LONDON (Alliance News) - Optical components and systems manufacturer Gooch & Housego PLC on Tuesday said profit dipped in the first half of its financial year, hit by order delays amid mixed markets, though the group expressed confidence on the second half.
Pretax profit fell to GBP3.5 million in the six months to the end of March from GBP5.1 million a year earlier. Revenue was only slightly lower, down to GBP38.4 million from GBP38.9 million, but a higher cost of sales ate into gross margins.
Gooch & Housego said the first half outcome was in line with its expectations, and it remains on track to meet its forecasts for the full year. Its order book at the half grew to GBP39.1 million, 13% higher than at the same time a year earlier.
This provides some confidence for Gooch & Housego on the second half after the first was hit by a soft first quarter and mixed conditions in its end markets, it said. The industrial laser market started the financial year weak but improved in the second quarter, while aerospace and defence revenue suffered due to programme phasing by customers.
The company said it will pay a 3.3 pence interim dividend, up from 3.0p a year earlier.
"G&H is well-positioned to benefit from improving market conditions and has the capacity to respond to increasing demand. Our commitment to diversification has enabled us to navigate a challenging period at the beginning of the year and still be on track to deliver our full year expectations," said Chief Executive Mark Webster.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Gooch & Housego (GHH)