Profits at Somerset firm hit as tough trading conditions remain

Advanced manufacturer Gooch & Housego saw a dip in profits over the last 12 months due to tough trading conditions.

The specialist manufacturer of optical components and systems has announced its interim results for the six months to end of the March.

Revenues fell by just under a million to £63.6m while adjusted profit before tax fell from £4.7m to £2.6m.

The Somerset firm said important building blocks have been put in place to support the delivery of the group’s strategic plan.

The sale of EM4 represents an important milestone in reshaping the group’s portfolio.

Meanwhile the integration of GS Optics and Artemis into the group is proceeding to plan and commercial synergies are being realised.

The firm’s order book remains strong at £115.8m and continues to grow, substantially de-risking H2 revenue.

Full year expectations are unchanged; execution risks in the second half remain but have been reduced.

Chief executive Charlie Peppiatt said: “Despite the reduced demand in our industrial and medical laser markets persisting longer than expected, the medium term outlook remains positive underpinned by a strong order book and healthy pipeline with the Group well positioned to benefit from increased demand levels as a result of operational and supply chain improvements.

“The market dynamics for G&H’s technologies and capabilities remains strong in all our target sectors supported by the focused progress the Group has made to establish the foundations to accelerate the delivery of our strategy.”