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Highlights

  • Revenue rose to £70.8 million, marking a 7.5% increase on an organic, constant currency basis.

  • Order book expanded to £121.5 million, with new business wins supported by the Phoenix Optical acquisition.

  • Strategic investments and manufacturing shifts are contributing to operational efficiency and global competitiveness.

Gooch & Housego PLC (LSE:GHH), a specialist in photonic components and systems, has announced its trading update for the six months ended 31 March 2025, reporting notable progress across revenue growth, order book expansion, and strategic execution.

Revenue for the first half of fiscal 2025 reached £70.8 million, up from £63.6 million in the same period last year—an increase of 7.5% on an organic, constant currency basis. The company attributed this rise to continued demand from the Aerospace & Defence and Life Sciences sectors, as well as increased sales of fibre optic products used in subsea data cable networks. However, demand in the industrial laser and semiconductor markets remains relatively soft.

The order book showed a significant increase, growing to £121.5 million as of 31 March 2025, compared to £104.5 million at the end of September 2024. Of this growth, approximately £7 million came from the acquisition of Phoenix Optical Technologies. On an organic basis, the order book grew by 4%. According to the company, enquiry levels remain high, particularly from defence equipment manufacturers, both existing and new, as customers take advantage of the expanded capabilities brought about by the Phoenix acquisition.

The integration of Phoenix Optical is progressing according to plan, with the acquisition already contributing to new business wins. The company has begun leveraging operational efficiencies through joint capacity planning between Phoenix and Gooch & Housego’s existing precision optics facilities.

The trading update also addressed global economic headwinds, particularly the evolving tariff landscape shaped by recent US administrative changes and the associated responses from other nations. While direct exposure to highly affected regions remains limited, the company is proactively managing potential indirect effects. This includes sourcing alternative suppliers for restricted raw materials and adjusting pricing strategies to reflect increased input costs. Notably, Gooch & Housego's extensive US-based manufacturing footprint may offer a relative competitive edge against non-US producers as new tariff structures take hold.

On the financial front, the company extended its debt facility to 2030 and secured additional committed funding lines on 1 April 2025. As of the end of March, net debt excluding lease liabilities stood at £24.1 million, compared to £22.2 million a year earlier. The company maintains access to $31.6 million in undrawn facilities to support its ongoing growth initiatives.

Gooch & Housego reiterated that full-year trading is expected to align with prior management guidance.

Strategically, the company continues to deliver on its long-term plans. Investments in operations and supply chain capabilities are showing positive results, with production yields improving. Additionally, the company is accelerating the transition of selected product lines to contract manufacturers in lower-cost regions, aiming to enhance operational efficiency and competitiveness.

With a growing order pipeline, strategic execution underway, and a diversified end-market focus, Gooch & Housego remains positioned to advance its goals for the remainder of FY2025.