Gooch & Housego PLC on Wednesday noted further order book growth but said its profit for the full-year will miss expectations.

Shares in Gooch fell 17% to 509.29 pence each in London on Wednesday morning.

Ahead of its annual general meeting on Wednesday morning, the Somerset, England-based photonics components and systems manufacturer said in the first four months of the financial year ending September 30, its order book increased 3.5% to £128.5 million from £124.1 million a year prior.

This was supported by strong intake from our medical diagnostic customers and new orders for our armoured vehicle periscope systems.

Gooch said trading for the full-year is expected to be more weighted in the second half, but said its annual profit growth will be lower. Adjusted pretax profit is anticipated to be £3 million, below previous expectations. In the year ended September 30, 2023, pretax profit was £5 million.

‘As previously stated, some of our customers in the Industrial and Medical laser markets have been reducing their inventory holdings and reporting near term demand weakness from some end markets. This period of inventory adjustment is proving to be deeper and more prolonged than previously anticipated. Our semiconductor market customers have reduced near-term demand but still expect strong growth in the medium term. We have also received customer notification that certain US A&D programmes will no longer go ahead or have been deferred,’ it explained.

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