Goodwin defence profits doubled in its latest financial year, with the Stoke-on-Trent group reporting a 118% rise in trading profits to £77.5 million for the year to April, driven by growing demand from UK and US navy and submarine programmes. The company said on Friday it would return more cash to shareholders as a result.
Goodwin makes radar equipment and submarine parts. It is a group of several companies, majority owned and managed by the Goodwin family, with shares listed on the London Stock Exchange. Founded in 1883, the group operates from Staffordshire and supplies components to major defence and nuclear programmes.
Revenue and dividend both rise sharply
Revenues for the year climbed 27% to £280 million, with the mechanical engineering division delivering a stronger performance on the back of sustained demand. The group said it plans to increase its annual dividend by 18% to 330p for the year, rewarding shareholders after a period of sharply improved trading.
Goodwin said shareholders are likely to receive further returns if the company proceeds with a potential sale of parts of its mechanical engineering arm. The disposal process is described as “progressing well,” with discussions under way with a number of potentially interested parties.
“The disposal process is being actively pursued in accordance with the board’s approved plan, which targets completion within the next twelve months, and shareholders will be kept informed of material developments as appropriate,” the company said.
Goodwin defence profits doubled as Dreadnought and frigate work grows
The mechanical engineering division sits at the heart of Goodwin’s defence business. According to BBC News, it includes Goodwin Steel Castings, Goodwin International, Noreva, Easat and Pumps, a cluster of specialist businesses producing components for some of the UK’s most demanding defence and nuclear programmes.
The BBC also reports that the division is a supplier to Britain’s Dreadnought programme, which is building the Royal Navy’s next-generation nuclear deterrent submarines, as well as the Type 26 frigate programme. Both projects represent long-term, high-value contracts that underpin the division’s order book and help explain the strong revenue growth recorded this year.
That context matters when assessing the potential sale. Any buyer would be acquiring businesses embedded in active, long-running UK defence programmes, which adds both value and complexity to any transaction. Goodwin said customers, suppliers and employees should expect operations to continue without interruption, whatever the outcome.
Strategic review guided by Rothschild & Co
The board is not navigating the process alone. BBC News reports that Rothschild & Co is advising Goodwin’s board on the strategic review of the mechanical engineering division. Rothschild & Co is a long-established financial advisory firm frequently engaged on major corporate transactions, and its involvement points to the scale and seriousness of what Goodwin is considering.
The wider backdrop is a sustained rise in defence budgets across NATO member states, with the UK and US both increasing military spending in response to heightened global security pressures. For a supplier embedded in submarine and naval programmes, that environment has translated directly into improved revenues and profits. Goodwin’s results show what that shift looks like for a mid-sized, family-controlled British manufacturer with deep roots in specialist engineering.
Goodwin PLC said it will keep shareholders informed of material developments in the sale process as they arise, with the board targeting completion of any disposal within the next twelve months.
