Gooch & Housego Plc · LSE:GHH
Gooch & Housego — H1 2020 Earnings Presentation
13 slides from Gooch & Housego's earnings presentation, Jun 2, 2020
Slide 1: Interim Results – Half Year Ended 31 March 2020
INTERIM RESULTS – HALF YEAR ENDED 31 MARCH 2020 CEO: MARK WEBSTER / CFO: CHRIS JEWELL
Slide 2: Key Highlights – Operational & Financial
KEY HIGHLIGHTS – OPERATIONAL & FINANCIAL Reflecting previously reported trends and the COVID-19 emergency, revenue declined by 3.8% compared with the same period last year, or by 4.1% excluding the impact of foreign exchange. COVID-19 reduced our manufacturing capacity in H1, but a return to ful
Slide 3: COVID-19 Emergency
COVID – 19 EMERGENCY Primary concern has been the health and safety of our staff, customers and suppliers. Our teams have been responsive and agile, ensuring our sites complied with National and State COVID-19 laws and regulations and where possible supporting our customers’ products and program
Slide 4: Financial Headlines – Summary Income Statement
FINANCIAL HEADLINES – SUMMARY INCOME STATEMENT Period Ended 31 March 2020 2019 % Change £m £m Revenue decline of 3.8% yoy or 4.1% excluding foreign exchange. Revenue 57.5 59.7 (3.8)% H1 impacted by a 17.9% reduction in core industrial laser market, largely offset by growth in Gross profit 16.5 2
Slide 5: Financial Headlines – Cashflow
FINANCIAL HEADLINES-CASHFLOW Period Ended 31 March 2020 2019 £0.8m reduction in working capital since £m £m September 2019. Net cash flow from operating activities 7.5 4.4 First instalment of the ITL acquisition earn-out of Cash flow from investing activities £4.75 million paid in cash from exis
Slide 6: Industrial
INDUSTRIAL Financials (46% of revenue) HY20 HY19 Reported growth Revenue £26.5m £29.6m (10.3)% Adjusted operating £0.6m £2.2m (74.7)% profit % margin 2.1% 7.3% (520)bps Demand in the industrial laser market was below normalised levels in H1, due to continuing cyclical downturn and impact of the CO
Slide 7: Aerospace & Defence
AEROSPACE & DEFENCE Financials (33% of revenue) HY20 HY19 Reported growth Revenue £18.7m £18.4m 1.2% Adjusted operating £0.3m £1.2m (75.7)% profit % margin 1.6% 6.5% (490)bps Revenue grew 1.2% during the first six months of FY2020, compared with same period last year. Important development miles
Slide 8: Life Sciences/Biophotonics
LIFE SCIENCES/BIOPHOTONICS Financials (21% of revenue) s HY20 HY19 Reported growth Revenue £12.2m £11.7m 5.0% Adjusted operating £2.4m £2.0m 21.0% profit % margin 19.9% 17.2% 270bps Revenue grew by 5% compared with H1 last year. Increased demand for medical diagnostics systems, in particular a u
Slide 9: Operations
OPERATIONS Streamlining of our manufacturing sites is progressing well. Acousto Optic (AO) hub will be created at our Fremont, CA, site combining the AO capabilities of Fremont and Ilminster. Fremont will be the global design authority and lead the Group’s AO technological roadmap. Outsource
Slide 10: Strategy – remains diversification and moving up the value chain
STRATEGY– remains diversification and moving up the value chain Diversify Aim to establish ‘critical mass’ in Life Sciences and further strengthen our position in A&D, through investment in R&D and further strategic acquisitions. A&D represents 33% of H1 FY2020 revenue and Life Sciences 21%. Exploit
Slide 11: Key Messages and Outlook
KEY MESSAGES AND OUTLOOK Trading reflected previously reported trends and impact of the COVID-19 emergency Robust order book for fibre optic modules, hi-reliability fibre couplers and A&D and Life Sciences. Industrial laser demand is below ‘normalised’ levels. New precision laser manufacturing
Slide 12: Appendices
APPENDICES
Slide 13: Investor Timetable
INVESTOR TIMETABLE 2 June 2020 – Interim Announcement 6 October 2020 – Full Year Trading Update 1 December 2020 – Preliminary Announcement INTERIM RESULTS PRESENTATION – H1 2020 PAGE 13