Gooch & Housego Plc · LSE:GHH
Gooch & Housego — FY2015 Earnings Presentation
23 slides from Gooch & Housego's earnings presentation, Dec 1, 2015
Slide 1: Preliminary Results Year Ended 30 September 2015
PRELIMINARY RESULTS YEAR ENDED 30 SEPTEMBER 2015 CEO: Mark Webster / CFO: Andrew Boteler
Slide 2: Operational & Financial Highlights
Highlights Operational & Financial Highlights Strong performance from industrial laser & telecommunications products underpinned growth Increase in revenue by 12% to a record £78.7m for the financial year (2014: £70.1m) Adjusted profit before tax up 12% to £12.9m (2014: £11.5m) Net cash of £
Slide 3: Results at a glance
Highlights Results at a glance Year Ended 30 September FY 2015 FY 2014 Change Revenue £78.7m £70.1m 12.3% Adjusted profit before tax £12.9m £11.5m 12.2% Adjusted basic earnings per share 39.5p 35.6p 11.0% Total dividend per share (pence) 8.2p 7.2p 13.9% Net cash £17.3m £8.7m 98.9% Revenue £’m Adjust
Slide 4: Financial Overview: Income Statement
Financial Overview Income Statement Key points: Year Ended 30 September 2015 2014 % Change Group revenue for the year was a record £’000 £’000 £78.7m, 12% higher Revenue 78,702 70,056 12.3% Gross profit 31,043 28,350 9.5% Excluding the impact of foreign exchange, revenue increased by 8% Operatin
Slide 5: Financial Overview: Cash Flow
Financial Overview Cash Flow Year Ended 30 September 2015 2014 £’000 £’000 Cash flow from operating activities 13,625 13,673 Key points: Cash flow from investing activities Net cash increased to a record Acquisition of subsidiary - (5,532) £17.3m as at 30 September 2015 (2014: £8.7m) Purchase of p
Slide 6: Financial Overview: Balance Sheet
Financial Overview Balance Sheet Key points: As at 30 September 2015 2014 £’000 £’000 Non-current assets Tangible assets 24,915 24,140 A strong balance sheet maintained Intangible assets 20,155 20,668 £4.2m invested in property, plant & Other 2,552 3,114 equipment 47,622 47,922 Current assets In
Slide 7: Technology, Products & Markets: Industrial
Technology, Products & Markets Markets & Applications Markets Applications Industrial • Fibre lasers Revenue: • Solid state lasers Micro-electronics & light £46.1m manufacturing • Other laser sources (2014: £39.8m) • Semi-conductor equipment Adjusted Operating Profit: • Inspection equipment £9.6m
Slide 8: Technology, Products & Markets: Aerospace & Defence
Technology, Products & Markets Markets & Applications Markets Applications Aerospace & Defence Revenue: • Aircraft platforms Target designation & • Missile systems £19.8m range finding • Land based military (2014: £18.8m) platforms Adjusted Operating Profit: £2.1m • Ring laser gyroscopes (2014: £2
Slide 9: Technology, Products & Markets: Life Sciences
Technology, Products & Markets Markets & Applications Markets Applications Life Sciences Revenue: • Ophthalmic Optical Coherence imaging £9.0m Tomography • Cardiovascular (2014: £7.3m) • Oesophageal imaging Adjusted Operating Profit: £1.6m (2014: £1.0m) • Prostate surgery Laser Surgery • Ophthal
Slide 10: Technology, Products & Markets: Scientific Research
Technology, Products & Markets Markets & Applications Scientific Research Revenue: Markets Applications £3.9m (2014: £4.1m) • National Ignition Internal Confinement Facility Adjusted Operating Profit: Fusion • Laser Mega Joule £0.7m (2014: £0.4m) : 5% Scientific • Research institutes Instrumenta
Slide 11: Our Strategy
Our Strategy Remains consistent Diversify Exploit high-growth opportunities for photonics technology across multiple sectors to provide balance and reduce cyclicality • Aerospace & Defence • Satellite communications • Laser surgery • Diagnostics • Remote sensing ... etc. Move up the value chain • Ge
Slide 12: Performance Improvement Plan - Progress
Performance Improvement Plan - Progress • Operational excellence - established a number of globally focused teams representing the key manufacturing disciplines. Introducing Lean Manufacturing to all sites as our performance improvement programme is implemented company wide • Investment in facilitie
Slide 13: Summary & Outlook
Summary & Outlook • G&H has made good progress in executing its strategy in 2015 and in doing so has met financial expectations • The business is more diversified, better balanced and well positioned to deliver sustained growth • Investment in property, plant and equipment to drive continued organic
Slide 14: Appendices
Appendices dm Gooch & Housego ENABLING PHOTONIC TECHNOLOGIES
Slide 15: 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 applicati
Slide 16: Market Analysis
Market Analysis Industrial Aerospace & Defence Life Sciences Scientific Research Revenue: Revenue: Revenue: Revenue: £46.1m £19.8m £9.0m £3.9m (2014: £18.8m) (2014: £7.3m) (2014: £4.1m) (2014: £39.8m) Adjusted Operating Profit: Adjusted Operating Profit: Adjusted Operating Profit: Adjusted Operating
Slide 17: Market Analysis
Market Analysis Industrial Aerospace & Defence Life Sciences Scientific Research Sales of components for Revenue growth of Market dominated by Revenue growth of navigation applications £1.7 million, 23% small number of long £6.2 million, 15.7% were again strong in higher than the term “Big S
Slide 18: 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 virtuall
Slide 19: 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 20: New Products & Capabilities introduced in 2015
New Products & Capabilities introduced in 2015 Key: Technology New products Precision Acousto/Electro Fibre Systems & 18 introduced in FY2015 (2014 : 14) Optics Optics Optics Instrumentation Markets Aerospace & Defence 7 Industrial 1 5 2 1 Life Sciences 2 Scientific Research “G&H sees the continued
Slide 21: 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 2015 2008 £78.7
Slide 22: SWIR – Case Study
SWIR – Case Study ● Target designation ● Laser Range Finding ● Fast-Jet HUD Displays ● Helicopter HUD Displays ● Hand-held Equipment ● Surveillance HELICOPTER HUDs / FLIGHT AID UAV SYSTEMS / ● Threat detection DRONES ● Imaging
Slide 23: Key Customers
Key Customers Seica ie TRUMPF NORTHROP GRUMMAN aa a Pa) GS Ti as 5 SELEX GALILEO PHOTONICS AMS _ : Honeywell | acon PE ndope , TO p CO n ( L3) “© optos: HANS LASE: ae 8 a COHERENT. ao JPL CED) lt kaenee Livermore vc RENISHAW.4 ENABLING PHOTONIC TECHNOLOGIES