For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211215:nRSO6649Va&default-theme=true
RNS Number : 6649V Goodwin PLC 15 December 2021
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2021
CHAIRMAN'S STATEMENT
The pre-tax profit for the Group for the first six month period ending 31st
October 2021 was £7.7 million (2020: £5.8 million) on a revenue of £69
million.
At the half year the Group's workload remains steady at £156 million and does
not yet contain some of the major projects that the Mechanical Engineering
Division has confidently been pursuing within the military, nuclear waste
re-processing and surveillance markets.
The Refractory Engineering Division has delivered a strong performance and its
activity continues to travel on an upward trajectory, delivering like-for-like
sales growth of 40%. With the recent acquisitions now generating revenue;
our end user markets growing; our research and development investment
programmes in the fire protection and construction products now gaining
traction in their respective markets, the Division currently represents 40% of
the Group's revenue. The Division's focus on price increases, global
sourcing, network capabilities and operational footprint has enabled it to
date to manage the price pressures and supply chain disruptions.
The Mechanical Engineering Division has experienced low levels of activity due
to customer approval delays on documentation for cast and machined products
going into complex stakeholder environments. This, coupled with navigating
supply availability and increased energy costs (with there being a time lag
before such costs can be passed on to the end users), has impacted both sales
and profitability in the first six months of the year. We now have in place
fixed price energy contracts that go out until June 2023 that will remove the
extreme spikes in energy prices that were seen in September 2021. A
pragmatic approach has also been taken to highlight and reduce the amount of
red tape and address the increased costs of production that will enable
efficient production, moving forward, of orders in hand.
The Group's net debt stands at £34.8 million (31st October 2020: £31.1
million) with a relatively moderate level of gearing of 31.7%. During the
six month period just completed, the Group's cash generation has been reduced
by the requirement of additional working capital as new projects start to ramp
up. Furthermore, the Group has proceeded as planned with its investment
programme that is spread across both Divisions, including projects that will
reduce its carbon footprint and its reliance on the energy markets, details of
which will be released in the next Annual Report.
T. J. W. Goodwin
Chairman 15(th) December 2021
Management report
Financial Highlights
Unaudited Half Year to 31st October 2021 Unaudited Half Year to Audited Year Ended
31st October 31st October 30th April
2021 2020 2021
£'m £'m £'m
Consolidated Results
Revenue 68.9 62.6 131.2
Operating profit 8.2 6.1 17.1
Profit before tax 7.7 5.8 16.5
Profit after tax 6.0 4.5 13.0
Capital Additions:
Property, plant and equipment PPE owned 9.0 7.5 11.9
PPE (right-of-use assets) 1.1 0.8 2.4
Operating lease assets (IAS 17 definition) - (0.1) (1.1)
Intangible assets 0.6 0.6 1.7
Capital Expenditure for KPI purposes 10.7 8.8 14.9
Earnings per share - basic 72.12p 56.64p 167.82p
Earnings per share - diluted 72.12p 55.42p 164.23p
Turnover
Sales revenue of £68,884,000 for the half year represents a 10% increase
from the £62,628,000 achieved during the same period last year.
Profit Before Tax
Profit before tax for the six months of £7,723,000 represents a 34% increase
from the £5,774,000 achieved for the same six month period last year.
Key performance indicators
The key performance indicators for the business are listed below:
Unaudited Half Year to Unaudited Half Year to Audited Year Ended
31st October 31st October 30th April
2021 2020 2021
Gross profit as a % of turnover 29.5 25.9 29.7
Other income (in £ millions) - - 0.8
Profit before tax (in £ millions) 7.7 5.8 16.5
Gearing % 31.7 29.8 15.4
Non cash charges (in £millions)
Depreciation 2.9 2.7 5.7
Depreciation of right-of-use assets 0.5 0.4 1.0
Amortisation 0.7 0.7 1.6
Total non cash charges 4.1 3.8 8.3
Alternative performance measures mentioned above are defined in note 34 on
page 84 of the Group Annual Accounts to 30th April 2021.
2021/22 Outlook
Even with the expectation of an increased order input over the next six
months, we expect the second half year pre-tax profits of this financial year
to be possibly slightly better than the first half and for the benefit of
increased activity and profitability to be realised over the next eighteen
months.
This improvement is a feature of the strategic transformation of the foundry
and its progress in creating an efficient environment to deliver high volume,
high quality products for nuclear waste and cast naval components for its new
customer base following the decline of its traditional oil and gas business.
Furthermore, whilst we continue to experience inflationary pressures, the
offsetting benefit of increased selling prices will be recognised within the
next financial year.
The momentum within the Refractory Engineering Division shows no signs of
slowing and the Group's eight companies supplying consumables to the jewellery
casting, fire protection and construction sectors are well placed moving
forward to continue to deliver strong results subject to raw material
availability and consumer demand.
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
pages 12 to 13 of the Group Annual Accounts to 30th April 2021 which describe
the principal risks and uncertainties, and to note 26 (starting on page 73)
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.
The Group (see page 76 of the Group Annual Accounts to 30th April 2021) has
mitigated the impact of rising interest rates by fixing the effective base
rate at less than 1% for a notional £30 million of debt for the next ten
years.
Report on Expected Developments
This report describes the expected developments of the Group during the year
ended 30th April 2022. 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.
Going concern
The Group once again continues to trade profitably and with the current order
book level we are confident that this will continue and improve, especially as
we move in to the next financial year. Whereas many companies have struggled
with the impacts of Covid-19, the Group has remained open to carry on with its
value added activities. As in previous periods, the levels of depreciation
and amortisation (both non cash items) remain significant thus masking the
true cash generating capability of the Group. As at 31st October 2021, the
Group net debt stood at £34.8 million (31st Oct 2020 £31.1 million) as set
out in note 10 to these accounts. Whilst the net debt levels are higher than
those recorded as at April 2021 and October 2020 the gearing level at 31.7% is
still modest and the Board considers that the banking headroom (facilities
versus utilisation) is acceptable. Given the foregoing, the Directors do not
see an issue with the continued ability of the Group to meet its financial
commitments and so have drawn up these accounts on a going concern basis.
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
United Kingdom 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).
T.J. W. Goodwin
Chairman 15th December 2021
Condensed Consolidated Statement of Profit or Loss
for the half year to 31st October 2021
Unaudited Unaudited Audited
Half Year to Half Year to Year Ended
31st October 31st October 30th April
2021 2020 2021
£'000 £'000 £'000
Continuing operations
Revenue 68,884 62,628 131,231
Cost of sales (48,529) (46,404) (92,230)
Gross profit 20,355 16,224 39,001
Other income - - 763
Distribution expenses (1,817) (1,320) (2,988)
Administrative expenses (10,335) (8,833) (19,682)
Operating profit 8,203 6,071 17,094
Finance costs (net) (513) (323) (640)
Share of profit of associate companies 33 26 60
Profit before taxation 7,723 5,774 16,514
Tax on profit (1,719) (1,289) (3,508)
Profit after taxation 6,004 4,485 13,006
Attributable to:
Equity holders of the parent 5,546 4,171 12,494
Non-controlling interests (NCI) 458 314 512
Profit for the period 6,004 4,485 13,006
Basic earnings per ordinary share (Note 9) 72.12p 56.64p 167.82p
Diluted earnings per ordinary share (Note 9) 72.12p 55.42p 164.23p
Condensed Consolidated Statement of Comprehensive Income
for the half year to 31st October 2021
Unaudited Unaudited Audited
Half Year to Half Year to Year Ended
31st October 31st October 30th April
2021 2020 2021
£'000 £'000 £'000
Profit for the period 6,004 4,485 13,006
Other comprehensive (expense) / income
Items that are or may be reclassified subsequently to the income statement
Foreign exchange translation differences (697) 593 (1,371)
Effective portion of changes in fair value of cash flow hedges 754 (293) 1,296
Ineffective portion of changes in fair value of cash flow hedges - (617) (657)
Change in fair value of cash flow hedges transferred to profit or loss (731) 935 1,932
Effective portion of changes in fair value of cost of hedging (145) 88 (37)
Ineffective portion of change in fair value cost of hedging - 581 631
Change in fair value of cost of hedging transferred to profit or loss (10) 281 381
Tax on items that are or may be reclassified subsequently to profit or loss (91) (186) (673)
Other comprehensive (expense) / income for the period, net of income tax (920) 1,382 1,502
Total comprehensive income for the period 5,084 5,867 14,508
Attributable to:
Equity holders of the parent 4,732 5,465 14,081
Non-controlling interests 352 402 427
5,084 5,867 14,508
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2021
Share capital Translat-ion reserve Share-based payments reserve Cash flow hedge reserve Cost of hedging 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 £'000
Half year to 31st October 2021
(Unaudited)
Balance at 1st May 2021 753 (852) 5,244 1,601 (1) 106,396 113,141 4,887 118,028
Total comprehensive income:
Profit - - - - - 5,546 5,546 458 6,004
Other comprehensive income:
Foreign exchange translation differences - (591) - - - - (591) (106) (697)
Net movements on cash flow hedges - - - (113) (110) - (223) - (223)
Total comprehensive income / (expense) for the period - (591) - (113) (110) 5,546 4,732 352 5,084
Issue of shares 16 - - - - - 16 - 16
Dividends paid - - - - - (7,862) (7,862) (187) (8,049)
Acquisition of NCI without a change in control - - - - - (74) (74) (356) (430)
Balance at 31st October 2021 769 (1,443) 5,244 1,488 (111) 104,006 109,953 4,696 114,649
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2021
Share capital Translat-ion reserve Share-based payments reserve Cash flow hedge reserve Cost of hedging 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 £'000
Half year to 31st October 2020
(Unaudited)
Balance at 1st May 2020 736 361 5,244 (499) (743) 99,918 105,017 4,585 109,602
Total comprehensive income:
Profit - - - - - 4,171 4,171 314 4,485
Other comprehensive income:
Foreign exchange translation differences - 502 - - - - 502 91 593
Net movements on cash flow hedges - - - 68 724 - 792 (3) 789
Total comprehensive income for the period - 502 - 68 724 4,171 5,465 402 5,867
Issue of shares 16 - - - - - 16 - 16
Dividends paid - - - - - (6,016) (6,016) (125) (6,141)
Balance at 31st October 2020 752 863 5,244 (431) (19) 98,073 104,482 4,862 109,344
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2021
Share capital Translat-ion reserve Share-based payments reserve Cash flow hedge reserve Cost of hedging 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 £'000
Year ended 30th April 2021
(Audited)
Balance at 1st May 2020 736 361 5,244 (499) (743) 99,918 105,017 4,585 109,602
Total comprehensive income:
Profit - - - - - 12,494 12,494 512 13,006
Other comprehensive income:
Foreign exchange translation differences - (1,255) - - - - (1,255) (116) (1,371)
Net movements on cash flow hedges - - - 2,100 742 - 2,842 31 2,873
Total comprehensive income / (expense) for the period - (1,255) - 2,100 742 12,494 14,081 427 14,508
Issue of shares 17 - - - - - 17 - 17
Dividends paid - - - - - (6,016) (6,016) (125) (6,141)
Recycling of translation reserve on disposal of subsidiary - 42 - - - - 42 - 42
Balance at 30th April 2021 753 (852) 5,244 1,601 (1) 106,396 113,141 4,887 118,028
Condensed Consolidated Balance Sheet
as at 31st October 2021
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2021 2020 2021
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 82,949 74,404 77,063
Right-of-use assets 4,276 5,728 3,691
Investment in associates 815 853 829
Intangible assets 24,500 24,770 24,813
Derivative financial assets 613 1,145 191
Other financial assets at amortised cost - 137 -
113,153 107,037 106,587
Current assets
Inventories 37,315 45,359 34,547
Contract assets 13,245 15,685 15,844
Trade and other financial assets 23,940 23,959 20,540
Other receivables 6,298 5,669 5,498
Deferred tax asset 144 151 129
Derivative financial assets 3,001 1,067 4,106
Cash and cash equivalents 12,257 10,915 15,160
96,200 102,805 95,824
Total assets 209,353 209,842 202,411
Current liabilities
Bank overdrafts and interest-bearing liabilities 1,853 33,661 1,607
Contract liabilities * 14,542 25,461 14,332
Trade payables and other financial liabilities 16,606 19,724 21,730
Other payables 4,102 4,260 4,025
Derivative financial liabilities 1,262 1,011 2,016
Liabilities for current tax 1,689 1,881 1,174
Provisions for liabilities and charges 512 81 608
40,566 86,079 45,492
Non-current liabilities
Interest-bearing liabilities 47,053 9,709 33,066
Derivative financial liabilities 336 474 -
Provisions for liabilities and charges 304 414 251
Deferred tax liabilities 6,445 3,822 5,574
54,138 14,419 38,891
Total liabilities 94,704 100,498 84,383
Net assets 114,649 109,344 118,028
Equity attributable to equity holders of the parent
Share capital 769 752 753
Translation reserve (1,443) 863 (852)
Share-based payments reserve 5,244 5,244 5,244
Cash flow hedge reserve 1,488 (431) 1,601
Cost of hedging reserve (111) (19) (1)
Retained earnings 104,006 98,073 106,396
Total equity attributable to equity holders of the parent 109,953 104,482 113,141
Non-controlling interests 4,696 4,862 4,887
Total equity 114,649 109,344 118,028
* Contract liabilities include advance payments from customers of
£13,766,000 (October 2020: £24,991,000), with the balance of £776,000
(October 2020: £470,000) being costs accrued for contracts.
Condensed Consolidated Statement of Cash Flows
for the half year ended 31st October 2021
Unaudited Unaudited Audited
Half Year to 31st October 2021 Half Year to 31st October 2020 Year ended 30th April 2021
£'000 £'000 £'000
Cash flows from operating activities
Profit from continuing operations after tax 6,004 4,485 13,006
Adjustments for:
Depreciation of property, plant and equipment 2,932 2,715 5,696
Depreciation of right-of-use assets 456 424 972
Amortisation of intangible assets 747 745 1,566
Finance costs (net) 513 323 640
Foreign exchange losses 125 48 292
Profit on sale of property, plant and equipment (95) (32) (745)
Profit on disposal of subsidiary - - (32)
Share of profit of associate companies (33) (26) (60)
Tax expense 1,719 1,289 3,508
Cash generated from operating activities before changes in working capital and 12,368 9,971 24,843
provisions
(Increase) / decrease in inventories (3,073) 85 10,344
Decrease / (increase) in contract assets 2,583 (9,083) (9,242)
(Increase) / decrease in trade and other receivables (4,076) (53) 2,885
Increase / (decrease) in contract liabilities 266 6,509 (4,428)
(Decrease) / increase in trade and other payables (5,192) (3,351) 1,047
Decrease / (increase) in unhedged derivative balances 180 181 (438)
Cash inflow from operations 3,056 4,259 25,011
Interest paid (513) (388) (734)
Corporation tax paid (576) (958) (3,068)
Net cash from operating activities 1,967 2,913 21,209
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 213 136 1,958
Acquisition of property, plant and equipment (9,220) (7,261) (11,738)
Additional investment in existing subsidiaries (430) - -
Acquisition of intangible assets (269) (600) (719)
Development expenditure capitalised (408) (450) (1,420)
Net cash outflow from investing activities (10,114) (8,175) (11,919)
Cash flows from financing activities
Proceeds from issue of share capital 16 16 17
Payment of capital element of lease obligations (385) (787) (1,635)
Dividends paid (7,862) (6,016) (6,016)
Dividends paid to non-controlling interests (187) (125) (125)
Proceeds from new loans and committed facilities 14,200 12,048 35,048
Repayment of loans and committed facilities (355) (389) (30,772)
Net cash inflow / (outflow) from financing activities 5,427 4,747 (3,483)
Net (decrease) / increase in cash and cash equivalents (2,720) (515) 5,807
Cash and cash equivalents at beginning of year 15,160 9,449 9,449
Effect of exchange rate fluctuations on cash held (183) 109 (96)
Closing cash and cash equivalents (Note 13) 12,257 9,043 15,160
Notes
to the Condensed Consolidated Interim 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 2021 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 2021 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 United Kingdom. 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 2021.
The comparative figures for the financial year ended 30th April 2021 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 15th December 2021.
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 2021. The changes in accounting policies are to be reflected in the
Group's consolidated financial statements as at and for the year ending 30th
April 2022.
The following amendments became effective and therefore were adopted by the
Group.
· Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9,
IAS 39, IFRS 7, IFRS4 and IFRS 16)
The above amendments have not had a material impact on profit, earnings per
share and net assets.
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 amendments have not yet been adopted by the Group:
· Amendments to IAS 16 - Property, plant and equipment: proceeds before
intended use (effective for annual periods beginning on or after 1st January
2022)
The Group does not expect the above amendments to have a material impact on
profit, earnings per share and net assets in future periods.
4. Accounting estimates and judgements
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 2021.
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. Operating Segments
Products and services from which reportable segments derive their revenues
In accordance with the requirements of IFRS 8 "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, pumps, surveillance and general engineering
• Refractory Engineering - jewellery
investment casting powder and mineral processing
Information regarding the Group's operating segments is reported in the
following tables.
Segmental Revenue
Mechanical Engineering Refractory Engineering Sub Total
Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue
External sales 41,544 43,121 86,616 27,340 19,507 44,615 68,884 62,628 131,231
Inter-segment sales 8,203 9,418 20,871 7,103 4,651 11,526 15,306 14,069 32,397
Total revenue 49,747 52,539 107,487 34,443 24,158 56,141 84,190 76,697 163,628
Reconciliation to consolidated revenues:
Inter-segment sales (15,306) (14,069) (32,397)
Consolidated revenue for the period 68,884 62,628 131,231
Segmental profits
Mechanical Engineering Refractory Engineering Sub Total
Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Profits
Segment result including associates 3,565 4,587 10,823 6,048 2,309 9,340 9,613 6,896 20,163
Group administration costs (1,377) (799) (3,009)
Group finance costs (net) (513) (323) (640)
Consolidated profit before tax for the period 7,723 5,774 16,514
Tax (1,719) (1,289) (3,508)
Consolidated profit after tax for the period 6,004 4,485 13,006
Segmental Assets and Liabilities
Segmental total assets Segmental total liabilities Segmental net assets
Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Mechanical Engineering 104,014 105,602 92,929 76,441 78,068 66,909 27,573 27,534 26,020
Refractory Engineering 46,094 42,239 44,114 18,376 21,643 20,591 27,718 20,596 23,523
Sub total reportable segment 150,108 147,841 137,043 94,817 99,711 87,500 55,291 48,130 49,543
Goodwin PLC (the Company) net assets 75,450 76,944 83,998
Elimination of Goodwin PLC investments (25,822) (25,801) (25,392)
Goodwill 9,730 10,071 9,879
Consolidated total net assets 114,649 109,344 118,028
Segmental Capital Expenditure
Property, plant and equipment Right-of-use assets Intangible assets
Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Goodwin PLC 6,094 4,107 5,315 1,078 690 1,180 188 29 151
Mechanical Engineering 2,228 2,459 4,952 - 71 1,146 420 495 1,123
Refractory Engineering 715 932 1,570 - - 74 21 40 456
Total 9,037 7,498 11,837 1,078 761 2,400 629 564 1,730
Segmental Depreciation and Amortisation
Depreciation Amortisation and impairment
Goodwin PLC Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021 Unaudited Half Year Ended 31st October 2021 Unaudited Half Year Ended 31st October 2020 Audited Year Ended 30th April 2021
£'000 £'000 £'000 £'000 £'000 £'000
1,733 1,506 2,970 506 510 1,106
Mechanical Engineering 988 1,020 2,346 21 3 20
Refractory Engineering 667 613 1,352 220 232 440
Total 3,388 3,139 6,668 747 745 1,566
6. Geographical segments
Half Year Ended 31st October 2021 Half Year Ended 31st October 2020
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Revenue Operational net assets Non-current assets PPE capital expenditure Revenue Operational net assets Non-current assets PPE capital expenditure
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
UK 17,815 76,575 92,602 8,854 17,928 72,558 85,076 6,638
Rest of Europe 9,212 8,069 3,878 926 9,598 9,208 3,515 183
USA 6,159 - - - 5,557 - - -
Pacific Basin 16,025 15,044 7,375 97 13,267 14,734 8,875 615
Rest of World 19,673 14,961 9,298 238 16,278 12,844 9,571 823
Total 68,884 114,649 113,153 10,115 62,628 109,344 107,037 8,259
Year Ended 30th April 2021
Audited Audited Audited Audited
Revenue Operational net assets Non-current assets PPE capital expenditure
£'000 £'000 £'000 £'000
UK 39,755 81,982 89,944 11,911
Rest of Europe 21,473 8,309 3,264 276
USA 8,027 - - -
Pacific Basin 28,255 13,708 6,499 734
Rest of World 33,721 14,029 6,880 1,316
Total 131,231 118,028 106,587 14,237
7. Revenue
The Group's revenue is derived from contracts with customers. The following
tables provide an analysis of revenue by geographical market and by product
line.
Mechanical Engineering Refractory Engineering Total
£'000 £'000 £'000
Primary Geographical markets
Unaudited half year ended 31st October 2021
UK 11,256 6,559 17,815
Rest of Europe 5,327 3,885 9,212
USA 5,796 363 6,159
Pacific Basin 5,461 10,564 16,025
Rest of World 13,704 5,969 19,673
Total 41,544 27,340 68,884
Unaudited half year ended 31st October 2020
UK 12,548 5,380 17,928
Rest of Europe 6,677 2,921 9,598
USA 5,444 113 5,557
Pacific Basin 4,698 8,569 13,267
Rest of World 13,754 2,524 16,278
Total 43,121 19,507 62,628
Audited year ended 30th April 2021
UK 28,258 11,497 39,755
Rest of Europe 15,123 6,350 21,473
USA 7,596 431 8,027
Pacific Basin 10,899 17,356 28,255
Rest of World 24,740 8,981 33,721
Total 86,616 44,615 131,231
Product lines
Unaudited half year ended 31st October 2021
Standard products and consumables 5,105 27,340 32,445
Bespoke engineered products - point in time 6,022 - 6,022
Point in time revenue 11,127 27,340 38,467
Minimum period contracts for goods and services 1,879 - 1,879
Bespoke engineered products - over time 28,538 - 28,538
Over time revenue 30,417 - 30,417
Total revenue 41,544 27,340 68,884
Mechanical Engineering Refractory Engineering Total
£'000 £'000 £'000
Product lines
Unaudited half year ended 31st October 2020
Standard products and consumables 4,487 19,507 23,994
Bespoke engineered products - point in time 9,702 - 9,702
Point in time revenue 14,189 19,507 33,696
Minimum period contracts for goods and services 1,626 - 1,626
Bespoke engineered products - over time 27,306 - 27,306
Over time revenue 28,932 - 28,932
Total revenue 43,121 19,507 62,628
Audited year ended 30th April 2021
Standard products and consumables 10,630 44,615 55,245
Bespoke engineered products - point in time 11,203 - 11,203
Point in time revenue 21,833 44,615 66,448
Minimum period contracts for goods and services 3,306 - 3,306
Bespoke engineered products - over time 61,477 - 61,477
Over time revenue 64,783 - 64,783
Total revenue 86,616 44,615 131,231
8. 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 2021 31st October 2020 30th April 2021
£'000 £'000 £'000
Equity Dividends Paid:
Ordinary dividends paid during the period in respect of the year ended 30th 7,862 - -
April 2021 (102.24p per share)
Ordinary dividends paid during the period in respect of the year ended 30th - 6,016 6,016
April 2020 (81.71p per share)
Total dividends paid during the period 7,862 6,016 6,016
9. Earnings Per Share
Number of ordinary shares
Unaudited Unaudited Audited
as at as at as at
31st October 2021 31st October 2020 30th April 2021
Ordinary shares in issue
Opening balance 7,526,400 7,363,200 7,363,200
Shares issued in the period 163,200 163,200 163,200
Closing balance 7,689,600 7,526,400 7,526,400
Outstanding ordinary share options - 163,200 163,200
Total ordinary shares (issued and options) 7,689,600 7,689,600 7,689,600
Weighted average number of ordinary shares in issue 7,689,600 7,364,087 7,445,024
Weighted average number of outstanding ordinary share options - 162,632 162,651
Denominator used for diluted earnings per share calculation 7,689,600 7,526,719 7,607,675
£'000 £'000 £'000
Relevant profits attributable to ordinary shareholders 5,546 4,171 12,494
10. Capital Management, Issuance and Repayment of Debt
At 31st October 2021 the capital utilised was £144,774,000, as shown below:
Unaudited Unaudited Audited
as at as at as at
31st October 2021 31st October 2020 30th April 2021
£'000 £'000 £'000
Cash and cash equivalents (12,257) (10,915) (15,160)
Total lease liabilities (Note 14) 3,997 2,785 3,374
Bank loans and committed facilities (Note 14) 44,909 38,713 31,299
Bank overdrafts (Note 14) - 1,872 -
Net debt in accordance with IFRS 16 36,649 32,455 19,513
Operating lease debt (IAS 17 definition) (1,828) (1,334) (2,082)
Relevant net debt for KPI purposes 34,821 31,121 17,431
Total equity attributable to equity holders of the parent 109,953 104,482 113,141
Capital 144,774 135,603 130,572
11. Property, plant and equipment
Unaudited Unaudited Unaudited Unaudited
as at as at as at as at
31st October 2021 31st October 2021 31st October 2020 31st October 2020
£'000 £'000 £'000 £'000
Property, plant and equipment Right-of-use assets Property, plant and equipment Right-of-use assets
Net book value at the beginning of the period 77,063 3,691 69,626 5,343
Additions 9,037 1,078 7,498 761
Disposals (at net book value) (117) - (104) -
Depreciation (2,932) (456) (2,715) (424)
Exchange adjustment (102) (37) 99 48
Net book value at the end of the period 82,949 4,276 74,404 5,728
12. Intangible assets
Unaudited Unaudited
as at as at
31st October 2021 31st October 2020
£'000 £'000
Net book value at the beginning of the period 24,813 24,695
Additions 629 564
Amortisation (747) (745)
Exchange adjustment (195) 256
Net book value at the end of the period 24,500 24,770
13. Cash and cash equivalents
Unaudited Unaudited Audited
as at as at as at
31st October 2021 31st October 2020 30th April 2021
£'000 £'000 £'000
Cash and cash equivalents per balance sheet 12,257 10,915 15,160
Bank overdrafts - (1,872) -
Cash and cash equivalents per cash flow statement 12,257 9,043 15,160
14. Interest-bearing liabilities
Unaudited Unaudited Audited
as at as at as at
31st October 2021 31st October 2020 30th April 2021
£'000 £'000 £'000
Bank overdrafts - 1,872 -
Bank loans - repayable by instalments 833 749 761
Bank loans - rolling credit facilities - 30,000 -
Lease liabilities 1,020 1,040 846
Due within one year 1,853 33,661 1,607
Bank loans - repayable by instalments 4,076 4,964 4,538
Bank loans - rolling credit facilities 40,000 3,000 26,000
Lease liabilities 2,977 1,745 2,528
Due after more than one year 47,053 9,709 33,066
Bank overdrafts - 1,872 -
Bank loans - repayable by instalments 4,909 5,713 5,299
Bank loans - rolling credit facilities 40,000 33,000 26,000
Lease liabilities 3,997 2,785 3,374
Total 48,906 43,370 34,673
15. Total Financial Assets and Financial Liabilities
The following table sets out the Group's accounting classification of its
financial assets and financial liabilities, and their carrying amounts at 31st
October 2021. The carrying amount is a reasonable approximation of fair
value for all financial assets and financial liabilities.
Fair value - hedging instruments Fair value through profit and loss (FVTPL) Amortised cost Total carrying amount / fair value amount
£'000 £'000 £'000 £'000
Financial assets measured at fair value
Forward exchange contracts used for hedging 1,153 - - 1,153
Other forward exchange contracts - 2,081 - 2,081
Interest rate SWAP 380 - - 380
1,533 2,081 - 3,614
Financial assets not measured at fair value
Cash and cash equivalents - - 12,257 12,257
Contract assets - - 13,245 13,245
Trade receivables and other financial assets 23,940 23,940
Corporation tax receivable 1,083 1,083
- - 50,525 50,525
Financial liabilities measured at fair value
Forward exchange contracts used for hedging 457 - - 457
Other forward exchange contracts - 1,141 - 1,141
457 1,141 - 1,598
Financial liabilities not measured at fair value
Bank loans - - 44,909 44,909
Lease liabilities - - 3,997 3,997
Contract liabilities - - 14,542 14,542
Trade payables and other financial liabilities 16,606 16,606
Corporation tax payable - - 1,689 1,689
- - 81,743 81,743
The forward exchange and interest rate SWAP contract assets and liabilities
fair values in the above table are derived using Level 2 inputs as defined by
IFRS 7 as detailed in the paragraph below.
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).
END
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR ZZMMZMDLGMZZ