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GHH Gooch & Housego Plc

518.00
-4.00 (-0.77%)
Share Name Share Symbol Market Type Share ISIN Share Description
Gooch & Housego Plc LSE:GHH London Ordinary Share GB0002259116 ORD 20P
  Price Change % Change Share Price Shares Traded Last Trade
  -4.00 -0.77% 518.00 13,524 16:23:26
Bid Price Offer Price High Price Low Price Open Price
512.00 520.00 524.00 512.00 524.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Optical Instruments & Lenses 135.99M -6.38M -0.2473 -20.95 134.6M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:12 UT 1,207 518.00 GBX

Gooch & Housego (GHH) Latest News

Gooch & Housego (GHH) Discussions and Chat

Gooch & Housego Forums and Chat

Date Time Title Posts
20/5/202520:59No future in lasers or fibre-optics881
03/6/202417:03Trading ahead of expectations 92
03/6/201820:29Gooch & Housego (GHH) One to Watch Monday -
11/3/200908:02Possible breakout supported by eps growth109
14/2/200712:13share rise13

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Gooch & Housego (GHH) Most Recent Trades

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Gooch & Housego (GHH) Top Chat Posts

Top Posts
Posted at 24/5/2025 09:20 by Gooch & Housego Daily Update
Gooch & Housego Plc is listed in the Optical Instruments & Lenses sector of the London Stock Exchange with ticker GHH. The last closing price for Gooch & Housego was 522p.
Gooch & Housego currently has 25,786,397 shares in issue. The market capitalisation of Gooch & Housego is £133,573,536.
Gooch & Housego has a price to earnings ratio (PE ratio) of -20.95.
This morning GHH shares opened at 524p
Posted at 20/5/2025 20:59 by wad collector
Yes just noticed that the latest acquisition is a US company. Is GHH becoming the new Judges?
Posted at 16/5/2025 09:25 by wad collector
6 month high this morning , maybe the worst is behind GHH now with a bit less global uncertainty. Until the yellow idiot opens his mouth again.
Posted at 30/4/2025 17:46 by simon gordon
Perplexity:

Gooch & Housego Share Valuation Analysis: Balancing Value and Risk

Based on the company’s April 2025 interim trading update and financial metrics, Gooch & Housego (GHH.L) shares present a mix of value opportunities and sector-specific risks. Below is a structured analysis of its investment case:

Positives Supporting Value

1. Strong Order Book and Revenue Growth

Order book increased 16% to £121.5m (vs. £104.5m in Sept 2024), with £7m attributable to the Phoenix Optical acquisition.

Organic order growth of 4% reflects improving customer confidence in key markets like Aerospace & Defence and Life Sciences.

H1 2025 revenue rose 7.5% to £70.8m (organic constant currency), driven by subsea data cables and defence contracts.

2. Attractive Valuation Multiples

P/E ratio of 29–35x (trailing), below its 10-year historical average of 34x.

EV/EBITDA of 5.1–7.5x, competitive against peers in photonics and precision optics.

Price-to-sales ratio of 0.71–0.84x, signaling undervaluation relative to sector averages.

3. Strategic Acquisitions and Diversification

The Phoenix Optical acquisition is already generating synergies, expanding capabilities in defence optics and securing new orders.

Revenue diversification: Aerospace & Defence (40% of orders), Life Sciences (30%), and Industrial (30%).

4. Dividend Resilience

Forward dividend yield of 3.6%, with a payout ratio of 255%. While high, the company maintains strong liquidity (net debt reduced to £24.1m).

Key Risks

1. Cyclical Exposure to Weak Industrial Markets

Industrial laser and semiconductor markets remain subdued, contributing to flat organic growth in H1.

~30% of revenue tied to cyclical sectors vulnerable to macroeconomic slowdowns.

2. Tariff and Geopolitical Uncertainty

Potential disruption from US tariff policies and retaliatory measures by trading partners, though the net impact is unclear.

Supply chain dependencies in optics manufacturing could face cost pressures.

3. Profitability Challenges

Operating margin of 5.0% (TTM) lags behind peers in advanced manufacturing.

Adjusted EPS fell 24.8% YoY in FY2024 due to restructuring costs and weak industrial demand.

4. Execution Risks in Integration

Successful integration of Phoenix Optical is critical; missteps could dilute margins or delay synergy realization.

Conclusion: Cautious Opportunity

Good Value for Risk-Tolerant Investors:

Shares trade at a discount to historical averages and peers, with upside potential if industrial markets recover and Phoenix synergies materialize. Analysts project a 12-month price target of £691 (+83% upside), though this assumes flawless execution.

Key Risks to Monitor:

Industrial market stagnation persisting into 2025.

Tariff-related cost inflation eroding margins.

Recommendation:

Moderate Buy for investors comfortable with cyclical sectors and multi-year horizons.

Avoid for those seeking low volatility or near-term certainty.

The stock’s current price (£3.77) reflects pessimism about industrial markets but underestimates G&H’s defence/life sciences growth and acquisition-led diversification. Risk-reward leans positive, but volatility is likely.
Posted at 24/2/2025 10:59 by martinmc123
wealthoracle.co.uk/detailed-result-full/GHH/1258
Posted at 28/11/2024 07:53 by simon gordon
Odyssean - 28/11/24:

In August Gooch & Housego released a trading update downgrading its full year expectations, driven by the slippage of certain orders due to supply chain delays with key partners. Gooch shares also suffered through the period being one of our few positions listed on AIM, where concerns around any change in business relief rules weighed on sentiment. Despite these short-term and technical issues, we continue to believe that Gooch is making good progress. The new CEO has set out an ambition to double group margins to 15% through self-help, portfolio re-shaping and growth. Early signs are positive on progress on all of these areas despite the mixed macro environment. The weakness in shares through the period have left the group trading on c.1x EV/sales, roughly half its long-term average, and undemanding for a business which we believe has the potential to generate 15% operating margins and grow in excess of GDP across the cycle.

-

Gooch & Housego

% NAV: 5.8%

Sector: Industrials

Manufacturer of photonics solutions for a variety of end markets.

Gooch posted an inline H1 trading update in April, noting a robust forward orderbook despite ongoing tough end markets. Unfortunately, later in the period the group downgraded full year expectations due to certain orders being pushed out into the following year on the back of supply chain / third party delays. We remain of the view that Gooch is on the right track and there are some good growth opportunities ahead of it. Management is making progress on their self-help plan to materially improve margins through simplification of the group and operational efficiency, whilst a more commercial approach to R&D has landed well with customers suggesting stronger organic growth to come. Shares remain well below their long-term ratings, and we see potential for this discount to correct as delivery of this operational potential comes through and end markets become more favourable.

-

The deliberate shift we made in the portfolio towards the industrial sector, especially smaller electronics companies in the latter part of 2023, was in retrospect, from a share price perspective, premature - although we had missed the worst of many share price declines, the trading conditions continued to deteriorate further than we had anticipated and in the short term had been insufficiently offset by self-help we had identified. However, we believe that we have secured highly strategic stakes in many of these companies, where there is very substantial upside to come as the earnings cycle turns and investor sentiment improves, or alternatively the M&A "animal spirits" rise again.
Posted at 05/10/2024 12:19 by simon gordon
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.
Posted at 05/10/2024 09:50 by simon gordon
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."
Posted at 04/10/2024 17:22 by simon gordon
EI,

Thought is best to reply to you on this thread.

"Simon, i had a listen to the GHH Q&A and could get little clear sense of a turnaround - perhaps that's a fault in my interpretation.

What I do know is OIT are very sharp and may see a high probability of a bid."


I don’t believe OIT acquired GHH for a short-term bid trade. They recognize the growth potential and the opportunity to restore margins to the mid-teens.

According to OIT, GHH has historically been valued at 2.2 times EV/Sales. For 2024, it's valued at 0.9x, and for 2025, it's 0.83x.

There’s always a risk of a takeover.

From what I can observe, the newish CEO has recruited a talented team, which should start delivering results in 2025, with even stronger performance in 2026. Photonics is a growth industry, GHH is moving up the value chain, and the Defence division is positioned for robust growth, according to OIT. The company is currently trading at a P/E of 10x for 2025, and it’s a high-quality business.

Time will tell if Charlie Peppiatt can truly get things firing. Based on the world-class executive team he’s assembling, I think there’s a good chance of success.

Stuart Widdowson @ OIT - 15/8/24

“We met with the management team quite recently. They have a September year-end and are quite H2-weighted this year. There are some questions about whether they will roughly meet their targets this year. However, the management team's view for the next two or three years is radically different. They see substantial growth, not just as the destocking ends, but also due to new applications, particularly in some defense areas.”


The CNC rejuvenation has taken three years to gain momentum. GHH is at the two-year mark. Year three is the point where you can judge if the CEO is delivering on his strategy. The macro backdrop looks relatively benign for 25.

New CEO at CNC;
-6/21: 92.5p
-6/22: 75p
-6/23: 65p
-6/24: 102p

New CEO at GHH:
-9/22: 575p
-9/23: 508p
-9/24: 450p

I’m hoping CNC really gains momentum in 2025 through 2028 as the investment in growth starts to pay off.

GHH is also investing for growth, and it should deliver results in the coming years.

The more I examine Charlie Peppiatt’s strategy, the more I believe he possesses some of the qualities of an "Intelligent Fanatic." The most important factors are recruiting highly talented executives, incentivizing them effectively, and having a clear overarching message for employees. Charlie is successfully implementing all three.
Posted at 18/9/2024 17:42 by bamboo2
Hi simon, thanks for that, useful fundamentals.

I put these charts in as I find the indicators, along with the pattern on the other thread invaluable.

The charts above and your fundamentals just now mean that this is currently not in consideration.

The share price is downtrending below correctly ordered, falling smas. I reckon wait for this to get near the 350 level before considering again. Remind me if I miss it!

Further, the smas are widely spread, each give their own resistance potential. If smas are close together, share price can often push through them all in a day or two.

There are a few possible turn dates that showed up on the GHH chart I looked at yesterday evening. I'll post it a bit later once I can access the advfn charts.

Cheers
Posted at 11/9/2024 17:23 by simon gordon
Stuart Widdowson - 26/7/23:

Text is taken from an Odyssean video* on YouTube - punctuation polished on ChatGPT.

Share price c.582p on date of video upload. It appears that Odyssean took its initial position in Q4 2022 in the 400s.


"I have to talk about another name that has performed well over time and won’t be stuck for long—Gooch & Housego. As I mentioned before, Gooch & Housego is a similar story. It’s one of the new investments we made last year, redeploying some of the capital from takeovers.

For those of you who remember my time at SEC, I originally invested in this business in early 2010. It took me three months to buy 3% of the company, and I ended up paying approximately 30% more than my initial target price. This is a stock where, when you find the right price, at the right time, with the right opportunity, and if you can get the volume, you simply have to participate.

For those who don’t know, Gooch & Housego is a niche market leader in optoelectronic components and subsystems. In several areas, it is the global market leader. One of its niches is high-reliability fiber subsea couplers, which essentially connect the internet through undersea cables across the world. It’s said to have at least a 50% market share, but we believe it’s even higher. The company also has technology in laser applications—initially focused on industrial lasers, but increasingly expanding into medical applications and other uses in aerospace.

Over the years, Gooch & Housego has been a name I’ve followed closely. Like many others, I sold it a bit too early in the last cycle. The stock traded at a very high multiple—around 30 times earnings—after I exited, with shares peaking at around £18. It has been on our watchlist for five years, which highlights the value of market timing, company knowledge, and valuation expertise. We’ve been watching this company for three or four years now.

Last year, Gooch & Housego experienced some operational challenges—not due to a lack of demand, but because of issues at their factories. These were largely the result of a prolonged restructuring of their manufacturing facilities, which began just before COVID. The pandemic only added to the operational problems, delaying product shipments to customers. This led to a disappointing trading statement before we invested, as they were unable to ship products due to inefficiencies. Nevertheless, they closed the financial year in September with a record order book.

Much like James Fisher, Gooch & Housego is not a particularly liquid stock. However, we participated in two block transactions and ended up acquiring 8% of the company, making us the fourth-largest shareholder. Our entry price was around 0.85x EV/sales, compared to the company’s historical trading multiple of more than 2.2x. While it is slightly geared, we believe we’ve invested in a high-quality company at a bargain valuation.

Interestingly, we believe we acquired the largest block of shares from an open-ended fund that struggled with the company’s illiquidity. This isn’t just about assuming the company will re-rate and improve—there’s a lot going on in the business. A new CEO was appointed in the autumn of last year, and they’ve undertaken a strategic review aimed at getting margins back into the mid-teens.

Our entry point at 0.85–0.9x EV/sales is very attractive for a business that should grow and generate mid-teen margins. There is also a renewed focus on improving return on capital and R&D discipline. We believe this is a strong example of a niche market leader with growth potential. It’s an international business with a self-help agenda and a refreshed management team.

Historically, the company has traded at 2.2x EV/sales. Like James Fisher, sentiment around Gooch & Housego has shifted quickly. We believe it would be nearly impossible to replicate our 8% stake in today’s market, even though the shares have risen by 30%. This is a highly strategic position, and our closed-end fund structure allows us to hold it. We’re very happy with this weighting, as these companies are extremely attractively valued and often overlooked by investors."

*Video:
Gooch & Housego share price data is direct from the London Stock Exchange

Gooch & Housego Frequently Asked Questions (FAQ)

What is the current Gooch & Housego share price?
The current share price of Gooch & Housego is 518.00p
How many Gooch & Housego shares are in issue?
Gooch & Housego has 25,786,397 shares in issue
What is the market cap of Gooch & Housego?
The market capitalisation of Gooch & Housego is GBP 134.6M
What is the 1 year trading range for Gooch & Housego share price?
Gooch & Housego has traded in the range of 352.00p to 590.00p during the past year
What is the PE ratio of Gooch & Housego?
The price to earnings ratio of Gooch & Housego is -20.95
What is the cash to sales ratio of Gooch & Housego?
The cash to sales ratio of Gooch & Housego is 0.98
What is the reporting currency for Gooch & Housego?
Gooch & Housego reports financial results in GBP
What is the latest annual turnover for Gooch & Housego?
The latest annual turnover of Gooch & Housego is GBP 135.99M
What is the latest annual profit for Gooch & Housego?
The latest annual profit of Gooch & Housego is GBP -6.38M
What is the registered address of Gooch & Housego?
The registered address for Gooch & Housego is DOWLISH FORD, ILMINSTER, SOMERSET, TA19 0PF
What is the Gooch & Housego website address?
The website address for Gooch & Housego is www.gandh.com
Which industry sector does Gooch & Housego operate in?
Gooch & Housego operates in the OPTICAL INSTRUMENTS & LENSES sector

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