Goodwin PLC (LSE:GDWN) shares surged 15% on Wednesday after the engineering group reported record results for the year to 30 April.
Trading pre-tax profit jumped 47% to £35.5 million, with revenue up 15% at £220 million, driven by strong demand in defence and nuclear markets.
The group’s gross margin rose to 42%, reflecting the quality of long-term contracts across its Mechanical and Refractory Engineering divisions.
Cash generation was robust, more than doubling to £67 million, allowing Goodwin to slash net debt to £13.6 million and reduce gearing to under 10%. Shareholders were rewarded with a proposed dividend of 280 pence per share, more than double last year’s payout.
The Mechanical Engineering division benefited from an increased supply of high-integrity castings for defence and nuclear projects, while the Refractory division posted higher profits from Asian operations.
Management said Goodwin is well-positioned for future growth, with a strong pipeline of multi-decade contracts and confidence in further margin improvement.
The shares advanced 1,140p to 8,580p.