19th Dec 2019 09:25
(Alliance News) - Mechanical and refractory engineering firm Goodwin PLC on Thursday blamed political uncertainty for a fall in interim profit.
Shares in the company were 17% lower in morning trade on Thursday at a price of 2,928.00 pence each. They are still 16% higher since the year began, however.
Goodwin's pretax profit for the six months to October 31 slipped 5.1% to GBP7.4 million, despite revenue increasing by 3.8% to GBP70.1 million.
"This is a feature of the disruption caused by the commotions in our parliamentary system over the past six months where the uncertainty has temporarily stalled projects," said Chair Timothy Goodwin.
Looking to the second half of its financial year, the company believes profitability levels will be similar to the first half.
Increasing demand for energy will help the Mechanical Engineering unit, Goodwin said, though it noted the petrochemical market has not yet recovered.
The Easat Radar Systems business has won its first overseas contract, the firm continued, though Goodwin did warn the US-China trade spat has hit demand for jewellery. The Refractory Engineering unit provides casting powder for this industry.
"With further clarity over Brexit, we will be looking to start capitalising from the tremendous success our group companies have had in winning large amounts of business from new market areas," said Chair Goodwin.
"We have every reason to believe that the new financial year will allow our group companies to start increasing profit. We also expect to have further successes in winning significant new business due to the dedication and hard work of all who work within them," he continued.
By George Collard; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Goodwin