Goodwin (GDWN) H1 2025 earnings summary

Executive summary

• Trading pre-tax profit for the six months ended 31 October 2024 rose 53% year-over-year to £17.1 million, driven by strong performance in nuclear decommissioning and naval vessel markets.

• Forward order book increased to £296 million from £266 million in December 2023, more than doubling over three years.

• Duvelco Ltd achieved industrial-scale production of polyimide resin powder, with graphite-enhanced line to be operational by January 2025.

• Net debt reduced to £38.8 million from £54.6 million a year earlier, with gearing down to 31% from 48%.

Financial highlights

• Revenue for the half year was £106.4 million, up 9% from £97.6 million year-over-year.

• Operating profit increased to £18.2 million from £12.5 million; trading profit up 52.7% to £17.1 million.

• Profit before tax was £16.7 million, up from £12.1 million; profit after tax rose to £12.5 million from £9.2 million.

• Basic and diluted EPS were 150.91p, up from 115.66p year-over-year.

• Gross profit margin improved to 43.0% from 39.0%; trading profit margin rose to 16.1% from 11.5%.

Outlook and guidance

• Similar activity levels expected for the second half of FY2024/25.

• Easat Radar Systems secured a major contract in Southeast Asia, returning to profitability and building a workload exceeding £25 million.

• Refractory Engineering Division expects stable profitability, with growth in lithium-ion battery fire extinguishing products.