Engineering group Goodwin has seen sales rise by more than a quarter despite the economic downturn.
The Stoke-on-Trent family firm turned over £100.7 million in the year to May, compared with £80.6 million in 2008, after seeing demand rise from power generation markets worldwide.
The company also saw profits rise by 33 per cent across the year, from £39.8 million in 2008 to £13.1 million.
Chairman John Goodwin said the results also benefitted from the takeover of German valve manufacturer Noreva GmbH which more than doubled its pre-tax profits to £3.1 million in its second full year of trading as part of the group. He was particularly pleased the group had managed to hit a target of eradicating its debt.
Mr Goodwin said: “We embarked on this debt reduction programme as, for more than a year, our board had become increasingly concerned about our main clearing bank.
“This concern turned out to be well-founded as, towards the end of 2008, despite the group’s excellent reported financial performance, the same facilities as we had previously enjoyed were not on offer and, although we had banked with them since 1903, we changed banks. Our new banks, Barclays and Lloyds TSB, who offered the company the facilities it requested, are now our main bankers.”
Mr Goodwin said the company started the new financial year with an order book of £57 million.
Goodwin, which employs more than 600 in Stoke-on-Trent, has invested in firms in growing nations in recent years, including Brazilian manufacturing firm Gold Star, and Mr Goodwin said that investment was yet to significantly pay off on the balance sheet.
Goodwin’s rise in profits came despite a hefty rise in administrative expenses, from £8.8 million in 2008 to £10 million in the last financial year, which meant the total cost of sales rose 24 per cent, to £72 million.