March 23 (Reuters) - Goodwin shares tumbled nearly 35% on Monday after the British mechanical engineering firm said it was considering cutting dividend payouts as the Iran conflict led to order delays
Goodwin Mulls Dividend Cut After Iran Conflict Delays Orders; Shares Drop
Goodwin Faces Financial Uncertainty Amid Middle East Tensions
March 23 (Reuters) - Goodwin shares tumbled nearly 35% on Monday after the British mechanical engineering firm said it was considering cutting dividend payouts as the Iran conflict led to order delays in the Middle East.
Dividend Policy Under Review
The board will decide whether to revert to limiting dividend payout to 38% or lower, given the escalating situation in the Middle East, the firm said.
Impact of Middle East Conflict on Operations
"On certain large Middle East contracts, the Group has been requested to delay the dispatch of valves," Goodwin said, adding that the delay may affect the timing of its revenues.
Order Status and Revenue Implications
Goodwin, a manufacturer of valve systems used across oil and gas, petrochemical and LNG plants, said none of its many orders for LNG facilities in the Middle East or the U.S. has been cancelled or placed on manufacturing hold.
Financial Performance and Market Reaction
The firm said it was trading in line with its expectations of logging about 71 million pounds in pre-tax profit for the year ending April.
Share Price Decline
Shares were down 34.5% at about 154 pounds as of 0957 GMT.
Reporting and Editorial Credits
(Reporting by Prerna Bedi in Bengaluru; Editing by Harikrishnan Nair)
