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.

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.

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

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021