Gooch & Housego Plc · LSE:GHH

Gooch & Housego — FY2018 Earnings Presentation

16 slides from Gooch & Housego's earnings presentation, Nov 27, 2018

  1. Slide 1: Preliminary Results Year Ended 30 September 2018

    PRELIMINARY RESULTS YEAR ENDED 30 SEPTEMBER 2018 CEO: Mark Webster / CFO: Andrew Boteler

  2. Slide 2: Key highlights – a record year

    Key highlights – a record year Operational & Financial  Strong Group financial performance, in line with our expectations, against a back drop of generally favourable market conditions  Demand for microelectronics manufacturing was high throughout year. Hi-reliability fibre couplers down overall,

  3. Slide 3: Financial headlines – Summary Income Statement

    Financial headlines Summary Income Statement Year Ended 30 September 2018 2017 % Change £’000 £’000  Revenue growth of 11.5% yoy, 15.5% excluding foreign exchange or 11.1% excluding foreign Revenue 124,883 112,016 11.5% exchange and acquisitions/ disposals Gross profit 50,072 46,079 8.7%  45:55% H

  4. Slide 4: Financial headlines – Cash Flow

    Financial headlines Cash Flow Year Ended 30 September 2018 2017  £8.8 million growth in working capital to take £’000 £’000 advantage of record order book Net cash flow from operating activities 9,169 17,569 Cash flow from investing activities  £11.6 million increase in receivables mainly Acquisit

  5. Slide 5: Industrial

    Industrial Financials (58% of revenue) FY18 FY17 Reported growth Revenue £72.9m £67.6m 7.8% Adjusted operating £12.3m £12.2m 0.8% profit % margin 16.9% 18.1% (120bp)  Revenue growth driven by demand for critical components in precision lasers which are used to deliver the latest technology for micr

  6. Slide 6: Aerospace & Defence

    Aerospace & Defence Financials (33% of revenue) FY18 FY17 Reported growth Revenue £40.8m £34.9m 16.9% Adjusted operating £5.7m £4.3m 33.5% profit % margin 14.0% 12.3% 170bp  Revenue growth driven by periscopes & sighting systems, IR optical sub systems for UAVs, space satellite communications, targ

  7. Slide 7: Life Sciences/Biophotonics

    Life Sciences/Biophotonics Financials (9% of revenue) FY18 FY17 Reported growth Revenue £11.2m £9.6m 17.2% Adjusted operating £1.6m £1.0m 61.4% profit % margin 14.6% 10.6% 400bp  Revenue growth driven by acquisition of ITL in August 2018, excluding foreign exchange and acquisitions, was broadly fla

  8. Slide 8: FY 2018 acquisitions

    FY 2018 acquisitions Broadening our offering ITL Gould Fiber Optics (GFO)  Acquired on 8th August 2018  Acquired on 6th September 2018  Purchased for £14.0 million upfront plus  Purchased for $13.0 million upfront plus earnout of up to £8.0 million earnout of up to $3.4 million  Founded in 1977

  9. Slide 9: Our Strategy

    Our Strategy Remains the twin pillars of diversification & moving up the value chain Diversify Exploit high-growth opportunities for our photonics technologies across our three key market sectors to provide balance and reduce exposure to cyclicality Aim to establish ‘critical mass’ in life sciences

  10. Slide 10: Performance improvement programme

    Performance improvement programme On track, delivering sustainable benefits  During FY 2018 eight sites were organised into three manufacturing centres, based on our sites’ areas of technical excellence, namely Acousto Optic/ Electro Optic, Precision Optics and Fibre Optics. The aims are to ensure

  11. Slide 11: Key messages & Outlook

    Key messages & Outlook  G&H has had another strong year and full year trading was in line with our expectations  Record year-end order book, which has strengthened since 30 September 2018  We have continued to make substantial investments in capacity, on high return R&D projects, which delivered

  12. Slide 12: Appendices

    Appendices dm Gooch & Housego ENABLING PHOTONIC TECHNOLOGIES

  13. Slide 13: 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

  14. Slide 14: Key Customers

    Key Customers PAGE 14 Preliminary Announcement November 2018

  15. Slide 15: Targeted R&D

    Targeted R&D New Precision Acousto/ Fibre Systems & products Optics Electro Optics Optics Instrumentation Aerospace 5 1 4 6 & Defence Industrial 9 3 Life 1 Sciences  29 new products launched in FY 2018 compared with 22 in prior year  £8.8m of spend compared with £8.6m in prior year, a 2.4% increas

  16. Slide 16: Investor Timetable

    Investor Timetable  9th January 2019 - Site visit to ITL  20th February 2019 - AGM Trading Update  8th April 2019 – Half Year Trading Update  April 2019 – Capital Markets Event in London  June 2019 – Interim Announcement  October 2019 – Full Year Trading Update  November 2019 – Preliminary An

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