10th Jun 2014 10:42
LONDON (Alliance News) - Gooch & Housego PLC Tuesday reported an increase in both profits and revenues for the first-half of its financial year, driven by a strong performance from its aerospace & defence and industrial divisions, as well as a boost from recent acquisitions.
The company raised its interim dividend by 13% to 2.6 pence, up from 2.3 pence, after posting a 12% increase in pretax profit for six months to the end of March, to GBP3.7 million, up from GBP3.3 million a year earlier.
It said profit growth was driven by a 19% increase in revenue during the period to GBP34.4 million, up from GBP29.0 million the prior year, following a strong performance in the period from the aerospace & defence and industrial divisions.
The company also said it saw strong order intake in the first-half of the year, with a solid order book of GBP29.7 million at the end of the period.
However, the company warned that the current strength of the sterling in recent months represents a "headwind to growth" going forward.
"Gooch & Housego's markets continue to exhibit attractive, long-term structural growth drivers as photonic technology is adopted across an increasingly wide range of application areas. We continue to invest in our business with confidence to position it for sustainable long-term growth," said Chief Executive Gareth Jones in a statement.
In its industrial market, revenues were up 15% in the first-half, while aerospace & defence produced strong revenues growth of 37%, and life sciences revenues were up 15%.
The company also said its trading performance in the year so far was boosted by the acquisition of Spanoptic and Constelex in October and November respectively, last year.
Gooch & Housego said it has invested 19% more in research and development this year, having already filed for six patents so fair this year, and having been already granted four patents.
Shares in Gooch & Housego were trading 0.1% higher Tuesday morning, at 650.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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