A volatile year for family-run engineering company Goodwin saw order input, down 40 per cent at one stage, recover to end the year just 8 per cent down. The company continued to invest, with an internally financed £4m capital equipment upgrade. It also opted to run production slower to avoid redundancies and so keep its skilled employees and, in contrast to most engineering companies, even hired additional employees in the recession.
Sales were 7 per cent lower at £93m, although cost savings from its acquisition of SRS Holdings meant pre-tax profits were respectably flat at £13.3m, which helped maintain the dividend at 27p. Germany's export surge also benefited the company, with orders for nozzle valves, in particular, up 49 per cent on 2009. As for the outlook, management says there is roughly the same amount of scheduled work, around six months, as a year ago, although credit conditions are tightening again, so it has negotiated a new five-year borrowing facility.
What we said: Buy
When: 10/09/09
Price: 1,125p
Tip performance to date: +8%
