Gooch & Housego PLC · LSE:GHH
Gooch & Housego — H1 2009 Earnings Presentation
20 slides from Gooch & Housego's earnings presentation, June 2009
Slide 1: Gooch & Housego PLC Interim Presentation June 2009
Gooch & Housego PLC Interim Presentation June 2009 Chairman: Dr Julian Blogh CEO: Gareth Jones Finance Director: Paul Heal Acting CFO: Andrew Boteler
Slide 2: A Global Technology Business
Gooch & Housego PLC A Global Technology Business The medium we work with is LIGHT The technology is PHOTONICS G&H provides ‘enabling optical technologies’
Slide 3: Markets and Applications
Markets and Applications We are now focussing on three key markets: - Industrial & Research Aerospace & Defence Life Sciences & Instrumentation
Slide 4: H1 2009 headlines
H1 2009 headlines • Acquired California based ultra-precision optics manufacturer General Optics for US$21.6m • Challenging market conditions • Sudden and dramatic downturn in the industrial laser market • Renegotiated banking facilities • Cost reduction programme resulting in 16% reduction in headc
Slide 5: Overview by Business Unit
Overview by Business Unit Acousto-optics (Ilminster, Melbourne and Norderstedt) - Affected by downturn in manufacturing, semiconductors and microelectronics - Demand down by 50% for some customers Fibre Optics (Torquay) - Diversified markets = greater resilience to economic downturn - Performing wel
Slide 6: Overview by Business Unit continued..
Overview by Business Unit continued.. Electro-optics and non-linear materials (Cleveland) - Research market resilient - Continued demand for ICF crystals for fusion research - Broadly on target Instrumentation and Life Sciences (Orlando and Lakewood) - Establishing a presence in Life Sciences - Init
Slide 7: Impact and actions
Impact and actions - First half revenues up by 20.1%. - helped by contribution from G&H Moorpark acquisition - benefited from favourable foreign exchange environment - First half revenue excluding acquisition and FX benefit down 18.2% - due to downturn in industrial laser and commercial aircraft mar
Slide 8: First half financial headlines
First half financial headlines Revenue - Group revenue up 20% to £18.8m including contribution from acquisition. - Revenue excluding acquisition and FX benefit down 18.2%. EBITDA - Adjusted EBITDA down 11.3% to £2.6m (2008: £3.0m) Operating profit - Adjusted Group operating profit down 33.3% to £1.6
Slide 9: First half financial headlines
First half financial headlines Gross profit - £7.282m or 38.6% (2008: £7.652m or 48.8%) reflects lower real volumes Exceptional costs & gains - £0.755 million costs in respect of redundancies and bank renegotiation fees - £0.265 million gains in profit on sale of part of the old Ilminster facility O
Slide 10: Income Statement - Summary
Income Statement - Summary Half year Half year Change 31/03/2009 31/03/2008 2009 vs 2008 £000 £000 % Revenue 18,841 15,693 20.1% Gross profit 7,282 7,652 -4.8% Operating expenses (5,640) (5,189) -8.7% Adjusted operating profit 1,642 2,463 -33.3% Exceptional items and amortisation of acquired assets
Slide 11: Financial Highlights – Balance Sheet/Cash Flow
Financial Highlights – Balance Sheet/Cash Flow Non-current assets - Up 55.7% to £39.9m (September 2008: £25.0m) reflecting primarily acquisition of General Optics Working capital (excluding cash & borrowings) - Up 22.2% to £10.4m (September 2008: £8.5m) due to Moorpark acquisition and FX - Cash gene
Slide 12: Group Borrowings
Group Borrowings US$ acquisition loan principal $15.88m – repayable by one installment of $575k – five half yearly installments of $1.7m – final installment of $6.8m – interest rate at margin of 3% over US LIBOR Sterling acquisition loan principal £3.56m – repayable in six half-yearly installments o
Slide 13: Outlook for the second half of 2009
Outlook for the second half of 2009 - Trading conditions stabilised but expected to remain challenging - No upturn anticipated before year end - Ongoing focus on efficiencies and cost reduction - Continued investment in R&D and developing new markets - Upside opportunities may crystallise but will n
Slide 14: Medium term prospects
Medium term prospects • Strong order book – all key customer relationships still in place • Significant opportunities in Aerospace and Defence – 2010 to 2014 and beyond • New fibre laser products launched – maintaining market leadership • Establishing a presence in Life Sciences • Opportunities in l
Slide 15: Laser Inertial Navigation Systems
Laser Inertial Navigation Systems Gooch & Housego is the world’s leading manufacturer of Ring Laser Gyroscope (RLG) optics RLG applications: - – Civil and military aircraft – Ships and submarines – Cruise missiles and ICBMs – The Space Shuttle – The Mars and Venus probes – Military vehicles and gun
Slide 16: Nuclear Fusion Research
Nuclear Fusion Research Gooch & Housego is the world’s leading supplier of crystal optics for nuclear fusion research Nuclear fusion offers the prospect of limitless, clean (zero carbon) energy Laser driven nuclear fusion will become a reality later this year when the National Ignition Facility (NIF
Slide 17: Appendix
dg Gooch & Housego Appendix + enabling optical technologies
Slide 18: A Global Business
A Global Business Cleveland, Denver, Ohio Ilminster Norderstedt Colorado Torquay Hamburg San Francisco California Munich Hong Kong Moorpark, California Orlando, Florida Headquartered in Ilminster, UK Melbourne Lakewood, , Florida New Jersey Total Number of Employees: 430 8 Manufacturing Facilities 4
Slide 19: Cash Flow - Summary
Cash Flow - Summary Half year to Half year to Change 31/3/2009 31/3/2008 2009 vs 2008 £000 £000 % Net cash flows from operating activities 4,063 1,322 207.3% - Income statement 2,162 2,454 -11.9% - Working capital & taxation 1,901 (1,132) 267.9% Net cash flows from investing activities (12,784) (4,6
Slide 20: Balance Sheet - Summary
Balance Sheet - Summary Non-current assets - Tangible & Intangible assets 37,622 23,816 58.0% - Other 1,259 1,152 9.3% Total 38,881 24,968 55.7% Current assets - Inventories 7,778 5,929 31.2% - Trade & other receivables 9,550 8,461 12.9% - Cash & cash equivalents 4,361 3,901 11.8% - Other - - 0.0% T