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

GoodwinAnnouncement

18/12/2015 09:10

RNS Number : 4877J
Goodwin PLC
18 December 2015
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2015
CHAIRMAN'S STATEMENT 
The pre-tax profit for the Group for the first six month period ending 31st October 2015 was 6.03 million (2014: 13.45 million).
As mentioned in the full year accounts to 30th April 2015, we started the new financial year with a work load 22% lower than the year before and this coupled with tighter pricing in this difficult market has led to the reduction in pre-tax profits and activity with 61.22 million sales output (2014: 72.97 million) for the half year just completed.
The sales order input in the first six months of the new financial year was 16% higher than that in the same period last financial year but it must be said that this increased level of order input was only achieved by quoting tenders with tighter margins.
Good progress has been made in further expanding the activity of the refractory engineering division. Towards the end of the last financial year, Goodwin Refractory Services purchased the assets of a casting powder company and now supplies a significant amount of tyre tread moulding powder both in Europe and the Pacific Basin. In October 2015 Dupr Minerals and Hoben International purchased assets which enable both companies to expand their manufacturing facilities to produce more vermiculite and perlite to be sold under the name Silvaperl. We are hopeful that this purchase will start to generate significant benefits during the second half of this financial year.
The investment expenditure mentioned in the above paragraph amounted to 4.77 million and has improved the profit potential of all three companies. In addition, there has been capital expenditure during this financial period of 5.80 million, the lion's share of which is investment in new machinery for Goodwin International to enhance and increase its machining capability to allow the company to further expand its specialist large five axis CNC machining capability. We expect an increase of 8 million in order input for this type of work this year. Easat Antennas was awarded a research and development grant which over the next two years will enhance its radar supply capability. All these initiatives, in part, will mitigate the effects of the downturn in the oil, gas and mining industries.
To enable us to undertake larger contracts, an extra 10 million line of five year committed bank facility (unutilised) has been arranged as payment cycles are less certain in current economic conditions.
J. W. Goodwin
Chairman 18th December 2015
Management report
The turnover for the first six months of this new financial year decreased by 16.1%. The pre-tax profit has decreased by 55.2% in the first half of the financial year.
Manufacturing efficiency combined with continued high quality and global sourcing of high integrity materials has brought our customers savings despite adverse currency and market conditions. A full complement of apprentices has again been set on and the opportunity has been taken to train for our extended specialist capacity. The outstanding quotations for work in new areas should if successful aid recovery.
Financial Highlights
Unaudited 
Half Year to 
31st October 
2015
Unaudited Half Year to 31st October 2014
Audited 
Year Ended 
30th April 
2015

'm
'm
'm
Consolidated Results



Sales revenue
61.2
73.0
127.0
Operating profit
6.2
13.7
20.4
Profit before tax
6.0
13.5
20.1
Profit after tax
4.8
10.5
15.5








Capital Expenditure
5.8
6.9
17.0








Earnings per share (Basic and Diluted)
68.01p
141.47p
208.68p




Turnover
Sales revenue of 61,220,000 for the half year represents a 16.1% decrease over the 72,970,000 achieved during the same period last year.
Profit Before Tax
Profit before tax for the six months of 6,028,000 is down 55.2% from the 13,450,000 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 2015 which describes the principal risks and uncertainties, and to note 20 (page 44) 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 2015.
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 2016. 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.
2016/17 Outlook
Whilst currently depressed, 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, gas and mining industries 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 2015
Condensed consolidated income statement 
for the half year to 31st October 2015

Unaudited
Half Year to
31st October
2015
Unaudited
Half Year to
31st October
2014
Audited
Year Ended
30th April
2015
'000
'000
'000
Continuing operations
Revenue
61,220
72,970
127,049
Cost of sales
(43,966)
(48,974)
(85,754)
Gross profit
17,254
23,996
41,295

Distribution expenses
(1,571)
(1,628)
(3,586)
Administrative expenses
(9,463)
(8,697)
(17,262)
Operating profit
6,220
13,671
20,447

Financial expenses
(357)
(335)
(682)
Share of profit of associate companies
165
114
288
Profit before taxation
6,028
13,450
20,053
Tax on profit 
(1,202)
(2,907)
(4,601)
Profit after taxation
4,826
10,543
15,452
Attributable to:
Equity holders of the parent 
4,897
10,186
15,025
Non-controlling interests 
(71)
357
427

Profit for the period
4,826
10,543
15,452
Basic and diluted earnings per ordinary share
68.01p
141.47p
208.68p
Condensed consolidated statement of comprehensive income
for the half year to 31st October 2015





Unaudited 
Half Year to 
31st October 
2015
Unaudited 
Half Year to 
31st October 
2014
Audited 
Year Ended 
30th April 
2015

'000
'000
'000




Profit for the period
4,826
10,543
15,452




Other comprehensive expense







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



Foreign exchange translation differences
(1,529)
(120)
(1,176)
Effective portion of changes in fair 
value of cash flow hedges
272
(167)
2,630
Change in fair value of cash flow 
hedges transferred to the income statement
(190)
(2,283)
(2,197)
Tax on items that are or may be reclassified 
subsequently to the income statement
(16)
490
(87)




Other comprehensive expense
for the period, net of income tax
(1,463)
(2,080)
(830)




Total comprehensive income for the period
3,363
8,463
14,622




Attributable to:



Equity holders of the parent
3,550
7,943
14,024
Non-controlling interests
(187)
520
598









3,363
8,463
14,622






Condensed consolidated statement of changes in equity
for the half year to 31st October 2015

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 2015 (Unaudited)







Balance at 1st May 2015
720
(1,356)
1,541
81,836
82,741
3,781
86,522
Total comprehensive income:







Profit
-
-
-
4,897
4,897
(71)
4,826
Other comprehensive income:







Foreign exchange translation difference
-
(1,413)
-
-
(1,413)
(116)
(1,529)
Net movements on cash flow hedges
-
-
66
-
66
-
66
Total comprehensive income for the period
-
(1,413)
66
4,897
3,550
(187)
3,363
Transactions with owners of the Company recognised directly in equity:







Purchase of non-controlling interest without a change in control
-
-
-
(479)
(479)
149
(330)
Dividends paid
-
-
-
(3,049)
(3,049)
(158)
(3,207)








Balance at 31st October 2015
720
(2,769)
1,607
83,205
82,763
3,585
86,348
























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
























Year ended 30th April 2015 (Audited)







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







Profit
-
-
-
15,025
15,025
427
15,452
Other comprehensive income:







Foreign exchange translation difference
-
(1,347)
-
-
(1,347)
171
(1,176)
Net movements on cash flow hedges
-
-
346
-
346
-
346
Total comprehensive income for the period
-
(1,347)
346
15,025
14,024
598
14,622
Transactions with owners of the Company recognised directly in equity:







Purchase of non-controlling interest without a change in control
-
-
-
(1,824)
(1,824)
(709)
(2,533)
Dividends paid
-
-
-
(3,049)
(3,049)
(88)
(3,137)








Balance at 30th April 2015 
720
(1,356)
1,541
81,836
82,741
3,781
86,522








Condensed consolidated balance sheet
as at 31st October 2015
Unaudited
as at
31st October
2015
Unaudited
as at
31st October
2014
Audited
as at
30th April
2015
'000
'000
'000
Non-current assets
Property, plant and equipment
58,456
48,452
55,659
Intangible assets
15,470
10,216
10,865
Investments in associates
1,580
1,368
1,477

 
 

75,506
60,036
68,001

 
 
Current assets
Inventories
34,617
33,732
32,771
Trade and other receivables
27,539
39,078
26,364
Derivative financial assets
3,843
1,172
4,624
Cash and cash equivalents
5,188
6,825
7,732

 
 
71,187
80,807
71,491

 
 
Total assets
146,693
140,843
139,492

 
 
Current liabilities
Bank overdrafts
11,409
7,086
-
Interest-bearing loans and borrowings 
2,243
2,346
277
Trade and other payables
25,579
28,860
26,938
Deferred consideration
500
500
500
Derivative financial liabilities
1,563
2,619
2,587
Liabilities for current tax
1,075
2,714
1,540
Warranty provision
95
445
224

 
 

42,464
44,570
32,066

 
 
Non-current liabilities
Interest-bearing loans and borrowings
14,053
12,330
17,149
Warranty provision
337
291
297
Deferred tax liabilities
3,491
2,211
3,458

 
 

17,881
14,832
20,904

 
 
Total liabilities
60,345
59,402
52,970

 
 
Net assets
86,348
81,441
86,522

 
 
Equity attributable to equity holders of the parent
Share capital
720
720
720
Translation reserve
(2,769)
(292)
(1,356)
Cash flow hedge reserve 
1,607
(765)
1,541
Retained earnings
83,205
77,553
81,836

 
 
Total equity attributable to equity holders of the parent
82,763
77,216
82,741
Non-controlling interests 
3,585
4,225
3,781

 
 
Total equity
86,348
81,441
86,522

 
 
Condensed consolidated cash flow statement
for the half year ended 31st October 2015

Unaudited
Half Year to
31st October
2015
Unaudited
Half Year to
31st October
2014
Audited
Year Ended
30th April
2015
'000
'000
'000
Cash flow from operating activities



Profit from continuing operations after tax
4,826
10,543
15,452
Adjustments for:



 Depreciation
2,401
2,484
4,903
 Amortisation of intangible assets
184
212
359
 Impairment of intangible assets
-
-
59
 Financial expense
357
335
682
 Loss on sale of property, plant and equipment
3
70
175
 Share of profit of associate companies
(165)
(114)
(288)
 Tax expense
1,202
2,907
4,601

 
 
 
Operating profit before changes in working capital and provisions
8,808
16,437
25,943
 (Increase) / decrease in trade and other receivables
(1,496)
(6,124)
5,192
 Increase in inventories
(2,085)
(2,523)
(1,743)
 Decrease in trade and other payables
 (excluding payments on account)
(2,630)
(5,593)
(2,292)
 Increase / (decrease) in payments on account
1,532
972
(3,434)

 
 
Cash generated from operations
4,129
3,169
23,666
 Interest paid
(329)
(336)
(705)
 Corporation tax paid
(1,653)
(2,739)
(4,904)
 Interest element of finance lease obligations
(28)
(17)
(28)

 
 
Net cash from operating activities
2,119
77
18,029

 
 
 
Cash flow from investing activities
 Proceeds from sale of property, plant and equipment
47
179
199
 Acquisition of intangible assets
(3,500)
-
(1,263)
 Acquisition of property, plant and equipment
(6,015)
(6,910)
(17,401)
 Acquisition of subsidiary
(1,667)
-
-
 Purchase of non-controlling interest
(330)
(1,543)
(2,533)
 Additional payment for existing subsidiary
(53)
(80)
(80)
 Additional investment in associate companies
(60)
-
(64)
 Dividends received from associate company
-
-
180

 
 
Net cash outflow from investing activities
(11,578)
(8,354)
(20,962)

 
 
 
Cash flows from financing activities
 Dividends paid
(3,049)
(3,049)
(3,049)
 Dividends paid to non-controlling interests
(158)
-
(88)
 Proceeds from loans and committed facilities
-
5,000
10,000
 Repayment of loans and committed facilities
(1,000)
-
(2,000)
 Payment of capital element of finance lease obligations
(158)
(223)
(449)

 
 
Net cash (outflow) / inflow from financing activities
(4,365)
1,728
4,414

 
 
Net (decrease) / increase in cash and cash equivalents
(13,824)
(6,549)
1,481




 Opening cash and cash equivalents
7,732
6,233
6,233
 Effect of exchange rate fluctuations on cash held
(129)
55
18

 
 
Closing cash and cash equivalents
(6,221)
(261)
7,732
 
 
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 2015 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 2015 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 2015.
The comparative figures for the financial year ended 30th April 2015 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 2015.
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 2015. New standards to be adopted in the current year as below, effective for annual periods beginning on or after 1st July 2014, are not expected to have a significant impact on the financial statements.
Annual Improvements to IFRSs - 2010-2012 Cycle (effective for annual periods beginning on or after 1 February 2015)
Annual Improvements to IFRSs - 2011-2012 Cycle (endorsed on 18 December 2014)
New IFRS standards, amendments and interpretations not adopted
The IASB and IFRIC have issued additional standards and amendments which are effective for periods starting after the date of these financial statements. The following standards and amendments have not yet been adopted by the Group:
IFRS 15 Revenue from Contracts with Customers (effective for annual periods beginning on or after 1 January 2017)
 
Amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets: Clarification of acceptable Methods of Depreciation and Amortisation (effective for annual periods beginning on or after 1 January 2016)
 
IFRS 9 Financial Instruments (effective for annual periods beginning on or after 1 January 2018)
 
Accounting for Acquisitions of Interests in Joint Operations - Amendments to IFRS 11 (effective for annual periods beginning on or after 1 January 2016)
 
Clarification of Acceptable Methods of Depreciation and Amortisation - Amendments to IAS 16 and IAS 38. (effective for annual periods beginning on or after 1 January 2016)
 
Equity Method in Separate Financial Statements - Amendments to IAS 27 (effective for annual periods beginning on or after 1 January 2016)
 
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to IFRS 10 and IAS 28 (effective for annual periods beginning on or after 1 January 2016)
 
Annual Improvements to IFRSs - 2012-2014 Cycle Investment entities: (effective for annual periods beginning on or after 1 January 2016)
 
Applying the Consolidation Exception - Amendments to IFRS 10, IFRS 12 and IAS 28 (effective for annual periods beginning on or after 1 January 2016)
 
Annual Improvements to IFRSs - 2012-2014 Cycle (effective for annual periods beginning on or after 1 January 2016)
 
Investment entities: Applying the Consolidation Exception - Amendments to IFRS 10, IFRS 12 and IAS 28 (effective for annual periods beginning on or after 1 January 2016)
 
Disclosure Initiative - Amendments to IAS 1 (effective for annual periods beginning on or after 1 January 2016)
 
IFRS 15 Revenue from Contracts with Customers (effective for annual periods beginning on or after 1 January 2016)
 
IFRS 9 Financial Instruments (effective for annual periods beginning on or after 1 January 2016)
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 2015.
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 2015 
Half Year Ended 
31st 
October 
2014
Year 
Ended 
30th 
April 
2015
Half Year Ended 
31st 
October 2015
Half Year Ended 
31st 
October 
2014
Year 
Ended 
30th 
April 
2015
Half Year Ended 
31st 
October 2015
Half Year Ended 
31st 
October 
2014
Year 
Ended 
30th 
April 
2015

000
000
000
000
000
000
000
000
000
Revenue









External sales
44,816
56,269
93,545
16,404
16,701
33,504
61,220
72,970
127,049
Intra-Group sales
7,526
11,656
24,899
1,965
2,573
5,912
9,491
14,229
30,811

 
Total revenue
52,342
67,925
118,444
18,369
19,274
39,416
70,711
87,199
157,860




Reconciliation to consolidated revenues:







Intra-Group sales






 (9,491)
 (14,229)
(30,811)





 
 
 
Consolidated revenue for the period




61,220
72,970
127,049





 
 
 





Mechanical Engineering
Refractory Engineering
Sub Total

Unaudited
Unaudited
Audited
Unaudited
Unaudited
Audited
Unaudited
Unaudited
Audited

Half Year Ended 
31st 
October 2015 
Half Year Ended 
31st October 2014
Year 
Ended 
30th 
April 
2015
Half Year Ended 
31st 
October 2015
Half Year Ended 
31st 
October 
2014
Year 
Ended 
30th 
April 
2015
Half Year Ended 
31st 
October 2015
Half Year Ended 
31st 
October 
2014
Year 
Ended 
30th 
April 
2015

000
000
000
000
000
000
000
000
000
Profits









Segment result 
including associates
5,355
11,401
16,397
1,616
2,418
5,139
6,971
13,819
21,536

 



Group administration costs




(586)
(34)
(801)
Group finance and treasury costs




(357)
(335)
(682)













 
 
Consolidated profit before tax for the period




6,028
13,450
20,053
Tax




(1,202)
(2,907)
(4,601)





 
 
Consolidated profit after tax for the period




4,826
10,543
15,452





 
 
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 2015
'000
Half Year 
Ended 
31st 
October
2014
'000
Year 
Ended 
30th 
April
2015
'000
Half Year Ended 
31st 
October 2015
'000
Half Year Ended 
31st 
October 
2014
'000
Year 
Ended 
30th 
April 
2015
'000
Half Year Ended 
31st 
October 2015
'000
Half Year Ended 
31st 
October 
2014
'000
Year 
Ended 
30th 
April
2015
'000
Mechanical Engineering
71,353
74,671
65,635
50,452
48,736
48,082
20,901
25,935
17,553
Refractory Engineering
39,158
31,639
35,262
20,265
14,005
16,572
18,893
17,634
18,690

 
 
 
 
 
Sub total reportable segment
110,511
106,310
100,897
70,717
62,741
64,654
39,794
43,569
36,243

 
 
 



Goodwin PLC (the Company) net assets




66,491
55,620
69,729
Elimination of Goodwill PLC investments




(24,764)
(20,624)
(24,122)
Goodwill




9,288
8,325
7,970
Other consolidation adjustments




(4,461)
(5,449)
(3,298)







 
 
 
Consolidated total net assets




86,348
81,441
86,522







 
 
Segmental property, plant and equipment (PPE) capital expenditure





Goodwin PLC




3,221
3,122
7,586
Mechanical Engineering




1,485
2,766
4,843
Refractory Engineering




1,091 
1,054
4,542







 





5,797
6,942
16,971







 
 
 
Geographical segments

Half Year Ended 31st October 2015
Half Year Ended 31st October 2014

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
15,193
65,166
64,065
4,708
14,251
63,669
52,667
5,717
Rest of Europe
11,825
5,254
762
98
14,750
5,642
427
170 
USA
5,890
-
-
-
5,967
-
-
-
Pacific Basin
15,941
11,935
5,813
532
25,660
9,031
1,934
770
Rest of World
12,371
3,993
4,866
459
12,342
3,099
5,008
285

 
 
 
 
 
 
 
 
Total
61,220
86,348
75,506
5,797
72,970
81,441
60,036
6,942

 
 
 
 
 
 
 
 











Year Ended 30th April 2015





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





'000
'000
'000
'000









UK




25,415
63,150
56,658
11,876
Rest of Europe




24,680
5,921
724
602
USA




13,009
-
-
-
Pacific Basin




39,321
12,430
5,587
3,799
Rest of World




24,624
5,021
5,032
694





 
 
 
 
Total




127,049
86,522
68,001
16,971





 
 
 
 
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
2015
Half Year to
31st October
2014
Year Ended
30th April
2015
000
000
000
Equity Dividends Paid:
Ordinary dividends paid during the period in respect of the year ended 30th April 2015: (42.348p per share)
3,049
-
-
Ordinary dividends paid during the period in respect of the year ended 30th April 2014: (42.348p per share)
-
3,049
3,049
_____
_____
_____
Total dividends paid during the period
3,049
3,049
3,049
_____
_____
_____
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 4,897,000 (six months to 31st October 2014: 10,186,000). 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 2015 the capital utilised was 105,780,000 as shown below:
Unaudited
as at
31st October
2015
Unaudited
as at
31st October
2014
Audited
as at
30th April
2015
'000
'000
'000

Cash and cash equivalents
(5,188)
(6,825)
(7,732)
Bank overdrafts
11,409
7,086
-
Finance leases
407
791
565
Bank loans and committed facilities
15,889
13,885
16,861
Deferred consideration
500
500
500

 
 
Net debt
23,017
15,437
10,194

 
 
Total equity attributable to equity holders of the parent
82,763
77,216
82,741

 
 
Capital
105,780
92,653
92,935

 
 
9.  Property, Plant and Equipment
Fixed asset additions were 5,797,000 during the six month period to 31st October 2015, with the Group progressing on its capital projects. Other movements in fixed assets were: depreciation of 2,401,000; a decrease due to the effect of exchange adjustments of 588,000; disposals of 50,000 and an acquisition of 39,000.
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.
10. Intangible assets
During the six month period to 31st October 2015, intangible assets were increased by 3,500,000 and by the acquisition of 1,405,000 (note 11) and by additions to goodwill of 53,000 (being increased interest in existing subsidiaries by virtue of a minority dividend been paid); reduced by amortisation of 184,000 and reduced by exchange adjustments of 169,000.
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.
11. Acquisition
A small electronics company was acquired during the six months to 31st October 2015 for a consideration of 1,561,000 (with 106,000 of bank overdraft). Assets acquired included a provisional value of intangible assets and goodwill of 1,405,000. 

12. Total financial assets and financial liabilities
The table below sets out the Group's accounting classification of its financial assets and financial liabilities, and their carrying values/fair values at 31st October 2015. 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
5,188
Receivables
Trade receivables
24,247
Other receivables
1,762
At fair value through the income statement
Derivative financial assets not designated in a cash
 flow hedge relationship
575
Designated cash flow hedge relationships
Derivative financial assets designated and effective
 as cash flow hedging instruments
3,268
Total financial assets
35,040
Financial liabilities
Financial liabilities at amortised cost
Bank overdraft
11,409
Trade payables
13,080
Other payables
7,290
Deferred consideration
500
Finance lease liabilities
407
Bank loans
15,889
Corporation tax
1,075
At fair value through the income statement
Derivative financial liabilities not designated in a
 cash flow hedge relationship
302
Designated cash flow hedge relationships
Derivative financial liabilities designated and
 effective as cash flow hedging instruments
1,261
Total financial liabilities
51,213
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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