Gooch & Housego Plc · LSE:GHH
Gooch & Housego — FY2022 Earnings Presentation
19 slides from Gooch & Housego's earnings presentation, Dec 6, 2022
Slide 1: Full Year Results
FULL YEAR RESULTS Year ended 30 September 2022 6th December 2022 November 2020
Slide 2: Agenda
Agenda • Overview • Financial Results • Business Update • Environmental, Social & Governance Charlie Peppiatt – CEO Chris Jewell - CFO • Summary & Outlook PRELIMINARY RESULTS PRESENTATION – FY 2022 PAGE 2
Slide 3: Key Points
Key Points • Record order book of £147.7m up 51% reflecting strong end market demand (FY2021: £97.8m) • Revenue of £124.8m unchanged on prior year (FY2021: £124.1m) • Growth in both Industrial and Life Sciences offset by decline in Aerospace and Defence • Adjusted profit before tax declined 35.4% to
Slide 4: Initial Observations of the new CEO
Initial Observations of the new CEO • Dedicated workforce with deep technical skills across the business • Broad blue-chip customer base across all end markets • G&H products are recognised for their superior technical performance and quality • Operational delivery over recent times has not met requ
Slide 5: Financial Headlines – Summary Income Statement
Financial Headlines – Summary Income Statement Year Ended 30 September 2022 2021 % Change £m £m • Revenue grew by 0.6%; excluding fx down 3.7% • Further growth in our industrial laser and Revenue 124.8 124.1 0.6% semiconductor revenue Gross profit 39.1 41.3 (5.5)% • Medical lasers market is strong;
Slide 6: Financial Headlines – Cashflow
Financial Headlines – Cashflow Year Ended 30 September 2022 2021 • Increase in working capital of £10.0m in the year, £m £m with investment in inventory levels given tightness of Net cash flow from operating activities 6.5 16.2 supply chain Cash flow from investing activities • Total investment in t
Slide 7: Responsible Business
Responsible Business Environment • New solar panels at Ilminster and Ashford facilities became operational in the year • All UK sites now purchasing 100% of their electricity from renewable sources • Achieved 27% reduction in Scope 1 and 2 carbon emissions • On track to achieve target of being net n
Slide 8: Industrial
Industrial Financials (51% of revenue) FY22 FY21 Change Revenue £64.6m £55.6m 16.2% Adjusted £8.4m £7.1m 19.1% Operating Profit % Margin 13.0% 12.7% 30bps Order Book £57.5m £36.8m 56.3% • Expansion of semiconductor infrastructure to address megatrends: IoT, AI, 5G, Net Zero and Cloud key growth driv
Slide 9: Life Sciences
Life Sciences Financials (24% of revenue) FY22 FY21 Change Revenue £29.7m £27.4m 8.2% Adjusted £4.0m £4.2m (6.9)% Operating Profit % Margin 13.3% 15.5% (220)bps Order Book £36.6m £26.6m 37.6% • Life Sciences grew year on year by 5.3% at constant currency • New customer programmes for medical diagnos
Slide 10: Aerospace & Defence
Aerospace & Defence Financials (25% of revenue) FY22 FY21 Change Revenue £30.6m £41.1m (25.6)% Adjusted £(2.7)m £3.1m (185.0)% Operating Profit % Margin (8.7)% 7.6% (1630)bps Order Book £53.5m £33.6m 59.1% • Aerospace and Defence revenues declined year on year by 29% at constant currency • Deliverie
Slide 11: Growth Opportunities
Growth Opportunities Key areas of near-term new business focus • Semiconductor demand from megatrends & ‘Technological Sovereignty’ driving advanced photonics for new generation photolithographic equipment and other advanced microelectronics • Environmental & Space high reliability fibre-optic modul
Slide 12: Summary and Outlook
Summary and Outlook • Well positioned for growth with record order book and robust pipeline • Positive progress addressing operational output challenges • Manufacturing partner producing at volume and additional products being qualified • Supply chain constraints and input cost inflation pressures p
Slide 13: Appendices
Appendices
Slide 14: 2023 Expected Financial Calendar
2023 Expected Financial Calendar • 22nd February 2023 – AGM Trading Update • 4th April 2023 – Half Year Trading Update • June 2023 – Interim Announcement • October 2023 – Full Year Trading Update • December 2023 – Full Year Results Announcement PRELIMINARY RESULTS PRESENTATION – FY 2022 PAGE 14
Slide 15: Non Underlying Items
Non Underlying Items Total non underlying charge of £10.4m • Amortisation of acquired intangibles: £1.9m • Restructuring: £1.2m – streamlining of our manufacturing sites • Impairment of goodwill and acquired intangible assets: £6.7m • CEO succession: £0.6m PRELIMINARY RESULTS PRESENTATION – FY 2022
Slide 16: Other Financial Items
Other Financial Items R&D Spend • The Group’s R&D spend in the year totalled £9.3m (FY2021: £7.9m). This represented 7.4% of revenue (FY2021: 6.4%) • The Group capitalises a portion of its R&D spend in accordance with IFRS. The amount held on the balance sheet is £1.9m (FY2021: £1.8m). Tax • The tax
Slide 17: Targeted R&D
Targeted R&D New products Precision Acousto/ Fibre Optics launched in the Optics & Electro-Optics year Systems Aerospace & 29 - 10 Defence Industrial - 3 3 Life Sciences 8 - 1 • New products generated £17.9m of revenue in FY2022 (FY2021: £18.1m) “We are increasingly focusing our engineering skills f
Slide 18: Cautionary Statement
Cautionary Statement ▪ For the purposes of the following disclaimers, references to this ‘document’ shall be deemed to include references to the presenters’ speeches, the question and answer session and any other related verbal or written communications. ▪ This document contains forward-looking stat
Slide 19: PRELIMINARY RESULTS PRESENTATION – FY 2022 PAGE 19
PRELIMINARY RESULTS PRESENTATION – FY 2022 PAGE 19