Gooch & Housego Plc · LSE:GHH
Gooch & Housego — FY2017 Earnings Presentation
21 slides from Gooch & Housego's earnings presentation, Nov 23, 2017
Slide 1: Preliminary Results Year Ended 30 September 2017
PRELIMINARY RESULTS YEAR ENDED 30 SEPTEMBER 2017 CEO: Mark Webster / CFO: Andrew Boteler
Slide 2: Operational & Financial Highlights
Highlights Operational & Financial Highlights Strong financial performance set against a backdrop of favourable market conditions. Demand particularly high for critical components used in precision lasers for microelectronic manufacturing and hi-reliability fibre couplers used in undersea cable
Slide 3: Financial Overview: Income Statement Highlights
Financial Overview Income Statement - Highlights Key points: Year Ended 30 September 2017 2016 % Change Group revenue for the year was a record £112.0m, 30.2% higher. Revenue (£m) 112.0 86.1 30.2% Excluding the impact of foreign Gross profit (£m) 46.1 32.3 42.7% exchange, revenue increased by 18
Slide 4: Financial Overview: Cash Flow
Financial Overview Cash Flow Year Ended 30 September 2017 2016 Key points: £’000 £’000 Cash flow from operating activities 17,569 12,573 Net cash flows from operations Cash flow from investing activities generated £17.6m, compared with £12.6m in 2016. Acquisition of subsidiary (5,658) (5,687) Purc
Slide 5: Financial Overview: Balance Sheet
Financial Overview Balance Sheet Key points: As at 30 September 2017 2016 £’000 £’000 Non-current assets Tangible assets 33,890 32,384 Strong balance sheet maintained. Intangible assets 40,250 29,916 Trade receivables were unchanged at Other 2,703 2,674 £20.5m. Strong shipment profile towards 76
Slide 6: Financial Overview: Financial Track Record
Financial Overview Financial Track Record Key points: Revenue £’m H1 H2 Adjusted PBT £’m 120 18 The business has delivered 16 profitable growth over an eight 100 14 year period. 80 12 10 60 8 15% CAGR in revenues since 40 6 FY2009. 4 20 2 23% CAGR in adjusted PBT 0 0 since FY2009. 26% CAGR i
Slide 7: Markets & Applications: Industrial
Technology, Products & Markets Markets & Applications Industrial Markets Applications Revenue: • Fibre lasers. Micro-electronics & light • Solid state lasers. £64.3m manufacturing. (2016: £54.3m) • Semi-conductor equipment. • Inspection equipment. Adjusted Operating Profit: Fibre optic sensing.
Slide 8: Markets & Applications: Aerospace & Defence
Technology, Products & Markets Markets & Applications Markets Applications Aerospace & Defence Revenue: Target designation & • Aircraft platforms. £34.9m range finding. • Missile systems. (2016: £20.0m) Navigation systems. • Ring laser gyroscopes. Space photonics. Adjusted Operating Profit: •
Slide 9: Markets & Applications: Life Sciences
Technology, Products & Markets Markets & Applications Markets Applications Life Sciences Revenue: Optical coherence • Ophthalmic imaging. £9.6m tomography (OCT). • Cardiovascular. (2016: £7.9m) Adjusted Operating Profit: Laser surgery. • Prostate surgery. • Cosmetic surgery. £1.0m • Tattoo remov
Slide 10: Markets & Applications: Scientific Research
Technology, Products & Markets Markets & Applications Scientific Research Revenue: £3.3m Markets Applications (2016: £3.9m) • National Ignition Facility. Inertial confinement • Laser Mega Joule. Adjusted Operating Profit: fusion. £0.4m (2016: £0.7m) Scientific • Research institutes. instrumentat
Slide 11: Acquisitions: StingRay Optics
Acquisitions Strategic acquisition completed in the year Strategic goal to create a critical mass in A&D (& Life Sciences) through investment in R&D and acquisitions. Both sectors provide a counter balance to the industrial sector's exposure to the economic cycle and provide greater opportunity to m
Slide 12: Our Strategy
Our Strategy Remains “Diversify” & “Move up the Value Chain” Diversify Exploit high-growth opportunities for photonics technology in targeted sectors to provide balance and reduce cyclicality. Establish critical mass in the A&D and Life Sciences sectors through a combination of investment in R&D and
Slide 13: Performance Improvement Programme
Performance Improvement Programme Progress to date • Operational excellence - Established a more scalable organisational model for future growth. Our ten manufacturing sites have been organised into three manufacturing centres. They are based on our areas of technical expertise, namely Acousto Optic
Slide 14: Summary & Outlook
Summary & Outlook During FY2017 G&H: • Met its FY 2017 financial objectives. • Undertook strategically important investments in key skills, processes, systems and the latest capital equipment. • Made significant progress towards our strategic aims of diversifying and moving up the value chain. • Inc
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 applicat
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 virtually
Slide 18: Our Vision
Our Vision Our vision is of a world in which photonics becomes ubiquitous Photonics is already transforming manufacturing, aerospace, communications and medicine Photonics provides the human interface for digital information In a future where optics and electronics become inextricably linked all sys
Slide 19: New Products & Capabilities introduced in 2017
New Products & Capabilities introduced in 2017 Key: Technology New products Precision Acousto/Electro Fibre Instrumentation 22 introduced in FY2017 (2016: 21) Optics Optics Optics Markets Aerospace & Defence 1 4 Industrial 7 3 2 Life Sciences 1 4 Scientific Research “G&H sees the continued investmen
Slide 20: Growth through diversification
Growth through diversification The newer markets of Aerospace & Defence and Life Sciences, together with new application areas within our Industrial market, offer the potential for significant growth through their rapid adoption of photonic technologies INDUSTRIAL AEROSPACE & DEFENCE 2017 2008 £112.
Slide 21: Key Customers
19 Key Customers Leica PHOTONICS NORTHROP GRUMMAN AMS_ aise TRUMPF “TOPCO! Solutions or Eafe HAN’S LASER Honeywell (B® CW Newport. €3 COHERENT. v or x Se ZLUMENTUM CE RENISHAW.2 JPL NG Lawrence Livermore National Laboratory ENABLING PHOTONIC TECHNOLOGIES