28th August 2026

 

Goodwin PLC today announces its preliminary results for the year ended 30th April, 2026.

 

CHAIRMAN'S STATEMENT

 

I am pleased to report a record level of profits for the Group for the twelve month period ended 30th April, 2026. The trading profit was £77.5 million (2025: £35.5 million) an increase of 118% year-on-year on revenue of £280 million, which is up 27% on the revenue reported for the prior year, as set out in the financial accounts to be published shortly. (Additional details on the trading profit are to be found in the full financial statements to be published shortly).

The Directors propose an increased ordinary dividend of 330 pence (2025: 280 pence) per share, an 18% increase. Further details on the Dividend Policy and timing of the payment can be found on in the financial statements to be published shortly. This continued strong performance reflects the sustained strength of our end markets and the benefits of the strategic decisions taken over several years to focus the Group on specialist, technically demanding sectors.

Whilst there has been growth in all our manufacturing companies, the Mechanical Engineering division in particular has continued to experience a substantial increase in customers' demand for precision-machined, high-integrity castings into mission critical defence and nuclear applications. As a result of continued investment in its customer relationships, engineering expertise and manufacturing capabilities, Goodwin has positioned itself to be a leading supplier on many UK and US Navy frigate and submarine programmes. Our ability to supply high-quality products, that are technically difficult to make on a fast and consistent basis, has supported the continued growth in volumes, as well as continued improvement in margins.

The Board has continued to assess the long-term strategic direction of the business. The significant improvement in the performance of the Mechanical Engineering division, together with its strong market position and attractive growth prospects, has substantially enhanced its strategic value and generated considerable external interest. During the year, and as announced post period-end on 7th August, 2026, the Board committed to pursuing a potential disposal of a substantial part of the Mechanical Engineering Division and appointed Rothschild & Co as its financial adviser to initiate an active sale process of its constituent business units, to maximise value for shareholders whilst ensuring continuity for all stakeholders, including customers, and the long-term prospects of the business. As part of this process, the business was actively marketed to potential purchasers. The proposed disposal includes Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group and Pumps.

The sale process is progressing well, and the Group has been in discussions with a number of potentially interested parties, as well as continuing the important strategic dialogue we have with all our stakeholders. Our customers, suppliers and employees should expect business to continue uninterrupted, and management remains fully committed to maintaining the high standards of service and operational performance that have underpinned the success of these businesses. The Board expects to provide a further update as the transaction progresses. 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.

As a result of the Mechanical Engineering sale process and the Board's committed disposal plan, the Board is considering the most appropriate capital allocation strategy and dividend policy for the Group going forward. As the composition, investment requirement and capital structure of the Group will likely change, the Board wants to ensure that it can pay excess cash to shareholders, whilst balancing value-enhancing investment opportunities within its manufacturing companies.

The Board currently expects that a substantial part of the cash proceeds from any disposal resulting from its strategic review of the Mechanical Engineering division will be paid to shareholders.

As part of the strategic review, management reporting was revised to reflect the proposed sale of a substantial proportion of the Mechanical Division, which included the creation of a new Technological Division, as an operating segment.

Mechanical Division (Assets held for Sale)

Goodwin Steel Castings Limited and Goodwin International Limited

The defence programmes secured over recent years continued to progress during the year, resulting in a substantial increase in the volume of high-integrity components manufactured for UK and US naval ship and submarine programmes. The division successfully met the demanding quality and delivery requirements of these programmes, reflecting the benefits of the sustained investment made in manufacturing capability, engineering expertise and customer relationships over many years. The operational performance achieved during the year has further strengthened the division's reputation with its customers.

Easat Radar Systems

Easat Group delivered its first material year in which the benefits of the turnaround strategy were fully reflected in the financial results, with profits improving from approximately breakeven to £4.5 million. This performance represents the culmination of several years of investment in technology, operational improvements and the transition from a component supplier to a provider of complete surveillance systems. During the year, management also delivered significant cost reductions and operational efficiencies, resulting in a marked improvement in profitability while continuing to deliver high levels of customer service and product performance.

Noreva

Noreva, the division's specialist valves business in Germany, also delivered strong profits during the year. This performance reflected strong demand from the LNG sector in the US. Whilst geopolitical events in the Middle East continue, despite the three months of storage prior to collection of certain customer shipments being invoked, no orders were cancelled and the business continues to perform strongly.

Pumps

The Pumps businesses also delivered a solid performance. In South Africa, a revised commercial strategy successfully improved order intake and restored sales momentum, whilst in India the business achieved record production and sales volumes, supported by strong domestic demand and increased intercompany supply to the Group's international operations. These achievements reflect the continued development of the division's manufacturing capability and operational efficiency.

Overall, the Mechanical Engineering Division delivered an excellent operational and financial performance during the year, reflecting many years of sustained investment, disciplined execution and the commitment of its employees. The Board is grateful for the significant contribution made by all those involved in achieving these results.

Refractory Division

The Refractory Division delivered another year of strong growth, with the divisional subsidiaries' trading profits up 15% year-on-year.

The companies within the division that manufacture investment casting powders, injection waxes and moulding rubbers for the jewellery industry - including GRS UK, GRS India, GRS Thailand and GRS China - have in part faced difficult trading conditions arising from record-high gold and silver prices, which have reduced sales into the jewellery casting industry. However, consumer spending has shifted from fewer, higher-cost purchases to a "wear once" mentality, driving demand for low-cost jewellery through online and social media impulse purchasing. We expect this trend to continue. Celebratory purchases to mark special occasions such as weddings will always have their place, but they now represent a smaller part of the market; the vast majority of consumer spending has moved to higher volumes of lower-cost jewellery, which we are well positioned to capture.

This shift has been highly beneficial to the Group, whether a piece is cast in brass or in gold, it requires the same quantity of investment casting powder, injection wax and moulding rubber. As a result, we have seen very strong growth in sales to the low-cost brass casting sector. We are even seeing global-leading silver jewellery brands beginning to move to plated brass in place of solid silver, lowering the price point of their products and moving them further into the high-volume, impulse-purchase category. To cater for this increase in demand, we expect to open a fourth investment powder manufacturing facility in China within the coming twelve to eighteen months.

Gold and silver prices have begun to recede. Precious-metal jewellery will continue to be an important part of the market, and we have started to see usage of our products in this sector begin to recover - which will move profits further forward as these higher-value sales return.

During the year, our research and development teams implemented a newly developed in-house technology that enables more cost-effective investment casting powder products with performance equal to or better than the formulations they replace. We have used this improved cost-effectiveness both to increase margins and, where strategically advantageous, to strengthen our competitiveness.

After many years of development and product trials, we are pleased to report that the largest jewellery caster in the US has adopted our patented X-SIL silica-hazard-free investment casting powder. This is a major milestone for us as a company and for the industry. The US is a market where we have historically refrained from selling to due to our traditional products being silica-based, and we expect that this represents the first step towards a wider transition. We also believe it will help drive change in Europe towards this silica-hazard-free range, on which we are able to achieve enhanced margins.

Hoben International had an excellent year, increasing profits substantially. This was driven by a combination of factors, including increased internal group demand for the cristobalite manufactured by Hoben (used by our investment powder companies), reduced energy costs, and the continued high growth of the Soluform concrete bagwork solution, sales of which grew by over 50% in the year. We expect Soluform to continue growing at high rates over the coming years, and we are expanding the team to deliver this growth.

AVD Fire, which manufactures and sells specialist lithium battery fire-extinguishing agent, lithium battery fire extinguishers, and lithium fire protection blankets and bags, is, we believe, at a very exciting point in its growth journey. Over the past ten years, a great deal of work has been done to establish AVD as the number one choice for extinguishing and containing lithium battery fires. Our products are being adopted globally and are recommended by insurers. Perception of the risk of lithium battery fires is changing rapidly, as is the global understanding that action must be taken to provide specialist products to extinguish and contain them. We now have a truly global distributor network, global recognition of the leading performance of our products, and a market that is increasingly being compelled to adopt solutions for this significant risk. We are addressing testing and product requirements from all sectors, including commercial airlines, marine, automotive, rail networks, military, product distribution and storage centres, and many other applications.

Technological Division

Following a decision during the year to actively pursue the disposal of the majority of the Mechanical Engineering Division, the internal management reporting was changed to reflect the continuing and discontinuing operations of the Group. A new operating division titled Technological Division, made up of Duvelco and Internet Central businesses, that were formerly part of the Mechanical Engineering Division, but are not part of the businesses for sale, is now reported separately.

Duvelco

Duvelco, the Group's advanced plastics business, remains an important long-term opportunity. Production finalisation has taken longer than originally anticipated, as can occur with a highly automated, complex and first-of-its-kind manufacturing process. The business continues to produce material for customer sampling and qualification, with feedback to date being positive, while the team focuses on completing the remaining commissioning items and establishing a robust, repeatable process capable of supporting future commercial demand. The outstanding items are mechanical rather than fundamental in nature and are not considered to represent a long-term risk. The lessons learned can also be incorporated from the outset into the design of any future manufacturing plants.

Duvelco has also entered into a strategic agreement with an established processing partner to manufacture stock shapes. The arrangement will initially utilise the partner's available capacity, with further capacity to be added as demand develops. As the partner already undertakes hot compression moulding at scale, the agreement provides a low-risk route to market, broadens Duvelco's product offering and avoids the learning curve associated with establishing this capability internally.

Although samples have not yet been distributed in significant volumes, the Board is encouraged by the progress being made and continues to believe that Duvelco has significant long-term potential. The focus remains on completing production finalisation and expanding customer sampling and qualification activity as Duvelco's material reaches a broader range of prospective customers and applications.

Cash flow and capital expenditure

Cash generation improved during the year. The Group has benefited from the milestone payments negotiated into the defence contracts won to date and these payments have helped to support working capital and provide greater visibility over cash flow as the programmes progress.

In terms of capital expenditure, the major item during the year was the construction of the new Foundry 5.0 building in Hanley. This facility will house state-of-the-art automated moulding and robotic casting upgrade equipment, which the Group has been developing in conjunction with its R&D partners, including the US Navy and Siemens. This investment represents an important step in the continued modernisation of the Group's manufacturing capability and the building is scheduled to be finished in the fourth quarter of this calendar year.

There are no other major capital expenditure projects underway or planned that would not be customer funded. The Group's net debt as at April 2026 was £29 million, reflecting continued strong financial performance and a prudent approach to leverage, which stood at 22.4% as at the 30th April, 2026, after paying out the special interim dividend of £40 million in the month of November 2025.

Goodwin PLC post the proposed disposal of the Mechanical Division

Following completion of a proposed disposal resulting from its strategic review of the Mechanical Engineering Division, the Group will comprise a simpler, more focused portfolio of specialist businesses with strong market positions and attractive long-term growth prospects. The disposal will allow management to concentrate its resources on developing the remaining businesses, while maintaining the disciplined approach to capital allocation that has underpinned the Group's success.

Particular emphasis will be placed on accelerating the commercial development of the Group's newer growth opportunities, including Duvelco and AVD Fire, alongside supporting the continued expansion of our established Refractory businesses. The Board believes these businesses offer significant long-term value creation potential and will benefit from increased management focus and investment.

As a result of the disposal, the Group will comprise the Refractory and Technological divisions. These businesses represented in aggregate £118 million in gross assets and £10 million in operating profits in the financial year ended 30 April 2026.

The Group's banking partners have expressed their continued support for the remaining business and have confirmed their willingness to provide appropriate facilities going forward. Nevertheless, the Board's intention is, at least initially, to operate the Group on a zero net debt basis, providing financial resilience and flexibility as we execute the next phase of the Group's strategy.

While the proposed disposal represents a significant milestone, the Board remains committed to continually reviewing the Group's portfolio and strategic direction to ensure capital is allocated to maximise long-term shareholder value.

People

The results achieved this year would not have been possible without the commitment, skill and hard work of our employees across the Group. On behalf of the Board, I would like to thank all of them for their continued dedication, professionalism and support during another important year for the business.

 

	T.J.W. Goodwin
	Chairman

 

Alternative performance measures mentioned above are defined in Note 7

SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS - NON-GAAP **

for the year ended 30th April, 2026

		2026								2025
		Refractory	Technological		Central costs	Continuing	*Mechanical (Discontinued)		TOTAL	TOTAL
		£'000	£'000		£'000	£'000	£'000		£'000	£'000
Revenue		64,856	3,922		84	68,862	211,154		280,016	219,709
Cost of sales		(32,666)	(3,212)		(240)	(36,118)	(103,620)		(139,738)	(128,100)
GROSS PROFIT		32,190	710	(156)		32,744	107,534	140,278		91,609
Selling and distribution costs		(5,803)	(572)	(71)		(6,446)	(6,380)	(12,826)		(10,903)
Administrative expenses		(10,674)	(3,593)	(2,094)		(16,361)	(32,487)	(48,848)		(43,594)
OPERATING PROFIT		15,713	(3,455)	(2,321)		9,937	68,667	78,604		37,112
Finance income		26	‒	944		970	91	1,061		1,305
Finance costs		(41)	(34)	(12)		(87)	(2,140)	(2,227)		(2,965)
Share of profit of associate company		64	‒	‒		64	‒	64		65
TRADING PROFIT		15,762	(3,489)	(1,389)		10,884	66,618	77,502		35,517

* The results of the discontinued operations include those of Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group and the Pump Division.

** This consolidated statement of profit and loss is non GAAP and the headings from Revenue down to Trading Profits are the combined results of the continuing operations and discontinued operations, which can be seen in more detail on in the financial statements to be published shortly.

The Board committed to pursuing a potential disposal of a substantial part of   the Mechanical Engineering Division that includes Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group and Pumps. As such, these accounts have been prepared to reflect the potential sale by reporting Continuing and Discontinued Operations.

This statement of profit and loss does not comply with the IFRS requirements for disclosure, but it has been included to provide shareholders with a clear view of the impact of the potential sale. The IFRS profit and loss statement is in the financial statements to be published shortly.

OBJECTIVES, STRATEGY AND BUSINESS MODEL

The Group's main OBJECTIVE and PURPOSE is to have a sustainable long-term engineering based business with good potential for profitable growth while providing a fair return to our shareholders.

The Board's VALUES of engineering excellence, quality, efficiency, reliability, competitive price and delivery contribute to the delivery of its strategy.

The Board's STRATEGY to achieve this is:

·    to supply a range of technically advanced products to growth markets in the Mechanical, Refractory and Technological Divisions in which we have built up a global reputation for engineering excellence, quality, efficiency, reliability, competitive price and delivery;

·    to manufacture advanced technical products profitably, efficiently and economically;

·    to maintain an ongoing programme of investment in plant, facilities, sales and marketing, research and development with a view to increasing efficiency, reducing costs, increasing performance, delivering better products for our customers, expanding our global customer base and keeping us at the forefront of technology within our markets, whilst at all times taking appropriate steps to ensure the health and safety of our employees and customers;

·    to control our working capital and investment programme to ensure a safe level of gearing;

·    to maintain a strong capital base to retain investor, customer, creditor and market confidence and so help sustain future development of the business;

·    to support a local presence and a local workforce in order to stay close to our customers;

·    to invest in training and development of skills for the Group's future;

·    engineering activity and investment into the reduction of C0₂ emissions where it is commercially viable taking into account the long-term effects of CBAM (Carbon Border Adjustment Mechanism);

·    to manage the environmental and social impacts of our business to support its long-term sustainability.

 

 

BUSINESS MODEL

The Group's focus is on manufacturing within two sectors, Mechanical Engineering and Refractory Engineering, and technological advancement in a third sector, and through this division of our manufacturing activities, our overseas business facilities and our global sales and marketing activities, the Group benefits from market diversity. Further details of our business and products are shown on our website www.goodwin.co.uk

The Board of Directors commenced a strategic review of the Mechanical Engineering Division during the year, to consider a range of potential options to maximise value for shareholders, whilst ensuring continuity for all stakeholders, including customers and the long-term prosperity of its businesses. These options include the potential sale of the Mechanical Engineering Division, which includes Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group and the Pump Division.

After reviewing the options available, the Board of Directors decided that the preferred course of action was to progress with a disposal of the Mechanical Engineering Division. Rothschild and Co were appointed as the Group's financial adviser to manage that process, engage with interested parties and invite indicative and, subsequently, binding offers for the businesses identified for disposal.

The Board of Directors has considered the provisions of IFRS 5 and consider that they have met the requirements for the Financial Statements to be prepared as required by the standard for Discontinued Operations and Assets Held for Sale.

The scope of the proposed disposal was determined following consideration of the level of interest expressed by external parties, together with an assessment of the strategic fit of the businesses and the value that could be realised for shareholders. Following the assessment, detailed financial, commercial and operational information was prepared to support the disposal process and enable the businesses identified for disposal to be separated from those intended to remain within Group, and for interested parties to undertake their evaluation of those businesses.

Mechanical Division (held for sale)

The Mechanical Division specialises in supplying precision engineered solutions and industrial goods into critical applications, generally on a project basis, more often than not involving the complementary skill set of other group companies to deliver the requirement. The projects normally involve international procurement, high integrity castings, forgings or wrought high-alloy steels, carbon fibre composite structures, precision CNC machining, complex welding and fabrication, and other operations as are required. In addition to specialist projects, the Group manufactures and sells a wide range of dual plate check valves, axial nozzle check valves and axial piston control and isolation valves. These solutions and products typically form part of large construction projects, including the construction of naval propulsion and hull components, nuclear waste storage components, liquefied natural gas (LNG), oil and gas, petrochemical, mining, and water markets.

We generate value by creating leading edge technology designs and manufacturing processes, globally sourcing the best quality raw material at good prices, manufacturing in highly efficient facilities using up to date technology to provide reliable high-performance products to the required specification, at competitive prices and with timely deliveries.

The Group through its foundry, Goodwin Steel Castings Limited, has the capability to pour high performance alloy castings up to 35 tonnes net in weight, radiograph and to finish CNC machine and fabricate them at the foundry's sister company, Goodwin International Limited. This capability is targeting the naval defence industry and nuclear decommissioning, the oil and gas industry, as well as large, global projects requiring high integrity machined castings. 

Goodwin International Limited, the largest company in the Mechanical Engineering Division, not only designs and manufactures dual plate check valves, axial nozzle check valves and axial piston control and isolation valves but also undertakes specialised CNC machining and fabrication work for nuclear decommissioning projects. Goodwin International Limited also has a division that is focused on manufacturing / machining high precision, high integrity components for naval marine vessels. Noreva GmbH also designs, manufactures and sells axial nozzle check valves. Both Goodwin International Limited and Noreva GmbH purchase the majority of their sand mould castings from Goodwin Steel Castings Limited for their ranges of check valves and this vertical integration gives rise to competitive benefits, increased efficiencies and timely deliveries.

At Goodwin Pumps India Private Limited we manufacture a superior range of submersible slurry pumps for end users in India, Brazil, Australia, Canada, Peru and Africa. Easat Radar Systems Limited and its subsidiary, Easat Finland Oy, design and build bespoke high-performance radar surveillance systems for the global market of major defence contractors, civil aviation authorities and coastal border security agencies. We create value on these by innovative design, assembly and testing in our own facilities using bought in or engineered in-house components.

Continuing operations

The Continuing Operations of the Group are the Refractory and Technological Divisions, Goodwin Refractory Services Limited (GRS) generates value primarily from designing, manufacturing and selling investment casting powders, injection moulding rubbers and waxes to the jewellery casting industry. GRS also manufactures and sells these products to the tyre mould and aerospace industries. The Refractory Engineering Division has, other than its UK facility, four investment powder manufacturing and sales companies located in China, India and Thailand which sell the casting powders, waxes and moulding rubbers directly and through distributors to the jewellery casting industry and also directly to tyre mould and aerospace industries.

These companies are vertically integrated with another of our UK companies, Hoben International Limited (Hoben), which manufactures cristobalite, which it sells to the five casting powder manufacturing companies as well as producing ground silica that also goes into casting powders and other UK uses of silica. Hoben also manufactures different grades of perlite, and a patented range of biodegradable bags, known as Soluform, for use inside traditional hessian / jute bags for the placement of concrete and other materials in or around rivers. Within its Sandersfire division Hoben also manufactures a unique and comprehensive range of high-quality fire-stopping mortars distributed under the "Firecrete" brand name.

Dupré Minerals Limited (Dupré), a refractory company, focuses on producing exfoliated vermiculite that is used in insulation, brake linings and fire protection products, including technical textiles that can withstand exposure to high temperatures. Dupré also sells consumable refractories to the shell moulding precision casting industry. AVD Fire Limited (AVD) utilises an in-house designed and patented product that is used in a range of fire extinguishers and an extinguishing agent for lithium-ion battery fires that utilises a vermiculite dispersion as the fire extinguishing agent. AVD also sells a range of blankets that are used to extinguish and contain lithium-ion battery fires.

Duvelco, whose results have now been included in the Technological Division, is a specialist polyimide manufacturer, that will manufacture and sell polyimide resins into an established market. The resin can then be moulded into parts and shapes for the high temperature and critical applications, for which very few polymers can be used. Internet Central, an internet service provider, is also included in the Technological Division.

 

PRINCIPAL RISKS AND UNCERTAINTIES

The Group's operations expose it to a variety of risks and uncertainties. The Directors confirm that they continue to carry out a robust assessment of the principal risks the Company faces, including those that would threaten its business model, future performance, solvency or liquidity.

Market risk: The Group provides a range of products and services, and there is a risk that the demand for these products and services vary from time to time because of competitor action or economic cycles or international trade friction or wars. As shown in the financial statements to be published shortly, the Group operates across a range of geographical regions, and its turnover is split across the UK, Europe, USA, the Pacific Basin and the Rest of the World.

Operating in many territories helps spread market risk. Similarly, the Group operates in Mechanical Engineering, Refractory and Technological sectors, mitigating the impact of a downturn in any one product area as has been seen in recent financial years.

The potential risk of the loss of any key customer is limited as no single customer accounts for more than 10% of annual turnover.

As described in the Business Model, the Group generates significant sales from naval propulsion marine applications and ship hull components, as well as from valves it supplies to LNG, oil, chemical and water markets. The Mechanical Engineering Division also sells submersible pumps that are supplied to the mining industries and radar systems that are used for coastal surveillance and air traffic control applications. The Refractory Engineering Division sells vermiculite and perlite to the insulating and fire prevention industry and our investment casting powder companies indirectly sell to the jewellery consumer market through the supply of investment casting moulding powders, waxes, silicone and natural rubber. The Technological Division specialises in polyimide manufacturing, that will sell polyimide resins into an established market.  The resin can then be moulded into parts and shapes for the high temperature and critical applications for which very few polymers can be used.  Internet Central provides internet services.

Technical risk: The Group develops and launches new products as part of its strategy to enhance the long-term value of the Group.  Such development projects carry business risks, including reputational risk, abortive expenditure and potential customer claims which may have a material impact on the Group. The potential risk here is seen as manageable given the Group is developing products in areas in which it is knowledgeable, has extensive skill and expertise and new products go through rigorous, extensive testing prior to their release into the market.  The risk of product obsolescence is countered by continuous research and development investment into new products.

Product failure / Contractual risk: The risks that the Group supplies products that fail or are not manufactured to specification are risks that all manufacturing companies are exposed to, but we try to minimise these risks through the use of highly skilled personnel operating within robust quality control system environments, using third party accreditations where appropriate. With regard to the risk of failure in relation to new products coming on line, the additional risks here are minimised at the research and development stage, where prototype testing and the deployment of a robust closed loop product performance quality control system provides feedback to the design department for the products we manufacture and sell. The risk of not meeting safety expectations, or causing significant adverse impacts to customers or the environment, is countered by the combination of the controls mentioned within this section and the purchase of product liability insurance.

Supply chain and equipment risk: Failure of a major supplier or an essential item of equipment presents a constant risk of disruption to the manufacturing in progress, especially during times of high inflation or increased shipping times and costs. Where reasonably possible, management mitigates and controls the risk with the use of dual sourcing, continual maintenance programmes, and by carrying adequate levels of stocks and spares to reduce any disruption.

Health and safety: The Group's operations involve the typical health and safety hazards inherent in manufacturing and business operations. The Group is subject to numerous laws and regulations relating to health and safety around the world.  Hazards are managed by carrying out risk assessments and introducing appropriate controls, as well as attending safety training courses.

Acquisitions: The Group's growth plan over recent years has included a number of acquisitions. There is the risk that these, or future acquisitions, fail to provide the planned value.  This risk is mitigated through thorough and robust financial and technical due diligence during the acquisition process and the Group's inherent knowledge of the markets they operate in.

Financial risk: The principal financial risks faced by the Group are changes in market prices (interest rates, foreign exchange rates and commodity prices). As reported, the Company, on 2nd July, 2021, signed a contract to mitigate the impact of interest rate risk by taking out an interest rate swap derivative fixing £30 million of notional debt at less than 1% versus the variable SONIA rate for a period of ten years, commencing 1st September, 2021. Detailed information on the financial risk management objectives and policies is set out in the financial statements to be published shortly. The Group has in place risk management policies that seek to limit the adverse effects on the financial performance of the Group by using various instruments and techniques, including credit insurance, stage payments, forward foreign exchange contracts, secured and unsecured credit lines.  Prior to the expiry date of the Revolving Credit Facilities, the Board reviews the current and future requirements of the Group and arranges suitable replacement facilities prior to the current facility expiring.  Post year-end, the Group has renewed one of its Revolving Credit Facilities, that was due to expire, for a four year term.

Regulatory compliance:  The Group's operations are subject to a wide range of laws and regulations.  Both within Goodwin PLC and its subsidiaries, the Directors and Senior Managers within the companies make best endeavours to ensure we comply with the relevant laws and regulations.  The Group ensures that high ethical standards and values are adopted, specifically with regards to sanctions, anti-corruption, anti-bribery and human rights.  During the year, the Group has carried out training and continued to refine and update its internal policies to reflect the associated risks.

IT security: The Group performs regular and remote off-site backups of its IT systems, from time to time engaging external companies to test and report any weaknesses and deficiencies found to enable solutions to be put in place to mitigate and minimise the risk of an IT security breach.

Energy and Climate Change:  The Group is actively developing and implementing its carbon neutral plan, which helps mitigate the risk of the Group being exposed to the long-term effects of global warming and more specifically the upcoming Carbon Border Adjustment Mechanism (CBAM) taxes that will likely ramp up over the next ten years, in addition to significant increases in the cost of power that are a result of the fragile global energy system.  The Group's methods of mitigation include fixed price energy contracts, incorporating price escalation clauses into the longer term contracts and ultimately reducing the need to purchase energy from the national grid by installing renewable solutions like low cost solar panels. To date, the Group has installed 6.7MW of solar panels worldwide and planning has been obtained to install a further 4.3 MW of solar panels.  Additional information on the Group's climate related risks and opportunities can be found within the Environmental section of the financial statements to be published shortly.

FORWARD-LOOKING STATEMENTS

The Group Strategic Report contains forward-looking type statements and information based on current expectations, and assumptions and forecasts made by the Group. These expectations and assumptions are subject to various known and unknown risks, uncertainties and other factors, which could lead to substantial differences between the actual future results, financial performance and the estimates and historical results given in this report. Many of these factors are outside the Group's control. The Group accepts no liability to publicly revise or update these forward-looking statements or adjust them for future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.

Directors' statement pursuant to the Disclosure and Transparency Rules

Each of the Directors, whose names are listed in the financial statements to be published shortly, confirm that to the best of each person's knowledge: 

a.    the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole; and 

b.   the Strategic Report contained in the Annual Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. 

 

Directors

The   Directors of the Company who have served during the year are set out below

 

M. S. Goodwin                   Mechanical Divisional Managing Director

S. R. Goodwin                    Refractory Divisional Managing Director

T. J. W. Goodwin                Chairman

B. R. E. Goodwin               Director

N. Brown                            Director

A. J. Deeth                          Finance Director, appointed 28^th October, 2025

A. M. Thomas                    Appointed 28^th October, 2025

J. E. Kelly                             Non-Executive Director

C. A. McNamara                Non-Executive Director