Shares in Goodwin PLC (LSE:GDWN) jumped 14% after the engineer reported a big increase in its workload and signed an agreement with Northrop Grumman Corp (NYSE:NOC, ETR:NTH) for four defence programmes.
The mechanical and refractory engineering group signed a memorandum of understanding with the US defence giant with an initial order valued at $16 million, with expected orders likely to exceed $200 million as US submarine programmes release funding.
Alongside the MoU, an exclusivity agreement makes Goodwin Steel Castings the sole supplier for a critical component, which uses its metallurgical and precision machining skillset.
At the end of August, the group has a workload of £357 million, up 24% since April, supported by strong trading across both its refractory and mechanical engineering divisions.
Refractory Engineering was said to be delivering higher profitability than the prior year, driven by market share gains in investment casting powders and increased cristobalite usage. Soluform concrete bag sales are 80% ahead on a year-to-date basis.
Mechanical Engineering expects a 30% increase in activity by the half year, with Goodwin Pumps India expanding production in response to global demand from its sister companies in Australia, Brazil and South Africa.
The shares were up 1,445p to £12.67.