Trading Update
March 2026
It is encouraging that the Group’s trading performance remains in line with expectations, as outlined in the October 2025 trading update. Activity within the Mechanical Engineering Division continues to track broadly in line with the first six months of the financial year.
The Group’s firm fixed orderbook stood at £288 million at the end of February, reflecting the procurement cycles typical of the capital goods markets we serve. The Mechanical Engineering Division has been disappointed by the outcome of two significant tenders during the period. Easat lost a tender for 20 off 7.5 metre Coastal Radar Antenna and Transceivers, with a contract value of approximately €18 million, relating to installations off the coast of Estonia. In addition, Goodwin International unexpectedly lost a tender with Sellafield in the last quarter, with a bid value in excess of £45 million, despite the strength of the Group’s technical proposal and its ongoing delivery of compliant Self Shielded Boxes and 63 Element Racks in line with production schedules.
Within the Refractory Engineering Division, trading conditions remain broadly unchanged. Persistently elevated gold and silver prices continue to weigh on confidence in the jewellery casting markets, and there have been no other material developments influencing trading activity during the period other than the lack of confidence by the general public starting to colour their spending habits.
We feel it appropriate to advise that as of the time of writing, none of the many valves we currently have on order for LNG facilities in the Middle East or the USA have been cancelled or placed on manufacturing hold. However, on certain large Middle East contracts, the Group has been requested to delay the dispatch of valves, reflecting the current geopolitical environment in the Gulf . While these requests have not resulted in cancellations, they may affect the timing of revenues.
The Group has proceeded with the construction of an extension to the foundry facility; the development is intended to support an automated moulding line. The company has undertaken the work to date at its own risk, however we are expecting final planning approval for the project imminently and any significant progression or purchase of capital equipment is subject to the securing a purchase order by Goodwin Steel Castings Ltd.
For Duvelco high technology products, still no commercial sales have been made to date, the business has progressed to a stage where market engagement is expected to lead to initial contributions to Group sales in the financial year ending 2027. Any such contribution is not expected to be substantial in the early years, as the rate of increase in sales is anticipated to be progressive as with any new product launch and dependent on technical approval timelines specific to individual end‑markets, which can vary in length and, in some cases, extend over multiple years.
Considering the payment of a special interim dividend in November 2025, together with highly increased global geopolitical uncertainty, the Board continues to take a prudent approach to capital allocation and financial resilience. Accordingly, the Board is considering whether to revert to its previous dividend policy, under which distributions were limited to 38% of post‑tax profit plus depreciation and amortisation, or to a lower level should this be considered appropriate given the escalating Gulf situation and the broader economic environment.
Finally, we are proud to announce the return of the Steelman statue to the front of Goodwin House, our head office. Originally manufactured by Goodwin Steel Castings in 1974 to honour the workers of the Shelton Bar Steelworks prior to its closure, the Steelman has been kindly loaned by the Potteries Museum on a long-term basis. To see an image of the Steelman in its new location, please visit our homepage at www.goodwin.co.uk.