Profits and workload are up at Goodwin PLC thanks to new orders coming in.
The Stoke-on-Trent group of mechanical and refractory engineering companies has recorded pre-tax trading profits of £9.1 million in the six months to 31st October. The figure is almost 18 per cent up on the same period last year.
Revenue is up to £89.3 million compared to £68.9 million for the same half year last year, and from £75.2 million in the six months to 30th April this year.
An interim financial statement says workload has increased to £242 million, from £157 million, and is partly down to new projects within the military and nuclear waste re-processing markets.
Chairman Timothy Goodwin said: “It is fortunate that the Mechanical Engineering Division has diversified away from oil and gas into other business streams that will likely avoid the effects of a global recession that are almost certainly going to feature over the next two years.
“These business streams include US and UK government procured components for military ships and boats, nuclear power, along with nuclear waste storage products.
“The first half of the financial year has benefitted from the Refractory Engineering Division continuing to generate excellent results, as well as the pump companies having gone from strength to strength, as the recovery of the global economy following the impact of the Covid-19 pandemic has provided the mining industry with the confidence to proceed with spending again.”
The results are a positive contrast to news that UK manufacturing output has slipped to a two-year low.
However, Goodwin PLC has said its hopes for “substantially increased profitability” this financial year, outlined in its last annual report, have been dashed. Issues such as the continuing conflict in Ukraine and Bank of England interest rate hikes are leading to certain industry sectors hesitating with planned investment projects. Because of this, pre-tax profits in the second half of the year are expected to be similar to the first half, which would result in a modest rather than substantial annual pre-tax rise.
The group’s net debt stands at £46.1 million, but the report explains this includes £8.4 million invested in CO2 emission projects which will take time to see paybacks.
Timothy added: “While there continues to be some global uncertainties due to the geopolitical environment and rising costs for consumers, the Group’s activity and profitability levels are expected to increase over the next twelve months as a result of the increased work load.”
Goodwin PLC, based in Hanley, has been running for 139 years and has 1,112 employees in its 24 companies, operating in 10 different countries.