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Summary
- Gooch & Housego reported revenue of £57.5 million in H1 FY2020, which declined by 3.8 percent year on year.
- The operating profit margin declined from 5.0 percent in H1 FY2019 to 3.2 percent in H1 FY2020.
- Concurrent Technologies reported revenue of £9.2 million in H1 FY2020 and continued production during the lockdown in the UK.
- Also, the order book was strong in May 2020.
In between FY2016 and FY2019, the revenue of Gooch & Housego PLC grew at a CAGR of around 14.49 percent and revenue of Concurrent Technologies PLC grew at a CAGR of close to 14.49 percent. GGH had a market capitalization of about £245.40 million with 25.04 million outstanding shares. CNC had a market capitalization of around £85.46 million with 73.67 million outstanding shares.
Gooch & Housego PLC (LON:GHH) - No interim dividend announced for H1 FY20
Gooch & Housego PLC is a UK based technology company headquartered in Somerset. The Company is engaged in the research and design of advance photonic systems and components that have applications in the Aerospace & Defence and Life Sciences sectors. Gooch & Housego is listed on the FTSE AIM UK 50 index.
Trading Update for ten months (ended 31 July 2020) as reported on 2 September 2020
The Company highlighted that all the manufacturing facilities in the UK, US and China are now operational and the trading activity improved slightly in June and July. The demand for fibre optics, hi-reliability fibre couplers are healthy in the aerospace & defence and life sciences sectors. The orders for medical diagnostics for ventilator systems have improved. However, the demand for industrial laser remains below the normal level. As on report date, Gooch & Housego had liquidity headroom of £28.1 million.
H1 FY2020 results (ended 31 March 2020) as reported on 2 June 2020
(Source: Company website)
In H1 FY20, the Company reported revenue of £57.5 million, down by 3.8 percent year on year from £59.7 million in H1 FY19. The operating profit was £1.8 million that reflected an operating margin of 3.2 percent in H1 FY20. Gooch & Housego reported an operating profit of £2.9 million and an operating margin of 5 percent in H1 FY19. The adjusted profit after tax was £2.7 million, and adjusted basic earnings per share were 8.2 pence in H1 FY20. As on 31 March 2020, Gooch & Housego had an order book of £91.7 million. The Company abstained from announcing the interim dividend for H1 FY20. It invested £4.1 million in the research & development in H1 FY20. The manufacturing capacity declined in H1 FY20 due to covid-19 impact; however, the full capacity is expected by the end of FY20.
Performance by Business Activity and Region in H1 FY2020
Based on segment revenue, Industrial generated revenue of £26.5 million, Aerospace & Defence generated revenue of £18.6 million, and Life Sciences reported revenue of £12.3 million in H1 FY20. Demand in the laser market was affected due to continued cyclical downturn. Based on regional performance, the UK region reported revenue of £16.3 million, North & South America reported revenue of £21.0 million, Continental Europe reported revenue of £12.0 million and the Asia Pacific reported revenue of £7.9 million in H1 FY20.
Share Price Chart
(Source: EODHD/Others, Thomson Reuters)
Gooch & Housego PLC's shares were trading at GBX 1,029.00 and were up by close to 5.00 percent as on 3 September 2020, before the market close at 10:30 AM GMT+1. GHH's 52-week High and Low were GBX 1,489.20 and GBX 650.00, respectively. Gooch & Housego had a market capitalization of around £245.40 million.
Business Outlook
The Company expects the economic activity to remain volatile over the short-term. It highlighted the challenges over the recovery of the industrial laser market, but new laser techniques and 5G technology would improve the laser demand. The Company is hopeful over the growth of its photonic technologies. Gooch & Housego would invest in the research & development, and it would also consider strategic acquisition.
Concurrent Technologies PLC (LON:CNC) - Announced the interim dividend of 1.1 pence per share
Concurrent Technologies PLC is a UK based technology company. The Company designs and manufactures computer boards, processors, switches and software products. It has the manufacturing facility in Colchester, UK.
H1 FY2020 results (ended 30 June 2020) as reported on 2 September 2020
In H1 FY20, Concurrent Technologies reported revenue of £9.2 million, which declined from £9.5 million in H1 FY19. The gross profit was flat at £4.9 million that reflected a gross margin of 52.9 percent in H1 FY20. It reported an operating profit of £1.2 million and adjusted earnings per share from continued operations of 1.62 pence. Concurrent Technologies increased the interim dividend to 1.1 pence per share in H1 FY20 from 1.05 pence per share in H1 FY19. As on 30 June 2020, it had cash of £10.0 million and net assets of £22.7 million. Concurrent Technologies has decided to suspend the operations at engineering facility in India as part of the restructuring. The process is expected to complete by the end of 2020, and it would focus on the team in the UK. The Company would incur a charge of £0.5 million for restructuring in FY20.
Share Price Chart
(Source: EODHD/Others, Thomson Reuters)
Concurrent Technologies PLC's shares were trading at GBX 117.96 and were up by close to 1.69 percent as on 3 September 2020, before the market close at 10:30 AM GMT+1. CNC's 52-week High and Low were GBX 126.00 and GBX 57.10, respectively. Concurrent Technologies had a market capitalization of around £85.46 million.
Business Outlook
The Company is confident about the order book and the strength of the balance sheet. It highlighted that the market conditions would remain challenging. Concurrent Technologies would launch new hardware designs based on the Intel processors, and it would also introduce complementary products for the core business needs. The Company would launch new technologies on the VPX and AMC products. It has restructured its design team and expects cost savings and better designs in 2021.
