Growing ‘optoelectronics’ manufacturing play Gooch & Housego – flagged up here as a strong buy at 191.5p at the interim – has comfortably beaten last year’s record numbers, and is widening the net product–wise to sustain growth rates. Pre-tax profits sparked up 42% to £4.7m for the year to September, on sales lifted 19% to £22.3m.

Explaining the figures, chief executive Gareth Jones said all group companies performed well, with the improved sales led by UK operation Gooch & Housego (G&H). Despite cramped conditions at its Ilminster facility, ‘where we were bursting at the seams’, savvy organisational skills meant G&H increased its output – the securing of land and buildings to develop a new factory and headquarters after many years of searching should drive further growth, with Jones looking to move in by September.

Elsewhere, each of the US subsidiaries – Optronic Laboratories, Cleveland Crystals, NEOS Technologies – improved their top lines. After a stellar 2004, Florida-based acousto-optics business NEOS did well to lift sales in a flatter market. Finally, German subsidiary Landwehr, included for a full year for the first time, delivered operating profits of £85,000 from sales of £2m.

Jones concedes demand from ongoing customers is pretty flat – to sustain profits growth, he is looking to sell a wider range to existing clients, introduce new products and leverage the group’s intellectual property ‘beyond our traditional markets’.

After a strong run on the price, we are holders, rather than strong buyers, of the shares.