24th Feb 2016 08:53
LONDON (Alliance News) - Optical components manufacturer Gooch & Housego said it remains confident on meeting full-year expectations but said its results will be weighted to the second half.
The company said it has seen mixed conditions in its markets in the first four months of its financial year to the end of September, with lower demand in China continuing, though this has improved in recent weeks. This has been partially offset for the company by its undersea communications components sales.
The group said its order book remains robust and was at GBP36.7 million at the end of January, up 5.3% from the end of September.
Gooch & Housego said its remains confident it will hit its expectations for the full year, but said first half profit will be materially lower year-on-year due to a weak revenue mix and extra costs associated with moving its site in Palo Alto in California to Fremont.
It expects second half trading to improve, however, driven by order in its fibre business, a recovering microelectronics sector and operational efficiencies in the business.
Shares in the company were down 5.0% to 825.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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