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Gooch & Housego jumps after agreeing working capital financing facility extension

Last updated: 08:37 09 Mar 2009 EDT, First published: 09:37 09 Mar 2009 EDT

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Optical components and systems manufacturer, Gooch & Housego (AIM: GHH) jumped almost 50% after the company confirmed that it had reached an agreement with the Royal Bank of Scotland (LSE:RBS) to replace a one year facility with a new US$10 million, 3 year working capital facility.

Shares in Gooch & Housego had come under considerable pressure in recent months after it said that it was in discussions with its bankers to amend certain covenant calculations related to the Sterling/US Dollar exchange rate and to secure more headroom in its financings.  

The company also confirmed that had taken the decision to cancel a proposed dividend of 3 pence per share for the year ended 30 September 2008 to help retain cash, and that it had slashed its headcount by 17%.

On the trading front, Gooch & Housego gave reason for cheer, stating that it had received several “substantial orders” and that overall intake “has been encouraging” in the first two months of 2009.

“Given the improving order backlog and reduced operating costs the  Board continues to have confidence that it will achieve its revised forecast for the year,” the company stated.

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