REG - Goodwin PLC - Half-year Report <Origin Href="QuoteRef">GDWN.L</Origin>
RNS Number : 6363ZGoodwin PLC18 December 2017GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2017
CHAIRMAN'S STATEMENT
I am pleased to report that the pre-tax profit for the Group for the first six month period ending 31st October 2017 was 6.10 million (2016 : 6.05 million), an increase of 1% from a revenue of 61.89 million.
The current workload as at 31st October 2017 stands at 84 million, unchanged from 12 months ago. The order input for the first six months of this financial year is the same as for the same period last financial year. Due to the persistent low activity in the oil, gas and mining industries which is now into its third year, the Group had no alternative than to further reduce the labour force by 50 since April 2017 and the total number of Group employees now stands at 1,070.
Due to the further improvement on the refractory engineering side of our business, we expect to see the Group profitability for the second half of the year starting to move forward again especially as compared to the Group figures for the six months to 30th April 2017.
The pre-tax profit for the first half of this financial year benefitted from a gain of 1.61 million that was realised when Gold Star Powders India sold its one acre of land and factory facility it purchased in 2003 for 110,000. Gold Star Powders has now moved to the same site as Goodwin Pumps India and currently rents its building from Goodwin Pumps India who purchased three acres of land in 2005 for 325,000.
Considerable effort and focus on cash flow improvement is being made and, whilst the cash flow position at the half year is largely unchanged as compared to 30th April 2017, we expect to see a significant improvement by 30th April 2018.
Although the oil price is now just over US Dollar 60 per barrel and the iron ore price is similarly just over US Dollar 60 per tonne, there is little reason to expect an upturn in the release of orders for new capacity in these capital equipment needy markets until 2020. We are, however, not relying on an immediate upturn in these industries and have been focusing on trying to win business in nuclear recycling and decommissioning and processing of mining industry waste materials where our potential customers are receiving closer scrutiny by environmental agencies.
An example of success here is the receipt in the first half of this financial year of aUSDollar 7.3 million order for large machined and fabricated stainless steel castings for the nuclear fuel decommissioning industry in the USA.
J. W. Goodwin
Chairman
18th December 2017
Management report
Financial Highlights
Unaudited Half Year to
Unaudited Half Year to
Audited Year Ended
31st October
31st October
30th April
2017
2016
2017
'm
'm
'm
Consolidated Results
Revenue
61.9
69.9
131.6
Operating profit
6.4
6.5
9.9
Profit before tax
6.1
6.0
9.2
Profit after tax
4.4
4.2
6.8
Capital Expenditure
4.0
3.2
7.6
Earnings per share (Basic and Diluted)
58.38p
54.53p
84.47p
Turnover
Sales revenue of 61,893,000 for the half year represents an 11.4% decrease from the 69,889,000 achieved during the same period last year.
Profit Before Tax
Profit before tax for the six months of 6,108,000 is up 1.0% from the 6,047,000 achieved for the same six month period last year.
Risks and Uncertainties
The Group, mainly through its centralised management structure, makes best endeavours to have in place internal control procedures to identify and manage the key risks and uncertainties affecting the Group. We would refer you to page 8 of the Group Annual Accounts to 30th April 2017 which describes the principal risks and uncertainties, and to note 20 (page 52) which describes in detail the key financial risks and uncertainties affecting the business such as credit risk and foreign exchange risk.
Judging the future relationship of the major currency pairs of the US Dollar, Sterling and the Euro continues to be a challenge.
Report on Expected Developments
This report describes the expected developments of the Group during the year ended 30th April 2018. The report may contain forward-looking statements and information based on current expectations, and assumptions and forecasts made by the Group. These expectations and assumptions are subject to various known and unknown risks, uncertainties and other factors, which could lead to substantial differences between the actual future results, financial performance and the estimates and historical results given in this report.
Many of these factors are outside the Group's control. The Group accepts no liability to publicly revise or update these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.
2018/19 Outlook
Despite the continued shortage of work within our foundry, where we have been taking the opportunity of enhancing our facility and capacity in this quiet period of activity, we expect the Group overall to start showing improved profitability and cash flow by the financial year end 30th April 2018.
This improvement is a feature of a continued expansion of activity and profitability in the refractory engineering part of the Group especially in our eight companies that supply consumables to the jewellery casting industry which, in line with the world economy overall, is in a period of revival. The performance of these refractory companies has also been enhanced by the demise of our major world competitor based in the USA, who was the world leader 20 years ago. In September 2017 they finally closed their doors, which has resulted in a substantial surge in order input for our price-competitive, consistent products that we have developed a global reputation for supplying.
As mentioned in the year end accounts to 30th April 2017, excellent progress is being made in India where there is significant growth in the overall economy and our submersible pump company and jewellery investment powder company are expected to achieve record trading results for the year ending 30th April 2018. The results in our Indian submersible pump company are also benefitting from sales orders arriving from our newly formed pump company in South Africa, which we are pleased to report will make respectable profits and sales in its first full year of trading.
Going concern
The Group cash flow has deteriorated by a modest 333,000 since the start of the new financial year. As stated in previous half year reports it is not unusual for the Group to see a significant deteriorating cash flow picture in the first half of the financial year due to the impact of dividend payments, working capital movements and our capital expenditure programmes. The modest deterioration in our cash position to the current half year end bodes well for the full year end position and supports the comment already made on projected debt levels within the Chairman's Statement.
The Group's bank facilities are materially unchanged from those reported within the full year accounts. We would refer you in particular to Note 20.b) on page 53 of those accounts where you can see that our unutilised facilities are significant. Given the profitability of the Group, the modest gearing levels and the bank facilities available to it, the Directors have concluded that drawing up the accounts on a going concern basis is appropriate.
Responsibility statement of the Directors in respect of the half-yearly financial report
The Directors confirm to the best of their knowledge that 1) this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that 2) the Interim Management Report and condensed financial statements include a fair review of the information required by Disclosure and Transparency Rules 4.2.7R (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year) and 4.2.8R (being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so).
J. W. Goodwin
Chairman
18th December 2017
Condensed Consolidated Income Statement
for the half year to 31st October 2017
Unaudited
Unaudited
Audited
Half Year to
Half Year to
Year Ended
31st October
31st October
30th April
2017
2016
2017
'000
'000
'000
Continuing operations
Revenue
61,893
69,889
131,587
Cost of sales
(44,758)
(51,442)
(97,836)
Gross profit
17,135
18,447
33,751
Distribution expenses
(1,881)
(1,731)
(3,486)
Administrative expenses
(8,892)
(10,210)
(20,317)
Operating profit
6,362
6,506
9,948
Financial expenses
(419)
(560)
(873)
Share of profit of associate companies
165
101
169
Profit before taxation
6,108
6,047
9,244
Tax on profit
(1,656)
(1,829)
(2,487)
Profit after taxation
4,452
4,218
6,757
Attributable to:
Equity holders of the parent
4,203
3,927
6,082
Non-controlling interests
249
291
675
Profit for the period
4,452
4,218
6,757
Basic and diluted earnings per ordinary share (Note 7)
58.38p
54.53p
84.47p
Condensed Consolidated Statement of Comprehensive Income
for the half year to 31st October 2017
Unaudited
Unaudited
Audited
Half Year to
Half Year to
Year Ended
31st October
31st October
30th April
2017
2016
2017
'000
'000
'000
Profit for the period
4,452
4,218
6,757
Other comprehensive income / (expense)
Items that are or may be reclassified subsequently to the income statement
Foreign exchange translation differences
258
5,796
3,619
Effective portion of changes in fair value of cash flow hedges
(196)
(15,696)
(6,526)
Change in fair value of cash flow hedges transferred to the income statement
932
(608)
2,142
Tax on items that are or may be reclassified subsequently to the income statement
(125)
2,765
738
Other comprehensive income / (expense) for the period, net of income tax
869
(7,743)
(27)
Total comprehensive income / (expense) for the period
5,321
(3,525)
6,730
Attributable to:
Equity holders of the parent
5,151
(4,618)
5,654
Non-controlling interests
170
1,093
1,076
5,321
(3,525)
6,730
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2017
Share capital
Translat-ion reserve
Share-based payments reserve
Cash flow hedge reserve
Retained earnings
Total attribut-able to equity holders of the parent
Non-controll-ing interests
Total equity
'000
'000
'000
'000
'000
'000
'000
'000
Half year to 31st October, 2017
(Unaudited)
Balance at 1st May, 2017
720
2,154
601
(4,240)
90,201
89,436
4,225
93,661
Total comprehensive income:
Profit
-
-
-
-
4,203
4,203
249
4,452
Other comprehensive income:
Foreign exchange translation differences
-
194
-
-
-
194
64
258
Net movements on cash flow hedges
-
-
-
754
-
754
(143)
611
Total comprehensive income for the period
-
194
-
754
4,203
5,151
170
5,321
Equity-settled share-based payment transactions
-
-
515
-
-
515
-
515
Dividends paid
-
-
-
-
(3,137)
(3,137)
-
(3,137)
Balance at 31st October 2017
720
2,348
1,116
(3,486)
91,267
91,965
4,395
96,360
Half year to 31st October, 2016
(Unaudited)
Balance at 1st May, 2016
720
(1,041)
-
(594)
87,209
86,294
3,823
90,117
Total comprehensive income:
Profit
-
-
-
-
3,927
3,927
291
4,218
Other comprehensive income:
Foreign exchange translation differences
-
4,994
-
-
-
4,994
802
5,796
Net movements on cash flow hedges
-
-
-
(13,539)
-
(13,539)
-
(13,539)
Total comprehensive income for the period
-
4,994
-
(13,539)
3,927
(4,618)
1,093
(3,525)
Dividends paid
-
-
-
-
(3,114)
(3,114)
(339)
(3,453)
Balance at 31st October 2016
720
3,953
-
(14,133)
88,022
78,562
4,577
83,139
Share capital
Translat-ion reserve
Share-based payments reserve
Cash flow hedge reserve
Retained earnings
Total attribut-able to equity holders of the parent
Non-controll-ing interests
Total equity
'000
'000
'000
'000
'000
'000
'000
'000
Year ended 30th April, 2017
Balance at 1st May, 2016
720
(1,041)
-
(594)
87,209
86,294
3,823
90,117
Total comprehensive income:
Profit
-
-
-
-
6,082
6,082
675
6,757
Other comprehensive income:
Foreign exchange translation differences
-
3,218
-
-
-
3,218
401
3,619
Net movements on cash flow hedges
-
-
-
(3,646)
-
(3,646)
-
(3,646)
Total comprehensive income for the period
-
3,218
-
(3,646)
6,082
5,654
1,076
6,730
Transactions with owners of the Company recognised directly in equity
-
(23)
-
21
(2)
1
(1)
Equity-settled share-based payment transactions
-
-
601
-
-
601
-
601
Dividends paid
-
-
-
-
(3,111)
(3,111)
(675)
(3,786)
Balance at 30th April, 2017
720
2,154
601
(4,240)
90,201
89,436
4,225
93,661
Condensed Consolidated Balance sheet
as at 31st October 2017
Unaudited
Unaudited
Audited
as at
as at
as at
31st October 2017
31st October 2016
30th April 2017
'000
'000
'000
Non-current assets
Property, plant and equipment
66,792
65,207
65,739
Investment in associates
2,229
2,032
2,045
Intangible assets
18,603
18,584
18,240
87,624
85,823
86,024
Current assets
Inventories
35,473
43,605
37,657
Trade and other receivables
29,688
32,819
26,338
Derivative financial assets
556
1,235
1,756
Cash and cash equivalents
7,813
5,269
5,172
73,530
82,928
70,923
Total assets
161,154
168,751
156,947
Current liabilities
Bank overdrafts
9,737
9,347
6,655
Interest-bearing loans and borrowings
3,918
3,074
2,887
Trade and other payables
21,962
26,647
22,454
Deferred consideration
500
500
500
Derivative financial liabilities
2,228
13,293
2,492
Liabilities for current tax
2,043
2,234
1,592
Warranty provision
88
132
90
40,476
55,227
36,670
Non-current liabilities
Interest-bearing loans and borrowings
21,198
29,571
23,675
Warranty provision
337
296
305
Deferred tax liabilities
2,783
518
2,636
24,318
30,385
26,616
Total liabilities
64,794
85,612
63,286
Net assets
96,360
83,139
93,661
Equity attributable to equity holders of the parent
Share capital
720
720
720
Translation reserve
2,348
3,953
2,154
Share-based payments reserve
1,116
-
601
Cash flow hedge reserve
(3,486)
(14,133)
(4,240)
Retained earnings
91,267
88,022
90,201
Total equity attributable to equity holders of the parent
91,965
78,562
89,436
Non-controlling interests
4,395
4,577
4,225
Total equity
96,360
83,139
93,661
Condensed Consolidated Cash Flow Statement
for the half year ended 31st October 2017
Unaudited
Unaudited
Audited
Half Year to 31st October
Half Year to 31st October
Year ended 30th April
2017
2016
2017
'000
'000
'000
Cash flow from operating activities
Profit from continuing operations after tax
4,452
4,218
6,757
Adjustments for:
Depreciation
2,644
2,718
5,597
Amortisation of intangible assets
552
393
938
Financial expenses
419
560
873
(Profit)/loss on sale of property, plant and equipment
(1,610)
(2)
52
Share of profit of associate companies
(165)
(101)
(169)
Equity-settled share-based provision
515
-
601
Tax expense
1,656
1,829
2,487
Operating profit before changes in working capital and provisions
8,463
9,615
17,136
(Increase) / decrease in trade and other receivables
(3,194)
(2,972)
8,025
Decrease / (increase) in inventories
2,343
(6,167)
(1,014)
Decrease in trade and other payables (excluding payments on account)
(1,020)
(5,732)
(9,445)
Increase / (decrease) in payments on account
3,094
(1,207)
(5,825)
Cash inflow / (outflow) from operations
9,686
(6,463)
8,877
Interest paid
(383)
(469)
(802)
Corporation tax paid
(1,254)
(1,460)
(2,675)
Interest element of finance lease obligations
(45)
(91)
(115)
Net cash from operating activities
8,004
(8,483)
5,285
Cash flow from investing activities
Proceeds from sale of property, plant and equipment
1,811
79
237
Acquisition of intangible assets
(354)
(60)
(149)
Acquisition of property, plant and equipment
(4,850)
(3,218)
(7,411)
R&D expenditure capitalised
(355)
(354)
(791)
Net cash outflow from investing activities
(3,748)
(3,553)
(8,114)
Cash flows from financing activities
Payment of capital element of finance lease obligations
(429)
(466)
(930)
Dividends paid
(3,137)
(3,114)
(3,111)
Dividends paid to non-controlling interests
-
(339)
(675)
Proceeds from loans and committed facilities
-
11,459
5,871
Repayment of loans and committed facilities
(1,023)
(21)
(44)
Net cash (outflow) / inflow from financing activities
(4,589)
7,519
1,111
Net decrease in cash and cash equivalents
(333)
(4,517)
(1,718)
Cash and cash equivalents at beginning of year
(1,483)
(413)
(413)
Effect of exchange rate fluctuations on cash held
(108)
852
648
Closing cash and cash equivalents
(1,924)
(4,078)
(1,483)
Notes
to the Condensed Consolidated Financial Statements
1. Reporting entity
Goodwin PLC (the "Company") is a company incorporated in England and Wales. The unaudited condensed consolidated interim financial statements of the Company as at and for the six months ended 31st October 2017 comprise the Company, its subsidiaries, and the Group's interests in associates (together referred to as the "Group").
The audited consolidated financial statements of the Group as at and for the year ended 30th April 2017 are available upon request from the Company's registered office at Ivy House Foundry, Hanley, Stoke-on-Trent ST1 3NR or via the Company's web site: www.goodwin.co.uk.
2. Statement of compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted in the EU. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 30th April 2017.
The comparative figures for the financial year ended 30th April 2017 are extracts and not the full Group's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The Audit Committee has reviewed these unaudited condensed consolidated interim financial statements and has advised the Board of Directors that, taken as a whole, they are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group's half year performance. These unaudited condensed consolidated interim financial statements were approved by the Board of Directors on 18th December 2017.
3. Significant accounting policies
The accounting policies applied by the Group in these unaudited condensed consolidated financial statements are the same as those applied by the Group in its audited consolidated financial statements as at and for the year ended 30th April 2017. The following standards and amendments became effective and therefore were adopted by the Group.
Annual Improvements to IFRSs - 2014-2016 Cycle - minor amendments to IFRS 12 (effective for annual periods beginning on or after 1st January 2017)
Amendments to IAS 12 - Recognition of Deferred Tax Assets for unrealised losses (effective for annual periods beginning on or after 1st January 2017)
Amendments to IAS 7 - Disclosure initiative (effective for annual periods beginning on or after 1st January 2017)
The Group has considered the impact of these new standards and interpretations in future periods on profit, earnings per share and net assets. None of the above standards or interpretations is expected to have a material impact.
New IFRS standards, amendments and interpretations not adopted
The IASB and IFRIC have issued additional standards and amendments which are effective for periods starting after the date of these financial statements. The following standards and amendments have not yet been adopted by the Group:
Annual Improvements to IFRSs - 2014-2016 Cycle - minor amendments to IFRS 1 and IAS 28 (effective for annual periods beginning on or after 1st January 2018)
Amendments to IFRS 2 - Classification and Measurement of Share-based Payment Transactions (effective for annual periods beginning on or after 1st January 2018)
Amendments to IFRS 4 - Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (effective for annual periods beginning on or after 1st January 2018)
IFRS 9 - Financial Instruments (effective for annual periods beginning on or after 1st January 2018)
IFRS 15 - Revenue from Contracts with Customers (effective for annual periods beginning on or after 1st January 2018)
IFRS 15 - Clarifications (effective for annual periods beginning on or after 1st January 2018)
Amendments to IFRS 40 - Transfers of Investment Property (effective for annual periods beginning on or after 1st January 2018)
IFRIC Interpretation 22 - Foreign Currency Transactions and Advance Consideration (effective for annual periods beginning on or after 1st January 2018)
IFRS 16 - Leases (Not yet endorsed. IASB effective date 1st January 2019)
Amendments to IFRS 2 - Classification and Measurement of Share-based Payment Transactions (not yet endorsed)
4. Estimates
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these unaudited consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited consolidated financial statements as at and for the year ended 30th April 2017.
The tax charge in the period is based on management's estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period, and the impact of any disallowed costs.
5. Business Segments
Products and services from which reportable segments derive their revenues
In accordance with the requirements of IFRS8 "Operating Segments" the Group's reportable segments based on information reported to the Group's Board of Directors for the purposes of resource allocation and assessment of segment performance are as follows:
Mechanical Engineering - casting, machining and general engineering
Refractory Engineering - powder manufacture and mineral processing
Information regarding the Group's operating segments is reported below.
Segment Revenue and Profits
Mechanical Engineering
Refractory Engineering
Sub Total
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
'000
'000
'000
'000
'000
'000
'000
'000
'000
Revenue
External sales
39,779
50,262
91,335
22,114
19,627
40,252
61,893
69,889
131,587
Inter-segment sales
10,189
13,910
29,084
4,350
2,988
6,522
14,539
16,898
35,606
Total revenue
49,968
64,172
120,419
26,464
22,615
46,774
76,432
86,787
167,193
Reconciliation to consolidated revenues:
Inter-segment sales
(14,539)
(16,898)
(35,606)
Consolidated revenue for the period
61,893
69,889
131,587
Mechanical Engineering
Refractory Engineering
Sub Total
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
'000
'000
'000
'000
'000
'000
'000
'000
'000
Profits
Segment result including associates
2,733
4,798
6,982
5,313
2,241
5,933
8,046
7,039
12,915
Group administration costs
(1,004)
(604)
(2,197)
LTIP equity plan provision
(515)
-
(601)
Group finance and treasury costs
(419)
(376)
(873)
Consolidation adjustments
-
(12)
-
Consolidated profit before tax for the period
6,108
6,047
9,244
Tax
(1,656)
(1,829)
(2,487)
Consolidated profit after tax for the period
4,452
4,218
6,757
Segment Assets and Liabilities
Segmental total assets
Segmental total liabilities
Segmental net assets
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
Unaudited Half Year Ended 31st October 2017
Unaudited Half Year Ended 31st October 2016
Audited Year Ended 30th April 2017
'000
'000
'000
'000
'000
'000
'000
'000
'000
Mechanical Engineering
85,793
97,284
80,968
66,798
85,210
65,036
18,995
12,074
15,932
Refractory Engineering
45,425
44,635
41,717
24,527
29,285
23,321
20,898
15,350
18,396
Sub total reportable segment
131,218
141,919
122,685
91,325
114,495
88,357
39,893
27,424
34,328
Goodwin PLC (the Company) net assets
68,841
68,467
71,944
Elimination of Goodwin PLC investments
(22,084)
(22,441)
(22,084)
Goodwill
9,710
9,689
9,473
Consolidated total net assets
96,360
83,139
93,661
Segmental property, plant and equipment (PPE) capital expenditure
Goodwin PLC
3,049
2,095
5,070
Mechanical Engineering
687
737
1,611
Refractory Engineering
267
386
918
4,003
3,218
7,599
Geographical Segments
Half Year Ended 31st October 2017
Half Year Ended 31st October 2016
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Revenue
Operational assets
Non-current assets
PPE capital expenditure
Revenue
Operational assets
Non-current assets
PPE capital expenditure
'000
'000
'000
'000
'000
'000
'000
'000
UK
13,698
63,870
71,656
3,610
11,352
52,149
70,611
2,631
Rest of Europe
14,674
10,483
2,276
136
15,031
10,646
2,480
265
USA
2,544
-
-
-
3,919
-
-
-
Pacific Basin
11,709
14,635
7,505
116
20,615
14,564
5,825
63
Rest of World
19,268
7,372
6,187
141
18,972
5,780
6,907
259
Total
61,893
96,360
87,624
4,003
69,889
83,139
85,823
3,218
Year Ended 30th April 2017
Audited
Audited
Audited
Audited
Revenue
Operational assets
Non-current assets
PPE capital expenditure
'000
'000
'000
'000
UK
24,034
63,451
69,693
6,504
Rest of Europe
29,712
10,213
2,271
466
USA
6,574
-
-
-
Pacific Basin
33,095
14,012
7,459
210
Rest of World
38,172
5,985
6,601
419
Total
131,587
93,661
86,024
7,599
6. Dividends
The Directors do not propose the payment of an interim dividend.
Unaudited
Unaudited
Audited
Half Year to
Half Year to
Year Ended
31st October 2017
31st October 2016
30th April 2017
'000
'000
'000
Equity Dividends Paid:
Ordinary dividends paid during the period in respect of the year ended 30th April 2017 (42.348p per share)
3,049
-
-
Ordinary dividends paid during the period in respect of the year ended 30th April 2016 (42.348p per share)
-
3,049
3,049
Dividends paid to minority shareholders in Noreva GmbH
88
65
62
Total dividends paid during the period
3,137
3,114
3,111
7. Earnings Per Share
The calculation of the basic earnings per ordinary share is based on the number of ordinary shares in issue during all periods of 7,200,000, and on the profit for the six months attributable to ordinary shareholders of 4,203,000 (six months to 31st October 2016: 3,927,000).
8. Capital Management, Issuance and Repayment of Debt
At 31st October 2017 the capital utilised was 119,505,000 as shown below:
Unaudited
Unaudited
Audited
as at
as at
as at
31st October 2017
31st October 2016
30th April 2017
'000
'000
'000
Cash and cash equivalents
(7,813)
(5,269)
(5,172)
Finance leases
2,984
3,878
3,413
Bank loans and committed facilities
22,132
28,767
23,149
Bank overdrafts
9,737
9,347
6,655
Deferred consideration
500
500
500
Net debt
27,540
37,223
28,545
Total equity attributable to equity holders of the parent
91,965
78,562
89,436
Capital
119,505
115,785
117,981
9. Property, Plant and Equipment
Unaudited
Unaudited
as at
as at
31st October 2017
31st October 2016
'000
'000
Net book value at the beginning of the period
65,739
62,530
Additions
4,003
3,218
Disposals (at net book value)
(201)
(77)
Depreciation
(2,644)
(2,718)
Exchange adjustment
(105)
2,254
Net book value at the end of the period
66,792
65,207
10. Intangible assets
Unaudited
Unaudited
as at
as at
31st October 2017
31st October 2016
'000
'000
Net book value at the beginning of the period
18,240
17,565
Additions
709
484
Amortisation
(552)
(393)
Exchange adjustment
206
928
Net book value at the end of the period
18,603
18,584
11. Hedge reserve
The Group is exposed to sales and purchases in foreign currency and, in order to mitigate the foreign exchange risk, the Group at its discretion uses hedges where deemed appropriate by the Board. The majority of the Group's hedging activity is in relation to UK company sales contracts in US Dollars and Euros.
12. Total Financial Assets and Financial Liabilities
The table below sets out the Group's accounting classification of its financial assets and financial liabilities, and their carrying values / fair values at 31st October 2017. The fair values of all financial assets and financial liabilities are not materially different to the carrying values.
Carrying value / Fair value
'000
Financial assets
Cash and cash equivalents
7,813
Receivables
Trade receivables
23,847
Other receivables
5,841
At fair value through the income statement
Derivative financial assets not designated in a cash flow hedge relationship
535
Designated cash flow hedge relationships
Derivative financial assets designated and effective as cash flow hedging instruments
21
Total financial assets
38,057
Financial liabilities
Financial liabilities at amortised cost
Bank overdraft
9,737
Trade payables
9,199
Other payables
12,763
Deferred consideration
500
Finance lease liabilities
2,984
Bank loans
22,132
Corporation tax
2,043
At fair value through the income statement
Derivative financial liabilities not designated in a cash flow hedge relationship
32
Designated cash flow hedge relationships
Derivative financial liabilities designated and effective as cash flow hedging instruments
2,196
Total financial liabilities
61,586
Derivative financial assets and financial liabilities fair values in the above table are derived using Level 2 inputs as defined by IFRS 7 as detailed in the paragraph below*. All other financial assets and financial liabilities fair values are determined using Level 3 inputs.
*IFRS 7 requires that the classification of financial instruments at fair value be determined by reference to the source of inputs used to derive the fair value. This classification uses the following three-level hierarchy:
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR DMMMZGRNGNZM
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