Goodwin PLC (LON:GDWN) has announced its preliminary results for the year ended 30th April, 2026.
CHAIRMAN’S STATEMENT
I am pleased to report a record level of profits for the Group for the twelve month period ended 30th April, 2026. The trading profit was £77.5 million (2025: £35.5 million) an increase of 118% year-on-year on revenue of £280 million, which is up 27% on the revenue reported for the prior year, as set out in the financial accounts to be published shortly. (Additional details on the trading profit are to be found in the full financial statements to be published shortly).
The Directors propose an increased ordinary dividend of 330 pence (2025: 280 pence) per share, an 18% increase. Further details on the Dividend Policy and timing of the payment can be found on in the financial statements to be published shortly. This continued strong performance reflects the sustained strength of our end markets and the benefits of the strategic decisions taken over several years to focus the Group on specialist, technically demanding sectors.
Whilst there has been growth in all our manufacturing companies, the Mechanical Engineering division in particular has continued to experience a substantial increase in customers’ demand for precision-machined, high-integrity castings into mission critical defence and nuclear applications. As a result of continued investment in its customer relationships, engineering expertise and manufacturing capabilities, Goodwin has positioned itself to be a leading supplier on many UK and US Navy frigate and submarine programmes. Our ability to supply high-quality products, that are technically difficult to make on a fast and consistent basis, has supported the continued growth in volumes, as well as continued improvement in margins.
The Board has continued to assess the long-term strategic direction of the business. The significant improvement in the performance of the Mechanical Engineering division, together with its strong market position and attractive growth prospects, has substantially enhanced its strategic value and generated considerable external interest. During the year, and as announced post period-end on 7th August, 2026, the Board committed to pursuing a potential disposal of a substantial part of the Mechanical Engineering Division and appointed Rothschild & Co as its financial adviser to initiate an active sale process of its constituent business units, to maximise value for shareholders whilst ensuring continuity for all stakeholders, including customers, and the long-term prospects of the business. As part of this process, the business was actively marketed to potential purchasers. The proposed disposal includes Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group and Pumps.
The sale process is progressing well, and the Group has been in discussions with a number of potentially interested parties, as well as continuing the important strategic dialogue we have with all our stakeholders. Our customers, suppliers and employees should expect business to continue uninterrupted, and management remains fully committed to maintaining the high standards of service and operational performance that have underpinned the success of these businesses. The Board expects to provide a further update as the transaction progresses. 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.
As a result of the Mechanical Engineering sale process and the Board’s committed disposal plan, the Board is considering the most appropriate capital allocation strategy and dividend policy for the Group going forward. As the composition, investment requirement and capital structure of the Group will likely change, the Board wants to ensure that it can pay excess cash to shareholders, whilst balancing value-enhancing investment opportunities within its manufacturing companies.
The Board currently expects that a substantial part of the cash proceeds from any disposal resulting from its strategic review of the Mechanical Engineering division will be paid to shareholders.
As part of the strategic review, management reporting was revised to reflect the proposed sale of a substantial proportion of the Mechanical Division, which included the creation of a new Technological Division, as an operating segment.
Mechanical Division (Assets held for Sale)
Goodwin Steel Castings Limited and Goodwin International Limited
The defence programmes secured over recent years continued to progress during the year, resulting in a substantial increase in the volume of high-integrity components manufactured for UK and US naval ship and submarine programmes. The division successfully met the demanding quality and delivery requirements of these programmes, reflecting the benefits of the sustained investment made in manufacturing capability, engineering expertise and customer relationships over many years. The operational performance achieved during the year has further strengthened the division’s reputation with its customers.
Easat Radar Systems
Easat Group delivered its first material year in which the benefits of the turnaround strategy were fully reflected in the financial results, with profits improving from approximately breakeven to £4.5 million. This performance represents the culmination of several years of investment in technology, operational improvements and the transition from a component supplier to a provider of complete surveillance systems. During the year, management also delivered significant cost reductions and operational efficiencies, resulting in a marked improvement in profitability while continuing to deliver high levels of customer service and product performance.
Noreva
Noreva, the division’s specialist valves business in Germany, also delivered strong profits during the year. This performance reflected strong demand from the LNG sector in the US. Whilst geopolitical events in the Middle East continue, despite the three months of storage prior to collection of certain customer shipments being invoked, no orders were cancelled and the business continues to perform strongly.
Pumps
The Pumps businesses also delivered a solid performance. In South Africa, a revised commercial strategy successfully improved order intake and restored sales momentum, whilst in India the business achieved record production and sales volumes, supported by strong domestic demand and increased intercompany supply to the Group’s international operations. These achievements reflect the continued development of the division’s manufacturing capability and operational efficiency.
Overall, the Mechanical Engineering Division delivered an excellent operational and financial performance during the year, reflecting many years of sustained investment, disciplined execution and the commitment of its employees. The Board is grateful for the significant contribution made by all those involved in achieving these results.
Refractory Division
The Refractory Division delivered another year of strong growth, with the divisional subsidiaries’ trading profits up 15% year-on-year.
The companies within the division that manufacture investment casting powders, injection waxes and moulding rubbers for the jewellery industry – including GRS UK, GRS India, GRS Thailand and GRS China – have in part faced difficult trading conditions arising from record-high gold and silver prices, which have reduced sales into the jewellery casting industry. However, consumer spending has shifted from fewer, higher-cost purchases to a “wear once” mentality, driving demand for low-cost jewellery through online and social media impulse purchasing. We expect this trend to continue. Celebratory purchases to mark special occasions such as weddings will always have their place, but they now represent a smaller part of the market; the vast majority of consumer spending has moved to higher volumes of lower-cost jewellery, which we are well positioned to capture.
This shift has been highly beneficial to the Group, whether a piece is cast in brass or in gold, it requires the same quantity of investment casting powder, injection wax and moulding rubber. As a result, we have seen very strong growth in sales to the low-cost brass casting sector. We are even seeing global-leading silver jewellery brands beginning to move to plated brass in place of solid silver, lowering the price point of their products and moving them further into the high-volume, impulse-purchase category. To cater for this increase in demand, we expect to open a fourth investment powder manufacturing facility in China within the coming twelve to eighteen months.
Gold and silver prices have begun to recede. Precious-metal jewellery will continue to be an important part of the market, and we have started to see usage of our products in this sector begin to recover – which will move profits further forward as these higher-value sales return.
During the year, our research and development teams implemented a newly developed in-house technology that enables more cost-effective investment casting powder products with performance equal to or better than the formulations they replace. We have used this improved cost-effectiveness both to increase margins and, where strategically advantageous, to strengthen our competitiveness.
After many years of development and product trials, we are pleased to report that the largest jewellery caster in the US has adopted our patented X-SIL silica-hazard-free investment casting powder. This is a major milestone for us as a company and for the industry. The US is a market where we have historically refrained from selling to due to our traditional products being silica-based, and we expect that this represents the first step towards a wider transition. We also believe it will help drive change in Europe towards this silica-hazard-free range, on which we are able to achieve enhanced margins.
Hoben International had an excellent year, increasing profits substantially. This was driven by a combination of factors, including increased internal group demand for the cristobalite manufactured by Hoben (used by our investment powder companies), reduced energy costs, and the continued high growth of the Soluform concrete bagwork solution, sales of which grew by over 50% in the year. We expect Soluform to continue growing at high rates over the coming years, and we are expanding the team to deliver this growth.
AVD Fire, which manufactures and sells specialist lithium battery fire-extinguishing agent, lithium battery fire extinguishers, and lithium fire protection blankets and bags, is, we believe, at a very exciting point in its growth journey. Over the past ten years, a great deal of work has been done to establish AVD as the number one choice for extinguishing and containing lithium battery fires. Our products are being adopted globally and are recommended by insurers. Perception of the risk of lithium battery fires is changing rapidly, as is the global understanding that action must be taken to provide specialist products to extinguish and contain them. We now have a truly global distributor network, global recognition of the leading performance of our products, and a market that is increasingly being compelled to adopt solutions for this significant risk. We are addressing testing and product requirements from all sectors, including commercial airlines, marine, automotive, rail networks, military, product distribution and storage centres, and many other applications.
Technological Division
Following a decision during the year to actively pursue the disposal of the majority of the Mechanical Engineering Division, the internal management reporting was changed to reflect the continuing and discontinuing operations of the Group. A new operating division titled Technological Division, made up of Duvelco and Internet Central businesses, that were formerly part of the Mechanical Engineering Division, but are not part of the businesses for sale, is now reported separately.
Duvelco
Duvelco, the Group’s advanced plastics business, remains an important long-term opportunity. Production finalisation has taken longer than originally anticipated, as can occur with a highly automated, complex and first-of-its-kind manufacturing process. The business continues to produce material for customer sampling and qualification, with feedback to date being positive, while the team focuses on completing the remaining commissioning items and establishing a robust, repeatable process capable of supporting future commercial demand. The outstanding items are mechanical rather than fundamental in nature and are not considered to represent a long-term risk. The lessons learned can also be incorporated from the outset into the design of any future manufacturing plants.
Duvelco has also entered into a strategic agreement with an established processing partner to manufacture stock shapes. The arrangement will initially utilise the partner’s available capacity, with further capacity to be added as demand develops. As the partner already undertakes hot compression moulding at scale, the agreement provides a low-risk route to market, broadens Duvelco’s product offering and avoids the learning curve associated with establishing this capability internally.
Although samples have not yet been distributed in significant volumes, the Board is encouraged by the progress being made and continues to believe that Duvelco has significant long-term potential. The focus remains on completing production finalisation and expanding customer sampling and qualification activity as Duvelco’s material reaches a broader range of prospective customers and applications.
Cash flow and capital expenditure
Cash generation improved during the year. The Group has benefited from the milestone payments negotiated into the defence contracts won to date and these payments have helped to support working capital and provide greater visibility over cash flow as the programmes progress.
In terms of capital expenditure, the major item during the year was the construction of the new Foundry 5.0 building in Hanley. This facility will house state-of-the-art automated moulding and robotic casting upgrade equipment, which the Group has been developing in conjunction with its R&D partners, including the US Navy and Siemens. This investment represents an important step in the continued modernisation of the Group’s manufacturing capability and the building is scheduled to be finished in the fourth quarter of this calendar year.
There are no other major capital expenditure projects underway or planned that would not be customer funded. The Group’s net debt as at April 2026 was £29 million, reflecting continued strong financial performance and a prudent approach to leverage, which stood at 22.4% as at the 30th April, 2026, after paying out the special interim dividend of £40 million in the month of November 2025.
Goodwin PLC post the proposed disposal of the Mechanical Division
Following completion of a proposed disposal resulting from its strategic review of the Mechanical Engineering Division, the Group will comprise a simpler, more focused portfolio of specialist businesses with strong market positions and attractive long-term growth prospects. The disposal will allow management to concentrate its resources on developing the remaining businesses, while maintaining the disciplined approach to capital allocation that has underpinned the Group’s success.
Particular emphasis will be placed on accelerating the commercial development of the Group’s newer growth opportunities, including Duvelco and AVD Fire, alongside supporting the continued expansion of our established Refractory businesses. The Board believes these businesses offer significant long-term value creation potential and will benefit from increased management focus and investment.
As a result of the disposal, the Group will comprise the Refractory and Technological divisions. These businesses represented in aggregate £118 million in gross assets and £10 million in operating profits in the financial year ended 30 April 2026.
The Group’s banking partners have expressed their continued support for the remaining business and have confirmed their willingness to provide appropriate facilities going forward. Nevertheless, the Board’s intention is, at least initially, to operate the Group on a zero net debt basis, providing financial resilience and flexibility as we execute the next phase of the Group’s strategy.
While the proposed disposal represents a significant milestone, the Board remains committed to continually reviewing the Group’s portfolio and strategic direction to ensure capital is allocated to maximise long-term shareholder value.
People
The results achieved this year would not have been possible without the commitment, skill and hard work of our employees across the Group. On behalf of the Board, I would like to thank all of them for their continued dedication, professionalism and support during another important year for the business.
T.J.W. Goodwin, Chairman
