ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact...
Transcript of ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact...
![Page 1: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/1.jpg)
ANNUAL GENERAL MEETING24 February 2016
Chairman: Gareth Jones / CEO: Mark Webster CFO: Andrew Boteler / COO: Alex Warnock
![Page 2: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/2.jpg)
Photonics and the future
Photonics is the study and design of systems that depend on the
transmission, modulation or amplification of streams of photons, the basic
unit of light.
• Photonics is increasingly providing better solutions than electronics alone
• Photonics is already transforming manufacturing, aerospace,
communications and medicine
• Optics and electronics are becoming inextricably linked and we believe the
application of photonics will become ubiquitous
• G&H has a world class photonics components and systems capability
• G&H is well placed to take advantage of and enable what will be a
transformational shift in technology
![Page 3: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/3.jpg)
2015 Highlights
• Grew Revenue by 12% to record £78.7 million
• Adjusted Profit before Tax up 12% to £12.9 million
• Invested in :
• R+D, up 14% to £6.2 million
• Torquay site expanded and upgraded
• Palo Alto facility moved to improved and expanded site in nearby Fremont
• Cleveland site commenced major upgrade
• Increased cash to £17.3 million
• Increased dividend by 14%
![Page 4: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/4.jpg)
Year Ended 30 September FY 2015 FY 2014 Change
Revenue £78.7m £70.1m 12.3%
Adjusted profit before tax £12.9m £11.5m 12.2%
Adjusted basic earnings per share 39.5p 35.6p 11.0%
Total dividend per share (pence) 8.2p 7.2p 13.9%
Net cash £17.3m £8.7m 98.9%
“The business has delivered revenue & profit growth driven by a strong performance in our
Industrial division” Andrew Boteler, CFO
0
10
20
30
40
50
60
70
80
90
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Revenue £’m
0
2
4
6
8
10
12
14
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Adjusted PBT £’m
HighlightsResults at a glance
H1 H2
![Page 5: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/5.jpg)
2016
• Full year forecast remains in line with management expectations
• Market conditions were mixed during the first 4 months.
• Demand from China continued to be soft, partially offset by increased
demand for high reliability fibre components for undersea
communications
• Palo Alto move to Fremont delayed by local licence issues
• Order book robust at £36.7 million, 5% higher then previous year, contains:
• First space communications contract
• First fibre optic sensing contract
• Improving China microelectronic orders
• Operational efficiencies due to move to lean manufacturing
![Page 6: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/6.jpg)
Good progress made against all three areas:
• High level of operational excellence across all sites, corporate group now
set up in areas of supply chain, quality, compliance, process engineering
and lean manufacturing
− Delivered operational improvements
• Develop deeper ties with customers, 3 A&D business development
experts hired, 2016 aim to hire Life Science business development
experts
− Delivered new products and new sales
Performance improvement programme
![Page 7: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/7.jpg)
• R&D portfolio that prioritises fewer higher return projects, hired
programme manager using rigorous analysis
• Strengthened System Technology Group to 24 engineers and scientists
− Delivered more new products in 2015
Performance improvement programme
![Page 8: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/8.jpg)
8
G&H’s 6 Major R&D Programs
Major R&D Programme
Sites New Products H1 FY’16
Space Comm
TorquayBoston
Satelite EDFATransmitter/Receiver
OCT Torquay Compact Delay LineCompact Optical Spectrometer
AOMs & Drivers
IlminsterTorquayFremont
Smart Dual 15W AO Driver5.5μm Ge AO Modulator
BBO EOMs & Drivers
ClevelandFremontTorquay
RDi Pockels Cell Driver
FiberOpticmodules
Torquay UF Fiber Amplifier
SWIR Camera Lenses
IlminsterGlenrothes Barle 25mm Lens
![Page 9: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/9.jpg)
Growth through diversification
2015
£78.7m
INDUSTRIAL
AEROSPACE & DEFENCE
LIFE SCIENCES
SCIENTIFIC RESEARCH
2008
£33.3m
9%
Seven Year CAGR By Market
39% 32% (1%)
The newer markets of Aerospace & Defence and Life Sciences, together with new
application areas within our Industrial market, offer the potential for significant growth
through their rapid adoption of photonic technologies
![Page 10: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/10.jpg)
Strategy
Diversify
Exploit high-growth opportunities for photonics
technology
Fibre Optic lasers
Fibre Optic sensing
Laser surgery
A&D sub- systems and systems
Medical Diagnostics
Space/ Satellite communications
Move up the value chain
Leverage excellence in components to become a
solutions provider
Optics + electronics + software + mechanics = added
value
Materials => components => modules => systems
![Page 11: ANNUAL GENERAL MEETING2016/03/24 · Transmitter/Receiver OCT Torquay Compact Delay Line Compact Optical Spectrometer AOMs & Drivers Ilminster Torquay Fremont Smart Dual 15W AO Driver](https://reader036.fdocuments.us/reader036/viewer/2022071110/5fe597a63d112a18e11991cd/html5/thumbnails/11.jpg)
Summary & Outlook
• Photonics is transforming manufacturing, aerospace,
communications and medicine
• G&H has a world class photonics capability and is well
placed to take advantage
• G&H will aim to continue to deliver superior financial
performance and invest in the future of the company
• We remain fully committed to the twin pillars of our strategy,
namely diversification and moving up the value chain
• The business is more diversified, better balanced and well
positioned to deliver sustained growth even in more
challenging market conditions
• The aim of the performance improvement programme is to
deliver greater organic growth, but when appropriate we will
look to further our strategic goals through M+A