Goodwin reports revenue increase in first half

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.

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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