Goodwin profits more than double as defence supplier benefits from military spending surge

Group which makes radar equipment and submarine parts said it would hand more cash back to shareholders

Profits have more than doubled at defence supplier Goodwin, buoyed by a surge in military spending across the globe.

The Stoke-on-Trent-based firm, which manufactures radar equipment and submarine components, announced on Friday that it would return more money to shareholders on the back of the strong performance.

The group also signalled that shareholders could stand to benefit further should it press ahead with the potential disposal of elements of its mechanical engineering division.

The company, which comprises several subsidiary businesses, posted trading profits up 118% to £77.5 million for the year to April, compared with the previous year.

The result was underpinned by revenues rising 27% to £280 million over the same period.

Turnover received a significant boost from an improved showing by its mechanical engineering arm, driven by robust demand for products supplied to UK and US naval and submarine programmes.

Founded in 1883, Goodwin is majority-owned and run by the Goodwin family, with its shares listed on the London Stock Exchange.

The group continues to evaluate the potential sale of parts of its mechanical engineering division, which provides components to major defence and nuclear programmes.

The firm described the sale process as “progressing well”, with talks currently under way with a number of prospective buyers.

Goodwin sought to reassure customers, suppliers and employees that business operations would continue uninterrupted throughout the process. “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 announced plans to raise the group’s annual dividend by 18% to 330p for the year.