Photonics engineering and manufacturing firm Gooch and Housego (G&H) said it expects its profit for the year to be lower than previously predicted as delivery delays hit its revenue.
The London-listed company, which saw its revenue fall in the first half of the year, said that it was likely to see its pre-tax profit come in at £1.5m lower than hoped due to delays in both supplier and customer deliveries.
These delays, it said, meant that revenue expected to come in during its second half would now not be collected until after the trading period.
The statement followed a report in February that the company would have to revise its earnings for the year due to prolonged inventory adjustments among its customers.
However, Gooch and Housego added that its transfer of selected product lines to contract manufacturing partners in lower-cost regions was progressing as planned and would help to boost its margins going forward.
Charlie Peppiatt, CEO of Gooch and Housego, said: “Whilst it is disappointing that our near-term trading has been impacted by a number of factors outside of our control, I am pleased with the progress that we continue to make in establishing the foundations to deliver our strategic objectives.”
“I am optimistic that with the sustained recovery of our industrial markets expected in 2025 combined with the benefits of the improvement activities and focused investments we are making across the business we are well positioned to return G&H to mid-teens returns.”
Looking forward, Gooch and Housego said that it expected its 2025 financial performance to be in line with previous expectations and that its “healthy order book” would ensure continued recovery from an “uncertain” few years.