Profits more than double at submarine parts maker Goodwin

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Profits have more than doubled at defence supplier Goodwin as it was buoyed by a global increase in military spending.

The company, which makes radar equipment and submarine parts, said on Friday that it would hand more cash back to shareholders as a result.

It also indicated that shareholders are likely to receive more if it moves forward the potential sale of parts of its mechanical engineering arm.

The Stoke-on-Trent, Staffordshire-based group, which is made up of several companies, reported that trading profits lifted by 118% to £77.5 million for the year to April, compared with a year earlier.

It came after revenues increased by 27% to £280 million for the year.

Revenues were boosted by a stronger performance by its mechanical engineering division, amid strong demand for products used by the UK and US navy and submarine programmes.

The company was founded in 1883 and is majority owned and managed by the Goodwin family, while it has shares listed on the London Stock Exchange.

Goodwin continues to assess the potential sale of parts of its mechanical engineering division, which supplies components to major defence and nuclear programmes.

The firm said the sale process was “progressing well” and discussions were being held with a number of potentially interested parties.

Goodwin said customers, suppliers and employees should expect business operations to continue without interruption.

“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,” the company said.

The firm said the plan was to increase the group’s annual dividend by 18% to 330p for the year.