Photonics technology group Gooch & Housego (G&H) believes its Glenrothes division has an important role to play in the future of the business.
The Somerset-based company bought Spanoptic in 2013. The 60-employee site in the Fife town makes precision optical components and sub-systems.
Around a quarter of Spanoptic’s business is in the aerospace and defence sector and the rest is for G&H’s industrial market.
Both markets are important to G&H’s precision optics strategy.
Total G&H group revenue was up 9.3% at £86.1m and adjusted pre-tax profit was 9.7% higher at £14.2m.
Statutory pre-tax profit was level at £10.1m and basic earnings per share were down 5.8% at 29.1p.
G&H chief executive Mark Webster said the industrial sector represented 63% of revenue and comprises a diverse range of applications.
These include microelectronic and semiconductor manufacturing and test, remote sensing, metrology and telecommunications.
The industrial division grew by 17.9% on the previous year, despite challenges in China and the Far East which saw a slowdown in the first quarter.
Aerospace and defence, where most customers were in Europe and the US, represented 23% of revenue and was flat on the previous year.
Mr Webster said the sector was a target rich environment for G&H’s technological capabilities, but was a business that hadn’t reached a critical mass.
Two recent acquisitions – Kent Periscopes and Alfalight – with investment in new areas in short wave infra-red lenses and low light environments with space satellite communications were key to achieving sales potential.
He added: “During 2016 Gooch & Housego made good progress with its strategic goals of further diversification and moving up the value chain.
“We met our financial objectives, made a number of strategically important investments and have acquired two highly complementary companies.
“These strategic objectives combined with a record year end order book mean we are well placed for future material growth.”