Gooch & Housego shares (LON: GHH) surged almost 7% in its opening Tuesday.
The demand for optical components and system manufacturers for its products and functions remained “robust”, with the second half set to be more powerful.
Nevertheless, the group reported a 30% decline in profits due to manufacturing site disruption amid the pandemic. Pre-tax profit fell 35% year-on-year to £9.8 million, while revenue fell 5.5% to £122.1 million.
In an update, Gooch & Housego said it would scrap the total dividend for the year.
The year-end order was 0.8% higher than last year’s concurrent order at £92.4 million, with the group saying it is well on track to reach previously targeted profits.
Mark Webster, CEO of the group, commented: We are extremely proud of how our staff responded to this unprecedented challenge.
“FY2020 profits were affected by temporary disruption and reduced demand for manufacturing in some sub-sectors due to the Covid-19 pandemic. We continued to invest in high-priority R&D targets, allowing us to maintain a strong balance sheet and improve our liquidity levels.
“Our order book is robust and there remains considerable long-term potential for photonic technology and system capabilities in all target sectors.
“The challenges of the pandemic have examined the long-term strategic goals of diversification and rising value chains. We intend to vigorously pursue these goals through internal investment and acquisitions where necessary.”
Gooch & Housego stock (LON: GHH) is currently trading +5.55% at 1.213,80 (1128GMT).
