Gooch & Housego Plc · LSE:GHH
Gooch & Housego — FY2010 Earnings Presentation
19 slides from Gooch & Housego's earnings presentation, November 2010
Slide 1: Preliminary Results for Year ended 30th September 2010
Gooch & Housego PLC Preliminary Results for Year ended 30th September 2010 Chairman: Dr Julian Blogh CEO: Gareth Jones CFO: Andrew Boteler November 2010 Page 1
Slide 2: Company Overview
Company Overview • Headquartered in the UK, but with a strong US Headcount: 459 presence, Gooch & Housego is a leader in many of the fields in which it operates. Global locations 6 manufacturing facilities (4 US, 2 UK) • Gooch & Housego has a unique range of 2 R&D centres photonics capabilities enco
Slide 3: Highlights of 2010
Highlights of 2010 • Revenue up by 23% to £44.7 million • Strong recovery in core Industrial market, up by 37% • Combined Aerospace & Defence and Life Sciences sectors grew by 17% • Normalised profit before tax increased by 94% to £6.0 million • Net debt reduced by 58% to £5.2 million • Order book g
Slide 4: Overcoming the Challenges
Overcoming the Challenges Increasing output to meet unprecedented levels of demand was the greatest challenge in 2010. This was achieved, and our customers’ needs met, by increasing manufacturing capacity and introducing innovative solutions that changed the way we do business. People Î headcount in
Slide 5: Market Trends
Market Trends Industrial Life Sciences • Strong recovery (sales up 37%) • Similar trends to aerospace & defence • Consumer led • Optical techniques for diagnostics and surgery • Mobile phones and computing driving demand • G&H helping customers to: - • Sharp upturn in semicon and microelectronics se
Slide 6: Financial Highlights
Financial Highlights For the year ended 30 September 2010 Revenue £m Headline operating profit £m +23% 44.7 +66% 36.4 6.9 6.7 33.4 30.7 4.1 5.4 25.4 5.3 £44.7m £6.9m (2009: £36.4m) 2006 2007 2008 2009 2010 (2009:£4.1m) 2006 2007 2008 2009 2010 Headline profit before tax Headline earnings per share (
Slide 7: At a glance KPI’s
At a glance KPI’s For the year ended 30 September 2010 unless otherwise stated. Revenue growth Profit growth Growth in total revenue compared to prior period. Growth in headline profit before tax compared to prior period. £44.7m +23% £6.0m +94% (2009: £36.4m) (2009: £3.1m) New business growth Order
Slide 8: Reported Income Statement
Reported Income Statement Key Points 2010 % 2009 Year to 30 September £’000 Change £’000 •Normalised profit before tax £6.0m compared to £3.1 in 2009. Revenue 44,683 23% 36,414 •Reported profit after tax of £4.7m compared to Gross profit 18,691 42% 13,209 £1.0m for the same period in 2009 Operating
Slide 9: Adjusted Income Statement
Adjusted Income Statement RECONCILIATION OF ADJUSTED Profit from operations Net finance costs Taxation Earnings per share PERFORMANCE MEASURES 2010 2009 2010 2009 2010 2009 2010 2009 £’000 £’000 £’000 £’000 £’000 £’000 pence pence Reported 5,929 2,784 (833) (1,361) (405) (463) 24.4p 5.0p Amortisatio
Slide 10: Cash Flow
Cash Flow Key Points Year to 30 September 2010 2009 £,000 £’000 •Despite funding the rapid growth of our business, the business has achieved Cash flows from operating activities 8,835 7,706 excellent cash flow. Cash flows from investing activities •Positive cash position of £5.7m (2009: Acquisition
Slide 11: Balance Sheet
Balance Sheet 2010 2009 Key Points £,000 £’000 Net assets increased by 16% through organic growth. Non- current assets Tangible assets 15,783 16,634 Intangible assets 15,291 16,858 Net debt reduced by 58% to £5.2m. Other 2,949 1,421 Gross borrowings reduced by 28% to £13.5m Total 34,023 34,913 Borro
Slide 12: Group Borrowings
Group Borrowings US$ acquisition loan Sterling acquisition loan Principal $15.88m Principal £3.56m Term – three and a half years commencing 7 October 2008 Term - three and a half years commencing 7 October 2008 Repayable by : Repayable by : One instalment of $575k Six half yearly instalments of £119
Slide 13: Strategy
Strategy • Gooch & Housego will continue to pursue a strategy of diversification, targeting specific market sectors where optical technologies are being rapidly adopted • Through internal R&D we will develop new, higher added-value products via the integration of optical technologies with electronic
Slide 14: Outlook
Outlook • Demand in the Industrial sector is still rising • There is considerable scope for growth in Aerospace & Defence and Life Sciences • Customer forecasts are upbeat despite economic uncertainties in the US and Europe • The order book is continuing to rise • The trend to move up the value-chai
Slide 15: Appendices
dm Gooch & Housego + Page 15 enabling optical technologies
Slide 16: Market Overview
Market Overview In recent years G&H has successfully pursued a strategy of diversification, aimed at adding new large and high-growth markets whilst retaining a dominant position in its traditional industrial laser sector. G&H is a niche provider of low volume, high value optoelectronic materials, c
Slide 17: Capabilities
Capabilities Uniquely broad portfolio of truly world-class capabilities and technologies: • Ultra Precision Optical components • Optical coatings – capable of operating in the worlds most powerful laser systems • Fibre optics – for the aerospace, biomedical, laser and telecoms applications • Acousto
Slide 18: Product examples
Product examples Product: Acousto-optics Q-SWITCH Used in: Industrial, medical & defence laser systems Applications: Laser materials processing (marking, welding, drilling, cutting..); laser surgery; countermeasures Status: Market leader Product: Electro-optics Q-switch POCKELS CELL Used in: Researc
Slide 19: Shareholder Profile
Shareholder Profile SHAREHOLDER HOLDING AS AT 15/11/2010 % HOLDING Gooch & Virgin Family Holding 4,068,459 21.12% BlackRock Investment Management 2,164,169 11.23% Rensburg Sheppard Investment Management 984,247 5.11% Scottish Widows 838,281 4.35% Standard Life Investments 819,394 4.25% Schroder Inve