Somerset components manufacturer Gooch & Housego has reported a dip in profits over the financial year despite a slight uplift in revenues. The Ilminster-based company said it had made “positive progress” in the second half amid demand for its life sciences and A&D products.
The AIM-listed business, which published its full-year results for the year ended September 30 on Tuesday, makes photonic components such as detectors, lasers and fibre optic equipment.
Revenue at the firm was up 0.7% over the year to £136m, with second-half revenue 15% higher than the first half on an organic, constant currency basis. Adjusted operating profit totalled £10.5m – down from £12.1m in 2023 – while reported profit before tax stood at £4.2m, compared to £6m a year earlier.
G&H issued a final dividend of 8.3p and full-year dividend of 13.2p, which the board said reflected its “confidence” in the growth potential of the group.
Charlie Peppiatt, chief executive, said: “During FY2024 we made further positive progress in establishing strong foundations to deliver our strategic priorities and enhance mindshare with our customers many of whom are demonstrating a growing confidence in G&H.
“Despite the challenges the group experienced in the first half of FY2024 due to reduced demand in our industrial and medical laser markets, G&H delivered a strong performance in the second half of the year.”
The company said it was confident the group would deliver profitable growth in the coming financial year. However, it cautioned that it could face some supply chain and commercial “headwinds” in the near term.
“Global supply chain constraints, although better than in the recent past, continue along with an inflationary environment for wages, raw materials and energy all require diligent attention and agility,” added Mr Peppiatt.
“While mindful of the persistent macroeconomic and geopolitical uncertainties that exist, G&H remains well positioned for growth with a robust pipeline across all our end markets,” he added.
In September, G&H acquired a Welsh technology business with one of the largest diamond-turning facilities in Europe. The company said at the time the £6.75m deal for Denbighshire-based Phoenix Optical Technologies would extend its capabilities in the aerospace and defence markets in the UK and Europe.