Gooch & Housego, the maker of opto-electronic components and instruments, has bolstered its position in the acousto-optics market with the acquisition of German player Landwehr. Based near Hamburg, Landwehr produces radio-frequency electronic equipment used in acousto-optic applications and has close ties with Gooch & Housego. Steered by chief executive Gareth Jones, Gooch & Housego has splashed out Û800,000 cash for the business, which wrung out operating profits of Û101,000 on almost Û2m sales last year. Jones says the deal gives the group easy access to Germany and Europe, markets which will grow in importance in coming years. This is another great piece of news for the company, which signalled a return to growth at the half-year, after recent difficulties. Interim figures ending 31 March exceeded expectations, with pre-tax profits romping 100% higher to £1.27m on sales lifted 21% to £8.9m. Jones claimed the sales and profits improvement was won across the board, with the exception of its Optronic Laboratories business - NEOS Technologies led the way with a 27% sales leap. Gooch & Housego also moved into net funds of £141,000 at half-time, versus £312,000 net debt a year earlier. Before the Landwehr deal, house broker Rowan Dartington was predicting adjusted profits of £3.1m on sales of £18.5m for September 2004. On earnings of 11.1p, the shares trade on an undemanding p/e of 12.