Gooch & Housego PLC, the specialist manufacturer of optical components & systems, today announces that results for the year ended 30 September 2011will be in line with market expectations. Preliminary results will be announced on 29 November 2011.
Favourable market conditions prevailed for the first three quarters of the year and strong demand was experienced across most market and product sectors. The acquisitions of EM4 and Crystal Technology during the second quarter contributed to revenue and profit growth and accelerated the diversification of the business. G&H's presence in the aerospace & defence, life sciences and telecommunications markets has been significantly enhanced, while the Company's market leadership in acousto-optics and electro-optics for industrial applications has also been reinforced. Given the fragile global economic environment we did anticipate some softening in demand in the final quarter, although this has been confined to certain product sectors and geographical markets. Greater diversification and growth in new markets has mitigated some of the effects of the slowing demand in other sectors.
The integration of the new acquisitions is progressing well. The rationale for G&H's acquisition of EM4 was demonstrated by a number of significant contract wins for strategic defence programs including the recent award of a $3+ million contract by a large US defence contractor for the first phase of the design, development and supply of fibre optic systems. Plans to duplicate G&H Torquay's passive fibre optics technology at EM4's Boston site, in order to access the large US aerospace & defence market for these products, are already well-advanced with the first products expected to be available for qualification testing in early 2012.
Crystal Technology has performed strongly during the first six months of G&H ownership, with revenues from all major markets exceeding original plan. The transfer of crystal growing from the Crystal Technology facility in Palo Alto to G&H's Cleveland operation - a major undertaking requiring the fitting out of a new 30,000 square foot facility - is making good progress. The facility is essentially complete and the first crystals have been grown. It is expected that production will be fully transferred by the end of the calendar year.
Gareth Jones, Chief Executive of Gooch & Housego commented: -
"During the past twelve months we have made progress towards achieving the key strategic and commercial objectives of greater diversification and strong organic and acquisitive growth. The uncertain economic climate will present challenges in the coming year but Gooch & Housego is well-positioned to deliver the next phase of its strategy as we seek to leverage the exceptional products, technologies and capabilities that the company now has to offer."