Specialist manufacturer has ‘recovered well’ after two profit warnings

Manufacturer Gooch & Housego has “recovered well” after a difficult start to the year, stopping a downward trend.

The specialist manufacturer of optical components and systems was relying on a stronger second half of the year after previously issuing profit warnings in February and August.

Having delivered the stronger trading performance in the second half, the company expects to meet the lowered expectations for revenue and profit.

Shares in the Ilminster-based group have fallen by 40% since February and are trading at its lowest levels for more than a decade. Last night’s closing price of 393p valued the business at £100m.

Gooch and Housego chief executive Charlie Peppiatt said: “Following the first half result, the group recovered well in the second half to deliver the expected increase in output.

“Whilst we do not expect to see our industrial laser and semi-conductor markets return to growth until next year, we are seeing strong demand for our advanced optical systems capabilities from the defence sector and there are significant new business opportunities that we are working hard to secure.

“The group is now better positioned to benefit from the anticipated sustained recovery from our end markets next year thanks to the disciplined implementation of our strategy.”