LONDON (ShareCast) - (Sharecast News) - Goodwin reported a 44% increase in pre-tax profits to £13.3m in its last trading year, despite group revenues losing ground.
Back in January, the group's chairman John Goodwin promised that "things are about to get better" and, even though revenues dropped 5.3% to £125m, Goodwin's directors chose to deliver on that promise by upping its dividend a massive 97% to 83.47p per ordinary share.

Gross profit margin moved from 25.6% to 28.6%, return on capital employed grew from 8.4% to 12.3% and cash generation as net cash flow from operating activities shot up 83% to £31m.

Trading profits from Goodwin's refractory division rose 78% from its 2016 figure to £7.5m as at April, excluding the sale of its land in India, which realised an additional £1.6m of pre-tax profit.

Goodwin said the success of its Indian operations meant that for some time it had been operating out of "much larger, bespoke built, freehold premises" and after the right opportunity arose during the year, the group chose to dispose of its redundant original freehold investment in the country.

The AIM-listed firm's mechanical engineering division saw its three largest engineering companies - Goodwin International, Noreva and Goodwin Steel Castings - be rewarded with "substantial orders" coming from areas other than oil and gas, something the firm expects to improve its profitability in the coming financial year.

Goodwin said, "It would be inappropriate not to make mention of how very difficult the last two financial years have been for the foundry, Goodwin Steel Castings. Indeed for all foundries worldwide other than those addressing the automotive industry and the aerospace industry, it has been a very challenging three years."

"At Goodwin, we have taken the opportunity over the past eighteen months to reposition the foundry such that we can address more efficiently very large high integrity castings for nuclear fuel reprocessing and for military boat building programmes in the USA, the UK and other overseas countries," he added.

As at 1420 BST, Goodwin shares had rocketed ahead 21.76% to 2,264.80p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE