Goodwin puts strategic review centre stage
Goodwin's preliminary results contained record profits, but
the more significant development was the continued progress of its strategic
review.
The engineering group said the sale process for a
substantial part of its Mechanical Engineering division is progressing, with
discussions taking place with a number of interested parties. The businesses
included in the process span naval defence, nuclear, valves, radar and pumps
operations which have benefited from strong demand in recent years. The company
also reiterated that a substantial proportion of any disposal proceeds is
expected to be returned to shareholders.
The announcement marks a further step in a process that
could reshape the company. Following the disposal, Goodwin would become a more
focused group centred on its Refractory and Technological divisions, while
retaining exposure to newer growth opportunities including Duvelco and AVD
Fire.
McBride deepens shift towards contract manufacturing
McBride announced a strategic partnership with consumer
goods group Vestacy, owner of brands including Air Wick, Calgon and Cillit
Bang.
The agreement includes long-term manufacturing contracts and
the acquisition of production facilities in Spain and Portugal for nominal
consideration. Under the arrangement, McBride will manufacture a range of
household and laundry products for Vestacy across its European manufacturing
network.
The significance of the deal lies in both scale and
structure. Management expects the partnership to reach annualised revenues of
around £170m by the second half of FY28, while the agreement also increases the
proportion of contract manufacturing within the group's overall revenue mix.
Vestacy will fund much of the equipment investment required for the
arrangement, with McBride taking responsibility for integration and transition
costs.
System1 rejects Brave Bison approach
The latest chapter in the developing takeover situation
between Brave Bison and System1 saw the latter formally reject the bidder's
offer document.
System1 said the terms contained in Brave Bison's posted
offer document were unchanged from those announced in July and maintained that
neither the cash-and-share offer nor the all-share alternative represented fair
value. The company also noted that the offer document contained no disclosed
irrevocable undertakings or letters of intent from System1 shareholders
supporting the proposal.
The announcement means the focus now moves to System1's
formal response circular, which the company said will also contain a trading
update that had previously been expected during August.
