Goodwin reports continued profitability and cash generation

25th Sep 2024 10:54

(Sharecast News) - Goodwin reported continued profitability and robust cash generation in a trading update on Wednesday, driven mainly by increased activity in its mechanical engineering division.

The London-listed firm said the refractory engineering division's performance remained consistent with last year.

Its workload reached £298m as of the end of August, boosted by new contracts for naval hull components secured by Goodwin Steel Castings (GSC).

In a significant development, the US government had awarded GSC $14.5m in grant funding to establish four new high-power radiographic facilities at its site.

The facilities, crucial for the non-destructive testing of high-integrity castings, would enhance GSC's capacity to meet the rising demand for naval components.

Goodwin said the new radiography units would complement GSC's existing facilities, which already operate around the clock, and were expected to be fully operational by the end of 2025.

The commissioning of the polyimide production plant at Duvelco was also progressing, though slightly behind schedule.

Initial testing had been completed, and the system was now being prepared for solvent testing.

Further updates would be provided in the company's half-year statement in December.

Goodwin said it had also strengthened its board with the appointment of Christine McNamara as a non-executive director, effective 2 October.

It said McNamara would bring more than 25 years of experience in the energy and power sectors, having held senior financial roles at companies including Powergen and National Grid.

At 1037 BST, shares in Goodwin were up 1.69% at 7,240p.

Reporting by Josh White for Sharecast.com.