Gooch & Housego stays on track with record order book

Optical systems and components manufacturer Gooch & Housego on Thursday reported a record order book after benefiting from “positive market conditions” in the industrial sector.

The company said its order book stood at £96.1m at the end of the 12 months leading to 30 September, up 33% compared to the same point last year, with components used in microelectronic manufacturing and high reliability fibre couplers for undersea cables proving particularly vital.

As such, the company said its final results for the year will be in line with prior expectations.

Mark Webster, chief executive of Gooch & Housego, said: "We have been able to take advantage of positive market conditions and execute on our long-term strategy. Our strong performance has enabled us to continue to invest in manufacturing capacity and R&D and to bring complementary new technologies and customers into G&H through acquisitions."

The AIM traded outfit also reported that it was currently “pleased” with the output and contribution of newly acquired VITL and Gould Fiber Optics, which it added to the business in August and September respectively.

VITL manufactures medical devices while Gould is a supplier of key enabling components to tier 1 US aerospace and defence customers.

Gooch also shut down the operations of its light measurement business in Orlando, Florida, as the non-core business had a history of delivering marginal returns and made a small loss in 2018.

"While we remain aware of potential macroeconomic and political risks, our robust order book combined with greater diversification means the board remains confident that the group is well positioned for further growth," said Webster.

Gooch & Housego’s shares were down 0.4% at 1,850.00p at 0847 BST.