Shares in FTSE 250 firm Goodwin plc have dropped 35% today (writing at 1.30pm) after it revealed it had lost two significant tenders.
The historic engineering firm, founded in 1883, revealed the loss of two tenders worth around £60 million.
“The mechanical engineering division has been disappointed by the outcome of two significant tenders during the period,” it stated to the London Stock Exchange.
“Easat lost a tender for 20 off 7.5 metre Coastal Radar Antenna and Transceivers, with a contract value of approximately €18m, relating to installations off the coast of Estonia.
“In addition, Goodwin International unexpectedly lost a tender with Sellafield in the last quarter, with a bid value in excess of £45m, despite the strength of the group’s technical proposal and its ongoing delivery of compliant Self Shielded Boxes and 63 Element Racks in line with production schedules.”
The group’s firm fixed orderbook stood at £288m at the end of February, it said.
Goodwin added that its high-technology polymer manufacturing division, Duvelco, is yet to make a commercial sale.
“The business has progressed to a stage where market engagement is expected to lead to initial contributions to group sales in the financial year ending 2027,” it said.
“Any such contribution is not expected to be substantial in the early years, as the rate of increase in sales is anticipated to be progressive as with any new product launch and dependent on technical approval timelines specific to individual end‑markets, which can vary in length and, in some cases, extend over multiple years.”
However it said the group’s trading performance remains in line with expectations.
Its share price currently stands at 14,900 pence, giving it a market cap of £1.13 billion.