REG - Goodwin PLC - Trading Update & Strategic Collaboration Agreement

GoodwinAnnouncement

24/09/2025 08:30

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RNS Number : 6038A  Goodwin PLC  24 September 2025

GOODWIN PLC

September 2025

Trading Update & Strategic Collaboration Agreement

 

Trading update

We are pleased to report that the Group's activity and workload have continued
to substantially move forward. The workload was £357 million as at 31st
August 2025 (a 24% increase from April 2025), which is being matched by a
similar increase in our levels of activity.

The Refractory Engineering Division is delivering strong growth, with current
trading profitability significantly ahead of the prior year. This is largely
driven by the continued global market share and margin gains by our investment
casting powder companies. This growth results in higher usage of cristobalite
manufactured by Hoben International Limited.  In addition to this sale of
Soluform's concrete bag work by Hoben are 80% ahead on a year-to-date basis
and we are confident in the ability of the team to keep growing sales of this
product line in the long-term.

The Mechanical Engineering Division's specialist heavy duty submersible pump
companies, which supply their pumps into the mining industry, are on track to
deliver a 30% year on year increase in activity by the half year. Goodwin
Pumps India Private Ltd, which manufactures the pumps and sells the units
domestically and to its sister pump companies based in Australia, Brazil and
South Africa, has stepped up its production in line with the growing demand
globally.

Positive momentum continues at Goodwin International Ltd, which, since the
beginning of September, has received a follow-on order for a further 20 units
of the 63-element rack under the existing framework agreement with Sellafield.
These highly engineered racks, each measuring approximately 5.5 metres high by
2.5 metres by 1.25 metres, require advanced manufacturing techniques and
precision CNC machining. Once delivered, each rack will securely house 63 cans
of spent nuclear fuel as part of Sellafield's long-term storage
infrastructure.  To date, Goodwin International has successfully delivered 27
racks to the customer, and this latest award brings the contracted total to
100 units. Further call-offs are expected in the coming months. As noted by
the client, "the decision reflects our continued confidence in Goodwin
International's capability and performance".

Goodwin Steel Castings Ltd is safely operating at respectable levels of
activity supported by the addition of further radiographic inspection
facilities which have been commissioned within 12 months of order award.
This customer funded investment in facilities increases the radiographic
facility output by 300% on a component level and will yield a significant
increase in profitability and better support future demand across multiple
programmes.

Easat Radar Systems Ltd continues to make notable commercial progress,
securing contracts that will materially enhance the company's profitability in
the current financial year and future years. In September alone, Easat was
awarded a £5 million contract to supply its state-of-the-art co-located
surveillance systems to Turkmenistan.

Strategic Collaboration Agreement with Northrop Grumman

The Board is pleased to report a major strategic development, as Goodwin Steel
Castings has entered into a significant collaboration agreement with
long-standing customer, Northrop Grumman International Trading Inc. (NGIT),
part of Northrop's Mission Systems sector.

The partnership is formalised through a Memorandum of Understanding (MoU) and
covers four key defence programmes, with an initial $16 million order. As the
USA submarine programmes have funding releases, the expected orders will
likely develop to over $200 million. Alongside the MoU, an exclusivity
agreement was finalised, under which Goodwin Steel Castings, supported by
Goodwin International, will serve as the sole supplier for a critical
programme component which would account for approximately 25%-30% of the MoU
value. This work flow shall deploy Goodwin's patented technology and is
therefore eligible for UK patent box relief.  The Group has successfully
delivered this component before using our metallurgical and large precision
machining skillset, where overseas suppliers have been unable to do so, and as
such has become NGIT's supplier of choice for this and other components as a
result.

This collaboration strengthens the Group's position in core defence sectors
and reflects our growing reputation as a trusted partner in delivering
technically advanced components for mission-critical applications. The Board
believes this partnership will create further opportunities for collaboration
on future defence programmes.

 

T.J.W. Goodwin

Chairman

 

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LEI: 213800N4T1NMSJ57B322

 

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