Gooch & Housego PLC · LSE:GHH
Gooch & Housego — FY2009 Earnings Presentation
19 slides from Gooch & Housego's earnings presentation, Dec 1, 2009
Slide 1: Gooch & Housego PLC Preliminary Announcement
Gooch & Housego PLC Preliminary Announcement 1st December 2009 Chairman: Dr Julian Blogh CEO: Gareth Jones CFO: Andrew Boteler
Slide 2: A Global Technology Business
Gooch & Housego A Global Technology Business The medium we work with is LIGHT The technology is PHOTONICS G&H provides ‘enabling optical technologies’ 2
Slide 3: 2009 Headlines
2009 Headlines Sharp downturn at the end of 2008 - impact varied widely with products, markets and applications - core Q-switch business worst hit Responded with cost saving measures - redundancies (headcount reduced by 96 (18%) to 420 from February) - short-time working introduced at most sites - b
Slide 4: Market diversification
Market diversification Diversification in recent years mitigated impact of downturn - Telecommunications, Aerospace & Defence and Research sectors held up - traditional industrial laser market was hit hard Near to medium term opportunities in Aerospace & Defence aided by: - - acquisition of General
Slide 5: Implementing the strategy despite the downturn
Implementing the strategy despite the downturn Investment Facilities - complete Equipment - ongoing to support new opportunities People - complete R&D - ongoing Reorganization - group-wide integration of key functions completed Move up the value chain optics + electronics + software = $$$ - opto-mec
Slide 6: Financial Highlights
Financial Highlights Key Points •Revenue increased by 9.1% to £36.4m (2008: £33.4m) •Revenue excluding acquisition and foreign exchange benefit down 24% •Normalised profit before tax of £3.1m (2008: £5.4m), down by 42.6% •Total net borrowings at 30 September 2009 amounted to £12.1m compared to £17.4
Slide 7: Group Overview
Group Overview Corporate Structure Revenue breakdown Applications and markets Europe 2007 2008 2009 actual actual actual Semiconductors & microelectronics Gooch & Housego (UK) Industrial 79% 77% 54% Aerospace & Defence Gooch & Housego (Deutschland) Research 14% 13% 13% Industrial Manufacturing Gooch
Slide 8: Market Diversification
Market Diversification 2009 2008 2007 Key Points SALES BY END MARKET £’000 £’000 £’000 •Strategic decision made three years ago to diversify market and products INDUSTRIAL 19,589 25,694 24,343 provides some protection from the 2009 down turn in industrial market. RESEARCH 4,640 4,338 4,408 •Growth i
Slide 9: Reported Income Statement
Reported Income Statement 2009 2008 £’000 £’000 Key Points Revenue 36,414 33,369 •For the year to 30 September 2009, Gooch & Housego PLC returned profit after tax of £1.0m Gross profit 13,209 15,890 compared to £3.6m in 2008. Gross profit % 36.3% 47.6% •The Company returned basic earnings per share
Slide 10: Adjusted Income Statement
Adjusted Income Statement 2009 2008 £’000 £’000 Key Points EBITDA 6,000 6,805 •Excluding the impact of the amortisation of acquired Restructuring & redundancy costs 603 - intangible assets, one-off costs associated with the Company’s restructuring activities and the sale of Profit from sale of prope
Slide 11: Cash Flow
Cash Flow 2009 2008 £’000 £’000 Key Points Cash flows from operating activities 7,706 4,188 •Cash generated from operating activities in the year Cash flows from investing activities was £7.7m compared to £4.2m in 2008. This has been achieved by focusing on cost control and the Acquisition of subsid
Slide 12: Balance Sheet
Balance Sheet 2009 2008 £’000 £’000 Non- current assets Tangible assets 16,634 16,376 Key Points Intangible assets 17,681 7,440 Goodwill increased by £6.7m and intangibles by Other 1,421 1,152 £2.7m as a result of the General Optics acquisition. Total 35,736 24,968 Borrowings have increased by £11.6
Slide 13: Group Borrowings
Group Borrowings US$ acquisition loan Sterling acquisition loan Principal $15.88m Principal £3.56m Term – three and a half years commencing 7 October 2008 Term - three and a half years commencing 7 October 2008 Repayable by : Repayable by : One instalment of $575k Six half yearly instalments of £119
Slide 14: Outlook for 2010
Outlook for 2010 • Recovery in core business gaining momentum • Order book now rising following prolonged decline • Full-time working resumed at most locations • Benefitting from lower cost base • Exciting opportunities in Aerospace & Defence – Expected to develop in 2010 with full benefits in 2011
Slide 15: Appendices
dm Gooch & Housego Appendices + wN Gooch & Housego enabling opticalstechnologies) gies
Slide 16: A Global Business
A Global Business Cleveland, Seattle, Ohio Ilminster Norderstedt, Washington Torquay Hamburg San Francisco, California Munich Hong Kong Moorpark, California Orlando, Florida Founded in Ilminster 1948 Total Number of Employees: 420 Melbourne, Lakewood, Florida New Jersey 8 Facilities 4 Sales Offices
Slide 17: Revenue and Operating Profit - FY2003 to FY2009
Revenue and Operating Profit - FY2003 to FY2009
Slide 18: Sales by Geographical Area
> Gooch & Housego Sales by Geographical Area OUK GROTW @EUROPE BUS OTOTAL 40000 35000 30000 25000 20000 15000 10000 5000 iv} 4 2005 2008 2007 2008 2008 OUK 2920 2886 3023 4037 4231 GROTW 4120 4535 5814 5708 4711 BEUROPE 4876 5480 6551 7501 5679 BUS 10540 12463 15286 16123 21793 OTOTAL 22320 25364 30
Slide 19: enabling optical technologies
dm Gooch & Housego & Gé&H + enabling optical technologies