Goodwin Share Discussion Threads

[km18] 18/2/2022 13:31

...from last year... Company overview: Goodwin is a provider of high quality designed and manufactured products for numerous sectors. The company operates through 2 divisions: Mechanical engineering and Refractory engineering. The former supplying in-house designed and manufactured metallic, composite and electronic products. The Refractory’s focus is  mineral based products and processed minerals. Company’s products can be found in a wide variety of sectors, such as Aerospace, automotive, construction, defence, fire protection etc. The group benefits from a fine balance of well-diversified product line and deep understanding of each individual business. Goodwin follows  mixed strategy of innovation in design and cost reduction. Latest trading update for the 12-month period ending in April looks positive, with a big result for H2 PBT of £10.7m, vs the H1 figure of £5.8m. Now we should consider the fact that ending period results could present mirky details, cause by reconciliations. Shareholders will be happy to hear that management has proposed an increase dividend of 102.24p, a 25% increase from the last one. Simplifying the statements, below we can see good profit margin channelling a healthy increase in diluted EPS of 59%, at 164.2p. P/E is, therefore, reduced from the sky highs of 30 last year, to a modest 18. Consistent dividend pay-out is another factor playing in favour of the stock, with the last 3 years divis substantially higher than normal. Cash flow important information consists of dividends easily covered by FCF, making them sustainable, and expectations for lower CapEx in future periods, as this year company invested in building a new facility....from WealthOracleAM https://wealthoracle.co.uk/detailed-result-full/GDWN/80

[mw8156] 15/12/2021 10:59

somewhat disappointing, engineering contracts expected but not yet in the bag - looks to me as though there is a delay from red tape in the US Dept of Defense or due to Covid, energy costs too high, looks as if they are going to have to erect wind turbines or solar roofing tiles at their sites, after Hoben's example, should have referred to the fatality but no reference in the text on a quick scan.

[redartbmud] 15/12/2021 07:54

Nothing shakes the unshakeable.

[cfro] 15/12/2021 07:40

It always looked likely, and i did worry, that high gas prices would impact sales at the mechanical engineering division but they now have some hedging in place which will guard against any future spikes in prices which is sensible imo. For this division the good news is that many of the new contracts recently pursued in the military , nuclear waste and surveillance markets are still to come through. The refractory engineering division doing much better and overall good results for the group as a whole.

[cfro] 14/12/2021 11:36

Thanks for the info shonep. Very sad event and you cant help but feel very sorry for the family and also anyone involved. I dare say that the company will have to pay out some kind of compo but more than likely covered by public liability insurance i would guess.

[shonep] 14/12/2021 11:08

Inquest now 11Feb

[shonep] 01/12/2021 14:48

Inquest into the tragic fatality opens on 10th, No sign of any immediate prohibition notices.

[tmfmayn] 23/10/2021 18:19

Small-Cap Spotlight Report: Goodwin #GDWN
 "The pivot seems to be working, not least because the latest results revealed a remarkable divisional performance of sales falling 14% but profit soaring 34%". hTTps://knowledge.sharescope.co.uk/2021/10/20/small-cap-spotlight-report-goodwin/

[mw8156] 21/10/2021 17:34

maynard paton has analysed-well worth a read.

[cockerhoop] 23/9/2021 09:47

Shonep, I attended an investor visit to Goodwins on 8th September and the Foundry was (as far as I could see) operating normally. GDWN certainly have sizable long term US Naval defence contracts (that have required recent expansion in Stoke) but i'd imagine the share price is being driven by the doubling or EPS between H1 & H2 of last year with the full effect of the new contracts (US Naval & Nuclear decommissioning) yet to flow into the financials. Looks quite exciting to me over the next couple of years.

[shonep] 23/9/2021 09:23

Hard to judge GDWNs exposure to defence nuclear but im hoping this AUKUS deal is driving the recent bump and it is sustained. Also no news on the tragic accident. No news is good news? ie no prohibition notices?

[skinwalker] 22/9/2021 18:41

Bought a few more earlier this week. Goodwin looks to be on a roll. Here's hoping!

[cfro] 10/9/2021 18:04

hTTps://www.ii.co.uk/analysis-commentary/richard-beddard-numbers-only-tell-half-story-top-ranked-stock-ii521355

[cfro] 26/8/2021 11:10

Very sad news. As a shareholder my deepest sympathies go out to everyone involved. Unfortunately the investigation under-way may result in a fine and compensation payments. We will have to await further news on that.

[alexisk] 11/8/2021 12:23

Wow, diluted earnings per share up 60% over previous year. Prospects look good.

[vprt] 11/8/2021 08:48

I agree that this is good, with good visibility to further improvement. Refractory doing very well with mechanical held back a bit by losses in Easat and Castings, both of which are expected to turn profitable. 30% gross margin is OK and more comfortable.

[cfro] 11/8/2021 07:26

Only read through the results quickly but all seems rather interesting. Profits up despite revenues down and order book down. Dividend up about 20%. These results were achieved in "challenging conditions" and three or four divisions still not "firing on all cylinders" as described by management. All look extremely excitingly set-up for future growth. I retain a small holding and await further news in six months.

[skinwalker] 12/5/2021 20:16

Long term hold ? You mean you bought when the share price was higher, and you're sitting on a loss ? How long before you can get your dosh back ?

[arregius] 17/12/2020 12:49

This is a very longterm hold for me. Business is like that. Owner operator

[redartbmud] 16/12/2020 11:14

If Goodwin is a share that you buy and hold forever then the odd blip is always going to occur. I am going back to sleep until they issue the next Rns and then the xd date.

[rp19] 16/12/2020 10:54

Thanks cfro, fair points and I don't disagree. I think for me, the question in the short/medium term is can the current share price multiple be supported whilst the lengthy (by nature of the industry) diversification process is underway. Perhaps it will as the market looks forward but, if not, others may see any fall as a buying opportunity.

[luderitz] 16/12/2020 10:42

My interest is that after research about a year ago I put Goodwin on my watch list, they are still there because as holders on here have said they will probably come back strong when the conditions have settled. Good fortune all.

[shanklin] 16/12/2020 10:01

cfro, You make some excellent points. Must admit I was amazed, given the very negative tone of the RNS, the share price did not immediately drop well below £25.

[cfro] 16/12/2020 09:34

RP19, I think you would agree that if they achieved similar eps for H2 and thus 115p for the year, that this is a "one-off" year and given the year we've all had would be a rather good result overall. As i said in my previous post, i really dont know what on earth investors were expecting here today. With profits down by only -22% and revenues even less at -11% and cashflow and future order book inline, it could have been a lot worse! This is a high quality, well run and conservatively managed business. The management are fully aware that the Oil & Gas industry is in decline and are moving away from that into very important growth areas such as renewables. Also sectors like defense (the governments proposed spending of some £16bn) and even Nuclear will provide the company with many new opportunities going forward. I dont know where eps and profits will be in two or three years time but you can bet they will be a lot higher than now.

[luderitz] 16/12/2020 08:43

Morning all, Goodwin PLC - Half Year report not received well, share price down 10/11% in early dealing.