Goodwin see positive final results despite the placement of large capital projects slowing

Goodwin PLC has posted strong final year results as the impact of the pandemic on the firm appears to have been abated.

The pre-tax profit for the engineering company saw an increase from £12.1m to £16.5m for the year up to the 30 April 2021.

That was despite a slow down in capital building projects, brought on by the Covid-19 pandemic.

The pandemic is likely to be behind a slight fall in the company’s revenue, which fell from £144m up to 30 April 2020 to £131m for the year thereafter.

Shareholders will be encouraged by the company’s strong performance amidst tough operating conditions. Their basic earnings per share jumped from 107.93p to an impressive 167.82p.

The diversification of the company’s operations are thought to be behind their strong results, as they were not reliant on inner-city and urban projects which have been slowed by the pandemic.

Some harm has been done to the steel wing of Goodwin, however, as they look to cope with the global move away from the oil industry. They refer to this as the second ‘Black Swan’ event this past year.

Timothy Goodwin, executive chairman of the board, said: “In what has been another year of unique challenges, I am delighted that excellent progress has been made particularly during the second half of the year in many areas.

Despite the placement of large capital projects having slowed as expected due to the world having to adapt to new working arrangements, headway has been made within the Mechanical Engineering Division.”

The mechanical engineering division has been a strong point for the company in the past year, Goodwin added.

Despite strong performances in some divisions, there is concern in others. Goodwin pointed to the steel division in particular as an area of concern for the firm, however he expects it to recover.

“Whilst Goodwin Steel Castings and Easat Radar Systems have not recently been firing on all cylinders, the Board firmly believes that both businesses will become profitable again moving forward with the transitions they have both been through.”

Goodwin praised the directors and the employees of the company and their stellar work in the face of tough conditions over the past year.

“The Board is once again indebted to our Directors, managers and employees around the world for their unwavering efforts in keeping the Group operational, controlling cost and delivering what can only be described as an extraordinary Group result in the year of Covid-19 just completed,” he concluded.

Goodwin saw its share price jump by 1.94 per cent as its strong final year results appears to have encouraged investors.