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Highlights
- GHH's H1 FY24 revenue fell 1.4% to £63.60 million due to customer destocking
- Adjusted profit before tax dropped 44.7%, from £4.70 million to £2.60 million
Gooch & Housego PLC (LSE:GHH) is a UK manufacturer listed on the FTSE AIM All-Share index. It specializes in optoelectronic components and advanced instrumentation for life sciences. It has a market cap of GBP 108.46mn.
In H1 FY24, GHH reported revenue of £63.60 million, a slight decline of 1.4% compared to £64.50 million in pcp. This decrease was due to customer destocking within the medical laser and industrial markets.
The company also experienced a significant drop in adjusted profit before tax, falling to £2.60 million from £4.70 million, representing a 44.7% decrease. Although declining market demand has negatively affected group margins, GHH believes that implementing its strategic priorities will improve the group's return on sales, targeting mid-teens profitability during the planned period.
Recent Business Update
In its trading update released on August 15, 2024, GHH forecasted an increase in output for the second half of the financial year. However, the company expects some revenue delays due to issues with suppliers and customers, which may lower adjusted profit before tax by around GBP 1.5 million.
By July 2024, the order book had grown to GBP 116.8 million. The balance sheet remains robust, with bank borrowings reduced to GBP 18.0 million. Total net debt is now GBP 25.5 million, down from GBP 22.2 million and GBP 30.4 million in March 2024.
Company Outlook
GHH aims to create value through targeted investments in key development projects. This includes leveraging the Artemis business for advanced thin film coatings and expanding its optics and R&D capabilities in the US.
The company plans to seek commercial synergies from recent acquisitions and optimize spending on capital equipment. It also aims to further reduce inventory and explore additional acquisition opportunities to boost value creation across the group. Positive customer feedback is anticipated to result in new business awards.
Top 10 Shareholders:
GHH's top 10 shareholders hold approximately 55.54% of the total shares. Octopus Investments Limited owns the largest stake, with around 11.99% ownership. Following them is Odyssean Investment Trust PLC, which holds about 9.70% of the shares, as shown in the chart below.
Price Information
The stock has declined by about 10.76% in the past month. Over the last six months, it has fallen by approximately 21.92%. Its 52-week low is GBX 406, while the 52-week high is GBX 685.66. The stock’s closing price is GBP 406 as of 27 Sep 2024.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 27 September 2024. The reference data in this report has been partly sourced from EODHD/Others.
