REG - Goodwin PLC - Preliminary results for the year ended 30 Apr 2025
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RNS Number : 0846T Goodwin PLC 30 July 2025
PRELIMINARY ANNOUNCEMENT FOR RELEASE ON 30TH JULY 2025
Goodwin PLC today announces its preliminary results for the year ended 30th
April, 2025.
CHAIRMAN'S STATEMENT
I am pleased to report a record level of profits for the Group for the twelve
month period ended 30th April, 2025. The "Trading" pre-tax profit was £35.5
million (2024: £24.1 million) an increase of 47% from the previous financial
year's trading profits on revenue of £220 million, which is up 15% on the
revenue reported for last financial year.
The Directors propose an increased dividend of 280 pence (2024: 133 pence) per
share, an 111% increase, for the reasons outlined further below and in the
Dividend and Capital Expenditure Policy in the financial statements to be
published shortly.
The Group's increased performance was in line with expectations, with the
growing momentum within the Mechanical Division being the primary driver of
the improved result. The increase in the Group's gross margin to 42% is a
reflection of the quality of the nuclear and defence related contracts
starting to come through. The excellent Group result was not only in terms
of profitability but also in the total amount of cash generated from
operations during the year that amounted to £67 million (2024: £33 million)
and has resulted in the Group's net debt being reduced from £42.9 million to
£13.6 million as at 30th April, 2025, and consequently the Group's gearing
has reduced from 35.1% to 9.9%.
Mechanical Engineering Division
The growth in profitability from both Goodwin Steel Castings and Goodwin
International within the Mechanical Division continues to come from the supply
of precision-machined, high-integrity castings into mission critical defence
and nuclear applications. It is these markets, specifically the defence
markets, where the market backdrop of increased defence spending has placed
the Division in a favourable position to capitalise from the pipeline of
growing opportunities within this sector.
Over the past seven years, the respective teams have worked hard to be the
preferred incumbent supplier on many UK and US Navy frigate and submarine
programmes, due to being able to supply high-quality products, that are
technically difficult to make on a fast and consistent basis. The breadth of
our involvement into these programmes continues to grow, with components now
manufactured for the Astute, Virginia, Columbia and Dreadnaught submarine
programmes, as well as for the Type 26 and DDG frigate programmes and the
Gerald R Ford-class aircraft carrier. Furthermore, we are under contract and
actively working on pre-manufacturing activities in relation to the AUKUS
partnership, to build and supply components for the next generation of
nuclear-powered submarines. With the majority of these programmes being
multi-decade projects, it provides the Group with great visibility and
confidence in the long-term growth that lies ahead, even though the vast
majority of the value in these programmes to Goodwin has yet to be included in
the Group's overall workload figure, which, at the time of writing, stands at
£287 million.
The Division has benefitted from the mix of work flowing through both the
facilities. Typically, the defence products are made from an impact-resistant,
low-carbon, high-alloy martensitic steel, which enables the foundry, with all
of its recent investments and upgrades, to utilise different furnaces to also
supply the 29 tonne ductile iron self-shielded boxes (SSB), that are being
manufactured for the containment of nuclear waste at Sellafield. This product
line is another example of a multi-decade programme, that will continue to
contribute to our growth over the long-term. To date, 237 SSBs have been
contractually awarded and 90 of these have been manufactured and shipped.
However, it is reported that up to 747 of these SSBs could be required and,
with no one else in the UK able to supply the product, it provides the Board
with further confidence, and is another product that will continue to
contribute to our growth over the long term.
Easat Radar Systems, as expected, has won several contracts during the year,
to supply its state of the art surveillance systems, that has helped the Easat
Group transition from loss-making to generating profits of approximately £1
million. Whilst the timing of the contract awards has been slow, which has
resulted in the in-year activity being significantly lower than anticipated
and possible, it nevertheless provides the Board with greater assurance that
the management team at Easat Radar Systems can now capitalise on recent
successes and increase the profitability of the Company. This is particularly
relevant given the number of customers now approaching Easat, having heard
within air traffic control circles that a UK supplier is offering a
high-performance system at a cost-effective price - something they have not
been used to for many years. The in-year activity at Easat relates to building
systems for the Royal Thai Airforce, a new civil airport in Vietnam and
Cranfield airport in the UK, which, later on in the year, will act as a
reference for many other UK potential customers, who have confirmed their
requirements for new surveillance systems.
The two other components of the Mechanical Division of note are our valve
company in Germany, Noreva GmbH, and the new advanced polyimide subsidiary,
Duvelco. Noreva, as reported in the March trading update, has received its
largest ever order, a $15 million contract to supply valves for an LNG
project. Furthermore, since the trading update, the Company has gone on to win
additional LNG contracts, that are to be delivered over the next few years.
For Duvelco, whilst in its infancy, with customer trials already underway, the
Board believes this strategic development for the Group will be the largest
and most profitable division in years to come. We have increased the
commercial team in size by headhunting key individuals with longstanding
specific industry knowledge in different sectors, who also have an
understanding of super engineering plastics, that can sell the benefits of our
enhanced material produced by our worldwide patented process (patent award
granted May 2025). The Duvelco team exhibited our material at the Paris Air
Show last month, where significant interest was shown in the product by
aerospace customers. To further enhance Duvelco's overall offering and earning
potential, investments have been made in Noreva in the form of a new 1,200
square metre building and high technology CNC powder-pressing machinery. The
building has been constructed on its existing site, and the purchase of three
electrically-driven CNC powder presses will mean that the Group can sell both
the raw resin powder, stock shapes and finished pressed parts. The building
has been completed and it is envisaged that the presses will be fully
commissioned and operational by the end of the year, which is when we expect
to start to make the first commercial sales of our material in all its forms.
The German pressing facility can be expanded up to 30 presses in the
constructed facility; with additional future expansion planned on the adjacent
site the Group bought in 2021 to facilitate additional growth as the operation
expands.
I am pleased to report with respect to USA tariffs that the impact on our
operations has been minimal. Goodwin Steel Castings supplies machined castings
into the US Navy shipbuilding programmes, which are exempt from such tariffs,
the remainder of the Group has experienced negligible effects due to the
nature of our contractual shipping terms. For contracts such as the supply of
valves for US LNG projects, many are shipped to tariff-free trade zones, which
avoid the application of tariffs, or else the Group has ensured that the
products sold to the US are supplied on an ex-works or similar basis, so that
the cost of any applicable tariffs are borne by the buyer. It is also worth
noting that, for high-value and high-integrity products, a 10% surcharge on
the cost of goods for the buyer is relatively insignificant, when you compare
it to not obtaining the goods they require in terms of quality or lead times,
especially within the gas industry that is currently so buoyant. As a result
of prudent risk mitigation by the commercial teams, and the specialised nature
of the Division's product offering, the direct incremental tariff cost to the
Division, arising from US policy changes during the year ended 30th April,
2025, is limited to less than £100,000 over several small orders, of which
most customers have split the tariff and have agreed to pay 50% of the tariff
cost on our behalf. This figure includes the current workload, that will
largely be shipped over the next three years.
Refractory Engineering Division
The Refractory Division has once again performed strongly, reflecting its
resilience and market leadership. The geographic spread of its operations,
specifically those in China, India and Thailand have helped the Division to
increase its operating profits by 9% during the year.
Highlights in relation to the investment casting powder markets include
pre-tax profits in China increasing by 33%, as the team capitalised on
domestic middle-income growth, whilst also growing their market share within
the low-end brass sector. In Thailand, the restructuring and overhead
reductions initiated last year aided the Company to deliver a 25% improvement
in profitability.
In India, our new 76,000 square foot investment powder manufacturing facility
is now fully operational. With India continuing to represent a key growth
market for investment casting powders, this facility - constructed over the
past two years - will provide much needed capacity to meet current demand and
support substantial market expansion over the next five to ten years, as India
expands its GDP at a similar rate to China from 2005 to 2015. Much of the
growth in product sales to the Indian jewellery casting sector is driven by
rising domestic consumption, fuelled by the country's rapid economic
development and increasing levels of disposable income. In response,
management has strategically prioritised market share expansion, resulting in
stable profits for the year. However, by maintaining tight control over cost
structures, we remain well-positioned to stay competitive and agile in this
evolving market, ensuring we retain global market leadership while continuing
to grow profitability.
Sales of vermiculite-based fire extinguishers and extinguishing agents, known
as Lithex and AVD, continue to grow. Given the broad range of applicable
industries, we remain highly optimistic about the long-term potential of this
product line. While the build-up in sales volume is taking time, there are
numerous ongoing customer discussions and certification processes in various
countries that are expected to support sustained growth in the years ahead.
Encouragingly, feedback consistently confirms that, despite the emergence of
alternative products, none matches the performance of AVD in extinguishing
flames and limiting fire propagation.
In parallel, we have commenced production of specialist lithium ion battery
fire blankets at our Indian facility. These blankets, made from vermiculite
dispersion-coated e-glass fabrics, offer significantly superior thermal
resistance compared to competing products. In the UK, renovation of the newly
acquired 50,000 square foot facility is now complete and contains our expanded
in-house production plant for vermiculite dispersion, the core material used
in AVD, as well as the Lith-ex fire extinguisher manufacturing and filling
plant. Certification from BSI for the production line was granted in January
2025, and we are now filling extinguishers produced in-house at a lower cost.
Other successes within the Refractory Engineering Division include the sale of
high-quality fire-stopping mortars, that are sold by the Sandersfire division
of Hoben International under the brand name of Firecrete. Following the
disaster of Grenfell, there has been a much greater focus on preventing the
spread of fires within buildings, and, with Sandersfire fire-rated mortars
being specifically designed for large span floor openings and the sealing of
cabling/ pipework, the sales of the product have increased by 38%.
With regards to tariffs, the Refractory Engineering Division has not been
materially impacted by the US tariffs during the year. Nonetheless though, we
continue to be vigilant of the evolving landscape and the long-term impacts of
the enacted changes. However, our sales to China of AVD have benefitted as
some Chinese users of AVD, who were buying from our USA competitor, are now
buying from us, due to the tariff increases between the USA and China.
Cash flow
With capital expenditure in the year being only £13 million, the Group's
excellent ability to generate cash has been highlighted by the gearing falling
from 35.1% to only 9.9% during the year, which equates to a net debt of only
£13.6 million.
We continue to maintain tight control on discretionary spend, as we intend to
reduce and maintain the Group debt at such a level so that it is kept below
the £30 million interest rate SWAP that is currently in place, which has an
interest rate of less than 1% and is in place until August 2031. As a direct
impact of this instrument the Group has enjoyed an interest saving of £1.2
million compared to last year, and, should the debt level remain constant at
this level throughout the current year, there will be additional savings in
interest payable.
One of the areas that has materially helped the reduction in debt has been the
excellent work by the commercial teams in negotiating upfront payment within
their contracts. Furthermore, due to many of the contracts containing multiple
cash payment milestones at various production sign off points, we do not
envisage an overall cashflow unwind on these contracts.
With one of the Group's bank facilities due to mature in July 2025, I can
confirm, following a competitive tender to obtain the best deal, that the
Board has renewed this facility agreement. The facility renewal occurred post
year end, in June 2025, and was for the same quantum which will provide the
Group with ample headroom, should an opportunity arise that the Group wishes
to capitalise on, particularly where free cash flow alone may not be
sufficient. The four-year committed facility was renewed on much improved
terms, which is a reflection of the Group's profitability, newly acquired
FTSE250 status and our overall stronger financial standing.
Dividend
With having spent over £50 million at the foundry, Goodwin Steel Castings,
over the last ten years and over £23 million invested in the advanced
polyimide business, Duvelco, the Group has over many years, prioritised
significant capital investment to equip the Group with the capacity,
capability and geographical reach to drive long-term growth, both in the UK
and overseas. The Board now considers it appropriate, without it jeopardising
its ability to capitalise on opportunities as they arise, to amend the
dividend policy to further reward shareholders for their continued support.
Taking into consideration the longer term visibility, supported by the
workload and the Group's lower gearing, the Board is confident that the
alteration of the dividend policy from 38% to 58% of post-tax profits plus
depreciation and amortisation is a safe and viable change for now and the
foreseeable future.
Group Growth Strategy and Ethos
We are frequently asked by individual shareholders how the Group has been able
to achieve, and continues to achieve, a compound annual growth rate of 19% in
total shareholders return (TSR) over the past 20 years - a performance that
has far outpaced the FTSE100, FTSE350 and even the Standard&Poor500
(S&P500), that the latter has only had an annualised growth rate of 11%
over the same period. Goodwin PLC's Total Shareholder Return (TSR) has
increased 3,104%, compared to just 274% for the FTSE 100 and 696% for the
S&P500 over the last twenty years.
As a PLC, we are unable to respond to such questions individually, unless the
information is shared with all shareholders simultaneously. Accordingly, we
provide below a brief outline of the approach and principles that underpin
this long-term success.
At the heart of the Group's strategy is a clear and consistent policy: to
target "niche" global markets with annual revenue potential typically measured
in the hundreds of millions of pounds, not billions. These are specialist
markets that tend not to attract the attention or investment of large,
multinational corporations, due to their limited scale and high barriers to
entry. This selective targeting allows us to build competitive advantages
without facing disruptive levels of competition from global conglomerates.
Accompanied by this policy, we have deliberately engineered product and market
diversity across all our trading subsidiaries. Each business, within a
reasonable period, must strive to be the number one or number two global
supplier - both in terms of technical performance and turnover. This is
enabled by the majority of the technology we offer either being patent
protected or uniquely difficult to manufacture, further reinforcing our
leadership in each market we serve and these two facets provide opportunity
for high gross margin to be earned.
For over two decades, the Group has held annual business conferences,
originally attended by fifteen directors from a handful of companies; these
now bring together over eighty-five directors and senior leaders from across
our global businesses. It is at these conferences that the drive for growth in
gross margin is reinforced, as each company presents in front of its peers its
past performance, capital investment plans, and how they intend to sustainably
grow their gross margin.
Our core focus remains on gross margin - not only in percentage terms, but
more importantly in absolute margin contribution per product. Turnover, in
isolation, is not a KPI we target. Instead, we consistently strive to enhance
gross margin through superior product quality, ongoing cost reduction,
patent-protected innovations, and exceptionally high manufacturing
efficiencies by global purchasing of quality materials and products, as well
as using advanced CNC machining and the development of capabilities that few
others possess.
All of the above, as well as targeting our overheads to be below a set
percentage of sales, is underpinned by a deep-rooted commitment to quality
assurance and health and safety. As this is part of our way of life, it has
enabled - and continues to enable - the Group to grow strongly and
sustainably, and it reflects the deeply-rooted ethos shared by our Directors
and employees across Goodwin. We are not overly concerned if competitors read
this, as what we have achieved has taken many years to build, and it is this
ingrained culture that remains the key to our continued success.
The core product contributions, as outlined in our business model in the
financial statements to be published shortly, form the foundation of the
Group. It is our unwavering commitment to engineering excellence, much of it
underpinned by patented technologies, combined with an embedded Group ethos,
that gives the Board confidence in the Group's ability to continue on our
growth trajectory. While no business is immune to external risks, the Board
believes the Group's strategy, systems, and culture are uniquely positioned to
deliver continued success well into the future.
This progress is ultimately made possible by the talent and dedication of our
people. It is a testament to their contribution that Group profitability has
increased tenfold compared to levels achieved twenty years ago. On behalf of
the Board, we express our sincere gratitude to all our employees - both in the
UK and overseas - for their ongoing commitment and hard work.
T.J.W. Goodwin
Chairman
Alternative performance measures mentioned above are defined in Note 6.
OBJECTIVES, STRATEGY AND BUSINESS MODEL
The Group's main OBJECTIVE and PURPOSE is to have a sustainable long-term
engineering based business with good potential for profitable growth while
providing a fair return to our shareholders.
The Board's VALUES of engineering excellence, quality, efficiency,
reliability, competitive price and delivery contribute to the delivery of its
strategy.
The Board's STRATEGY to achieve this is:
· to supply a range of technically advanced products to growth markets
in the Mechanical Engineering and Refractory Engineering Divisions in which we
have built up a global reputation for engineering excellence, quality,
efficiency, reliability, competitive price and delivery;
· to manufacture advanced technical products profitably, efficiently
and economically;
· to maintain an ongoing programme of investment in plant, facilities,
sales and marketing, research and development with a view to increasing
efficiency, reducing costs, increasing performance, delivering better products
for our customers, expanding our global customer base and keeping us at the
forefront of technology within our markets, whilst at all times taking
appropriate steps to ensure the health and safety of our employees and
customers;
· to control our working capital and investment programme to ensure a
safe level of gearing;
· to maintain a strong capital base to retain investor, customer,
creditor and market confidence and so help sustain future development of the
business;
· to support a local presence and a local workforce in order to stay
close to our customers;
· to invest in training and development of skills for the Group's
future;
· engineering activity and investment into the reduction of C0(2)
emissions where it is commercially viable taking into account the long-term
effects of CBAM (Carbon Border Adjustment Mechanism);
· to manage the environmental and social impacts of our business to
support its long-term sustainability.
BUSINESS MODEL
The Group's focus is on manufacturing within two sectors, Mechanical
Engineering and Refractory Engineering, and through this division of our
manufacturing activities, our overseas business facilities and our global
sales and marketing activities, the Group benefits from market diversity.
Further details of our business and products are shown on our website
www.goodwin.co.uk
Mechanical Engineering
The Group specialises in supplying precision engineered solutions and
industrial goods into critical applications, generally on a project basis,
more often than not involving the complementary skill set of other group
companies to deliver the requirement. The projects normally involve
international procurement, high integrity castings, forgings or wrought
high-alloy steels, carbon fibre composite structures, precision CNC machining,
complex welding and fabrication, and other operations as are required. In
addition to specialist projects, the Group manufactures and sells a wide range
of dual plate check valves, axial nozzle check valves and axial piston control
and isolation valves. These solutions and products typically form part of
large construction projects, including the construction of naval propulsion
and hull components, nuclear waste storage components, liquefied natural gas
(LNG), oil and gas, petrochemical, mining, and water markets.
We generate value by creating leading edge technology designs and
manufacturing processes, globally sourcing the best quality raw material at
good prices, manufacturing in highly efficient facilities using up to date
technology to provide reliable high performance products to the required
specification, at competitive prices and with timely deliveries.
The Group through its foundry, Goodwin Steel Castings Limited, has the
capability to pour high performance alloy castings up to 35 tonnes net in
weight, radiograph and to finish CNC machine and fabricate them at the
foundry's sister company, Goodwin International Limited. This capability is
targeting the naval defence industry and nuclear decommissioning, the oil and
gas industry, as well as large, global projects requiring high integrity
machined castings.
Goodwin International Limited, the largest company in the Mechanical
Engineering Division, not only designs and manufactures dual plate check
valves, axial nozzle check valves and axial piston control and isolation
valves but also undertakes specialised CNC machining and fabrication work for
nuclear decommissioning projects. Goodwin International Limited also has a
division that is focused on manufacturing / machining high precision, high
integrity components for naval marine vessels. Noreva GmbH also designs,
manufactures and sells axial nozzle check valves and has built a facility to
house machinery that can CNC press polyimide components from the resin
produced by Duvelco. Both Goodwin International Limited and Noreva GmbH
purchase the majority of their sand mould castings from Goodwin Steel Castings
Limited for their ranges of check valves and this vertical integration gives
rise to competitive benefits, increased efficiencies and timely deliveries.
At Goodwin Pumps India Private Limited we manufacture a superior range of
submersible slurry pumps for end users in India, Brazil, Australia, Canada,
Peru and Africa. Easat Radar Systems Limited and its subsidiary, Easat Finland
Oy, design and build bespoke high-performance radar surveillance systems for
the global market of major defence contractors, civil aviation authorities and
coastal border security agencies. We create value on these by innovative
design, assembly and testing in our own facilities using bought in or
engineered in-house components.
Duvelco, the newest company within the Mechanical Engineering Division, is a
specialist polyimide manufacturer, that will manufacture and sell polyimide
resins into an established market. The resin can then be moulded into parts
and shapes for the high temperature and critical applications, for which very
few polymers can be used.
Refractory Engineering
Within the Refractory Engineering Division, Goodwin Refractory Services
Limited (GRS) generates value primarily from designing, manufacturing and
selling investment casting powders, injection moulding rubbers and waxes to
the jewellery casting industry. GRS also manufactures and sells these products
to the tyre mould and aerospace industries. The Refractory Engineering
Division has, other than its UK facility, four investment powder manufacturing
and sales companies located in China, India and Thailand which sell the
casting powders, waxes and moulding rubbers directly and through distributors
to the jewellery casting industry and also directly to tyre mould and
aerospace industries.
These companies are vertically integrated with another of our UK companies,
Hoben International Limited (Hoben), which manufactures cristobalite, which it
sells to the five casting powder manufacturing companies as well as producing
ground silica that also goes into casting powders and other UK uses of silica.
Hoben also manufactures different grades of perlite, and a patented range of
biodegradable bags, known as Soluform, for use inside traditional hessian /
jute bags for the placement of concrete and other materials in or around
rivers. Within its Sandersfire division Hoben also manufactures a unique and
comprehensive range of high-quality fire-stopping mortars distributed under
the "Firecrete" brand name.
Dupré Minerals Limited (Dupré), a refractory company, focuses on producing
exfoliated vermiculite that is used in insulation, brake linings and fire
protection products, including technical textiles that can withstand exposure
to high temperatures. Dupré also sells consumable refractories to the shell
moulding precision casting industry. Dupré has designed, patented and sells a
range of fire extinguishers and an extinguishing agent for lithium-ion battery
fires that utilises a vermiculite dispersion as the fire extinguishing agent.
SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS
for the year ended 30th April, 2025
2025 2024
£'000 £'000
CONTINUING OPERATIONS
Revenue 219,709 191,258
Cost of sales (128,100) (113,371)
GROSS PROFIT 91,609 77,887
Distribution expenses (10,903) (9,618)
Administrative expenses (43,594) (41,374)
OPERATING PROFIT 37,112 26,895
Finance income * 1,305 1,414
Finance costs * (2,965) (4,284)
Share of profit of associate company 65 69
TRADING PROFIT 35,517 24,094
Additional year-on-year unrealised (loss) / gain on 10 year interest rate swap (1,257) 113
derivative
PROFIT BEFORE TAXATION 34,260 24,207
Tax on profit (8,082) (6,491)
PROFIT AFTER TAXATION 26,178 17,716
ATTRIBUTABLE TO:
Equity holders of the parent 24,569 16,902
Non-controlling interests 1,609 814
PROFIT FOR THE YEAR 26,178 17,716
BASIC AND DILUTED EARNINGS PER ORDINARY SHARE (in pence) 327.17p 224.53p
* Finance income and expense for the prior year have been grossed up to be
consistent with the current year presentation.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30th April, 2025
2025 2024
£'000 £'000
PROFIT FOR THE YEAR 26,178 17,716
OTHER COMPREHENSIVE INCOME / (EXPENSE)
ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS:
Foreign exchange translation differences (1,852) (1,935)
Cash flow hedges - effective portion of changes in fair value 5,513 (936)
Cash flow hedges - ineffectiveness transferred to profit or loss ‒ 433
Cash flow hedges - amounts transferred to profit or loss (1,593) (438)
Cash flow hedges - deferred tax (charge) / credit (806) 85
Cost of hedging - changes in fair value (97) 558
Cost of hedging - ineffectiveness transferred to profit or loss ‒ 28
Cost of hedging - amounts transferred to profit or loss 209 144
Cost of hedging - deferred tax charge (33) (184)
OTHER COMPREHENSIVE (EXPENSE) / INCOME FOR THE YEAR, NET OF INCOME TAX 1,341 (2,245)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 27,519 15,471
ATTRIBUTABLE TO:
Equity holders of the parent 25,870 15,039
Non-controlling interests 1,649 432
27,519 15,471
CONSOLIDATED BALANCE SHEET
at 30th April, 2025
2025 2024
£'000 £'000
NON-CURRENT ASSETS
Property, plant and equipment 116,832 105,337
Right-of-use assets 6,055 11,744
Investment in associate 775 828
Intangible assets 27,670 25,900
Derivative financial assets 6,061 5,716
157,393 149,525
CURRENT ASSETS
Inventories 39,096 46,809
Contract assets 24,310 22,027
Trade and other receivables 42,390 31,894
Corporation tax receivable 1,583 1,288
Derivative financial assets 4,457 2,007
Cash and cash equivalents 16,643 30,678
128,479 134,703
TOTAL ASSETS 285,872 284,228
CURRENT LIABILITIES
Borrowings 16,420 14,027
Contract liabilities * 34,750 14,856
Trade and other payables 37,159 30,830
Corporation tax payable 1,092 859
Derivative financial liabilities 256 251
Provisions for liabilities and charges 223 231
89,900 61,054
NON-CURRENT LIABILITIES
Borrowings 15,707 61,906
Contract liabilities * 20,412 19,268
Derivative financial liabilities 428 277
Provisions for liabilities and charges 269 274
Deferred tax liabilities 16,948 14,799
53,764 96,524
TOTAL LIABILITIES 143,664 157,578
NET ASSETS 142,208 126,650
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
Share capital 751 751
Translation reserve (4,223) (2,391)
Cash flow hedge reserve 3,657 633
Cost of hedging reserve (317) (426)
Retained earnings 138,295 123,714
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 138,163 122,281
NON-CONTROLLING INTERESTS 4,045 4,369
TOTAL EQUITY 142,208 126,650
* Contract liabilities are predominantly advance payments from customers.
GOODWIN PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30th April, 2025
Share capital Translation 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
YEAR ENDED 30TH APRIL, 2025
Balance at 1st May, 2024 751 (2,391) 633 (426) 123,714 122,281 4,369 126,650
Total comprehensive income:
Profit for the year ‒ ‒ ‒ ‒ 24,569 24,569 1,609 26,178
Other comprehensive income:
Foreign exchange translation differences ‒ (1,832) ‒ ‒ ‒ (1,832) (20) (1,852)
Effective portion of changes in fair value ‒ ‒ 5,449 (81) ‒ 5,368 48 5,416
Ineffectiveness transferred to profit or loss ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Amounts reclassified to profit or loss ‒ ‒ (1,665) 226 ‒ (1,439) 55 (1,384)
Deferred tax (charge) / credit ‒ ‒ (760) (36) ‒ (796) (43) (839)
Other comprehensive income / (expense) for the year ‒ (1,832) 3,024 109 ‒ 1,301 40 1,341
TOTAL COMPREHENSIVE INCOME / (EXPENSE) FOR THE YEAR ‒ (1,832) 3,024 109 24,569 25,870 1,649 27,519
Transactions with owners:
Dividends paid ‒ ‒ ‒ ‒ (9,988) (9,988) (1,973) (11,961)
BALANCE AT 30TH APRIL, 2025 751 (4,223) 3,657 (317) 138,295 138,163 4,045 142,208
GOODWIN PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30th April, 2024
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, 2024
Balance at 1st May, 2023 769 (849) 5,244 1,504 (976) 119,055 124,747 4,410 129,157
Total comprehensive income:
Profit for the year ‒ ‒ ‒ ‒ ‒ 16,902 16,902 814 17,716
Other comprehensive income:
Foreign exchange translation differences ‒ (1,542) ‒ ‒ ‒ ‒ (1,542) (393) (1,935)
Effective portion of changes in fair value ‒ ‒ ‒ (948) 560 ‒ (388) 10 (378)
Ineffectiveness transferred to profit or loss ‒ ‒ ‒ 432 28 ‒ 460 1 461
Amounts reclassified to profit or loss ‒ ‒ ‒ (438) 144 ‒ (294) ‒ (294)
Deferred tax (charge) / credit ‒ ‒ ‒ 83 (182) ‒ (99) ‒ (99)
Other comprehensive income / (expense) for the year ‒ (1,542) ‒ (871) 550 ‒ (1,863) (382) (2,245)
TOTAL COMPREHENSIVE INCOME / (EXPENSE) FOR THE YEAR ‒ (1,542) ‒ (871) 550 16,902 15,039 432 15,471
Transfers between reserves ‒ ‒ (5,244) ‒ ‒ 5,244 ‒ ‒ ‒
Transactions with owners:
Buy back of shares (18) ‒ ‒ ‒ ‒ (8,851) (8,869) ‒ (8,869)
Dividends paid ‒ ‒ ‒ ‒ ‒ (8,636) (8,636) (473) (9,109)
BALANCE AT 30TH APRIL, 2024 751 (2,391) ‒ 633 (426) 123,714 122,281 4,369 126,650
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30th April, 2025
2025 2024
£'000 £'000
CASH FLOW FROM OPERATING ACTIVITIES
Profit from continuing operations after tax 26,178 17,716
Adjustments for:
Depreciation of property, plant and equipment 6,663 6,607
Depreciation of right-of-use assets 1,346 1,497
Amortisation and impairment of intangible assets 1,580 1,341
Finance costs (net) 1,660 2,870
Currency losses / (gains) 1,371 (1,025)
Loss / (profit) on sale of property, plant and equipment 126 (29)
Unrealised (loss) / gain on 10 year interest rate swap derivative 1,257 (113)
Share of profit of associate company (65) (69)
UK tax incentive credit on research and development (573) (660)
Tax expense 8,082 6,491
OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS 47,625 34,626
Decrease in inventories 6,743 437
(Increase) in contract assets (2,121) (5,849)
(Increase) / decrease in trade and other receivables (12,095) 2,357
Increase in contract liabilities 20,990 1,388
Increase in trade and other payables 6,100 370
CASH GENERATED FROM OPERATIONS 67,242 33,329
Interest received 1,340 1,399
Interest paid (3,822) (5,022)
Corporation tax paid (6,566) (2,587)
NET CASH INFLOW FROM OPERATING ACTIVITIES 58,194 27,119
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 125 392
Acquisition of property, plant and equipment (13,176) (15,363)
Acquisition of intangible assets (283) (582)
Development expenditure capitalised (2,832) (1,456)
Dividend from associate company 156 131
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (16,010) (16,878)
CASH FLOW FROM FINANCING ACTIVITIES
Buy back of shares ‒ (8,869)
Payment of capital element of lease liabilities (6,073) (2,910)
Dividends paid (9,988) (8,636)
Dividends paid to non-controlling interests (1,973) (473)
Proceeds from new loans 12,000 23,098
Repayment of loans (49,837) (1,152)
Change in bank overdrafts (48) (71)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES (55,919) 987
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (13,735) 11,228
Cash and cash equivalents at beginning of year 30,678 19,661
Effect of exchange rate fluctuations on cash held (300) (211)
CASH AND CASH EQUIVALENTS AT END OF YEAR 16,643 30,678
PRINCIPAL RISKS AND UNCERTAINTIES
The Group's operations expose it to a variety of risks and uncertainties. The
Directors confirm that they continue to carry out a robust assessment of the
principal risks the Company faces, including those that would threaten its
business model, future performance, solvency or liquidity.
Market risk: The Group provides a range of products and services, and there is
a risk that the demand for these products and services vary from time to time
because of competitor action or economic cycles or international trade
friction or wars. As shown in note 1, the Group operates across a range of
geographical regions, and its turnover is split across the UK, Europe, USA,
the Pacific Basin and the Rest of the World.
Operating in many territories helps spread market risk. Similarly, the Group
operates in both Mechanical Engineering and Refractory Engineering sectors,
mitigating the impact of a downturn in any one product area as has been seen
in recent financial years.
The potential risk of the loss of any key customer is limited as no single
customer accounts for more than 10% of annual turnover.
As described in the Business Model, the Group generates significant sales from
naval propulsion marine applications and ship hull components, as well as from
valves it supplies to LNG, oil, chemical and water markets. The Mechanical
Engineering Division also sells submersible pumps that are supplied to the
mining industries and radar systems that are used for coastal surveillance and
air traffic control applications. The Refractory Engineering Division sells
vermiculite and perlite to the insulating and fire prevention industry and our
investment casting powder companies indirectly sell to the jewellery consumer
market through the supply of investment casting moulding powders, waxes,
silicone and natural rubber.
Technical risk: The Group develops and launches new products as part of its
strategy to enhance the long-term value of the Group. Such development
projects carry business risks, including reputational risk, abortive
expenditure and potential customer claims which may have a material impact on
the Group. The potential risk here is seen as manageable given the Group is
developing products in areas in which it is knowledgeable, has extensive skill
and expertise and new products go through rigorous, extensive testing prior to
their release into the market. The risk of product obsolescence is countered
by continuous research and development investment into new products.
Product failure / Contractual risk: The risks that the Group supplies products
that fail or are not manufactured to specification are risks that all
manufacturing companies are exposed to, but we try to minimise these risks
through the use of highly skilled personnel operating within robust quality
control system environments, using third party accreditations where
appropriate. With regard to the risk of failure in relation to new products
coming on line, the additional risks here are minimised at the research and
development stage, where prototype testing and the deployment of a robust
closed loop product performance quality control system provides feedback to
the design department for the products we manufacture and sell. The risk of
not meeting safety expectations, or causing significant adverse impacts to
customers or the environment, is countered by the combination of the controls
mentioned within this section and the purchase of product liability insurance.
Supply chain and equipment risk: Failure of a major supplier or an essential
item of equipment presents a constant risk of disruption to the manufacturing
in progress, especially during times of high inflation or increased shipping
times and costs. Where reasonably possible, management mitigates and controls
the risk with the use of dual sourcing, continual maintenance programmes, and
by carrying adequate levels of stocks and spares to reduce any disruption.
Health and safety: The Group's operations involve the typical health and
safety hazards inherent in manufacturing and business operations. The Group is
subject to numerous laws and regulations relating to health and safety around
the world. Hazards are managed by carrying out risk assessments and
introducing appropriate controls, as well as attending safety training
courses.
Acquisitions: The Group's growth plan over recent years has included a number
of acquisitions. There is the risk that these, or future acquisitions, fail to
provide the planned value. This risk is mitigated through thorough and
robust financial and technical due diligence during the acquisition process
and the Group's inherent knowledge of the markets they operate in.
Financial risk: The principal financial risks faced by the Group are changes
in market prices (interest rates, foreign exchange rates and commodity
prices). As reported, the Company, on 2nd July, 2021, signed a contract to
mitigate the impact of interest rate risk by taking out an interest rate swap
derivative fixing £30 million of notional debt at less than 1% versus the
variable SONIA rate for a period of ten years, commencing 1st September, 2021.
Detailed information on the financial risk management objectives and policies
is set out in note 27 of the financial statements to be published shortly. The
Group has in place risk management policies that seek to limit the adverse
effects on the financial performance of the Group by using various instruments
and techniques, including credit insurance, stage payments, forward foreign
exchange contracts, secured and unsecured credit lines. Prior to the expiry
date of the Revolving Credit Facilities, the Board reviews the current and
future requirements of the Group and arranges suitable replacement facilities
prior to the current facility expiring. Post year-end, the Group has renewed
one of its Revolving Credit Facilities, that was due to expire, for a four
year term.
Regulatory compliance: The Group's operations are subject to a wide range of
laws and regulations. Both within Goodwin PLC and its subsidiaries, the
Directors and Senior Managers within the companies make best endeavours to
ensure we comply with the relevant laws and regulations. The Group ensures
that high ethical standards and values are adopted, specifically with regards
to sanctions, anti-corruption, anti-bribery and human rights. During the
year, the Group has carried out training and continued to refine and update
its internal policies to reflect the associated risks.
IT security: The Group performs regular and remote off-site backups of its IT
systems, from time to time engaging external companies to test and report any
weaknesses and deficiencies found to enable solutions to be put in place to
mitigate and minimise the risk of an IT security breach.
Energy and Climate Change: The Group is actively developing and implementing
its carbon neutral plan, which helps mitigate the risk of the Group being
exposed to the long-term effects of global warming and more specifically the
upcoming Carbon Border Adjustment Mechanism (CBAM) taxes that will likely ramp
up over the next ten years, in addition to significant increases in the cost
of power that are a result of the fragile global energy system. The Group's
methods of mitigation include fixed price energy contracts, incorporating
price escalation clauses into the longer term contracts and ultimately
reducing the need to purchase energy from the national grid by installing
renewable solutions like low cost solar panels. To date, the Group has
installed 6.7MW of solar panels worldwide and planning has been obtained to
install a further 4.3 MW of solar panels. Additional information on the
Group's climate related risks and opportunities can be found within the
Environmental section, of the financial statements to be published shortly.
FORWARD-LOOKING STATEMENTS
The Group Strategic Report to be published shortly contains forward-looking
type 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 for future events or developments, whether as a
result of new information, future events or otherwise, except to the extent
legally required.
Directors' statement pursuant to the Disclosure and Transparency Rules
Each of the Directors, whose names are listed in the financial statements to
be published shortly, confirm that to the best of each person's knowledge:
a. the financial statements, prepared in accordance with the applicable
set of accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit of the Company and the undertakings
included in the consolidation taken as a whole; and
b. the Strategic Report contained in the Annual Report includes a fair
review of the development and performance of the business and the position of
the Company and the undertakings included in the consolidation taken as a
whole, together with a description of the principal risks and uncertainties
that they face.
Directors
The Directors of the Company who have served during the year are set out
below.
M.S. Goodwin Mechanical Divisional
Managing Director
S.R. Goodwin Refractory Divisional
Managing Director
T.J.W. Goodwin
Chairman
B.R.E. Goodwin
N. Brown
J.E. Kelly (Non-Executive Director)
C.A. McNamara (Non-Executive Director) - appointed 02 October 2024
Accounting policies
Goodwin PLC (the "Company") is incorporated in England and Wales.
The Group financial statements comprise those of the Company, its subsidiaries
and its associate company (together referred to as the "Group"). The parent
Company financial statements present information about the Company as a
separate entity and not about its Group.
The Group's financial statements have been prepared in accordance with UK
Company Law, UK adopted International Accounting Standards (IAS) and
interpretations issued by the IFRS Interpretations Committee (IFRS IC)
applicable to companies reporting under UK adopted IFRS.
In the application of these accounting policies, judgements made by the
Directors, that have a significant effect on the financial statements, and
estimates with a possible significant risk of material adjustment in the next
year, are discussed in note 2 of the financial statements to be published
shortly.
New IFRS standards and interpretations adopted during 2024 / 2025
The IASB and IFRIC issued the following amendment:
· Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current (effective for periods
commencing on or after 1st January 2024).
· Amendments to IAS 1 Presentation of Financial Statements: Non-current
liabilities with covenants (effective for periods commencing on or after 1st
January 2024).
The implementation of these amendments has not had a material impact on the
Group's financial statements
Copies of the 2025 accounts are expected to be posted to shareholders within
the next two weeks and will also be available on the Company's website:
www.goodwin.co.uk and from the Company's Registered Office: Ivy House
Foundry, Hanley, Stoke-on-Trent ST1 3NR.
Note 1
Segmental information
Products and services from which reportable segments derive their revenues
For reporting to the chief operating decision maker, the Board of Directors,
and as outlined in the Business Model section of the Strategic Report of the
financial statements to be published shortly. The Group is organised into two
reportable operating segments according to the different products and services
provided by the Mechanical Engineering and Refractory Engineering Divisions.
Segment assets and liabilities include items directly attributable to segments
as well as group centre balances which can be allocated on a reasonable basis.
The Group's associate company is included in Refractory Engineering. In
accordance with the requirements of IFRS 8, information regarding the Group's
operating segments is reported below.
There are no other reportable segments apart from those identified.
2025 2024
Mechanical Engineering Refractory Engineering Total Mechanical Engineering Refractory Engineering Total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue
Total revenue 193,045 78,164 271,209 156,944 75,859 232,803
Intra-segment revenue (36,783) (14,717) (51,500) (28,912) (12,633) (41,545)
External revenue 156,262 63,447 219,709 128,032 63,226 191,258
Profit
Segment operating profit 25,402 14,606 40,008 18,861 13,423 32,284
Share of profit of associate company ‒ 65 65 ‒ 69 69
Segment profit before taxation 25,402 14,671 40,073 18,861 13,492 32,353
Group centre costs (2,895) (5,389)
Finance income 1,305 1,414
Finance costs (2,965) (4,284)
Profit before taxation and movement in fair value of interest rate swap 35,518 24,094
Percentage of segment profit before tax 63% 37% 100% 58% 42% 100%
2025 2024
Group centre Mechanical Engineering Refractory Engineering Total Group centre Mechanical Engineering Refractory Engineering Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Net assets
Total assets 16,422 205,272 64,178 285,872 17,338 192,608 74,282 284,228
Total liabilities (862) (125,940) (16,862) (143,664) (511) (118,132) (38,935) (157,578)
15,560 79,332 47,316 142,208 16,827 74,476 35,347 126,650
For the purposes of monitoring segment performance and allocating resources
between segments, the Group's Board of Directors monitors the tangible and
financial assets attributable to each segment. All assets and liabilities
are allocated to reportable segments with the exception of some of those held
by the parent Company, Goodwin PLC.
2025 2024
Group centre Mechanical Engineering Refractory Engineering Total Group centre Mechanical Engineering Refractory Engineering Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Segmental capital expenditure
Property, plant and equipment 704 12,849 1,457 15,010 736 10,102 5,583 16,421
Right-of-use assets 55 86 6 147 180 934 634 1,748
Intangible assets ‒ 2,611 504 3,115 372 1,209 456 2,037
Total 759 15,546 1,967 18,272 1,288 12,245 6,673 20,206
Segmental depreciation, amortisation and impairment
Depreciation - PPE 632 4,580 1,451 6,663 752 4,400 1,455 6,607
Depreciation - ROU 315 594 437 1,346 429 578 490 1,497
Amortisation and impairment 98 654 828 1,580 85 446 810 1,341
Total 1,045 5,828 2,716 9,589 1,266 5,424 2,755 9,445
Geographical segments
The Group operates in the following 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.
2025 2024
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 63,904 94,113 122,585 12,469 61,595 78,978 117,376 14,887
Rest of Europe 26,671 9,868 8,627 4,186 21,552 6,884 5,132 1,532
USA 35,426 ‒ ‒ ‒ 21,480 ‒ ‒ ‒
Pacific Basin 42,726 15,246 6,290 171 42,903 17,374 7,009 692
Rest of World 50,982 22,981 13,830 1,446 43,728 23,414 14,292 3,095
Total 219,709 142,208 151,332 18,272 191,258 126,650 143,809 20,206
Note 2
Dividends
The Board is proposing to amend its Dividend Policy by increasing the payout
ratio to 58% of post-tax profits plus depreciation and amortisation, up from
the 38% payout ratio that has been maintained since 2018. This proposed
increase reflects the Board's confidence in the Group's ability to sustainably
generate strong cash flows, underpinned by the diversified and recurring
nature of the Group's activities across multiple sectors and geographies.
This confidence has been reinforced by a detailed analysis of the Group's
secured workload and the application of extensive financial scenario stress
testing. In addition, having reinvested over £200 million during the past two
decades into highly efficient, technologically advanced manufacturing plant,
equipment, subsidiary growth, and capitalised our intellectual property
designs and processes as intangibles, the Group now benefits from having the
required facilities and operational capacity to support ongoing profitability
with only modest levels of future capital expenditure.
Importantly, the proposed change in Dividend Policy will not compromise the
Group's longstanding proactive approach to equipment maintenance, facility
investment and acquisitions. Management teams will continue to be encouraged
to allocate resources and time towards identifying and developing new growth
opportunities and product lines. However, at the present time, the major
capital projects visible on the horizon are expected to be fully
customer-funded, further supporting the Board's confidence that the revised
Dividend Policy remains viable and sustainable for the foreseeable future.
Subject to shareholder approval of the proposed dividend at the forthcoming
Annual General Meeting on 1st October, 2025, a final dividend of 280 pence per
share, (2024: 133p) will be paid in equal instalments of 140 pence per share
on 3rd October, 2025 and on or around 10th April, 2026 to shareholders on the
register on 12th September, 2025 and on or around 20th March, 2026
respectively.
Note 3
Earnings per share
2025 2024
Number Number
Ordinary shares in issue
Opening shares in issue 7,509,600 7,689,600
Shares bought back in the year ‒ (180,000)
Total ordinary shares 7,509,600 7,509,600
Weighted average number of ordinary shares in issue 7,509,600 7,527,797
2025 2024
£'000 £'000
Relevant post-tax profits attributable to ordinary shareholders 24,569 16,902
2025 2024
pence pence
Basic and diluted earnings per share 327.17 224.53
Note 4
Going concern
The Directors, after having reviewed the Group forecasts and possible
challenges that may occur over the short to medium term, are confident that
the Group has adequate resources to continue to operate for at least twelve
months from the date that these financial statements are approved and have
continued to adopt the going concern principle in preparing these financial
statements.
As at 30th April, 2025, the Group's gearing ratio stood at 9.9% (2024: 35.1%),
which is due to a reduction in net debt of £29.3 million against a
substantial shareholders' net worth of £138 million (2024: £122 million).
The retained reserves of the Group and increased headroom in lender facilities
put it in a strong position to deal with any material unforeseen adverse
issues that may occur and have an impact on the Group's operations.
As part of the going concern process, the Group forecasts are stress tested by
being subject to a number of severe but conceivable financial challenges to
ensure that the Group finances remain robust throughout the period being
tested.
The stress test model begins with the Group forecasts, that have been
consolidated from the individual forecasts generated by the Directors of each
of the subsidiaries and reflects their specific knowledge of their business
and the markets, within which they operate, to ensure that the forecasts that
they produce reflect the market conditions, the business strategy and expected
outlook. Each of these subsidiary level forecasts is then reviewed, challenged
and approved by the relevant Divisional Managing Director, who is immersed in
each of these businesses to such an extent that they know and understand each
of their markets. As the Group is so diverse, with two divisions in different
sectors and multiple products within each division, several stress test events
are used to reduce the pre-tax profit forecasts by reducing revenues and
consequently the pre-tax profit. Due to this diversity, it is feasible that
one or two events could take place, but it is highly improbable that all the
stress test events would occur at the same time. The stress tests implemented
reduced revenues and consequently pre-tax profits, which for these stress
tests implemented reduced pre-tax profit by a combined amount of 74%, without
reducing the discretionary capital expenditure programme, maintaining
overheads at their current expected levels, maintaining the dividend policy
and utilising the finance facilities at the same amounts that will be in place
twelve months from the signing of these accounts. The results of the stress
test modelling did not highlight any going concern issues, breaches of
covenants, need to reduce the discretionary capital expenditure, make any
changes to overheads, reduce or cancel the payment of a dividend or the
requirement for any further financing facilities in addition to those
currently in place at year-end. Post year-end, the Group has renewed one of
its Revolving Credit Facilities, that was due to expire in July 2025, for a
four-year term.
Whilst our carrying values of trade debtors and contract assets are
significant, we see little risk here in terms of recovery due to the quality
of the customers that the Group contracts with. Where possible, we use credit
insurance for the majority of our trade debtors and our pre-credit risk (work
in progress), and for significant contracts, where credit insurance is not
available, we ensure, where possible, that those contracts are backed by
letters of credit or cash positive milestone payments.
As the Mechanical Engineering Division's order book remains high and the
Refractory Engineering Division continues to be buoyant.
The Directors are confident that the Group and Company will have sufficient
funds to continue to meet their liabilities as they fall due for at least
twelve months from the date of approval of the financial statements and
therefore have prepared the financial statements on a going concern basis
Note 5
Annual General Meeting
The Annual General Meeting will be held at 10.30am on Wednesday, 1st October,
2025 at Crewe Hall, Weston Road, Crewe, Cheshire, CW1 6UZ.
Note 6 - ALTERNATIVE PERFORMANCE MEASURES
Measure Method of calculation / reference 2025 2024
Gross profit (£'000) Consolidated statement of profit or loss 91,609 77,887
Revenue (£'000) Consolidated statement of profit or loss 219,709 191,258
Gross profit as percentage of revenue (%) Gross profit / Revenue 41.7% 40.7%
Profit before tax (£'000) Consolidated statement of profit or loss 34,260 24,207
Unrealised loss / (gain) on 10 year interest rate swap derivative Consolidated statement of profit or loss 1,257 (113)
Trading profit (£'000) 35,517 24,094
Operating profit (£'000) Consolidated statement of profit or loss 37,112 26,895
Capital employed (£'000) 151,788 165,212
Return on capital employed (%) Operating profit / capital employed 24.4% 16.3%
Net debt (£'000) 13,625 42,931
Net assets attributable to equity holders of the parent (£'000) Consolidated balance sheet 138,163 122,281
Gearing (%) Net debt / equity, as above 9.9% 35.1%
Net profit attributable to equity holders of the parent (£'000) Consolidated statement of profit or loss 24,569 16,902
Net assets attributable to equity holders of the parent (£'000) Consolidated balance sheet 138,163 122,281
Return on investment (%) Net profit / net assets 17.8% 13.8%
Revenue (£'000) Consolidated statement of profit or loss 219,709 191,258
Average number of employees 1,253 1,225
Revenue per employee (£'000) Group revenue / average employees 175,346 156,129
Annual post tax profit (£'000) Consolidated statement of profit or loss 26,178 17,716
Interest rate SWAP mark to market net of tax @ 25% (2024: 19.49%) (£'000) Consolidated statement of profit or loss 943 (85)
Depreciation owned assets (£'000) 6,663 6,607
Depreciation right-of-use assets (£'000) 1,346 1,497
Amortisation and impairment (£'000) 1,580 1,341
Exclude operating lease depreciation (£'000) (566) (723)
Annual post tax profit + depreciation + amortisation (£'000) 36,144 26,353
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