Goodwin says mechanical disposal talks 'progressing well', as profits jump

(Sharecast News) - Goodwin has announced that talks regarding the sale of its Mechanical Engineering division are "progressing well", and there have been discussions with a "number of potentially interested parties", as it reported a doubling of operating profits for the financial year to 30 April.

After announcing a strategic review of the business unit three weeks ago, the board said it wants to complete a disposal within the next 12 months, and expects to return a "substantial part" of any cash proceeds to shareholders.

Group revenues totalled £280.0m over the year, up from £219.7m the year before, though £211.2m of this turnover was generated by the mechanical divisions and is now classed as discontinued.

Continuing revenues totalled just £68.9m, marginally higher than the £67.3m reported the year before.

Company-wide operating profits jumped to £78.6m from £37.1m, but continuing operating profits fell to £9.9m from £12.0m.

"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," said chair Timothy Goodwin.

"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."