Gooch & Housego Plc · LSE:GHH
Gooch & Housego — H1 2025 Earnings Presentation
26 slides from Gooch & Housego's earnings presentation, Jun 3, 2025
Slide 1: Interim Results
INTERIM RESULTS Half year ended 31st March 2025 3rd June 2025
Slide 2: Agenda
AGENDA • Highlights • Financial Results • Segmental Review • Strategy Update • Outlook & Summary Charlie Peppiatt - CEO Chris Jewell - CFO INTERIM RESULTS PRESENTATION – H1 2025 PAGE 2
Slide 3: Highlights
HIGHLIGHTS • Further positive progress with delivery of the Group’s strategic plan • Revenue up 11.4% (7.5% organic, constant currency) to £70.9m (H1 2024: £63.6m) • Adjusted operating profit up 60.5% to £6.2m (H1 2024: £3.8m) • Integration of Phoenix Optical is proceeding well. Global Photonics ext
Slide 4: Summary Income Statement
SUMMARY INCOME STATEMENT HY Ended 31 March 2025 2024 • Revenue grew by 11.4% or 7.5% on an OCC basis. A&D £m £m revenue particularly strong. Industrial recovery delayed Revenue 70.9 63.6 • Gross margins improved to 30.4% (H1 2024: 29.1%). Gross profit 21.6 18.5 Volume effects and the benefit of stra
Slide 5: Cashflow
CASHFLOW HY Ended 31 March 2025 2024 £m £m • Working capital increased by £6.7m driven by higher Net cash flow from operating 2.6 2.5 inventory holdings as a result of uncertainties in the activities supply chain Cash flow from investing activities Purchase of property, plant and • Capital investmen
Slide 6: Industrial
INDUSTRIAL Financials (42% of Group revenue) HY25 HY24 Change Revenue £30.1m £31.7m (4.9)% Adjusted Operating £3.8m £3.5m 10.2% Profit % Margin 12.6% 10.9% 170bps • Industrial revenue declined by 6.5% on an organic constant currency basis compared with H1 2024 • Macroeconomic uncertainties and new t
Slide 7: Aerospace & Defence
AEROSPACE & DEFENCE Financials (33% of Group revenue) HY25 HY24 Growth Revenue £23.5m £16.6m 41.4% Adjusted Operating £0.6m £(1.6)m n/a Profit % Margin 2.6% (9.4)% 1200bps • Revenue grew 30% on an organic, constant currency basis • Growth from super polished optical components due to added capacity
Slide 8: Life Sciences
LIFE SCIENCES Financials (25% of Group revenue) HY25 HY24 Growth Revenue £17.3m £15.3m 12.7% Adjusted Operating £2.1m £2.2m (7.6)% Profit % Margin 12.0% 14.7% 270bps • Revenue grew by 14.2% compared with H1 2024 on an organic, constant currency basis • Medical diagnostic revenue grew along with some
Slide 9: G&H Strategy – Sustainable Growth
G&H STRATEGY – SUSTAINABLE GROWTH New strategy focused on becoming an ‘innovative customer focused technology company’ making a ‘better world with photonics’ and the ‘first choice’ for all our stakeholders OFFERING DIFFERENTIATED PERFORMANCE THROUGH 4 KEY STRATEGIC PRIORITIES: 1 2 3 4 Establish dyna
Slide 10: Path to Mid-Teen Returns
PATH TO MID-TEEN RETURNS • We remain confident in our ability to deliver mid-teens returns (700-800 bps accretion) by 2028 • G&H’s differentiated photonics expertise aligned to structural growth drivers from megatrends • Challenging macroeconomic backdrop has increased near-term execution risks • St
Slide 11: A&D Business Turnaround
A&D BUSINESS TURNAROUND • Delivered 11.2% margin improvement in A&D business unit since launch of new strategy • Further growth expected in FY2026 with strong demand for G&H’s A&D Optical Systems • Positive book to bill (1.4) and NBO multi-year programme pipeline growing • Artemis and Phoenix delive
Slide 12: Outsourcing
OUTSOURCING Proactive outsourcing of products earlier in their life cycle where technological sovereignty is not a differentiator • Dedicated leadership and resources added • Supply of acousto-optic products expanding • Hi-Rel couplers further ramp-up in FY2025 • Partners qualified in Thailand, Indi
Slide 13: Value Creation from Technology Focus
VALUE CREATION FROM TECHNOLOGY FOCUS • R&D spend £3.5m (H1 2024: £3.6m) ● • Investment into innovation hubs and R&D organisation to enable strategy Last-time buy of Pockels cells made in Cleveland, US • Technology roadmap focus reduced to ● 6 ‘vital few’ areas where G&H can differentiate and drive ‘
Slide 14: New Product Success – Life Sciences
NEW PRODUCT SUCCESS – LIFE SCIENCES OrganOx metra liver transplantation machine enables functional assessment of donor organs prior to transplant reducing early allograft rejection and improving transplantation logistics for both transplant recipients and hospitals • G&H awarded design for manufactu
Slide 15: Acquisition of Global Photonics
ACQUISITION OF GLOBAL PHOTONICS • G&H to acquire Global Photonics for $17.5m • Well-regarded privately owned US precision optics business • CY24 revenue $11.1m with normalised EBITDA $1.8m • Proven optical systems designer and manufacturer • Experienced team of 38 employees • Located near Tampa in F
Slide 16: Strategy Accelerator - Global Photonics
STRATEGY ACCELERATOR - GLOBAL PHOTONICS • ‘Speed to value’ strategic Optical Systems acquisition • M1A2 ICWS periscopes and fire control system optics • Revenue synergies through combined commercial pipeline • Scalable ‘Made in USA’ footprint and capacity • USA laser protection coating centre of exc
Slide 17: Full Year Outlook
FULL YEAR OUTLOOK • Order book remains strong, especially for the Group’s transformed A&D business • US tariffs and consequent retaliatory measures from China and other nations are fluid and increasing near-term uncertainty and disruption • Semiconductor market recovery further delayed • >95% cover
Slide 18: Summary
SUMMARY • Operational improvements position G&H well to benefit from upturn in semiconductor and other markets • Further progress with outsourcing strategy and ‘speed to value’ portfolio activities • Engineering resources focused on customer-led next generation accretive development projects • ‘Valu
Slide 19: Appendices
APPENDICES
Slide 20: Revenue Bridge – HY 2025 to FY 2025E
REVENUE BRIDGE – HY 2025 TO FY 2025E 200 180 160 140 Revenue - £m 120 100 80 60 40 20 0 A&D Booked LS Booked Book & Ship HY25 IND Booked Global Photonics FY25 o FY2025E revenue substantially booked INTERIM RESULTS PRESENTATION – H1 2025 PAGE 20
Slide 21: Financial Guidance – Year Ending Sept 2025
FINANCIAL GUIDANCE – YEAR ENDING SEPT 2025 • Capital expenditure o Circa £7m-8m • Research & Development o Circa £7m (5% of revenue) • Tax o Adjusted effective tax rate of 23-24% • Foreign exchange o USD 1 cent = £0.7m revenue and £0.05m operating profit impact INTERIM RESULTS PRESENTATION – H1 2025
Slide 22: Strategic Progress Dashboard - FY 2022 to FY 2024
STRATEGIC PROGRESS DASHBOARD - FY 2022 TO FY 2024 PEOPLE FY2022 FY2023 FY2024 RAG TECHNOLOGY FY2022 FY2023 FY2024 RAG Open Positions 78 52 24 ● R&D Investment (£m) excluding EM4 7.2 7.4 7.8 ● ISO14001 Accreditions 1 3 5 ● R&D Investment (% Sales) 6.2% 5.5% 5.8% ● HRIS Implementation - - US Sites ● N
Slide 23: ESG - A Responsible Business
ESG - A RESPONSIBLE BUSINESS Environment • Carbon intensity emissions reduced by 13.9% • Migration of more sites to renewable electricity supplies • Scope 3 measurement commencing • Two more sites working towards ISO 14001 – Environmental Management Social • Completed the roll out of new HR Informat
Slide 24: Investor Timetable
INVESTOR TIMETABLE • 25 July 2025 – Interim Dividend Payment Date • 7 October 2025 – Full Year Trading Update • 2 December 2025 – Preliminary Announcement INTERIM RESULTS PRESENTATION – H1 2025 PAGE 24
Slide 25: 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 questions and answers session and any other related verbal or written communications. ▪ This document contains forward-looking st
Slide 26: INTERIM RESULTS PRESENTATION – H1 2025 PAGE 26
INTERIM RESULTS PRESENTATION – H1 2025 PAGE 26