REG - Goodwin PLC - Half Yearly Report <Origin Href="QuoteRef">GDWN.L</Origin> - Part 1

GoodwinAnnouncement

18/12/2014 09:11

RNS Number : 1144A
Goodwin PLC
18 December 2014
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2014
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 2014 was 13,450,000 (2013 : 12,280,000), an increase of 9.5% from a revenue of 72,970,000. 
As was indicated in the full year annual statement, we have in the first half of this new year seen a continued fall off of activity in the oil and gas industry associated with lower oil barrel prices and the reduced investment by the major oil and gas companies. We started this new financial year with a record work load of 101 million, but this has steadily been decreasing as the order input fell behind our sales output. This decreasing workload will make it likely that the performance in the second half of this financial year and next year will not be as good as the first half of this financial year.
Our investment in additional machinery in Goodwin International is starting to provide benefits and allowing us to diversify into markets other than oil and gas such as the UK defence industry. The Refractory Division both in the UK and in our six overseas plants has continued to grow revenue and profits which will likely continue to grow in the coming years.
Our business model and strategy are stated on page 5 of the 30th April 2014 annual accounts, and our activities and products are detailed on our website www.goodwin.co.uk/2014 and on the subsidiary websites such as Goodwin International Ltd www.goodwininternational.co.uk. Our commitment remains to invest in engineering, be it mechanical or refractory, where we strive to supply technically advanced products to growth markets.
In the first half year the Company acquired our Indian partners' 20% equity in Goodwin Pumps India and Gold Star Powders India and these two subsidiaries are now 100% owned by Goodwin PLC.
J. W. Goodwin
Chairman 18th December 2014
Management report
The turnover for the first six months of this new financial year increased slightly by 2.4%. The pre-tax profit has increased by 9.5% in the first half of the financial year but, with the reduced level of order input from the oil and gas industry markets, this increase is unlikely to be maintained in the second half year. The Refractory Engineering business side of the Company continues to increase activity and sales.
By the financial year end, just prior to the UK elections, we hope to win more project engineering business for both the foundry and machine shop from both civil markets and UK defence markets that will allow us to take advantage of our recent substantial investment in large CNC machine tools.
Financial Highlights
Unaudited 
Half Year to 
31st October 
2014
Unaudited Half Year to 31st October 2013
Audited 
Year Ended 
30th April 
2014

'm
'm
'm
Consolidated Results



Sales revenue
73.0
71.3
130.8
Operating profit
13.7
12.5
24.5
Profit before tax
13.5
12.3
24.1
Profit after tax
10.5
9.8
19.6








Capital Expenditure
6.9
8.0
15.5








Earnings per share (Basic and Diluted)
141.47p
131.28p
264.38p




Turnover
Sales revenue of 72,970,000 for the half year represents a 2.4% increase over the 71,264,000 achieved during the same period last year.
Profit Before Tax
Profit before tax for the six months of 13,450,000 is up 9.5% from the 12,280,000 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 6 of the Group annual accounts to 30th April 2014 which describes the principal risks and uncertainties, and to note 20 (page 43) which describes in detail the key financial risks and uncertainties affecting the business such as credit risk and foreign exchange risk. The risks remain unchanged at the end of October 2014.
Judging the future relationship of the major currency pairs of the US Dollar, Sterling and the Euro continues to be a challenge but it is likely that we will see continued strengthening of the US Dollar, which should aid our competitiveness in many of our markets.
Report on Expected Developments
This report describes the expected developments of the Group during the year ended 30th April 2015. 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.
2015/16 Outlook
Whilst currently it is declining, we still have a good order book backlog in most of our companies. Time will tell whether we can find satisfactory levels of work to fill the gap temporarily caused by the slow down in the oil and gas industry which we think will be quieter for a couple of years.
Going concern
The cash flow has deteriorated since the start of the financial year, in part due to the level of capital expenditure and also due to the current higher levels of debtors and work in progress. We expect to see an improvement in the cash flow position by the financial year end.
After reviewing the situation, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements. 
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 2014
Condensed consolidated income statement 
for the half year to 31st October 2014

Unaudited
Half Year to
31st October
2014
Unaudited
Half Year to
31st October
2013
Audited
Year Ended
30th April
2014
'000
'000
'000
Continuing operations
Revenue
72,970
71,264
130,828
Cost of sales
(48,974)
(48,806)
(86,010)
Gross profit
23,996
22,458
44,818

Distribution expenses
(1,628)
(1,823)
(3,783)
Administrative expenses
(8,697)
(8,104)
(16,494)
Operating profit
13,671
12,531
24,541

Financial expenses
(335)
(395)
(760)
Share of profit of associate companies
114
144
314
Profit before taxation
13,450
12,280
24,095
Tax on profit 
(2,907)
(2,488)
(4,448)
Profit after taxation
10,543
9,792
19,647
Attributable to:
Equity holders of the parent 
10,186
9,452
19,035
Non-controlling interests 
357
340
612

Profit for the period
10,543
9,792
19,647
Basic and diluted earnings per ordinary share
141.47p
131.28p
264.38p
Condensed consolidated statement of comprehensive income
for the half year to 31st October 2014





Unaudited 
Half Year to 
31st October 
2014
Unaudited 
Half Year to 
31st October 
2013
Audited 
Year Ended 
30th April 
2014

'000
'000
'000




Profit for the period
10,543
9,792
19,647




Other comprehensive (expense) / income







Items that are or may be reclassified
subsequently to the income statement



Foreign exchange translation differences
(120)
(1,111)
(2,270)
Effective portion of changes in fair 
value of cash flow hedges
(167)
1,742
2,245
Change in fair value of cash flow 
hedges transferred to the income statement
(2,283)
256
218
Tax on items that are or may be reclassified 
subsequently to the income statement
490
(429)
(522)




Other comprehensive (expense) / income 
for the period, net of income tax
(2,080)
458
(329)




Total comprehensive income for the period
8,463
10,250
19,318




Attributable to:



Equity holders of the parent
7,943
10,191
19,244
Non-controlling interests
520
59
74









8,463
10,250
19,318






Condensed consolidated statement of changes in equity
for the half year to 31st October 2014

Share capital
Translation
reserve
Cash flow hedging reserve
Retained earnings
Total
attributable to
equity holders of the
parent
Non- controlling interests
Total equity

'000
'000
'000
'000
'000
'000
'000
Half year to 31st October 2014 (Unaudited)







Balance at 1st May 2014
720
(9)
1,195
71,684
73,590
3,980
77,570
Total comprehensive income:







Profit
-
-
-
10,186
10,186
357
10,543
Other comprehensive income:







Foreign exchange translation difference
-
(283)
-
-
(283)
163
(120)
Net movements on cash flow hedges
-
-
(1,960)
-
(1,960)
-
(1,960)
Total comprehensive income for the period
-
(283)
(1,960)
10,186
7,943
520
8,463
Transactions with owners of the Company recognised directly in equity:







Purchase of non-controlling interest without a change in control
-
-
-
(1,268)
(1,268)
(275)
(1,543)
Dividends paid
-
-
-
(3,049)
(3,049)
-
(3,049)








Balance at 31st October 2014
720
(292)
(765)
77,553
77,216
4,225
81,441
























Half year to 31st October 2013 (Unaudited)







Balance at 1st May 2013
720
1,723
(746)
56,657
58,354
4,173
62,527
Total comprehensive income:







Profit
-
-
-
9,452
9,452
340
9,792
Other comprehensive income:







Foreign exchange translation difference
-
(830)
-
-
(830)
(281)
(1,111)
Net movements on cash flow hedges
-
-
1,569
-
1,569
-
1,569
Total comprehensive income for the period
-
(830)
1,569
9,452
10,191
59
10,250
Transactions with owners of the Company recognised directly in equity:







Purchase of non-controlling interest without a change in control
-
-
-
18
18
(18)
-
Dividends paid
-
-
-
(3,811)
(3,811)
-
(3,811)








Balance at 31st October 2013 
720
893
823
62,316
64,752
4,214
68,966
























Year ended 30th April 2014 (Audited)







Balance at 1st May 2013 
720
1,723
(746)
56,657
58,354
4,173
62,527
Total comprehensive income:







Profit
-
-
-
19,035
19,035
612
19,647
Other comprehensive income:







Foreign exchange translation difference
-
(1,732)
-
-
(1,732)
(538)
(2,270)
Net movements on cash flow hedges
-
-
1,941
-
1,941
-
1,941
Total comprehensive income for the period
-
(1,732)
1,941
19,035
19,244
74
19,318
Transactions with owners of the Company recognised directly in equity:







Purchase of non-controlling interest without a change in control
-
-
-
(197)
(197)
(44)
(241)
Dividends paid
-
-
-
(3,811)
(3,811)
(223)
(4,034)








Balance at 30th April 2014 
720
(9)
1,195
71,684
73,590
3,980
77,570








Condensed consolidated balance sheet
as at 31st October 2014
Unaudited
as at
31st October
2014
Unaudited
as at
31st October
2013
Audited
as at
30th April
2014
'000
'000
'000
Non-current assets
Property, plant and equipment
48,452
38,632
44,096
Intangible assets
10,216
11,419
10,634
Investments in associates
1,368
1,339
1,193

 
 

60,036
51,390
55,923

 
 
Current assets
Inventories
33,732
27,823
31,215
Trade and other receivables
39,078
40,012
32,851
Derivative financial assets
1,172
2,672
2,517
Cash and cash equivalents
6,825
3,523
6,233

 
 
80,807
74,030
72,816

 
 
Total assets
140,843
125,420
128,739

 
 
Current liabilities
Bank overdrafts
7,086
3,487
-
Interest-bearing loans and borrowings 
2,346
2,953
2,391
Trade and other payables
28,860
30,003
33,685
Deferred consideration
500
500
500
Derivative financial liabilities
2,619
1,549
1,119
Liabilities for current tax
2,714
3,194
2,401
Warranty provision
445
212
383

 
 

44,570
41,898
40,479

 
 
Non-current liabilities
Interest-bearing loans and borrowings
12,330
11,525
7,485
Warranty provision
291
537
336
Deferred tax liabilities
2,211
2,494
2,869

 
 

14,832
14,556
10,690

 
 
Total liabilities
59,402
56,454
51,169

 
 
Net assets
81,441
68,966
77,570

 
 
Equity attributable to equity holders of the parent
Share capital
720
720
720
Translation reserve
(292)
893
(9)
Cash flow hedge reserve 
(765)
823
1,195
Retained earnings
77,553
62,316
71,684

 
 
Total equity attributable to equity holders of the parent
77,216
64,752
73,590
Non-controlling interests 
4,225
4,214
3,980

 
 
Total equity
81,441
68,966
77,570

 
 
Condensed consolidated cash flow statement
for the half year ended 31st October 2014

Unaudited
Half Year to
31st October
2014
Unaudited
Half Year to
31st October
2013
Audited
Year Ended
30th April
2014
'000
'000
'000
Cash flow from operating activities



Profit from continuing operations after tax
10,543
9,792
19,647
Adjustments for:



 Depreciation
2,484
1,749
3,415
 Amortisation of intangible assets
212
357
703
 Financial expense
335
395
760
 Loss on sale of property, plant and equipment
70
11
13
 Share of profit of associate companies
(114)
(144)
(314)
 Tax expense
2,907
2,488
4,448

 
 
 
Operating profit before changes in working capital and provisions
16,437
14,648
28,672
 (Increase) / decrease in trade and other receivables
(6,124)
(5,319)
2,484
 (Increase) / decrease in inventories
(2,523)
3,606
(115)
 (Decrease) / increase in trade and other payables
 (excluding payments on account)
(5,593)
(2,105)
1,835
 Increase in payments on account
972
3,097
1,794

 
 
Cash generated from operations
3,169
13,927
34,670
 Interest paid
(336)
(424)
(814)
 Corporation tax paid
(2,739)
(2,222)
(4,688)
 Interest element of finance lease obligations
(17)
(13)
(31)

 
 
Net cash from operating activities
77
11,268
29,137

 
 
 
Cash flow from investing activities
 Proceeds from sale of property, plant and equipment
179
10
46
 Acquisition of property, plant and equipment
(6,910)
(8,095)
(15,082)
 Purchase of non-controlling interest
(1,543)
(241)
(241)
 Additional payment for existing subsidiary
(80)
(45)
(45)
 Dividends received from associate company
-
-
201

 
 
Net cash outflow from investing activities
(8,354)
(8,371)
(15,121)

 
 
 
Cash flows from financing activities
 Dividends paid
(3,049)
(3,811)
(3,811)
 Dividends paid to non-controlling interests
-
-
(223)
 Proceeds from loans and committed facilities
5,000
5,000
-
 Proceeds from finance leases
-
-
356
 Repayment of loans and committed facilities
-
(9,139)
(8,791)
 Payment of capital element of finance lease obligations
(223)
(188)
(401)
 Finance fees
-
-
(56)

 
 
Net cash inflow / (outflow) from financing activities
1,728
(8,138)
(12,926)

 
 
Net (decrease) /increase in cash and cash equivalents
(6,549)
(5,241)
1,090




 Opening cash and cash equivalents
6,233
5,437
5,437
 Effect of exchange rate fluctuations on cash held
55
(160)
(294)

 
 
Closing cash and cash equivalents
(261)
36
6,233
 
 
Notes
to the condensed consolidated financial statements
1 Reporting entity
Goodwin PLC (the "Company") is a company incorporated in England. The unaudited condensed consolidated interim financial statements of the Company as at and for the six months ended 31st October 2014 comprises 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 2014 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 2014.
The comparative figures for the financial year ended 30th April 2014 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 2014.
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 2014. New standards to be adopted in the current year as below, effective for annual periods beginning on or after 1st January 2014, are not expected to have a significant impact on the financial statements.
 Amendments to IAS 32 Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities
 Amendments to IAS 36 Impairment of Assets - Recoverable amount disclosures for non-financial assets
 Amendments to IAS 39 Financial Instruments: Recognition and Measurement - Continuing hedge accounting after derivative novations
 IFRS 10 Consolidated Financial Statements
 IFRS 11 Joint Arrangements
 IFRS 12 Disclosure of Interests in Other Entities
 IAS 27 (2011) Separate Financial Statements
 IAS 28 (2011) Investments in Associates and Joint Ventures
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 2014.
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 revenues and profits





Mechanical Engineering
Refractory Engineering
Sub Total











Unaudited
Unaudited
Audited
Unaudited
Unaudited
Audited
Unaudited
Unaudited
Audited

Half Year Ended 31st October 2014 
Half Year Ended 
31st 
October 
2013
Year 
Ended 
30th 
April 
2014
Half Year Ended 
31st 
October 2014
Half Year Ended 
31st 
October 
2013
Year 
Ended 
30th 
April 
2014
Half Year Ended 
31st 
October 2014
Half Year Ended 
31st 
October 
2013
Year 
Ended 
30th 
April 
2014

000
000
000
000
000
000
000
000
000
Revenue









External sales
56,269
55,258
99,044
16,701
16,006
31,784
72,970
71,264
130,828
Intra-Group sales
11,656
10,660
20,725
2,573
2,169
4,576
14,229
12,829
25,301

 
 
 
 
Total revenue
67,925
65,918
119,769
19,274
18,175
36,360
87,199
84,093
156,129

 



Reconciliation to consolidated revenues:







Intra-Group sales






 (14,229)
 (12,829)
(25,301)





 
 
 
Consolidated revenue for the period




72,970
71,264
130,828





 
 
 





Mechanical Engineering
Refractory Engineering
Sub Total

Unaudited
Half Year Ended 
31st 
October 2014 
Unaudited
Half Year Ended 
31st October 2013
Audited
Year 
Ended 
30th 
April 
2014
Unaudited
Half Year Ended 
31st 
October 2014
Unaudited
Half Year Ended 
31st 
October 
2013
Audited
Year 
Ended 
30th 
April 
2014
Unaudited
Half Year Ended 
31st 
October 2014
Unaudited
Half Year Ended 
31st 
October 
2013
Audited
Year 
Ended 
30th 
April 
2014

000
000
000
000
000
000
000
000
000
Profits









Segment result 
including associates
11,401
11,167
19,290
2,418
1,665
3,763
13,819
12,832
23,053

 



Group administration costs




(34)
(157)
1,802
Group finance and treasury costs




(335)
(395)
(760)













 
 
 
Consolidated profit before tax for the period




13,450
12,280
24,095
Tax




(2,907)
(2,488)
(4,448)





 
 
 
Consolidated profit after tax for the period




10,543
9,792
19,647





 
 
 
Segmental assets and liabilities

Segmental total assets
Segmental total liabilities
Segmental net assets


 








Unaudited
Unaudited
Audited
Unaudited
Unaudited
Audited
Unaudited
Unaudited
Audited

Half Year Ended 
31st 
October 2014
'000
Half Year 
Ended 
31st 
October
2013
'000
Year 
Ended 
30th 
April
2014
'000
Half Year Ended 
31st 
October 2014
'000
Half Year Ended 
31st 
October 
2013
'000
Year 
Ended 
30th 
April 
2014
'000
Half Year Ended 
31st 
October 2014
'000
Half Year Ended 
31st 
October 
2013
'000
Year 
Ended 
30th 
April
2014
'000
Mechanical Engineering
74,671
73,875
69,717
48,736
49,287
54,254
25,935
24,588
15,463
Refractory Engineering
31,639
23,456
24,399
14,005
9,822
11,482
17,634
13,634
12,917

 
 
 
 
 
 
 
 
 
Sub total reportable segment
106,310
97,331
94,116
62,741
59,109
65,736
43,569
38,222
28,380

 
 
 
 
 
 



Goodwin PLC (the Company) net assets




55,620
41,103
58,526
Investments elimination / Goodwill adjustments




(15,394)
(8,524)
(8,869)
Other consolidation adjustments




(2,354)
(1,835)
(467)







 
 
 
Consolidated total net assets




81,441
68,966
77,570







 
 
 
Geographical segments

Half Year Ended 31st October 2014
Half Year Ended 31st October 2013

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
14,251
63,669
52,667
5,717
14,442
55,063
44,776
7,288
Rest of Europe
14,750
5,642
427
 170
11,393
4,725
442
108
USA
5,967
-
-
-
9,485
-
-
-
Pacific Basin
25,660
9,031
1,934
770
19,377
7,624
1,356
126
Rest of World
12,342
3,099
5,008
285
16,567
1,554
4,816
429

 
 
 
 
 
 
 
 
Total
72,970
81,441
60,036
6,942
71,264
68,966
51,390
7,951

 
 
 
 
 
 
 
 











Year Ended 30th April 2014





Audited
Revenue
Audited
Operational assets
Audited
Non current assets
Audited
PPE 
Capital expenditure





'000
'000
'000
'000









UK




27,684
63,355
49,891
14,143
Rest of Europe




25,209
5,755
130
253
USA




 16,541
-
-
-
Pacific Basin




36,225
7,522
1,038
217
Rest of World




25,169
938
4,864
866





 
 
 
 
Total




130,828
77,570
55,923
15,479





 
 
 
 
The Group operates in the above principal locations. In presenting the information on geographical segments, revenue is based on the location of its customers and assets on the location of the assets.
6.Dividends
The Directors do not propose the payment of an interim dividend.
Unaudited
Unaudited
Audited
Half Year to
31st October
2014
Half Year to
31st October
2013
Year Ended
30th April
2014
000
000
000
Equity Dividends Paid:
Ordinary dividends paid during the period in respect of the year ended 30th April 2014: (42.348p per share)
3,049
-
-
Ordinary dividends paid during the period in respect of the year ended 30th April 2013: (35.29p per share)
-
2,541
2,541
Extraordinary dividends paid during the period in respect of the year ended 30th April 2013: (17.645p per share)
-
1,270
1,270
_____
_____
_____
Total dividends paid during the period
3,049
3,811
3,811
_____
_____
_____
7. Earnings per share
The calculation of the 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 10,186,000 (six months to 31st October 2013: 9,452,000). The Company has no share options or other diluting interest and, accordingly, there is no difference in the calculation of diluted earnings per share.
8.  Capital Management, issuance and repayment of debt
At 31st October 2014 the capital utilised was 92,653,000 as shown below:
Unaudited
as at
31st October
2014
Unaudited
as at
31st October
2013
Audited
as at
30th April
2014
'000
'000
'000

Cash and cash equivalents
(6,825)
(3,523)
(6,233)
Bank overdrafts
7,086
3,487
-
Finance leases
791
869
1,014
Bank loans and committed facilities
13,885
13,609
8,862
Deferred consideration
500
500
500

 
 
Net debt
15,437
14,942
4,143
Total equity attributable to equity holders of the parent
77,216
64,752
73,590

 
 
Capital
92,653
79,694
77,733

 
 
9.  Property, Plant and Equipment
Fixed asset additions were 7,262,000 with capital grants received of 320,000 during the six month period to 31st October 2014, with the Group progressing on its capital projects. Other movements in fixed assets were: depreciation of 2,484,000; capitalised interest of 18,000; an increase due to the effect of exchange adjustments of 129,000; and disposals of 249,000.
During the six month period to 31st October 2013, the Group had fixed asset additions of 8,315,000 with capital grants received of 364,000. Other movements in fixed assets were depreciation of 1,749,000; capitalised interest of 42,000; the effect of exchange adjustments of 900,000, and disposals of 20,000.
10. Intangible assets
During the six month period to 31st October 2014, intangible assets were increased by additions to goodwill of 80,000, being increased interest in existing subsidiaries by virtue of a minority dividend been paid; reduced by amortisation of 212,000 and reduced by exchange adjustments of 286,000.
During the six month period to 31st October 2013, intangible assets were increased by additions to goodwill of 286,000, being increased interest in existing subsidiaries by virtue of a minority dividend being paid and the acquisition of part of a minority interest in an existing subsidiary; reduced by amortisation of 357,000 and reduced by exchange adjustments of 6,000.
11. 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 2014. 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
6,825
Receivables
Trade receivables
34,573
Other receivables and prepayments
4,505
At fair value through the income statement
Derivative financial assets not designated in a cash
 flow hedge relationship
29
Designated cash flow hedge relationships
Derivative financial assets designated and effective
 as cash flow hedging instruments
1,143
Total financial assets
47,075
Financial liabilities
Financial liabilities at amortised cost
Bank overdraft
7,086
Trade payables
13,750
Other payables
7,024
Deferred consideration
500
Finance lease liabilities
791
Bank loans
13,885
Corporation tax
2,714
At fair value through the income statement
Derivative financial liabilities not designated in a
 cash flow hedge relationship
491
Designated cash flow hedge relationships
Derivative financial liabilities designated and
 effective as cash flow hedging instruments
2,128
Total financial liabilities
48,369
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 RNS
The company news service from the London Stock Exchange
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