Gooch & Housego PLC on Thursday said it expected full-trading to be in line with previous expectations, although it forecast a drop in half-year revenue.

The Somerset, England-based photonics components and systems manufacturer said revenue in the six months to March would be around £67.5 million, down from £71.3 million the year before.

This would be supported by the two acquisitions completed in the previous financial year, the company said.

Trading for the financial year as a whole is expected to be more heavily weighted towards the second half than in the previous year.

Gooch & Housego said, as previously disclosed, the first half has seen some customers in its industrial and medical laser markets normalise their inventory holdings resulting in lower levels of demand for some of the group’s products.

This period of destocking is expected to come to an end towards the end of this calendar year and the group’s revenue from these end markets will then return to growth, the firm commented.

In other areas, most notably the medical diagnostic business and the fibre optic businesses, revenue has grown compared with the year prior.

Gooch & Housego said new orders for products from the semiconductor, sub-sea data cable and aerospace navigation markets have been strong.

Requests for quotations for optical systems solutions for armoured vehicles are strong and a number of these are expected to convert into firm orders in the second half of the year.

At March 31, the order book stood at £115.8 million, down 6.9% from the year before, but 2.3% higher than September 30.

Interim results will be announced on June 4.

Shares in Gooch & Housego rose 2.5% to 529.00 pence in London on Thursday afternoon.

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