Gooch & Housego Plc · LSE:GHH

Gooch & Housego — FY2020 Earnings Presentation

17 slides from Gooch & Housego's earnings presentation, Dec 1, 2020

  1. Slide 1: Preliminary Results – Year Ended 30 September 2020

    PRELIMINARY RESULTS – YEAR ENDED 30 SEPTEMBER 2020 CEO: MARK WEBSTER / CFO: CHRIS JEWELL

  2. Slide 2: Key Highlights – Strategic Progress

    KEY HIGHLIGHTS – STRATEGIC PROGRESS  Trading reflected a challenging global economic environment due to the COVID-19 pandemic.  Our number one priority during the pandemic is the health and safety of our staff, customers and suppliers.  G&H is proud of the way of our staff responded.  Management

  3. Slide 3: Key Highlights – Operational & Financial

    KEY HIGHLIGHTS – OPERATIONAL & FINANCIAL  Revenue for the year totalled £122.1m, down 5.5% on the previous year.  Adjusted profit before tax of £9.8m, down 35.1%, reflecting temporary disruption to G&H’s manufacturing sites and lower demand in some subsectors due to the COVID-19 pandemic.  Capita

  4. Slide 4: Financial Headlines – Summary Income Statement

    FINANCIAL HEADLINES – SUMMARY INCOME STATEMENT Year Ended 30 September 2020 2019 % Change £m £m  Management actions in response to the COVID-19 pandemic contributed to a stronger second half Revenue 122.1 129.1 (5.5)% financial performance. They included selective cost reductions and active cash ma

  5. Slide 5: Financial Headlines – Cashflow

    FINANCIAL HEADLINES – CASHFLOW Year Ended 30 September 2020 2019  £4.7m reduction in working capital since September £m £m 2019. Net cash flow from operating activities 20.4 11.6  ITL acquisition earn-out of £4.75m paid in cash from Cash flow from investing activities existing debt facilities. Thi

  6. Slide 6: Industrial

    INDUSTRIAL Financials (45% of revenue) FY20 FY19 Reported growth Revenue £54.8m £60.9m (9.9)% Adjusted operating £4.1m £9.0m (54.2)% profit % margin 7.5% 14.7% (720)bps • Industrial lasers is the area of our business most exposed to the wider economy, as such demand was below ‘normalised’ levels in

  7. Slide 7: Aerospace & Defence

    AEROSPACE & DEFENCE Financials (34% of revenue) FY20 FY19 Reported growth Revenue £41.4m £44.2m (6.4)% Adjusted operating £2.8m £3.5m (20.6)% profit % margin 6.8% 8.0% (120)bps  During FY2020 we were able to deliver on a number of important milestones in high profile US defence contracts. This has

  8. Slide 8: Life Sciences/Biophotonics

    LIFE SCIENCES/BIOPHOTONICS Financials (21% of revenue) FY20 FY19 Reported growth Revenue £25.9m £24.1m 7.4% Adjusted operating £4.7m £5.1m (8.5)% profit % margin 18.0% 21.1% (310)bps • Our medical diagnostics system business grew strongly during the year and benefited from increased demand for our p

  9. Slide 9: Streamlining of G&H's Manufacturing Base

    STREAMLINING OF G&H’S MANUFACTURING BASE  As part of a move towards improving efficiency, customer service and capacity we announced in March 2020 that we will streamline our manufacturing operations. It is progressing well and remains on plan.  Outsourcing Acousto Optic (AO) q-switch manufacturin

  10. Slide 10: Our Strategy – Diversification and Moving Up the Value Chain

    OUR STRATEGY– remains diversification and moving up the value chain Two core strategic objectives • To further diversify the business. A&D and Life Sciences represent a counter balance to industrials, with 33.9% and 21.2% of FY2020 revenue respectively. This represents considerable progress over the

  11. Slide 11: Key Messages and Outlook

    KEY MESSAGES AND OUTLOOK  In the short term there is considerable global economic uncertainty due to the COVID-19 pandemic, but G&H’s order book is robust and testament to the benefits of a diversified portfolio.  During FY2020 management actions have helped the Group to build in greater resilienc

  12. Slide 12: Appendices

    APPENDICES

  13. Slide 13: Targeted R&D

    Targeted R&D New products Precision Acousto/ Fibre Optics & Electro-Optics Optics Systems Aerospace & 27 - 3 Defence Industrial - 2 1 Life Sciences 6 - 1 “Our investment in R&D has continued. We have released 40 new products to the market in 2020.” Mark Webster - CEO PRELIM RESULTS PRESENTATION – FY

  14. Slide 14: Non Underlying Items

    Non Underlying Items Non Underlying Items  Total non underlying charge of £4.4m.  M&A related - £3.0m.  Amortisation of acquired intangibles - £2.7m  Interest unwind of contingent consideration - £0.3m  Restructuring - £2.6m – streamlining of our manufacturing facilities including the closure o

  15. Slide 15: Investor Timetable

    Investor Timetable  24th February 2021 – AGM Trading Update  7th April 2021 – Half Year Trading Update  June 2021 – Interim Announcement  October 2021 – Full Year Trading Update  December 2021 – Preliminary Announcement PRELIM RESULTS PRESENTATION – FY 2020 PAGE 15

  16. Slide 16: Key Customers

    Key Customers PRELIM RESULTS PRESENTATION – FY 2020 PAGE 16

  17. Slide 17: PRELIM RESULTS PRESENTATION – FY 2020 PAGE 17

    PRELIM RESULTS PRESENTATION – FY 2020 PAGE 17

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