19th Mar 2025 10:13
(Alliance News) - Goodwin PLC on Wednesday said its order book spiked to a record high, with both its Mechanical and Refractory divisions shining.
Goodwin shares rose 6.1% to 7,300.00 pence each in London on Wednesday morning. It was among the best FTSE 250 performers.
The Stoke-on-Trent-based engineering firm said its forward order book has reached a new record of GBP300 million.
"This milestone reflects the strength of our long-term established contracts and the robustness of our business activities. As a result, we remain on track to deliver second-half profits comparable to those of the first half of the year," Goodwin said.
Goodwin achieved pretax profit growth of 38% to GBP16.7 million in the half-year that ended October 31 from GBP12.1 million a year prior. Revenue rose 9.0% to GBP106.4 million from GBP97.6 million.
Its nozzle check valve company in Germany, Noreva, has been "one of the recent contributors to this success".
"Noreva has secured the largest order in its history-a USD15 million contract to supply valves for an LNG project. This contract, to be fulfilled over the next two years, positions us well to benefit from the expected release of further LNG projects, in light of the growing global demand for LNG," Goodwin said.
Noreva's products are used in oil pipelines, chemical plans and water pumping stations.
Goodwin added: "The vertical integration within our group continues to provide a substantial competitive advantage. A significant proportion of the castings for Noreva's major order will be sourced from Goodwin Steel Castings, our own foundry."
Goodwin believes its "Mechanical Division is poised for further success".
"While the majority of orders received this year will start to deliver financial returns in the next fiscal year, we are confident that this momentum will continue to build. Our significant investment over the past decade has equipped the Mechanical Division with the necessary facilities, size, and capability to handle increasing workloads across all areas," the company said.
"Our investment into the Goodwin Engineering Training Centre has also supported this growth by successfully operating for over 13 years and training over 300 apprentices to date. It is these individuals who now form part of the group's highly skilled workforce that is required to sustain our expansion."
In the Refractory offering, growth is continuing, helped by its investment in casting markets.
"The investment casting markets, particularly in the jewellery sectors are expanding at an impressive rate, exceeding 10% growth in certain regions. As a global market leader, we are benefiting directly from this trend, with our powder companies in China, India and Thailand achieving record in-month results compared to previous years," Goodwin said.
Goodwin said its capital expenditure has fallen. It said it has reduced its net debt by GBP10 million since the half-year due to reduced capital expenditure and improved profit.
"The board is delighted with the group's performance and the strategic positioning we have achieved. With our record order book, expanding capabilities, and strong financial foundation, we are well-placed to sustain our success and drive further growth in profitability," Goodwin added.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Goodwin