Goodwin (GDWN) introduced its half-year report with its usual mixture of brevity and matter-of-factness. The family-controlled business, which traces its history back to the 19th century iron foundry of Ralph Goodwin and his sons, now has a group of subsidiaries split between mechanical engineering (including castings, machining, valves and pumps) and refractory engineering (cements, minerals).
“The group is sufficiently diversified to avoid excessive dependence on a single product or market,” says its mission statement, and that is very much reflected in progress during this term. Revenue from mechanical engineering fell to £50m in the reported period from £64.2m in the prior comparable, thanks to a third year of lower activity in the oil, gas and mining sectors. Goodwin had “no alternative” than to cut 50 jobs from its overall labour force, says current chairman John Goodwin, taking it to 1,070. Management is trying to win nuclear recycling and decommissioning-related business, rather than waiting for the cyclical upswing.
But refractory continues to be a blessing, with revenues up from £22.6m in the prior period to £26.5m, and profits more than doubling to £5.3m, thanks to expansion at its eight companies providing consumables to the growing jewellery casting industry. India is a bright spot, with record trading in Goodwin’s submersible pumps and jewellery powder.
| GOODWIN (GDWN) | ||||
| ORD PRICE: | 2,038p | MARKET VALUE: | £147m | |
| TOUCH: | 1,950-2,025p | 12-MONTH HIGH: | 2,128p | LOW: 1,510p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 1,277p | NET DEBT: | 29% | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 69.9 | 6.05 | 54.5 | nil |
| 2015 | 61.9 | 6.11 | 58.4 | nil |
| % change | -11 | +1 | +7 | - |
| Ex-div: | na | |||
| Payment: | na |
