Goodwin Share Discussion Threads

[deadly] 03/7/2019 18:15

7% drop today; any news?

[danny baker] 03/5/2019 09:58

Directors topping up their ISAs on 30th April.

[mw8156] 01/5/2019 14:04

this younger generation appears to be no fools, well-educated, accountants and graduates of Imperial College, UCL....

[danny baker] 01/5/2019 13:31

Haha the Goodwins passing the baton to the younger generation but also holding on to it by remaining on the audit committee to check what the young whippersnappers are doing. The Goodwin family don't really hold much truck with this corporate governance malarkey. By remaining involved in the company the retiring directors also still qualify for entrepreneur's relief for CGT. I know it is easy to knock them for their old-fashioned views but at the same time I would like to acknowledge and thank them for their excellent custodianship of the family business and the returns they have generated for shareholders.

[cockerhoop] 01/5/2019 11:27

There was never a absolute target imo. It was as explained up the thread - 0.4% of the company for every 92.5p of TSR above £22.20.

Regards directors succession I imagine the retirements were all planned at the advent of the LTIP in 2016.

[redartbmud] 01/5/2019 10:37

O The so far,to give us the facts. All change at the top too. Have they fallen on their swords, for not reaching £35?

[cockerhoop] 01/5/2019 10:31

At the uncrossing price of £31 last night I think the directors gain approx 4.4% of the companies shares as part of the 2016 LTIP.

[redartbmud] 16/4/2019 11:33

Well, the quote is 3100 - 3280
They are gonna do it🤑

[cockerhoop] 15/4/2019 08:22

Red,

I've seen a Richard Beddard article suggesting £42.50 would be the maximum (ie 8% dilution) which roughly correlates to my figures although he doesn't appear to consider dividends in his TSR calculation.



This one though suggests £35




My reading suggests a TSR of 1850p above April 2016's £22.20 is required to get the full 8%. On that basis at the current share price we'll see about 4% dilution with it rising by 0.4% for every 92.5p rise in share price

[redartbmud] 14/4/2019 22:44

Hi dacian,

I have to confess that I took Beddard's figure of £35 as being accurate.
He did an in-depth report on it a while ago, (I cannot find the article that I read, otherwise, I would attach the link.) and I have no reason to suspect his published figures are inaccurate.
The precis of the scheme, as reported in the Annual Report & Accounts is very opaque, as to the precise numbers, and I thought it not worthwhile attempting to 'split the atom' all over again.
I did revisit my copy of the latest accounts and that conformed that 8 directors could receive up to 72,000 each.

[cockerhoop] 14/4/2019 11:41

Dacian,

I make it 316800 shares in total based on a £31 share price and £1.67 in dividends since 2016.

ie 3600 shares x 8 for every 92.5p increase in TSR above £22.20

so 55% of total possible maximum payout

Interestingly 20% of the maximum has been added since the product innovation RNS on 2nd April - the cynical may consider that share price manipulation so close to the 30th April 2019 performance cutoff.

[redartbmud] 12/4/2019 22:53

mw

That was the comment at the time.
Sorry about earlier, I had it in mind that there were 10 directors involved, but there are only 8!!
I should have referred to my accounts, which I was too lazy to dig out.

Sting in the tail, for them, is that they can only sell a third of those shares that vest, over the next 5 years. They are not eligible for another LTIP until those 5 years elapse.

[mw8156] 12/4/2019 22:42

that seems overly generous, though they deserve to be well-rewarded should the share reach £35 and for their stewardship in the last 25 years of expansion.

[redartbmud] 12/4/2019 15:31

mw

Stand corrected, one too many 0's
It should be 72,000 for each director, eligible, of which there are 8.
Still £2.52m for each director!!

Overexcited at the prospect.

[mw8156] 12/4/2019 15:13

1% would be 72000 shares?

[redartbmud] 12/4/2019 15:03

Beddard on 16 Sept 2016.
LTIP:

Crudely, the incentive could award Goodwin directors options on 1% of the company's share capital in less than three years' time if the share price reaches £35 (today it is around £20). The options would cost them a minimal amount to exercise and each director's award would be worth around £2.5 million*. The cost to shareholders would be an 8% dilution in their holdings. A small price to pay, perhaps, considering the share price would have risen about 70%.

Currently 7.2m shares in issue, so 1% = 720,000 shares.

Any bets, the current share price is £31.60 up £1 today?

[bottomfisher] 09/4/2019 08:43

A couple of encouraging recent announcements from GDWN. It is the first time I can remember that the company has issued a press release on a product innovation - the world's first silica free jewelry investment casting powder - followed by news that all four sons of the chairman and managing director have taken up their full annual ISA allowance to up their already large personal stakes in the family business. The wider Goodwin family owns 53 % of the equity and these four lads have a combined 4% stake worth 8.6m pounds. A reassuring sign that the next generation of Goodwins are just as committed to the business as the current chairman and MD who are getting close to retirement.

[jaf111] 02/4/2019 09:43

Interesting RNS just out re product innovation.....particularly like last para....


This new product will assist Goodwin's seven jewellery investments casting powder manufacturing companies to further extend their global market share in the jewellery investment casting powder market where their share already exceeds 50%. As the new silica free product is a premium product, not only in quality but also on safety considerations, it should allow for further improvement in gross margin and profits earned in the Goodwin Engineering Refractory division over the coming years.

[westofengland] 11/2/2019 15:22

Its a good solid business as markdallara outlined last month.

I sense that it will continue to reward yet its the kind of stock to buy and hold rather than worry about the short term.

Lest we ever forget, we have some excellent engineering businesses in the UK and this, without question, is one of them.

Ultimately, investing in staff, taking on apprentices and keeping going while there may be uncertainties among the competition brings rewards. The new dividend policy outlined with the 2017/18 results will suddenly bring a new group of investors aboard. Like markdallara, buy and it will reward when you least expect it and there's a steady, growing dividend stream coming through.

[jaf111] 04/2/2019 08:10

....and starts the day very strongly too......