Goodwin (GDWN) H2 2024 earnings summary

Executive summary

• Trading pre-tax profit rose 27% to £24.1m on revenue of £191m for the year ended 30 April 2024, with strong operational and financial performance across both divisions.

• Dividend increased 16% to 133p per share, reflecting robust cash generation and shareholder returns.

• Mechanical Engineering Division drove profit growth, up 55% year-over-year, while Refractory Engineering Division maintained solid margins despite currency headwinds.

• Net debt reduced to £42.9m, with gearing at 35.1%, down from 47.8% six months prior.

• Significant investments in capacity, sustainability, and new product lines position the group for long-term growth.

Financial highlights

• Revenue increased to £191.3m (2023: £185.7m); gross profit margin improved to 40.7% (2023: 37.0%).

• Trading profit before tax: £24.1m (2023: £18.9m); profit after tax: £17.7m (2023: £16.5m).

• Basic and diluted EPS: 224.53p (2023: 206.81p).

• Operating profit: £26.9m (2023: £20.3m); return on capital employed: 16.3% (2023: 12.9%).

• Net assets attributable to equity holders: £122.3m.

Outlook and guidance

• Forward order book remains strong at £264m, with expectations for continued growth in both divisions.

• Focus on operational efficiency and output from recent capital investments; annual non-customer funded capex to reduce to one third of recent years.

• Dividend policy to continue, supported by strong cash generation and workload.

• Inclusion in the FTSE 250 index reflects improved market capitalisation and performance.