Engineering firm Goodwin revealed a considerable climb in revenue in its half-yearly results Wednesday following an increase in turnover and growth in the market.
The group reported revenue of £68m for the six months ended October 31st, up 26% from £54.3m in the comparative period the year before.
Pre-tax profits for the mechanical and refractory engineering company soared to £10.4m compared to £6.1m in the previous year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company credited its positive results to higher demand in supplies to the oil, gas and energy industries.
"We have significant vertical integration between our group companies and, as such, the combination of the individual trading company revenues is some 20% greater than the above stated Group revenue and this vertical integration allows for greater efficiency," Goodwin explained in a statement.
Goodwin has plans in place for the continued growth of the company with a number of government supported programs over next five years. The company has received up to £6m from the government for three major projects.
The first project is to train 25 apprentices per year over the next five years to boost employment. The second is developing a new apprentice school, four high tech office and factory units and a new range of valves through a Regional Growth Fund grant.
The third is the development of efficient gas turbines which will result in a 25 megawatt prototype unit. It will be built by 2015 in conjunction with Toshiba Japan. The project is supported by the Carbon Capture Storage grant, as announced at the Kyoto conference last month.
Goodwin recently borrowed an extra £5m with a five-year line of credit from Lloyds Bank despite profits in its interim report.
Shares rose 4.24% to 1,720.00p at 09:50 Wednesday.
RD
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
