(Alliance News) - Gooch & Housego PLC said Monday performance for its recently ended financial year is expected to be in line with management expectations, amid mixed levels of demand.
For the year to the end of September, the optical components manufacturer said trading has reflected mixed trends, including a downturn in demand for critical components used in industrial lasers for semiconductor manufacturing, particularly from China.
However in contrast, demand for fibre optic products, hi-reliability fibre couplers used in undersea networks and Gooch & Housego's life science products are at record levels.
As at September 30, the group's order book stood at GBP94.4 million, down 1.85 from GBP96.1 million the same date the year before, reflecting a strong demand for fibre products and life sciences, but a continued downturn in industrial laser demand.
Looking ahead, Gooch & Housego said is aware of the risks associated with cyclical downturn in microelectronic and semi conductor manufacturing and the continued impact of the US-China trade dispute.
The group said it expects to improve demand for its industrial laser products through the introduction of new manufacturing techniques, as well as technological innovation in end market applications.
"Recent contract wins in our US aerospace & defence sector and the ongoing strength of fibre optics, hi-reliability fibre couplers and life science orders contrast with industrial laser demand which is still yet to recover to more normalised levels," said Chief Executive Officer Mark Webster.
"Technological innovation in industrial laser end markets, such as 5G and new manufacturing techniques, combined with our market leading position means that we believe the industrial laser market sector will continue to provide attractive long term growth opportunities for the company," Webster added.
Shares in Gooch & Housego remained flat at 1,175.00 pence on Monday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Gooch & Housego (GHH)