Gooch & Housego Plc · LSE:GHH
Gooch & Housego — Shareholder Meeting (February 2015)
11 slides from Gooch & Housego's shareholder meeting presentation, Feb 26, 2015
Slide 1: Annual General Meeting 26th February 2015
Annual General Meeting 26th February 2015 Chairman: Gareth Jones / CEO: Mark Webster / CFO: Andrew Boteler / COO: Alex Warnock
Slide 2: Photonics and the future
Photonics and the future Photonics is the study and design of systems that depend on the transmission, modulation or amplification of streams of photons, the basic unit of light. • Photonics is increasingly providing better solutions than electronics alone • Photonics is already transforming manufac
Slide 3: Results at a Glance
Results at a Glance Year Ended 30 September FY 2014 FY 2013 Change Revenue £70.1m £63.3m 10.7% Adjusted profit before tax * £11.5m £9.7m 18.6% Adjusted basic earnings per share * 35.6p 32.0p 11.3% Dividend per share 7.2p 6.3p 14.3% Net cash £8.7m £5.7m £3.0m Revenue £’m Adjusted PBT £’m 80 14 70 12
Slide 4: 2014 Highlights
2014 Highlights • Grew Revenue despite foreign exchange headwinds • Operating Margin improved from 16% to 17% • R&D spend increased to 8% • Acquisitions 1. Spanoptic gives presence in aspheric optics and IR, partner in China 2. Constelex gives presence in Space / Satellite • Systems Technology Group
Slide 5: 2015
2015 • First 4 months in line with management expectations • Industrial sector showing robust growth in solid state and fibre optic lasers and telecommunications • In process of moving Palo Alto site across the Bay to Fremont which is an improved facility, with 40% more space for expansion at simila
Slide 6: 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 2014 2008 £70.1
Slide 7: Strategy
Strategy Diversify Exploit high-growth opportunities for photonics technology Fibre Optic lasers Fibre Optic sensing Laser surgery A&D sub- systems and systems Medical Diagnostics Space/ Satellite communications Move up the value chain Leverage excellence in components to become a solu
Slide 8: Prepare G&H for future growth
Prepare G&H for future growth • G&H has world class components • G&H has world class systems capability in particular, OCT, fibre optics and space communications • 8 sites with strong technological heritage and history of delivering profitable growth • Aim is to increase systems capability across al
Slide 9: Prepare G&H for future growth
Prepare G&H for future growth Three key areas for improvement: 1. Ensuring a consistent high level of operational excellence across all the sites Small corporate group that lead, manage and set standards for supply chain management, quality assurance, compliance, process engineering, lean manufactur
Slide 10: Prepare G&H for future growth cont'd
Prepare G&H for future growth cont’d…… Three key areas for improvement: 3. Ensure there is a ‘balanced’ R&D portfolio that meets the customers strategic needs Prioritise site based projects using rigorous technical, market and financial analysis. Continue to increase resource, in particular STG and
Slide 11: Summary
Summary • Photonics is transforming manufacturing, aerospace, communications and medicine • G&H has a world class photonics capability and is well placed to take advantage • G&H has more than doubled revenue since 2008 as a result of its twin strategies of diversification and moving up the value cha
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