17th Aug 2022 10:36
(Alliance News) - Gooch & Housego PLC on Wednesday saw its shares plummet as it announced its Chief Executive Mark Webster will retire and it lowered its full-year adjusted pretax profit forecast.
The Somerset-based maker of photonics components and systems said CEO Mark Webster will be replaced in his role by Charlie Peppiatt on September 14. Peppiatt is the former CEO of Stadium Group PLC, a provider of electronic manufacturing services that was bought by Woking-based TT Electronics PLC in 2018. There will be a short handover period in the latter part of September, Gooch explained. The company's financial year runs from October 1 to September 30.
Gooch & Housego shares dived 20% to 663.19 pence each in London on Wednesday morning.
The firm said it was hit by supply chain shortages, but increased its order book, which grew 44% to GBP140.6 million as of July 31 from GBP97.7 million a year prior.
To meet the increased order book, Gooch said it needs to up investment. As consequence, the company lowered its forecast for adjusted pretax profit in the financial year by GBP3.5 million compared to previous expectations.
"Given the lower levels of profitability now expected for the financial year, management will review intangible asset carrying values and make any required adjustments as part of the year end close," the firm added.
Gooch expects double-digit volume growth in financial year 2023, with revenue growth driving the earnings before interest and taxes margin.
The company added that it intends to maintain a full-year dividend of 12.4 pence to 12.7p per share, up from 12.2p it paid in financial year 2021.
This reflects "the positive longer-term outlook for the group," it stated.
By Tom Budszus; [email protected]
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