Goodwin PLC (LSE:GDWN) reported higher profits across parts of its continuing operations for the four months ended 31 August 2026 as the company prepares for the proposed disposal of a substantial portion of its Mechanical Engineering Division.
Profit from Goodwin’s overseas refractory operations increased 19% to £3.1 million during the period, despite maintenance-related interruptions and lower demand in some markets associated with precious metals.
AVD Fire and Dupré Minerals generated combined profit of £1.0 million, representing an increase of 30%.
Duvelco Reports £1.7 Million Loss
Goodwin said production at its Duvelco operation remains constrained by an issue at the drying stage of its manufacturing process.
As a result, throughput is currently running at approximately 20% of plant capacity. Duvelco recorded a £1.7 million loss during the four-month period.
The company is relocating polyimide presses to the UK and assessing equipment solutions intended to address the production constraint and increase plant utilisation.
Goodwin said Duvelco’s polyimide product is technically competitive with the product offered by the global market leader.
Mechanical Engineering Disposal Valued at Up to £1.1 Billion
Goodwin is progressing the previously agreed disposal of a substantial part of its Mechanical Engineering Division to an affiliate of Cerberus.
The transaction is expected to generate cash consideration of up to approximately £1.1 billion, subject to its terms.
Completion is expected in early 2027 and remains subject to the required approvals.
Goodwin expects that no UK corporation tax will be payable on the gain arising from the disposal.
Goodwin Considers Return of Disposal Proceeds
The company is considering options to return a significant proportion of the net proceeds from the transaction to shareholders.
Goodwin’s engineering training school will transfer to the buyer as part of the business being sold.
The proposed transaction will leave Goodwin with a smaller group focused on its remaining refractory and technology-related operations.
Board Reviews Management Structure
In preparation for the proposed disposal, Goodwin’s board is reviewing the leadership structure, corporate governance and remuneration arrangements for the continuing group.
The company has begun recruiting a chief executive officer and finance director for the remaining operations.
Following completion of the transaction, Goodwin’s continuing businesses will include its refractory operations alongside AVD Fire, which develops lithium-ion battery fire protection products, and Duvelco, which develops high-performance polyimide materials.
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