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Highlights

  • GHH’s FY24 saw GBP 136 million in revenue, with 15% organic growth in the second half
  • GHH aims to improve margins by adopting low-cost manufacturing and targeting niche, high-reliability markets

Gooch & Housego PLC (LSE:GHH) offers photonics engineering and manufacturing solutions for industries including aerospace, life sciences, telecoms, space, defense, and more.

The company is strengthening its development teams for acousto- and electro-optic products with the aim to secure new industrial laser and semiconductor manufacturing programs. In FY24, 23 new products contributed GBP 11.7 million in revenue. The company plans to improve margins by focusing on low-cost contract manufacturing. It will also target niche markets that require high reliability. Additionally, Gooch & Housego aims to enhance operational efficiency through cross-site collaboration and kaizen events.

FY24 Financial Update

In the financial year 2024 (FY24), GHH reported group revenue of GBP 136 million, a modest increase of 0.7% compared to GBP 135 million in FY23. However, when adjusted for exchange rates and the full-year impact of the FY23 acquisitions (Artemis and GS Optics), revenue declined by 3.0% year-on-year. Despite this, the company saw a better second-half performance, with organic revenue growth of 15% compared to the first half at constant currency.

On the profitability front, underlying gross profit dropped notably by 26.4%, from GBP 10.6 million in FY23 to GBP 7.8 million in FY24, reflecting a decrease of GBP 2.8 million. This decline was largely attributed to acquisition-related costs, restructuring expenses, and charges from site closures.

Company Outlook

Although the industrial and semiconductor markets are projected to recover in the second half of 2025, the company remains committed to investing in talent, technology, and improving operational efficiency. Despite facing challenges such as supply chain disruptions and rising costs, G&H's strategy is focused on building resilience and driving profitability.

Top 10 Shareholders

The top 10 shareholders of GHH hold approximately 58.82% of the total shares. The largest shareholder is Odyssean Investment Trust PLC, with around 12.60% of the shares. Following closely is Octopus Investments Limited, owning about 10.98% of the total shareholding.

 Stock Performance

Over the past month, the stock price of GHH has increased by approximately 16.98%, but it has tumbled by around 13.30% over the last six months. The stock's 52-week range spans from a low of GBX 380.00 and a high of GBX 685.66. Currently, it is trading below the average of these two values. As of January 30, 2025, GHH closed at GBX 430.00.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 30 January 2025. The reference data in this report has been partly sourced from EODHD/Others.