Goodwin (GDWN) is like one of the family-owned engineering companies of Germany's Mittelstand, only based in Stoke-on-Trent. Continued buoyancy in the energy sector kept the company's capital equipment humming 24 hours a day, six-and-a-half days a week, and pushed gross profit in the year to 30 April up 11 per cent to £44.8m.
With the order book up 10 per cent at £101m, the growth should continue in the current year, said chairman John Goodwin. He is particularly encouraged by progress in the mechanical engineering division, which makes valves and other products for industries ranging from oil and gas through water treatment to defence. However, he noted that oil and gas groups - historically the company's core customers - have been reducing orders since the year-end, which could cause growth to falter next year. "Only time will tell," he said.
The company's other division, Refractory Engineering, which makes casting products for the jewellery and aerospace sectors, bounced back after a difficult year, with sales up 7 per cent. Conditions in Goodwin's end markets are still tough, and Mr Goodwin attributed the unit's better performance to market share gains.
The company's tax charge was substantially lower during the year, as it benefited from the recently enacted patent box relief, a lower UK corporate tax rate and revision of prior year estimates.
GOODWIN (GDWN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3,675p | MARKET VALUE: | £265m | |
| TOUCH: | 3,675-3,745p | 12-MONTH HIGH: | 4,250p | LOW: 2,437p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 1,022p | NET CASH: | £3.8m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 93 | 13.3 | 118 | 27.8 |
| 2011 | 93 | 8.2 | 51 | 29.2 |
| 2012 | 108 | 12.3 | 124 | 32.1 |
| 2013 | 127 | 20.3 | 212 | 35.3 |
| 2014 | 131 | 24.0 | 264 | 42.3 |
| % change | +3 | +18 | +25 | +20 |
Ex-div: 10 Sep Payment: 10 Oct | ||||
