Gooch & Housego Plc · LSE:GHH
Gooch & Housego — H1 2016 Earnings Presentation
20 slides from Gooch & Housego's earnings presentation, Jun 7, 2016
Slide 1: Interim Results Half Year Ended 31 March 2016
INTERIM RESULTS HALF YEAR ENDED 31 MARCH 2016 CEO: Mark Webster / CFO: Andrew Boteler
Slide 2: Highlights: Operational & Financial Highlights
Highlights Operational & Financial Highlights First half performance as expected Full year trading remains in line with expectations Robust order book of £39.1 million, a 13.1% increase on the same time last year Mixed markets Industrial laser market improved in Q2 Strong performance fro
Slide 3: Highlights: Results at a glance
Highlights Results at a glance Half Year Ended 31 March HY 2016 HY 2015 Change Revenue £38.4m £38.9m (1.3%) Adjusted profit before tax £5.6m £6.3m (11.1%) Adjusted basic earnings per share 17.0p 19.3p (11.9%) Interim dividend per share (pence) 3.3p 3.0p 10.0% Net cash £12.3m £11.9m 3.4% Revenue £’m
Slide 4: Financial Overview: Income Statement
Financial Overview Income Statement Key points: Half Year Ended 31 March 2016 2015 £’000 £’000 Group revenue marginally down on the record HY2015 comparative Revenue 38,361 38,945 Gross profit 13,109 15,560 Excluding the impact of foreign exchange, revenue fell by 5% Operating expenses (7,516) (
Slide 5: Financial Overview: Cash Flow
Financial Overview Cash Flow Half Year Ended 31 March 2016 2015 £’000 £’000 Cash flow from operating activities 2,446 5,079 Key points: Cash flow from investing activities Net cash increased by 3.4% to Purchase of property, plant and equipment & £12.3 million compared to last year (6,293) (1,427)
Slide 6: Financial Overview: Balance Sheet
Financial Overview Balance Sheet Key points: As at 31 March 2016 2015 £’000 £’000 Non-current assets Tangible assets 29,645 24,031 Strong balance sheet maintained Intangible assets 21,074 21,312 £5.6 million invested in property, Other 2,382 2,797 plant & equipment 53,101 48,140 Current assets I
Slide 7: Market analysis: Results by segment
Market analysis Results by segment Industrial Aerospace & Life Sciences Scientific Corporate Group Defence Research Revenue 2016 £24.8m £8.1m £3.9m £1.6m - £38.4m 2015 £22.3m £10.3m £4.3m £2.0m - £38.9m Change £2.5m (£2.2m) (£0.4m) (£0.4m) - (£0.5m) % 11.2% (21.4%) (9.3%) (20.0%) - (1.3%) Adjusted o
Slide 8: Technology, Products & Markets: Industrial Markets & Applications
Technology, Products & Markets Markets & Applications Industrial Markets Applications Revenue Microelectronics & light • Fibre lasers 2016 £24.8m manufacturing • Solid state lasers • Weak demand for microelectronic 2015 £22.3m components from China in Q1 • Other laser sources • Demand picked up in Q
Slide 9: Technology, Products & Markets: Aerospace & Defence
Technology, Products & Markets Markets & Applications Aerospace & Defence Markets Applications Revenue Target designation • Aircraft platforms & range finding • Missile systems 2016 £8.1m • SWIR capability now available • Land based military 2015 £10.3m platforms Change (£2.2m) % (21.4%) Navigation
Slide 10: Technology, Products & Markets: Life Sciences
Technology, Products & Markets Markets & Applications Life sciences Markets Applications Revenue Optical Coherence • Ophthalmic imaging Tomography 2016 £3.9m • Cardiovascular Developing a number of other 2015 £4.3m diagnostic capabilities beyond • Oesophageal our dominant position in imaging Chang
Slide 11: Technology, Products & Markets: Scientific Research
Technology, Products & Markets Markets & Applications Scientific research Markets Applications Revenue 2016 £1.6m Inertial Confinement Fusion • National Ignition 2015 £2.0m • Maintain our position as custodians of Facility this technology • Laser Mega Joule Change (£0.4m) % (20.0%) Adjusted operatin
Slide 12: Our Strategy
Our Strategy Remains consistent Diversify Exploit high-growth opportunities for photonics technology across multiple sectors to provide balance and reduce cyclicality • Aim to establish critical mass in Aerospace & Defence and Life Sciences • Exploit near/ medium term opportunities in: • Fibre and u
Slide 13: Performance Improvement Plan - Progress
Performance Improvement Plan - Progress • Operational excellence – Globally focused teams representing the key manufacturing disciplines are now established and will deliver performance benefits in 2016 and beyond. Introduction of company wide lean manufacturing principles and training is well under
Slide 14: Summary & Outlook
Summary & Outlook • Full year trading remains in line with expectations • G&H’s commitment to diversification has enabled us to navigate a challenging period in Q1 and still remain on track to deliver our full year expectations • Industrial laser market has improved in Q2 and telecommunications and
Slide 15: Appendices
Appendices dm Gooch & Housego ENABLING PHOTONIC TECHNOLOGIES
Slide 16: About us
About us Gooch & Housego is a photonics technology business headquartered in Ilminster, Somerset, UK with operations in the USA and Europe. A world leader in its field, the company researches, designs, engineers and manufactures advanced photonic systems, components and instrumentation for applicati
Slide 17: G&H photonics – part of our everyday lives
G&H photonics – part of our everyday lives You probably use G&H photonics every time you use the internet or make a transatlantic phone call Your smartphone or tablet was manufactured and tested using G&H photonic components: - Lasers containing G&H acousto- and electro-optics are used in virtuall
Slide 18: New Products & Capabilities introduced in 2016
New Products & Capabilities introduced in 2016 Key: Technology New products Precision Acousto/Electro Fibre Systems & introduced in FY2016 Optics Optics Optics Instrumentation Markets Aerospace & Defence 3 Industrial 1 4 1 1 Life Sciences 1 3 Scientific Research “G&H sees continued investment in R&D
Slide 19: SWIR – Case Study
SWIR – Case Study ● Target designation ● Laser Range Finding ● Fast-Jet HUD Displays ● Helicopter HUD Displays ● Hand-held Equipment ● Surveillance HELICOPTER HUDs / FLIGHT AID UAV SYSTEMS / ● Threat detection DRONES ● Imaging PAGE 19 Interim Presentation June 2016
Slide 20: Key Customers
Key Customers PAGE 20 Interim Presentation June 2016