A Somerset components manufacturer has warned it may be forced to increase prices in response to President Donald Trump's tariffs on countries including China and Mexico.
Ilminster-based Gooch & Housego, which makes detectors, lasers and fibre optic equipment, said it was "closely monitoring" the situation and the "retaliatory responses" from the nations affected. But it planned to pass on any cost impact to customers.
The company told investors on Monday (February 24) it was also "alert" to any potential supply chain disruptions caused by China limiting the export of certain materials used in the manufacture of its products in response to the new tariff regime.
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"Our supply chain and engineering teams are working to identify alternative sources for those materials," a spokesperson said.
On Monday, Gooch & Housego also announced an increase to its order book to £126.4m - up from £104.5m at the end of September. But it warned that recovery in the the semiconductor and industrial laser markets remained slow.
"We continue to expect those markets to recover in the second half of this calendar year and to contribute to the group's trading in our fourth quarter," the firm said. "We are starting to see the level of customer orders improve in several of our Industrial sub-markets but the recovery is not yet broadly based."
The company's net bank debt at the end of January 2025 rose to £19.2m as a result of the acquisition of Phoenix Optical in October and currency exchange movements. Lease liabilities totalled £10.2m.
The business said full-year trading expectations would remain unchanged if the company was successful in navigating the changing tariff landscape.
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Charlie Peppiatt, chief executive of Gooch & Housego, said: "I am pleased to see the increase in the group's order book since the beginning of the year. It is clear the focus on delivering our strategic plan through improved customer experience, superior operational execution and value creating technology is starting to bear fruit.
"Whilst we are mindful of the uncertainty that new tariff regimes are introducing across several of our end markets, we remain positive that the group will deliver a significantly improved financial performance in FY2025. The group is strongly positioned in attractive growth markets and well placed to benefit as its industrial markets return to growth."