LONDON (ShareCast) - (Sharecast News) - Gooch & Housego reported higher revenue and a growing order book in the first half of its financial year on Thursday, as strong demand from defence customers and early signs of recovery in semiconductor markets supported trading.
The AIM-traded photonics components and systems manufacturer said revenue for the six months ended 31 March rose to £81.9m, up from £70.8m a year earlier, representing a 9.1% increase on an organic, constant currency basis.

Demand in the aerospace and defence segment remained robust and continued to grow, while revenues from industrial laser and semiconductor markets improved, with the group pointing to "encouraging signs" that a recovery in semiconductor demand is now underway.

Order intake momentum drove the group's order book to £167.3m at period end, up from £142.3m on 30 September, a 16.5% increase on a constant currency basis.

Gooch & Housego said enquiry levels remained high across both existing and new defence equipment customers, supported by expanded capabilities following the acquisitions of Global Photonics and Phoenix Optical in the prior financial year.

The company said integration of the two acquisitions is progressing as planned, with their combined capabilities helping to secure new defence orders across the US, UK and Europe.

Capacity was being expanded at both businesses in response to increased demand, in line with planned capital expenditure.

Gooch & Housego also highlighted ongoing supply chain challenges linked to retaliatory trade measures affecting raw material availability.

It said it had proactively re-sourced key inputs and successfully navigated intermittent supply conditions during the period, while remaining vigilant over inventory and operations.

The group reported net debt excluding lease liabilities of £37.0m as at 31 March, up from £24.1m a year earlier and £29.9m at the end of September, and said it had £15.7m of available liquidity to support future growth.

Separately, the company confirmed that James Corte had joined as chief financial officer and executive director.

"I am pleased with the positive progress that G&H has made in the first half of the financial year," said chief executive Charlie Peppiatt.

"The strong order book growth in the period demonstrates the increased confidence our customers have in G&H to provide them with their most complex photonics and optical systems requirements.

"Whilst there are significant macroeconomic uncertainties, the recovery in our industrial and semiconductor markets along with the strong growth in demand from our aerospace and defence markets should allow the group to make further positive progress on our journey to mid-teens returns over the medium term."

Gooch & Housego said it expected full-year trading to be in line with management expectations and would report interim results on 2 June.

At 1251 BST, shares in Gooch & Housego were up 9.07% at 890p.

Reporting by Josh White for Sharecast.com.

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