Goodwin shares opened almost 12% lower on Wednesday after the group posted lower profits for the first half of the year.

Profits were down from £7.4m to £5.8m in the six months ended 31 October. Revenue for the period was down 22% to £62.6m.

Sales revenue was down 11% from last year to £62.62m.

Goodwin has said that the order book remains robust, however, the pandemic is delaying some capital projects and the downturn in the oil and gas industry means that caution is required.

Looking forward, the group said in a statement:

“With the upcoming completion of several radar systems in East Asia, the commencement of manufacturing works across our nuclear contracts and, hopefully, an improving Refractory Engineering Division performance, we expect the second half year pre-tax profits to be similar, if not improving on, the first half of this financial year.

“Despite conditions remaining tough for our foundry, which is still transitioning away from its historic baseload of petrochemical related work, it is well placed to benefit from the upcoming increase in military expenditure and nuclear related casting requirements as its precision heavy castings niche skillset will be required. However, like all projects within this industry, a significant amount of time is required until the design and procurement of components can occur and value can be realised. Armed with the baseload of casting nuclear waste boxes we believe that going forward it will be able to build its way back to sustainable profitability over time.”

Goodwin said that they continue to trade profitably and with the current order book level they are confident that this will continue and improve, especially as they move in to the next financial year.

Goodwin shares are trading -11.05% at 3,020.00 (1056GMT). In the year to date, shares have fallen from highs of 3,363.00.