Gooch and Housego has reported a rise in revenue and order book value as the tech components manufacturer passed on higher operating costs to customers.
Bosses at the Aim-listed firm, which makes photonic systems used in the aerospace and defence sectors as well as scientific research, said they expected first-half revenue to be around £71m - up from £54.1m a year earlier.
The company, which has its global headquarters in Somerset, said this had been driven by the effects of price increases to offset inflated input costs from its supply chain, as well as “favourable exchange rate movements”.
Ahead of its AGM in February, Gooch and Housego had said all four of its UK production facilities were now fully resourced following a “refocus” on recruitment, as it looked to reduce lead times by boosting its production capacity. In its latest update, the group said it had raised salary levels in order to “remain competitive” in the employment market.
The 75-year-old business said it was expecting trading this year to be “more evenly weighted” between the two halves of the financial year than in prior years. The board said, at of the end March, its order book stood at £124.4m - up from £119.9m in March 2022.
Gooch and Housego said demand for its semiconductor, data communications and industrial laser markets products had been “strong”, while it had also secured “important new programme positions” with medical diagnostic customers.
The firm added that the number of quotes requests it had received from clients looking to replenish equipment being used in the war in Ukraine were “accelerating”, with bosses saying it was anticipated some of these would be converted into new orders “shortly”.
Chief executive Charlie Peppiatt said: "I am pleased with the progress that has been made in the first half of the financial year with increasing operational output to better address the demand for our products as well as continued positive levels of customer engagement on next generation programmes and new product opportunities in all our main end markets.
“This is thanks to the hard work of our employees across the group and means we are well placed to meet management's expectations for the full year.”
Bosses added the company was in “strong financial position”, with net debt of around £19m and $46.2m (£37m) available from existing committed and uncommitted debt facilities to fund its future growth activities.
Founded in Ilminster in 1948, Gooch and Housego has nine manufacturing sites in the UK, US and China, with sales offices in France, Germany, Hong Kong, Japan, South Korea and Singapore.
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