Gooch & Housego Reports Order Book Growth, Navigating Tariff Challenges
Why we think this is good
The RNS indicates that Gooch & Housego has seen a strong increase in its order book, supported by growth in key markets like medical diagnostics and defence optics. While the company is facing some headwinds from tariffs and a slow recovery in certain industrial markets, the overall tone is positive, with the CEO expressing confidence in the Group's positioning and ability to navigate the changing landscape.
Key Points
- Order book increased to £126.4m, up from £104.5m at end of September 2024
- Strong order intake for medical diagnostic instruments and new orders for defence optics and subsea data networks
- Monitoring impact of new tariffs, may face some indirect inflationary cost impacts
- CEO confident in Group's positioning and ability to navigate changing landscape
Summary
Gooch & Housego PLC (AIM: GHH), the photonics technology company, has reported a significant increase in its order book to £126.4m, up from £104.5m at the end of September 2024. This growth was supported by strong order intake for medical diagnostic instruments and new orders for defence optics and subsea data networks.
The company is closely monitoring the impact of new tariffs being implemented by the US administration and the retaliatory responses from other countries. While the Group has low levels of direct procurement from affected regions, it may face some indirect inflationary cost impacts, which it intends to pass on to customers through price increases.
The CEO, Charlie Peppiatt, expressed confidence in the Group's positioning, stating that the "focus on delivering our strategic plan through improved customer experience, superior operational execution and value creating technology is starting to bear fruit." He also noted that the Group remains "well placed to benefit as its industrial markets return to growth."