REG - Goodwin PLC - Half-year Report
20/12/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221220:nRST2322Ka&default-theme=true
RNS Number : 2322K Goodwin PLC 20 December 2022
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2022
CHAIRMAN'S STATEMENT
The pre-tax trading profit for the Group for the first six month period ending
31st October 2022 was £9.1 million (2021: £7.7 million) on a revenue of
£89.3 million.
I am pleased to report that at the time of writing the workload has increased
to £242 million (2021: £157 million). This increase relates to the
materialisation of some of the major projects that the Mechanical Engineering
Division has been pursuing within the military and nuclear waste re-processing
markets. It is fortunate that the Mechanical Engineering Division has
diversified away from oil and gas into other business streams that will likely
avoid the effects of a global recession that are almost certainly going to
feature over the next two years. These business streams include US and UK
government procured components for military ships and boats, nuclear power,
along with nuclear waste storage products.
The first half of the financial year has benefitted from the Refractory
Engineering Division continuing to generate excellent results, as well as the
pump companies having gone from strength to strength, as the recovery of the
global economy following the impact of the Covid-19 pandemic has provided the
mining industry with the confidence to proceed with spending again.
The Group's overall net debt stands at £46.1 million (31st October 2021:
£34.8 million) which, whilst temporarily high, equates to a modest gearing of
only 39.5%. Within the debt figure is £8.4 million that has been invested
in CO(2) emission projects and with the current escalated electricity prices
that continue to be prevalent in the UK and Europe, the payback on the solar
investments averages at about two years. Whilst cash flow remains a key focus
area, with global supply chains generally remaining under stress around the
world, the pro-active decision to build up stocks over the past few years has
significantly aided the Group's ability to meet the demand, specifically
within the Refractory Division.
Our interest rate swap continues to provide effective protection from
inflationary interest on the first £30 million of facility, capping the
interest to less than 1% till August 2031. Further to our full explanation as
to the accounting for the interest rate swap, which can be read within our
Annual Report for the year ending 30th April 2022, the Board has and will
continue to focus and report on the trading profit that excludes the profit
impact of the interest rate swap valuation. Due to the recent and expected
increases to the base interest rate by the Bank of England the Group's swap
increased in value by a further £3.1 million over the course of the first six
months of the current financial year.
The work ethic of the Group's management and employees is world class and the
Board wishes to thank all our employees for their unwavering loyalty, devotion
and hard work.
T.J.W. Goodwin
Chairman 19th December 2022
MANAGEMENT REPORT
Financial Highlights
Unaudited Unaudited Audited
Half Year to Half Year to Year ended
31st October 31st October 30th April
2022 2021 2022
£m £m £m
Consolidated Results
Revenue 89.3 68.9 144.1
Operating profit 9.8 8.2 18.3
Trading profit * 9.1 7.7 17.2
Unrealised gain on 10 year interest rate swap derivative 3.1 ‒ 2.7
Profit before tax 12.2 7.7 19.9
Profit after tax 9.1 6.0 13.6
Capital additions
Property, plant and equipment (PPE) owned 7.8 9.0 16.4
Property, plant and equipment (PPE) right-of-use assets 1.1 1.1 3.7
Operating lease assets (former IAS 17 definition) (0.2) ‒ (0.1)
Intangible assets 0.3 0.6 1.8
Capital expenditure for KPI purposes 9.0 10.7 21.8
Earnings per share - basic 113.93p 72.12p 169.14p
Earnings per share - diluted 113.93p 72.12p 169.14p
* Trading profit is defined as profit before taxation less the movement in
fair value of interest rate swap.
Revenue
Revenue of £89,335,000 for the six months represents an 18.8% increase from
the £75,200,000 achieved during the six month period to 30th April 2022.
Trading profit
Trading profit for the six months of £9,105,000 represents a 17.9% increase
from the £7,723,000 achieved for the same six month period last year.
Key performance indicators
Unaudited Unaudited Audited
Half Year to 31st October Half Year to 31st October Year ended 30th April
2022 2021 2022
Trading profit (£'m) 9.1 7.7 17.2
Post tax profit + depreciation + amortisation (£'m) 9.9 9.9 21.9
Gross profit % of revenue 26.5% 29.5% 29.6%
Trading profit % of revenue 10.2% 11.2% 11.9%
Gearing % 39.5% 31.7% 25.8%
Non cash charges (£'m)
Depreciation - owned assets 3.0 2.9 6.2
Depreciation - right-of-use assets 0.6 0.5 1.2
Amortisation and impairment 0.6 0.7 1.6
Total non cash charges 4.2 4.1 9.0
Alternative performance measures mentioned above are defined on pages 96 and
97 of the Group Annual Accounts to 30th April 2022.
2022/23 Outlook
While there continues to be some global uncertainties due to the geopolitical
environment and rising costs for consumers, the Group's activity and
profitability levels are expected to increase over the next twelve months as a
result of the increased work load.
The Mechanical Engineering Division performance is recovering, and with the
recent increase in order input the Board expects the activity levels to take a
significant step forward in the second half of this financial year, which will
provide the Division with a much better start to the next financial year. In
the Annual Report to 30th April 2022, we stated that we expected to be able to
deliver substantially increased profitability in the year ending April 2023.
Since the date of writing that statement a greater degree of uncertainty
around the world has evolved with high levels of currency pair fluctuations,
the continued conflict in Ukraine and with the Bank of England delivering the
biggest interest rate hike in 33 years. This uncertainty is resulting in
certain industry sectors hesitating in proceeding boldly with their planned
investment projects. For this reason we expect the pre-tax profits in the
second half of this financial year to be similar to the first half which would
result in a modest increase in annual pre-tax profit rather than a substantial
increase.
The Group will benefit over the medium and long term as we near the end of the
significant capital investment programmes of installing a second calciner at
Hoben International, as well as the upfront costs of installing the high
temperature polymer production plant at Duvelco. Thereafter, capital
expenditure levels are set to normalise going forwards, as we focus on
delivering the orders recently won, as well as the ones still being pursued.
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 14 to 15 of the Group Annual Accounts to 30th April 2022 which describe
the principal risks and uncertainties, and to note 26, starting on page 75,
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 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 nine years.
Report on Expected Developments
This report describes the expected development of the Group during the year
ended 30th April 2023. 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 continues to trade profitability by building on the increase in
activity seen in the second half of last year and, with the current order book
levels as they are, this should continue and improve through this current year
and into the next financial year. Where many companies have struggled with
increased material and energy prices, disruption in the logistics of the
supply chain and the impacts of Covid-19, the Group has continued on
throughout and been able to carry on with its value added activities. As at
31st October 2022, the Group net debt stood at £46.1 million (31st October
2021: £34.8 million) as set out in note 17 of these accounts. Whilst the
net debt levels are higher than those recorded at April 2022 and October 2021
the gearing levels at 39.5% remain moderate for a Group of this size. Given
the above-mentioned, the Directors do not see an issue with the continued
ability of the Group to meet its financial commitments as they fall due and
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
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 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 19 December 2022
Condensed Consolidated Statement of Profit or Loss
for the half year to 31st October 2022
Unaudited Unaudited Audited
Half Year to Half Year to Year ended
31st October 31st October 30th April
2022 2021 2022
£'000 £'000 £'000
Continuing operations
Revenue 89,335 68,884 144,108
Cost of sales (65,645) (48,529) (101,404)
Gross profit 23,690 20,355 42,704
Distribution expenses (2,056) (1,817) (3,743)
Administrative expenses (11,801) (10,335) (20,654)
Operating profit 9,833 8,203 18,307
Finance costs (net) (761) (513) (1,169)
Share of profit of associate company 33 33 63
Profit before taxation and movement in fair value of interest rate swap 9,105 7,723 17,201
Unrealised gain on 10 year interest rate swap derivative 3,132 ‒ 2,740
Profit before taxation 12,237 7,723 19,941
Tax on profit (3,157) (1,719) (6,321)
Profit after taxation 9,080 6,004 13,620
Attributable to:
Equity holders of the parent 8,761 5,546 12,980
Non-controlling interests (NCI) 319 458 640
Profit for the period 9,080 6,004 13,620
Basic earnings per ordinary share (note 13) 113.93p 72.12p 169.14p
Diluted earnings per ordinary share (note 13) 113.93p 72.12p 169.14p
Condensed Consolidated Statement of Comprehensive Income
for the half year to 31st October 2022
Unaudited Unaudited Audited
Half Year to Half Year to Year ended
31st October 31st October 30th April
2022 2021 2022
£'000 £'000 £'000
Profit for the period 9,080 6,004 13,620
Other comprehensive expense
Items that are or may be reclassified subsequently to the income statements
Foreign exchange translation differences (167) (697) 1,493
Effective portion of changes in fair value of cash flow hedges (4,958) 754 (3,834)
Ineffective portion of changes in fair value of cash flow hedges (92) ‒ (339)
Change in fair value of cash flow hedges transferred to profit or loss 949 (731) (1,432)
Effective portion of changes in fair value of cost of hedging 96 (145) 275
Ineffective portion of changes in fair value of cost of hedging ‒ ‒ (23)
Change in fair value of cost of hedging transferred to profit or loss (15) (10) (75)
Tax on items that are or may be reclassified subsequently to profit or loss 950 (91) 1,114
Other comprehensive expense for the period, net of income tax (3,237) (920) (2,821)
Total comprehensive income for the period 5,843 5,084 10,799
Attributable to:
Equity holder of the parent 5,633 4,732 10,089
Non-controlling interests 210 352 710
5,843 5,084 10,799
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2022
Share capital Translation reserve Share-based payments reserve Cash flow hedge reserve Cost of hedging reserve Retained earnings Total attributable to equity holders of the parent Non-controlling interests Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Half Year to 31st October 2022
(Unaudited)
Balance at 1st May 2022 769 463 5,244 (2,746) 140 111,440 115,310 4,433 119,743
Total comprehensive income:
Profit ‒ ‒ ‒ ‒ ‒ 8,761 8,761 319 9,080
Other comprehensive income:
Foreign exchange translation differences ‒ (81) ‒ ‒ ‒ ‒ (81) (86) (167)
Net movements on cash flow hedges ‒ ‒ ‒ (3,114) 67 ‒ (3,047) (23) (3,070)
Total comprehensive income / expense for the period ‒ (81) ‒ (3,114) 67 8,761 5,633 210 5,843
Dividends paid ‒ ‒ ‒ ‒ ‒ (4,145) (4,145) (380) (4,525)
Balance at 31st October 2022 769 382 5,244 (5,860) 207 116,056 116,798 4,263 121,061
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2022
Share capital Translation reserve Share-based payments reserve Cash flow hedge reserve Cost of hedging reserve Retained earnings Total attributable to equity holders of the parent Non-controlling 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 2022
Share capital Translation reserve Share-based payments reserve Cash flow hedge reserve Cost of hedging reserve Retained earnings Total attributable to equity holders of the parent Non-controlling interests Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Year ended 30th April 2022
(Audited)
Balance at 1st May 2021 753 (852) 5,244 1,601 (1) 106,396 113,141 4,887 118,028
Total comprehensive income:
Profit ‒ ‒ ‒ ‒ ‒ 12,980 12,980 640 13,620
Other comprehensive income:
Foreign exchange translation differences ‒ 1,315 ‒ ‒ ‒ ‒ 1,315 178 1,493
Net movements on cash flow hedges ‒ ‒ ‒ (4,347) 141 ‒ (4,206) (108) (4,314)
Total comprehensive income / expense for the period ‒ 1,315 ‒ (4,347) 141 12,980 10,089 710 10,799
Issue of shares 16 ‒ ‒ ‒ ‒ ‒ 16 ‒ 16
Dividends paid ‒ ‒ ‒ ‒ ‒ (7,862) (7,862) (808) (8,670)
Acquisition of NCI without a change in control ‒ ‒ ‒ ‒ ‒ (74) (74) (356) (430)
Balance at 30th April 2022 769 463 5,244 (2,746) 140 111,440 115,310 4,433 119,743
Condensed Consolidated Balance Sheet
Unaudited Unaudited Audited
as at 31st as at 31st as at 30th
October 2022 October 2021 April 2022
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 92,104 82,949 87,594
Right-of-use assets 6,956 4,276 6,191
Investment in associates 912 815 896
Intangible assets 24,380 24,500 24,817
Derivative financial assets 5,446 613 2,741
Long-term trade receivables ‒ ‒ 1,191
129,798 113,153 123,430
Current assets
Inventories 43,323 37,315 40,364
Contract assets 17,811 13,245 12,331
Trade and other financial assets 30,341 23,940 23,717
Other receivables 7,323 6,298 6,217
Deferred tax asset 59 144 60
Derivative financial assets 2,105 3,001 1,211
Cash and cash equivalents 8,604 12,257 11,651
109,566 96,200 95,551
Total assets 239,364 209,353 218,981
Current liabilities
Bank overdrafts and interest-bearing liabilities 3,318 1,853 2,764
Contract liabilities * 19,462 14,542 14,749
Trade payables and other financial liabilities 18,722 16,606 23,004
Other payables 6,266 4,102 4,256
Derivative financial liabilities 4,984 1,262 2,393
Liabilities for current tax 1,194 1,689 1,886
Provisions for liabilities and charges 206 512 205
54,152 40,566 49,257
Non-current liabilities
Interest-bearing liabilities 53,042 47,053 40,376
Derivative financial liabilities 2,326 336 1,643
Provisions for liabilities and charges 333 304 251
Deferred tax liabilities 8,450 6,445 7,711
64,151 54,138 49,981
Total liabilities 118,303 94,704 99,238
Net assets 121,061 114,649 119,743
Equity attributable to equity holders of the parent
Share capital 769 769 769
Translation reserve 382 (1,443) 463
Share-based payments reserve 5,244 5,244 5,244
Cash flow hedge reserve (5,860) 1,488 (2,746)
Cost of hedging reserve 207 (111) 140
Retained earnings 116,056 104,006 111,440
Total equity attributable to equity holders of the parent 116,798 109,953 115,310
Non-controlling interests 4,263 4,696 4,433
Total equity 121,061 114,649 119,743
* Contract liabilities include advance payments from customers of £18,627,000
(October 2021: £13,766,000), with the balance of £835,000 (October 2021:
£776,000) being costs accrued for contracts.
Condensed Consolidated Statement of Cash Flows
for the half year ended 31st October 2022
Unaudited Unaudited Audited
Half Year to Half Year to Year ended
31st October 31st October 30th April
2022 2021 2022
£'000 £'000 £'000
Cash flow from operating activities
Profit from continuing operations after tax 9,080 6,004 13,620
Adjustments for:
Depreciation of property, plant and equipment 2,965 2,932 6,202
Depreciation of right-of-use assets 642 456 1,192
Amortisation and impairment of intangible assets 610 747 1,572
Finance costs (net) 761 513 1,169
Foreign exchange (gains) / losses (1,965) 125 (1,535)
Loss / (profit) on sale of property, plant and equipment 7 (95) (18)
Unrealised gain on 10 year interest rate swap derivative (3,132) ‒ (2,740)
Share of profit of associate companies (33) (33) (63)
UK tax incentive credit on research and development ‒ ‒ (675)
Tax expense 3,157 1,719 6,321
Cash generated from operating activities before changes in working capital and 12,092 12,368 25,045
provisions
Increase in inventories (3,112) (3,073) (5,175)
(Increase) / decrease in contract assets (5,461) 2,583 3,498
Increase in trade and other receivables (5,426) (4,076) (3,341)
Increase in contract liabilities 4,720 266 472
(Decrease) / increase in trade and other payables (2,488) (5,192) 804
Increase in unhedged derivative balances ‒ 180 ‒
Cash inflow from operations 325 3,056 21,303
Interest paid (net) (763) (513) (1,258)
Corporation tax paid (2,196) (576) (2,051)
Net cash from operating activities (2,634) 1,967 17,994
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 39 213 341
Acquisition of property, plant and equipment (6,796) (9,220) (16,215)
Additional investment in existing subsidiaries ‒ (430) (430)
Acquisition of intangible assets (143) (269) (282)
Development expenditure capitalised (166) (408) (1,505)
Net cash outflow from investing activities (7,066) (10,114) (18,091)
Cash flows from financing activities
Proceeds from issue of share capital ‒ 16 16
Payment of capital element of lease obligations (882) (385) (1,153)
Dividends paid (4,145) (7,862) (7,862)
Dividends paid to non-controlling interests (380) (187) (808)
Proceeds from new loans and committed facilities 13,000 14,200 6,702
Repayment of loans and committed facilities (868) (355) (683)
Net cash inflow / (outflow) from financing activities 6,725 5,427 (3,788)
Net decrease in cash and cash equivalents (2,975) (2,720) (3,885)
Cash and cash equivalents at beginning of year 11,651 15,160 15,160
Effect of exchange rate fluctuations on cash held (72) (183) 376
Closing cash and cash equivalents (note 15) 8,604 12,257 11,651
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 2022 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 2022 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 2022.
The comparative figures for the financial year ended 30th April 2022 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 19th December 2022.
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 2022, except where accounting standards have been amended and the
Group has adopted these amendments during the current period.
The following amendments, which have become effective for the current
reporting period, and therefore have been adopted by the Group, are not
expected to have a significant impact on the Group's financial statements.
· Amendments to IFRS 3 Business Combinations; IAS 16 Property,
Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent
Assets; and Annual Improvements 2018-2020 - (effective for periods commencing
on or after 1st January 2022)
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 8 Accounting Policies, Changes in Accounting
Estimates and Errors 'Definition of Accounting Estimates' - (effective for
periods commencing on or after 1st January 2023, subject to UK endorsement).
· Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current and Classification of
Liabilities as Current or Non-current - Deferral of Effective Date -
(effective for periods commencing on or after 1st January 2023, subject to
endorsement).
· Amendments to IAS 1 Presentation of Financial Statements and IFRS
Practice Statement 2: Disclosure of Accounting Policies - (effective for
periods commencing on or after 1st January 2023, subject to UK endorsement).
· Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets
and Liabilities arising from a Single Transaction - (effective for periods
commencing on or after 1st January 2023, subject to endorsement).
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 2022.
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
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 (Mechanical) -
casting, machining and general engineering
• Refractory Engineering (Refractory)
- powder manufacture and mineral processing
Information regarding the Group's operating segments is reported in the
following tables.
6. Operating segment revenue
Unaudited Unaudited Audited
Half Year to 31st October 2022 Half Year to 31st October 2021 Year ended 30th April 2022
Mechanical Refractory Total Mechanical Refractory Total Mechanical Refractory Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Total revenue 70,276 40,039 110,315 49,747 34,443 84,190 105,389 72,026 177,415
Inter-segment revenue (12,226) (8,754) (20,980) (8,203) (7,103) (15,306) (17,784) (15,523) (33,307)
External revenue 58,050 31,285 89,335 41,544 27,340 68,884 87,605 56,503 144,108
7. Operating segment profit
Unaudited Unaudited Audited
Half Year to 31st October 2022 Half Year to 31st October 2021 Year ended 30th April 2022
Mechanical Refractory Total Mechanical Refractory Total Mechanical Refractory Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Operating profit 5,809 6,525 12,334 3,565 6,015 9,580 9,139 12,657 21,796
Share of profit of associate companies ‒ 33 33 ‒ 33 33 ‒ 63 63
Group centre (2,501) (1,377) (3,489)
Group finance costs (net) (761) (513) (1,169)
Unrealised gain on 10 year interest rate swap 3,132 ‒ 2,740
Consolidated profit before tax 12,237 7,723 19,941
Tax (3,157) (1,719) (6,321)
Consolidated profit after tax 9,080 6,004 13,620
8. Operating segment assets and liabilities
Unaudited Unaudited Audited
Half Year to 31st October 2022 Half Year to 31st October 2021 Year ended 30th April 2022
Mechanical Refractory Total Mechanical Refractory Total Mechanical Refractory Total
2022 2022 2022 2021 2021 2021 2022 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Total assets 106,141 50,968 157,109 104,014 46,094 150,108 93,049 48,843 141,892
Total liabilities (82,797) (22,431) (105,228) (76,441) (18,376) (94,817) (71,950) (22,643) (94,593)
Net assets - reportable segment net assets 23,344 28,537 51,881 27,573 27,718 55,291 21,099 26,200 47,299
Net assets - Goodwin PLC (the Company) 85,411 75,450 88,595
Elimination of Goodwin PLC investments (25,822) (25,822) (25,822)
Goodwill 9,591 9,730 9,671
Consolidated total net assets 121,061 114,649 119,743
9. Operating segment capital expenditure, depreciation and
amortisation
Unaudited Unaudited
Half Year to 31st October 2022 Half Year to 31st October 2021
Mechanical Refractory Goodwin PLC Total Mechanical Refractory Goodwin PLC Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Capital expenditure on:
Property, plant and equipment 1,482 382 5,962 7,826 2,228 715 6,094 9,037
Right-of-use assets 336 ‒ 768 1,104 ‒ ‒ 1,078 1,078
Intangible assets 188 45 29 262 420 21 188 629
Total capital expenditure 2,006 427 6,759 9,192 2,648 736 7,360 10,744
Depreciation - property, plant and equipment 950 461 1,554 2,965 829 527 1,576 2,932
Depreciation - right-of-use assets 171 147 324 642 159 140 157 456
Amortisation 26 74 510 610 21 220 506 747
Total 1,147 682 2,388 4,217 1,009 887 2,239 4,135
Audited
Year ended 30th April 2022
Mechanical Refractory Goodwin PLC Total
£'000 £'000 £'000 £'000
Capital expenditure on
Property, plant and equipment 5,396 1,631 9,326 16,353
Right-of-use assets 2,401 881 441 3,723
Intangible assets 1,121 429 237 1,787
Total capital expenditure 8,918 2,941 10,004 21,863
Depreciation - property, plant and equipment 1,895 1,092 3,215 6,202
Depreciation - right-of-use assets 305 294 593 1,192
Amortisation 47 330 1,180 1,557
Impairment ‒ ‒ 15 15
Total 2,247 1,716 5,003 8,966
10. Geographical segments
Unaudited Unaudited
Half Year to 31st October 2022 Half Year to 31st October 2021
Revenue Net assets Non-current assets Capital expenditure Revenue Net assets Non-current assets Capital expenditure
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
UK 25,108 75,384 107,933 7,957 17,815 76,575 92,602 9,483
Rest of Europe 13,360 9,096 3,981 385 9,212 8,069 3,878 926
USA 7,807 ‒ ‒ ‒ 6,159 ‒ ‒ ‒
Pacific Basin 18,349 16,993 7,395 119 16,025 15,044 7,375 97
Rest of World 24,711 19,588 10,489 731 19,673 14,961 9,298 238
Total 89,335 121,061 129,798 9,192 68,884 114,649 113,153 10,744
Audited
Year ended 30th April 2022
Revenue Net assets Non-current assets Capital expenditure
£'000 £'000 £'000 £'000
UK 38,599 77,447 104,995 19,670
Rest of Europe 21,388 8,648 3,728 1,009
USA 14,046 ‒ ‒ ‒
Pacific Basin 31,085 15,867 6,703 278
Rest of World 38,990 17,781 8,004 906
Total 144,108 119,743 123,430 21,863
11. 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.
Unaudited Unaudited Audited
Half Year to 31st October 2022 Half Year to 31st October 2021 Year ended 30th April 2022
Mechanical Refractory Total Mechanical Refractory Total Mechanical Refractory Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Primary geographical markets
UK 17,916 7,193 25,109 11,256 6,559 17,815 25,261 13,338 38,599
Rest of Europe 9,322 4,038 13,360 5,327 3,885 9,212 13,304 8,084 21,388
USA 7,400 407 7,807 5,796 363 6,159 13,398 648 14,046
Pacific Basin 5,885 12,464 18,349 5,461 10,564 16,025 9,457 21,628 31,085
Rest of World 17,527 7,183 24,710 13,704 5,969 19,673 26,185 12,805 38,990
Total 58,050 31,285 89,335 41,544 27,340 68,884 87,605 56,503 144,108
Product lines
Standard products and consumables 7,222 31,285 38,507 5,105 27,340 32,445 12,155 56,503 68,658
Bespoke engineered products - point in time 17,468 ‒ 17,468 6,022 ‒ 6,022 9,992 ‒ 9,992
Total point in time revenue 24,690 31,285 55,975 11,127 27,340 38,467 22,147 56,503 78,650
Minimum period contracts for goods and services 2,252 ‒ 2,252 1,879 ‒ 1,879 3,804 ‒ 3,804
Bespoke engineered products - over time 31,108 ‒ 31,108 28,538 ‒ 28,538 61,654 ‒ 61,654
Total over time revenue 33,360 ‒ 33,360 30,417 ‒ 30,417 65,458 ‒ 65,458
Total revenue 58,050 31,285 89,335 41,544 27,340 68,884 87,605 56,503 144,108
12. Dividends
The Directors do not propose the payments of an interim dividend.
Unaudited Unaudited Audited
Half Year to Half Year to Year ended
31st October 31st October 30th April
2022 2021 2022
£'000 £'000 £'000
Equity dividends paid during the period:
Ordinary dividends paid in respect of the year ended 30th April 2022 (53.90p 4,145 ‒ ‒
per share)
Ordinary dividends paid in respect of the year ended 30th April 2021 (102.24p ‒ 7,862 7,862
per share)
Total 4,145 7,862 7,862
As noted in the Group Annual Accounts to 30th April 2022, the dividend
payments for the year ended 30th April 2022 are being paid in two equal
instalments, with the second payment due in April 2023.
13. Earnings per share
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2022 2021 2022
Number of ordinary shares
Ordinary shares in issue
Opening balance 7,689,600 7,526,400 7,526,400
Shares issued in the period ‒ 163,200 163,200
Closing balance 7,689,600 7,689,600 7,689,600
Weighted average number of ordinary shares in issue 7,689,600 7,689,600 7,673,951
£'000
Relevant profits attributable to shareholders 8,761 5,546 12,980
14. Property, plant and equipment and intangible assets
Unaudited Unaudited
Half Year to 31st October 2022 Half Year to 31st October 2021
Property, plant and equipment Right-of-use assets Intangible assets Property, plant and equipment Right-of-use assets Intangible assets
£'000 £'000 £'000 £'000 £'000 £'000
Net book value at the beginning of the period 87,594 6,191 24,817 77,063 3,691 24,813
Additions 7,826 1,104 262 9,037 1,078 629
Disposals (at net book value) (46) ‒ ‒ (117) ‒ ‒
Transfers (306) 306 ‒ ‒ ‒ ‒
Depreciation (2,965) (642) ‒ (2,932) (456) ‒
Amortisation ‒ ‒ (610) ‒ ‒ (747)
Exchange adjustment 1 (3) (89) (102) (37) (195)
Net book value at the end of the period 92,104 6,956 24,380 82,949 4,276 24,500
The depreciation on right-of-use assets maybe be analysed as follows:
Unaudited Unaudited
Half Year to 31st October Half Year to 31st October
2022 2021
£'000 £'000
Finance leases (former IAS 17 definition) 365 210
Operating leases (former IAS 17 definition) 277 246
642 456
15. Cash and cash equivalents
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2022 2021 2022
£'000 £'000 £'000
Cash and cash equivalents per balance sheet and cash flow statement 8,604 12,257 11,651
16. Interest-bearing liabilities
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2022 2021 2022
£'000 £'000 £'000
Bank loans - repayable by instalments 1,058 833 1,005
Other loans ‒ ‒ 202
Lease liabilities 2,260 1,020 1,557
Due within one year 3,318 1,853 2,764
Bank loans - repayable by instalments 7,367 4,076 8,059
Bank loans - rolling credit facilities 41,000 40,000 28,000
Lease liabilities 4,675 2,977 4,317
Due after more than one year 53,042 47,053 40,376
Bank loans - repayable by instalments 8,425 4,909 9,064
Bank loans - rolling credit facilities 41,000 40,000 28,000
Other loans ‒ ‒ 202
Lease liabilities 6,935 3,997 5,874
Total 56,360 48,906 43,140
Former IAS 17 analysis of lease liabilities
Finance leases 5,306 2,169 4,170
Operating leases 1,629 1,828 1,704
6,935 3,997 5,874
17. Capital management
As at 31st October 2022 the capital utilised was £162,925,000, as shown
below:
Unaudited Unaudited Audited
As at As at As at
31st October 31st October 30th April
2022 2021 2022
Note £'000 £'000 £'000
Cash and cash equivalents 15 (8,604) (12,257) (11,651)
Bank loans and committed facilities 16 49,425 44,909 37,064
Other loans ‒ ‒ 202
Lease liabilities 16 6,935 3,997 5,874
Net debt in accordance with IFRS 16 47,756 36,649 31,489
Operating lease debt (former IAS 17 definition) 16 (1,629) (1,828) (1,704)
Relevant net debt for KPI purposes 46,127 34,821 29,785
Total equity attributable to equity holders of the parent 116,798 109,953 115,310
Capital 162,925 144,774 145,095
18. 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 2022. 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 Amortised cost Total carrying amount / fair value amount
£'000 £'000 £'000 £'000
Financial assets measured at fair value
Forward exchange contracts used for hedging 844 ‒ ‒ 844
Other forward exchange contracts ‒ 835 ‒ 835
Interest rate swap ‒ 5,872 ‒ 5,872
844 6,707 ‒ 7,551
Financial assets not measured at fair value
Cash and cash equivalents ‒ ‒ 8,604 8,604
Contract assets ‒ ‒ 17,811 17,811
Trade receivables and other financial assets ‒ ‒ 30,341 30,341
Corporation tax receivable ‒ ‒ 1,339 1,339
‒ ‒ 58,095 58,095
Financial liabilities measured at fair value
Forward exchange contracts used for hedging 7,077 ‒ ‒ 7,077
Other forward exchange contracts ‒ 233 ‒ 233
7,077 233 ‒ 7,310
Financial liabilities not measured at fair value
Bank loans ‒ ‒ 49,425 49,425
Lease liabilities ‒ ‒ 6,935 6,935
Contract liabilities ‒ ‒ 19,462 19,462
Trade payables and other financial liabilities ‒ ‒ 18,722 18,722
Corporation tax payable ‒ ‒ 1,194 1,194
‒ ‒ 95,738 95,738
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).
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 DZMMZNLVGZZMRecent news on Goodwin
See all newsREG - Goodwin PLC - Director/PDMR Shareholding
AnnouncementREG - Goodwin PLC - Director/PDMR Shareholding
AnnouncementREG - Goodwin PLC - March 2024 Trading Update
AnnouncementREG - Goodwin PLC - Half-year Report
AnnouncementREG - Goodwin PLC - Director/PDMR Shareholding
Announcement