Gooch & Housego’s acquisition of ITL helps accelerate its progress towards systems based products from components, strengthening its opportunities for higher margin growth. It also doubles the size of the Life Sciences business (to 15% of FY19e sales), providing useful diversification from the more cyclical Industrial division (50%) and from Aerospace & Defence (32%). Acquisition multiples are attractive at 1.4x historic sales for a 15% margin business. We have increased our PBT estimates by 6% ....
14 Aug 2018
PBT up 6%, EPS up 4-5% on acquisition of ITL
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PBT up 6%, EPS up 4-5% on acquisition of ITL
Gooch & Housego PLC (GHH:LON) | 546 -21.8 (-0.7%) | Mkt Cap: 140.8m
- Published:
14 Aug 2018 -
Author:
Jo Reedman -
Pages:
3
Gooch & Housego’s acquisition of ITL helps accelerate its progress towards systems based products from components, strengthening its opportunities for higher margin growth. It also doubles the size of the Life Sciences business (to 15% of FY19e sales), providing useful diversification from the more cyclical Industrial division (50%) and from Aerospace & Defence (32%). Acquisition multiples are attractive at 1.4x historic sales for a 15% margin business. We have increased our PBT estimates by 6% ....