Shares in Goodwin jumped by as much as 15% earlier today as the FTSE 250 firm confirmed it had launched a strategic review into the potential sale of its mechanical engineering division.

The heavy engineering company stated that the review will 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.

Goodwin said these options include the potential sale of its mechincal engineering division, which includes brands such as GSC, GI, Novera, Easat and Pumps.

The firm added that discussions are ongoing and there can be no certainty that a transaction will be entered into.

Investment director at AJ Bell, Russ Mould, stated that the FTSE 250 firm has “kept a low profile” as a public company, but this may change following the latest update.

He stated: "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."

Goodwin said it will update shareholders on the progress of the strategic review as appropriate.

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