Source: Sharecast
Responding to recent press speculation, the engineering firm said: "The board of Goodwin confirms that it has commenced a strategic review to consider a range of potential options to maximise value for shareholders whilst ensuring continuity for all stakeholders, including customers, and the long-term prosperity of its businesses.
"These options include the potential sale of a substantial part of the mechanical engineering division, which includes GSC, GI, Noreva, Easat and Pumps."
The naval components supplier, which is being advised by Rothschild & Co, said talks are ongoing and there can be no certainty that a transaction will be entered into.
"The board will update shareholders on the progress of the strategic review, as appropriate," it added.
At 0950 BST, the shares were up 10.6% at 20,800p.
Russ Mould, investment director at AJ Bell, said: "Family-owned engineer Goodwin has largely kept a low profile in its time as a public company, even if a supercharged share price performance, and some recent volatility, has made it hard to ignore in recent years.
"That may change after reports which reveal the Stoke-on-Trent outfit is entertaining bids for its defence business. The company is a major supplier to UK and US submarine programmes and has also benefited from bumper defence spending across other parts of its business.
"The company took a big hit in March when it lost two significant contracts and faced order delays in the Middle East – casting a shadow over its dividend prospect.
"Yet the interest in Goodwin’s defence arm is a reminder that the UK has a collection of engineering businesses which are global leaders in their respective niches.
"What any sale would mean for the future of Goodwin as a standalone business remains an open question but it is likely to still derive a significant chunk of its revenue from military spending regardless."
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