Big profit growth for engineering group Goodwin

STOKE-ON-TRENT engineering group Goodwin has announced a 65% increase in full year pre-tax profits following strong trading.

Chairman John Goodwin said that for the 12 months to April 30, 2013, the pre-tax profit level was £20.3m (2012: £12.3m), based on a revenue of £127m (2012: £107.9m). Revenue itself was up 17.7% on the figures reported for the same period last financial year. The directors now propose an ordinary dividend of 35.290p (2012: 32.082p) and also an extraordinary dividend of 50% of the ordinary dividend of 17.645p (2012: Nil). The gross profit of £40.6m was 31.8% above that of the previous financial year.

“This improvement in gross profit and net pre-tax profit earned stems from the efficiency resulting from vertical integration between group companies, their very dynamic performance in meeting customer needs as well as economic designs and excellent manufacturing efficiencies,” said Goodwin.

“This comment relates especially to our UK valve company, Goodwin International within our mechanical engineering segment. The refractories engineering segment businesses were still suffering from lack of confidence in the global economy, especially in the last three months of the calendar year 2012, where our seven companies supplying the jewellery manufacturing business saw a down turn.

“As we started the new financial year our global jewellery powder sales have finally recovered to the pre-recession 2008 figures.”

The group’s order workload as at April 30, 2013 had increased by 16% (2012: 22%) and stood at £89.2m. This represents about six months work for most of the group’s companies.

The group serves the worldwide energy industries such as oil, gas and LNG or high efficiency gas and coal fired power generation.

$500m US supply deal for Ultra

DEFENCE supplier Ultra, which has operations in Birmingham and Rugeley, has secured a major long-term contract to supply the electronic control unit that manages the Pratt & Whitney F135 engine’s Electrical Ice Protection System (EIPS). The engine is used in the F-35 strike aircraft used by the US armed forces.

The contract, awarded by United Technologies Corporation, acting through its Pratt & Whitney Division, will be served by Ultra’s Greenford-based Controls division.
The agreement is effective for the life of the programme, or a minimum of 30 years.

Based on the potential production volumes, in-service spares, repairs and additional through-life support, the agreement is valued at approximately $500m.

Rakesh Sharma, Chief Executive of Ultra, said: “I am delighted that we have been awarded this long term supply agreement. Using our specialist capability, we have been working with Pratt & Whitney over a number of years to develop a technical solution for the F135 engine. Agreements such as this underpin the resilience of the Ultra business model and are derived through the fostering and developing of enduring customer relationships.”

Northbridge confident of meeting expectations

STOKE-ON-TRENT industrial services and rental company Northbridge has said it remains confident of meeting full year expectations following a strong first half.

In a pre-close trading statement ahead of its interim results the group said 2013 had started well and the first six months would show results substantially ahead of the same period last year.

“The ongoing investment in our global hire fleet has resulted in good rental revenue, strong cash flow and has ensured significant reductions in net gearing levels that will continue into the second half of 2013.

“Sales and orders for manufactured units have continued to remain buoyant during the first six months and provide good visibility for the second half of 2013. Our drilling tools, testing and commissioning activities continue to perform well in a challenging environment, and we remain confident in the group’s prospects.”

It said provided there was a satisfactory second half performance, the business would achieve results in line with directors’ expectations.

The group will publish its results for the six months ending June 30, 2013 on September 26.