Gooch & Housego (G&H) makes precision optics and laser components from Ilminster, Somerset, and by 2026 it had become mainly a defence supplier. Aerospace & Defence revenue rose about 52% in each of the last two reporting periods, while industrial and medical markets stalled. In July 2026 the company agreed a 1,230p-a-share cash takeover by US private-equity-backed Greenlight Bidco, completion due 16 October 2026.
Lenses, lasers and fibre for defence, factories and hospitals
G&H designs and makes photonics products, meaning components and systems that steer, filter or generate light. It operates in the USA and Europe and reports three segments. In the six months to March 2026 Aerospace & Defence brought in £35.6m, Industrial £30.3m and Life Sciences £16.0m.
Defence work covers periscopes and sighting systems, target designation, ring laser gyroscopes (aircraft navigation sensors) and infrared lenses for counter-drone and short-range air defence. Industrial customers use its parts in industrial lasers, semiconductor chip-making kit and subsea data cables. Life Sciences covers microscopy, medical diagnostics and laser surgery. 2 Jun 2026 2 Dec 2025
A reset after disappointing profits
Charlie Peppiatt became chief executive before FY2023. In June 2023 the company launched a strategy built on four pillars: People, Self Help, Technology and Investment. Its aim was a mid-teen return on sales over the mid-term. The chairman called past profitability 'disappointing', partly because of the company's own operational shortcomings.
Management bought GS Optics and Artemis Optical in 2023. It also moved production to an Asian contract manufacturer. FY2023 revenue rose 19% to £148.5m, on a record order book that had stretched delivery times. 5 Dec 2023 3 Oct 2023
Destocking, a guidance cut and the sale of EM4
The first half of FY2024 went badly. Industrial laser and medical laser customers ran down their stockpiles. In February 2024 the company cut its profit guidance by about £3m. The shares fell from 634p in January to 450p in February. A second cut of about £1.5m followed in August 2024.
In March 2024 G&H sold EM4, a Boston maker of optoelectronics for US defence, for up to $12m. It said it would use the proceeds to cut debt. The sale produced a loss from discontinued operations of £9.7m. FY2024 adjusted pre-tax profit fell to £8.1m from £10.3m, and the order book dropped to £104.5m. Management also decided to end-of-life most Pockels Cell lines, medical laser parts squeezed by cheaper Chinese rivals.
The company moved its Torquay site from high-reliability fused fibre to more complex fibre optic modules for subsea cables. 4 Jun 2024 21 Feb 2024 15 Aug 2024 18 Mar 2024 3 Dec 2024 3 Jun 2025
“The net proceeds of the Disposal will be used to reduce the Group's borrowings.” 18 Mar 2024
Buying into defence
G&H then bought two defence optics businesses. Phoenix Optical (St Asaph, North Wales) cost up to £6.75m in October 2024. Global Photonics (near Tampa, Florida) cost $17.5m in May 2025, half in new shares. Management called both 'speed to value' deals. They gave G&H UK, European and US capacity for allied defence customers.
The effect showed in FY2025. A&D revenue rose 52%, group revenue reached £150.5m and adjusted operating profit rose 37% to £14.4m. The order book hit £142.4m. Net debt rose to £43.9m, partly from £10.1m of acquisitions and £7.5m put into inventory. Industrial revenue fell 5.3% as the expected semiconductor recovery kept slipping. 30 Oct 2024 14 May 2025 18 Jun 2025 2 Dec 2025
What worked and what slipped
Two things worked. Moving into defence lifted revenue and profit, and A&D profit went from £0.6m to £3.6m in a year. Cutting or outsourcing weaker lines also helped margins.
Timing calls were less reliable. In June 2024 management expected industrial and medical volumes to recover in early FY2025. In October 2024 it expected semiconductors to recover in the second half of calendar 2025. By December 2025 that recovery was pushed to the second half of FY2026. Life Sciences also stumbled in 2026, when materials shortages and yield problems at the Cleveland Pockels Cell plant cut margin there to 4.6% from 12.0%. 4 Jun 2024 8 Oct 2024 2 Dec 2025 2 Jun 2026
A steady CEO, a changing board
Peppiatt has run the company through the whole period. In January 2026 he sold 41,617 shares at 614p to pay tax on vested awards, and kept 53,751 shares, about 0.2%. Chief financial officer Chris Jewell left on 30 September 2025 after six years. Martin Hopcroft covered as interim CFO. James Corte, from Czech energy group EPH, joined on 9 April 2026.
Chairman Gary Bullard plans to leave before February 2027. Serena Lang was named chair designate on 3 June 2026. In August 2026 the board issued a statement after shareholders opposed remuneration and share-issue resolutions at the AGM. 12 Jan 2026 21 Jul 2025 2 Feb 2026 4 Nov 2025 3 Jun 2026 10 Aug 2026
A record order book, then a bid
Half-year results on 2 June 2026 showed revenue up 15.5% to £81.9m, or 9.1% excluding acquisitions and currency. Adjusted pre-tax profit was £5.8m and the order book a record £167.3m. Net debt was £36.6m, leverage 1.5x, and the debt facility was raised to $70m. The CEO said the order book gave stronger forward visibility than the company had historically had.
On 16 July 2026 Greenlight Bidco, backed by Arlington Capital Partners, offered 1,230p a share in cash. That is a 40.7% premium to the prior close and values the equity at £345.6m. On 30 July G&H said supply-chain constraints were delaying order conversions and deliveries, giving a weaker balance between the two halves than expected. Shareholders approved the deal on 26 August, with 79% of Court Meeting votes in favour. Sand Grove raised its stake to 10.35%, while Octopus fell from 11.09% to 3% and Odyssean exited. 2 Jun 2026 16 Jul 2026 30 Jul 2026 26 Aug 2026 22 Sep 2026
“This enlarged order book gives us stronger forward visibility than we have had historically and reflects the benefits of our strengthened positions in structurally attractive end-markets.” 2 Jun 2026
Heading for private ownership
Completion needs a court sanction hearing on 14 October 2026. The deal is expected to take effect on 16 October, with AIM trading cancelled the next business day. The long-stop date is 16 January 2027. US antitrust and UK national security clearances have been obtained.
On 2 June 2026 the board said FY2026 expectations were unchanged and it expected progress towards mid-teens returns on sales over the medium term. That target was first set in June 2023 as 'mid-term'. In June 2025 the company said 'by 2028'. From December 2025 it went back to 'medium-term' without a date. The 30 July 2026 update said trading was below expectations. The company has not given figures for the shortfall. 22 Sep 2026 2 Sep 2026 2 Jun 2026 5 Dec 2023 3 Jun 2025 2 Dec 2025 30 Jul 2026
Written by AI from Gooch & Housego's own announcements since Oct 2023 · every paragraph links to its sources