air System (C-UAS) applications in the Land Domain”
The DEW programme will “build on the parallel DEW Capability Demonstrator Portfolio delivered by UK industry through Team Hersa,” with a six-month User Experimentation Phase scheduled to begin in 2024.

For the transition phase, the MOD is considering establishing a “new DEW Capability Development Framework Arrangement,” aimed at delivering “individual Transition Phase Work Packages for each of the DEW projects.”

This framework will have an “estimated total value of approximately £150 million over a three-year period from FY 24/25,” and aims to provide a “flexible and agile route to market for DEW Transition Phase requirements.”

The Prior Information Notice also states that the MOD is in the “early stages of developing a Procurement Strategy,” and is inviting industry to share their views via a Request for Information (RFI) Questionnaire. Responses to the RFI will be used to “inform the DEW Procurement and Commercial strategy” and are not part of any competitive procedure.

An Industry Day or series of Industry Days are being considered “for late 2023 and/or early 2024” to provide further details on the DEW programme.