The multi-year deal, with an unnamed client, is the largest purchase agreement ever signed by Goodwin and follows extensive behind the scenes work.
That effort has now paid off with the company saying that the contract is expected to result in ‘significant turnover’ for the business from the next financial year onwards. Production is expected to ramp up over the next 12 months.
Today’s news came as a bolt out of the blue but was met with a rapturous reception by investors. The share price jumped 18.5% in morning trading to £32.60, meaning that the stock has now recovered all of its coronavirus losses.
Before the pandemic emerged Goodwin had enjoyed a two year share price run, rallying from £16.60 in March 2018 to more than £35.
DILUTING OIL INCOME
This is an important step for Goodwin as it attempts to diversify its income streams and shift the business away from the oil industry.
Oil revenues have historically accounted for about 40% of the company’s overall turnover but that is expected to fall to around 20% going forward.
‘Goodwin Steel Castings will manufacture castings for the project, with other activities being undertaken at Goodwin International,’ the company said.
The Stoke on Trent-based business was established in 1883 by the Goodwin family, and it remains controlled by them to this day. The family controls roughly 52% of the company’s shares, with the rest in the hands of institutional and retail investors.