Gooch & Housego Plc · LSE:GHH
Gooch & Housego — FY2021 Earnings Presentation
19 slides from Gooch & Housego's earnings presentation, Nov 30, 2021
Slide 1: Full Year Results
FULL YEAR RESULTS Year ended 30 September 2021 A year of development and growth CEO: Mark Webster / CFO: Chris Jewell November 2020
Slide 2: Key Highlights – Strategic Progress
KEY HIGHLIGHTS – STRATEGIC PROGRESS ▪ Trading reflected strong and improving end markets and initial benefits from our manufacturing streamlining programme, more than offsetting currency headwinds and some supply chain issues. ▪ Industrial laser demand continues to be strong driven by 5G rollout, us
Slide 3: Key Highlights – Operational & Financial
KEY HIGHLIGHTS – OPERATIONAL & FINANCIAL ▪ Revenue of £124.1m, up by 6.4%, excluding foreign exchange. ▪ Adjusted profit before tax of £12.6m, up 29.4%. ▪ Strong cash flow over the year leading to further debt reduction. Net debt, excluding lease liabilities, of £2.6m places G&H in a strong position
Slide 4: Financial Headlines – Summary Income Statement
FINANCIAL HEADLINES – SUMMARY INCOME STATEMENT Year Ended 30 September 2021 2020 % Change £m £m ▪ Revenues grew by 1.6% or 6.4% excluding the effect of foreign exchange. Revenue 124.1 122.1 1.6% ▪ Sustained recovery in our Industrial markets and Gross profit 41.3 39.3 5.1% important deliveries compl
Slide 5: Financial Headlines – Cashflow
FINANCIAL HEADLINES – CASHFLOW Year Ended 30 September 2021 2020 ▪ Reduction in working capital of £0.5m since £m £m September 2020, despite growth in business Net cash flow from operating activities 16.2 20.4 volumes. Cash flow from investing activities ▪ ITL acquisition earn-out (max. potential) o
Slide 6: Industrial
INDUSTRIAL Financials (45% of revenue) FY21 FY20 Reported growth Revenue £55.6m £54.8m 1.4% Adjusted operating £7.1m £4.1m 71.9% profit % margin 12.7% 7.5% 520bps • Industrial grew year on year by 7.2%, at constant currency. • Strong and sustained growth in industrial lasers, especially in the semic
Slide 7: Aerospace & Defence
AEROSPACE & DEFENCE Financials (33% of revenue) FY21 FY20 Reported growth Revenue £41.1m £41.4m (0.7)% Adjusted operating £3.1m £2.8m 12.1% profit % margin 7.6% 6.8% 80bps ▪ Aerospace and Defence grew year on year by 4.3%, at constant currency. ▪ Complex optical arrays in the IR spectrum for unmanne
Slide 8: Life Sciences/Biophotonics
LIFE SCIENCES/BIOPHOTONICS Financials (22% of revenue) FY21 FY20 Reported growth Revenue £27.4m £25.9m 5.9% Adjusted operating £4.2m £4.7m (8.8)% profit % margin 15.5% 18.0% (250)Bps • Life sciences grew year on year by 8.1%, at constant currency • Demand for our medical diagnostics products remaine
Slide 9: Streamlining of G&H's manufacturing base and operations
Streamlining of G&H’s manufacturing base and operations ▪ Streamlining of our manufacturing base progressed well during FY2021. ▪ We reduced the number of manufacturing sites from 12 to 9. ▪ Our Baltimore, MD production was moved to Boston, MA creating a single US optical fibre facility. ▪ In the UK
Slide 10: A responsible business
A responsible business We are focused on creating a long term sustainable business. Environment ▪ New solar panels installed at our Ilminster facility in the year. They are already installed at Torquay and a further installation is planned at our Ashford, Kent site. ▪ G&H is now generating approx. 6
Slide 11: Our Strategy remains diversification and moving up the value chain
Our Strategy remains diversification and moving up the value chain Our core strategic objectives To further diversify the business ▪ A&D and Life Sciences with 33.1% and 22.1% of FY2021 Group revenue respectively represent a counter balance to our exposure to the economic cycle in our industrial mar
Slide 12: Our R&D priorities
Our R&D priorities Our short and medium term targets include: ▪ ”State of the art” extreme ultra-violet (EUV) lithography lasers used for nano electronics. ▪ Market leading Germanium AO modulators for use in semiconductor manufacturing. ▪ Laser engine technology used in directional sensing for wind
Slide 13: Key messages and outlook
Key messages and outlook ▪ The business environment in FY2021 improved markedly compared to pandemic affected FY2020. We believe this will continue to improve in FY2022. ▪ There was strong demand for our industrial laser, medical laser, telecommunications and medical diagnostic products. We expect d
Slide 14: Appendices
Appendices
Slide 15: Targeted R&D
Targeted R&D New products Precision Acousto/ Fibre Optics & Electro-Optics Optics Systems Aerospace & 29 - 4 Defence Industrial - 2 4 Life Sciences 5 - 4 • New products contributed a record £18.1m in FY2021 (FY2020: £16.9m). “There remains substantial growth potential for our photonic technologies a
Slide 16: Non Underlying Items
Non Underlying Items Non Underlying Items ▪ Total non underlying charge of £7.9m. ▪ Amortisation of acquired intangibles - £2.0m. ▪ Restructuring - £5.9m – streamlining of our manufacturing sites including the closure of our Glenrothes, Baltimore and St Asaph production facilities. PRELIMINARY RESUL
Slide 17: 2022 Expected Financial Calendar
2022 Expected Financial Calendar ▪ 23rd February 2022 – AGM Trading Update ▪ 5th April 2022 – Half Year Trading Update ▪ June 2022 – Interim Announcement ▪ October 2022 – Full Year Trading Update ▪ December 2022 – Full Year Results Announcement PRELIMINARY RESULTS PRESENTATION – FY 2021 PAGE 17
Slide 18: Key Customers
Key Customers PRELIMINARY RESULTS PRESENTATION – FY 2021 PAGE 18
Slide 19: PRELIMINARY RESULTS PRESENTATION – FY 2021 PAGE 19
PRELIMINARY RESULTS PRESENTATION – FY 2021 PAGE 19