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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Goodwin Plc | LSE:GDWN | London | Ordinary Share | GB0003781050 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 6,680.00 | 6,340.00 | 6,780.00 | 803 | 12:43:45 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Engineering Services | 185.74M | 15.9M | 2.1178 | 31.54 | 501.64M |
From Apr 2019 to Apr 2024
TIDMGDWN
RNS Number : 1030S
Goodwin PLC
16 December 2016
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2016
CHAIRMAN'S STATEMENT
The pre-tax profit for the Group for the first six month period ending 31(st) October 2016 was GBP6.05 million (2015:GBP6.03 million).
The current workload stands at GBP84 million and sales orders despatched up to 31st October were GBP69.9 million (2015:GBP61.2 million) but the margins are lower due to the increased competition in the tighter market.
Growth areas in the refractory products continue to provide good opportunity whilst a better base load within the longer term defence work has given some reassurance in comparison to the continued low new project and procurement activity within the oil, gas and mining industries.
Some cost cutting has taken place during the period but the total number employed remains at just over 1,200, in part due to growth in our new products produced by Dupré Minerals and Goodwin Refractory Services, helped by the Group's presence in China, Thailand, India, Korea and Brazil.
Cash flow, credit insurance and political risk together with foreign exchange timings are areas of risk which continue to require careful attention. With our capital expenditure very much reduced, other than customer project financed development we are restricting expenditure.
With the likely continued low oil and gas and metal ore prices and thus constrained profitability and capital expenditure by our oil, gas and mining customer base, it would be unrealistic to expect any significant recovery / improvement in pre-tax profitability until after 2018. Indeed, if it were not for the diversity provided by our refractory division, life would be much more difficult.
As in the five downturns over the past 35 years, we are making good use of this quieter trading time by working hard obtaining approvals and bringing our new products to market, such as our axial piston shut off and control valves, our new range of duplex and high impact resistant carbon steels as well as products that use our AVD(TM) vermiculite dispersions, such as fire extinguishers, lithium battery transport bags and fire resistant paints. For all the mentioned products we have patents applied for and they should provide the Group with a sound base to start growing again, such that we can be as proud of the next twenty years as we have been of the past twenty.
J. W. Goodwin
Chairman 16th December 2016
Management report
The turnover for the first six months of this new financial year increased by 14.2%. The pre-tax profit has increased by 0.3% in the first half of the financial year.
The further depressed state of capital expenditure on oil, gas and mining projects will be a challenge to our mechanical engineering companies in 2017. The markets for the refractory engineering division as a whole remain stable.
Financial Highlights
Hot Features
Premium
Six months ended Year Ended
31st October 31st October 30th April
2016 2015 2016
GBP'm GBP'm GBP'm
Unaudited Unaudited Audited
Consolidated Results
Revenue 69.9 61.2 123.5
Operating profit 6.5 6.2 12.7
Profit before tax 6.0 6.0 12.3
Profit after tax 4.2 4.8 8.9
Capital Expenditure 3.2 5.8 12.1
Earnings per share (Basic
and Diluted) 54.53p 68.01p 122.75p
Turnover
Revenue of GBP69,889,000 for the half year represents a 14.2% increase over the GBP61,220,000 achieved during the same period last year.
Profit Before Tax
Profit before tax for the six months of GBP6,047,000 is up 0.3% from the GBP6,028,000 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 2016, which describes the principal risks and uncertainties, and to note 20 (page 47), which describes in detail the key financial risks and uncertainties affecting the business such as credit risk and foreign exchange risk.
Judging the future relationship of the major currency pairs of the US Dollar, Sterling and the Euro continues to be a challenge.
Report on Expected Developments
This report describes the expected developments of the Group during the year ended 30th April 2017. 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.
2017/16 Outlook
The mechanical engineering division companies, with the exception of Easat Radar Systems, are seeing their order backlog go down as it is likely to continue to do so in the calendar year 2017. Goodwin International, which had the highest activity level in value terms in the oil and gas industry, has in part mitigated the severe purchasing activity decline in this sector by winning significant levels of business in the nuclear engineering sector, that has business to place for the next ten years. The hardest hit company is the foundry, Goodwin Steel Castings. Whilst over the past three years it has done better than most other competitive foundries worldwide, it is now short of order input and as such is looking to ramp up new business for submarines in the UK and USA, following Goodwin's recent approval to produce HY80 cast material.
Going concern
The Group cash flow has deteriorated since the start of the new financial year. It is not unusual for the Group to see a deteriorating cash flow picture in the first half of the financial year due to the impact of dividend payments, working capital movements and our capital expenditure programmes.
Whilst the reduced level of capital expenditure, as referred to within the Chairman's Statement, has been helpful for cash flow in the first half of this financial year, the impact has been offset by the currency effects of Brexit and associated timing issues related to our foreign exchange hedge trades.
The Group's bank facilities have coped and are coping well with these temporary timing issues. We expect the position to reverse in the second half of the financial year as we rebalance our positions with customer currency inflows.
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 16th December 2016
Condensed consolidated income statement
for the half year to 31st October 2016
Unaudited
Half Year
to Unaudited Audited
31st October Half Year Year Ended
2016 to 30th April
31st October 2016
2015
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 69,889 61,220 123,539
Cost of sales (51,442) (43,966) (89,196)
Gross profit 18,447 17,254 34,343
Distribution expenses (1,731) (1,571) (3,311)
Administrative expenses (10,210) (9,463) (18,284)
Operating profit 6,506 6,220 12,748
Financial expenses (560) (357) (775)
Share of profit of associate
companies 101 165 341
Profit before taxation 6,047 6,028 12,314 Tax on profit (1,829) (1,202) (3,376) Profit after taxation 4,218 4,826 8,938 Attributable to: Equity holders of the parent 3,927 4,897 8,838 Non-controlling interests 291 (71) 100 Profit for the period 4,218 4,826 8,938 Basic and diluted earnings per ordinary share (note 7) 54.53p 68.01p 122.75p
Condensed consolidated statement of comprehensive income
for the half year to 31st October 2016
Unaudited Unaudited Audited
Half Half Year
Year Year Ended
to to 30th
31st 31st April
October October 2016
2016 2015
GBP'000 GBP'000 GBP'000
Profit for the period 4,218 4,826 8,938
Other comprehensive expense
Items that are or may
be reclassified subsequently
to the income statement
Foreign exchange translation
differences 5,796 (1,529) 279
Effective portion of changes
in fair value of cash
flow hedges (15,696) 272 (728)
Change in fair value of
cash flow hedges transferred
to the income statement (608) (190) (1,923)
Tax on items that are
or may be reclassified
subsequently to the income
statement 2,765 (16) 516
Other comprehensive expense
for the period, net of
income tax (7,743) (1,463) (1,856)
Total comprehensive income
for the period (3,525) 3,363 7,082
Attributable to:
Equity holders of the
parent (4,618) 3,550 7,018
Non-controlling interests 1,093 (187) 64
(3,525) 3,363 7,082
Condensed consolidated statement of changes in equity
for the half year to 31st October 2016
Total
attributable
to
equity
Cash holders Non-
Share flow Retained of controlling Total
capital Translation hedging earnings the interests equity
reserve reserve parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Half year to 31(st)
October 2016
(Unaudited)
Balance at 1(st)
May 2016 720 (1,041) (594) 87,209 86,294 3,823 90,117
Total comprehensive
income:
Profit - - - 3,927 3,927 291 4,218
Other comprehensive
income:
Foreign exchange
translation
difference - 4,994 - - 4,994 802 5,796
Net movements on
cash flow hedges - - (13,539) - (13,539) - (13,539)
Total comprehensive
income for the
period - 4,994 (13,539) 3,927 (4,618) 1,093 (3,525)
Dividends paid - - - (3,114) (3,114) (339) (3,453)
---------- -------------- ---------- ----------- -------------- -------------- ---------
Balance at 31(st)
October 2016 720 3,953 (14,133) 88,022 78,562 4,577 83,139
Half year to 31(st)
October 2015
(Unaudited)
Balance at 1(st)
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
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 31(st)
October 2015 720 (2,769) 1,607 83,205 82,763 3,585 86,348
Year ended 30th
April 2016
(Audited)
Balance at 1(st)
May 2015 720 (1,356) 1,541 81,836 82,741 3,781 86,522
Total comprehensive
income:
Profit - - - 8,838 8,838 100 8,938
Other comprehensive
income:
Foreign exchange
translation
difference - 315 - - 315 (36) 279
Net movements on
cash flow hedges - - (2,135) - (2,135) - (2,135)
Total comprehensive
income for the
period - 315 (2,135) 8,838 7,018 64 7,082
Transactions with
owners of the
Company
recognised directly
in equity: 174 174
Purchase of
non-controlling
interest without
a change in control - - - (360) (360) - (360)
Dividends paid - - - (3,105) (3,105) (196) (3,301)
---------- -------------- ---------- ----------- -------------- -------------- ---------
Balance at 30th
April 2016 720 (1,041) (594) 87,209 86,294 3,823 90,117
Condensed consolidated balance sheet
as at 31st October 2016
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2016 2015 2016
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 65,207 58,456 62,530
Investments in associates 2,032 1,580 1,640
Intangible assets 18,584 15,470 17,565
85,823 75,506 81,735
Current assets
Inventories 43,605 34,617 35,631
Trade and other receivables 32,819 27,539 33,792
Derivative financial assets 1,235 3,843 2,107
Cash and cash equivalents 5,269 5,188 4,970
82,928 71,187 76,500
Total assets 168,751 146,693 158,235
Current liabilities
Bank overdrafts 9,347 11,409 5,383
Interest-bearing loans and
borrowings 3,074 2,243 3,148
Trade and other payables 26,647 25,579 32,608
Deferred consideration 500 500 500
Derivative financial liabilities 13,293 1,563 2,818
Liabilities for current tax 2,234 1,075 1,785
Warranty provision 132 95 151
55,227 42,464 46,393
Non-current liabilities
Interest-bearing loans and
borrowings 29,571 14,053 18,497
Warranty provision 296 337 179
Deferred tax liabilities 518 3,491 3,049
30,385 17,881 21,725
Total liabilities 85,612 60,345 68,118 Net assets 83,139 86,348 90,117 Equity attributable to equity holders of the parent Share capital 720 720 720 Translation reserve 3,953 (2,769) (1,041) Cash flow hedge reserve (14,133) 1,607 (594) Retained earnings 88,022 83,205 87,209 Total equity attributable to equity holders of the parent 78,562 82,763 86,294 Non-controlling interests 4,577 3,585 3,823 Total equity 83,139 86,348 90,117
Condensed consolidated cash flow statement
for the half year ended 31st October 2016
Unaudited Unaudited Audited
Half Year to Half Year to Year Ended
31st October 31st October 30th April
2016 2015 2016
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Profit from continuing operations after tax 4,218 4,826 8,938
Adjustments for:
Depreciation 2,718 2,401 4,748
Amortisation of intangible assets 393 184 583
Impairment of intangible assets - - 340
Gain arising on bargain purchase - - (143)
Financial expense 560 357 775
(Profit) / loss on sale of property, plant and equipment (2) 3 (456)
Share of profit of associate companies (101) (165) (341)
Tax expense 1,829 1,202 3,376
Operating profit before changes in working capital and
provisions 9,615 8,808 17,820
Increase in trade and other receivables (2,972) (1,496) (5,707)
Increase in inventories (6,167) (2,085) (2,357)
Decrease in trade and other payables
(excluding payments on account) (5,732) (2,630) (1,453)
(Decrease) / increase in payments on account (1,207) 1,532 5,402
Cash (outflow) / inflow from operations (6,463) 4,129 13,705
Interest paid (469) (329) (703)
Corporation tax paid (1,460) (1,653) (3,058)
Interest element of finance lease obligations (91) (28) (20)
Net cash from operating activities (8,483) 2,119 9,924
Cash flow from investing activities
Proceeds from sale of property, plant and equipment 79 47 968
Acquisition of intangible assets (60) (3,500) (4,319)
Acquisition of property, plant and equipment (3,218) (6,015) (7,707)
R&D expenditure capitalised (354) - (1,430)
Acquisition of subsidiary - (1,667) (2,005)
Additional payment for existing subsidiary - (383) (330)
Additional investment in associate companies - (60) (30)
Dividends received from associate company - - 173
Net cash outflow from investing activities (3,553) (11,578) (14,680)
Cash flows from financing activities
Payment of capital element of finance lease obligations (466) (158) (274)
Dividends paid (3,114) (3,049) (3,105)
Dividends paid to non-controlling interests (339) (158) (196)
Proceeds from loans and committed facilities 11,459 - 3,305
Repayment of loans and committed facilities (21) (1,000) (3,000)
Finance fees - - (100)
Net cash inflow / (outflow) from financing activities 7,519 (4,365) (3,370)
Net decrease in cash and cash equivalents (4,517) (13,824) (8,126)
Opening cash and cash equivalents (413) 7,732 7,732
Effect of exchange rate fluctuations on cash held 852 (129) (19)
Closing cash and cash equivalents (4,078) (6,221) (413)
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 2016 comprise the Company, its subsidiaries, and the Group's interests in associates (together referred to as the "Group").
The audited consolidated financial statements of the Group as at and for the year ended 30 April 2016 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 2016.
The comparative figures for the financial year ended 30th April 2016 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 16th December 2016.
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 2016. New standards to be adopted in the current year as below, effective for annual periods beginning on or after 1st January 2016, are not expected to have a significant impact on the financial statements.
-- 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 1st January 2016)
-- Accounting for Acquisitions of Interests in Joint Operations - Amendments to IFRS 11 (effective for annual periods beginning on or after 1st 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 1st January 2016)
-- Equity Method in Separate Financial Statements - Amendments to IAS 27 (effective for annual periods beginning on or after 1st 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 1st January 2016)
-- Annual Improvements to IFRSs - 2012-2014 Cycle (effective for annual periods beginning on or after 1st January 2016)
-- Applying the Consolidation Exception - Amendments to IFRS 10, IFRS 12 and IAS 28 (effective for annual periods beginning on or after 1st January 2016)
-- Annual Improvements to IFRSs - 2012-2014 Cycle Investment entities (effective for annual periods beginning on or after 1st 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 1st January 2016)
-- Disclosure Initiative - Amendments to IAS 1 (effective for annual periods beginning on or after 1st January 2016)
-- IFRS 15 Revenue from Contracts with Customers (effective for annual periods beginning on or after 1st January 2016)
-- IFRS 9 Financial Instruments (effective for annual periods beginning on or after 1st January 2016)
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 (not yet endorsed. IASB effective date for annual periods beginning on or after 1st January 2017)
-- Disclosure Initiative - Amendments to IAS 7 (not yet endorsed. IASB effective date 1st January 2017)
-- IFRS 9 Financial Instruments (effective for annual periods beginning on or after 1st January 2018)
-- IFRS 16 Leases (not yet endorsed. IASB effective date 1st January, 2019) 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 2016.
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 Half Year Half Half Year Half Half Year
Year Year Ended Year Year Ended Year Year Ended
Ended Ended 30th Ended Ended 30th Ended Ended 30th
31st 31st April 31st 31st April 31st 31st April
October October 2016 October October 2016 October October 2016
2016 2015 2016 2015 2016 2015
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
External
sales 50,262 44,816 88,747 19,627 16,404 34,792 69,889 61,220 123,539
Inter-segment
sales 13,910 7,526 18,248 2,988 1,965 4,534 16,898 9,491 22,782
Total revenue 64,172 52,342 106,995 22,615 18,369 39,326 86,787 70,711 146,321
Reconciliation to
consolidated revenues:
Inter-segment
sales (16,898) (9,491) (22,782)
Consolidated revenue
for the period 69,889 61,220 123,539
Mechanical Engineering Refractory Engineering Sub Total
Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited
Half Half Year Half Half Year Half Half Year
Year Year Ended Year Year Ended Year Year Ended
Ended Ended 30th Ended Ended 30th Ended Ended 30th
31st 31st April 31st 31st April 31st 31st April
October October 2016 October October 2016 October October 2016
2016 2015 2016 2015 2016 2015
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Profits
Segment
result
including
associates 4,798 5,355 10,961 2,241 1,616 4,211 7,039 6,971 15,172
Group administration
costs (604) (586) (2,083)
Group finance and
treasury costs (376) (357) (775)
Consolidation adjustments (12) - -
Consolidated profit
before tax for the
period 6,047 6,028 12,314
Tax (1,829) (1,202) (3,376)
Consolidated profit
after tax for the
period 4,218 4,826 8,938
Segmental assets and liabilities
Segmental total Segmental total Segmental net
assets liabilities assets
Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited
Half Half Year Half Half Year Half Half Year
Year Year Ended Year Year Ended Year Year Ended
Ended Ended 30th Ended Ended 30th Ended Ended 30th
31st 31st April 31st 31st April 31st 31st April
October October 2016 October October 2016 October October 2016
2016 2015 GBP'000 2016 2015 GBP'000 2016 2015 GBP'000
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Mechanical
Engineering 93,637 71,353 82,569 70,179 50,452 65,432 23,458 20,901 17,137
Refractory
Engineering 44,726 39,158 43,207 26,998 20,265 28,455 17,728 18,893 14,752
Sub total
reportable
segment 138,363 110,511 125,776 97,177 70,717 93,887 41,186 39,794 31,889
Goodwin PLC (the Company)
net assets 68,467 66,491 71,620
Elimination of Goodwill
PLC investments (22,441) (24,764) (22,441)
Goodwill 9,689 9,288 8,994
Hedge reserve consolidation
adjustments (14,133) 1,607 (594)
Other consolidation
adjustments 371 (6,068) 649
Consolidated total
net assets 83,139 86,348 90,117
Segmental property, plant and
equipment (PPE) capital expenditure
Goodwin PLC 2,095 3,221 5,633
Mechanical Engineering 737 1,485 3,405
Refractory Engineering 386 1,091 3,030
3,218 5,797 12,068
Geographical segments
Half Year Ended 31(st) Half Year Ended 31(st) October
October 2016 2015
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Non- PPE Non- PPE
Operational current Capital Operational current Capital
Revenue assets assets expenditure Revenue assets assets expenditure
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
UK 11,352 52,149 70,611 2,631 15,193 65,166 64,065 4,708
Rest of
Europe 15,031 10,646 2,480 265 11,825 5,254 762 98
USA 3,919 - - - 5,890 - - -
Pacific
Basin 20,615 14,564 5,825 63 15,941 11,935 5,813 532
Rest of
World 18,972 5,780 6,907 259 12,371 3,993 4,866 459
Total 69,889 83,139 85,823 3,218 61,220 86,348 75,506 5,797
Year Ended 30th April 2016
Audited Audited Audited Audited
Non- PPE
Operational current Capital
Revenue assets assets expenditure
GBP'000 GBP'000 GBP'000 GBP'000
UK 36,776 66,292 69,383 9,771
Rest of
Europe 21,656 8,035 1,120 453
USA 13,974 - - -
Pacific
Basin 26,958 11,497 5,610 708
Rest of
World 24,175 4,293 5,622 1,136
Total 123,539 90,117 81,735 12,068
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 Half Year Year Ended
Year to 30th April
to 31st October 2016
31st 2015
October
2016
GBP000 GBP000 GBP000
Equity Dividends Paid:
Ordinary dividends paid during
the period in respect of the
year ended 30th April 2016:
(42.348p per share) 3,049 - -
Ordinary dividends paid during
the period in respect of the
year ended 30th April 2015:
(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 basic 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 GBP3,927,000 (six months to 31st October 2015: GBP4,897,000).
8. Capital Management, issuance and repayment of debt
At 31(st) October 2016 the capital utilised was GBP115,785,000 as shown below:
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2016 2015 2016
GBP'000 GBP'000 GBP'000
Cash and cash equivalents (5,269) (5,188) (4,970)
Finance leases 3,878 407 4,339
Bank loans and committed
facilities 28,767 15,889 17,306
Bank overdrafts 9,347 11,409 5,383
Deferred consideration 500 500 500
Net debt 37,223 23,017 22,558
Total equity attributable
to equity holders of the
parent 78,562 82,763 86,294
Capital 115,785 105,780 108,852
9. Property, Plant and Equipment
Fixed asset additions were GBP3,218,000 during the six month period to 31st October 2016 (2015: GBP5,797,000), with the Group progressing on its capital projects. Other movements in fixed assets were: depreciation of GBP2,718,000 (2015: GBP2,401,000); an increase due to the effect of exchange adjustments of GBP2,254,000 (2015: decrease of GBP588,000); disposals of GBP77,000 ( 2015: GBP50,000) and an acquisition of GBPNil (2015: GBP39,000).
10. Intangible assets
During the six month period to 31st October 2016, intangible assets were increased by GBP414,000 (2015: GBP3,500,000), via acquisitions of GBPNil (2015: GBP1,405,000) and by additions to goodwill of GBP70,000 (2015: GBP53,000). The current period goodwill addition relates to additional deferred tax liabilities in existing subsidiaries; the prior half year addition was an increased interest in existing subsidiaries by virtue of a minority dividend having been paid. Intangible assets have been reduced by amortisation of GBP393,000 (2015: GBP184,000) and increased by exchange adjustments of GBP928,000 (2015: decreased by GBP169,000).
11. Hedge reserve
The Group is exposed to sales and purchases in foreign currency and in order to mitigate the foreign exchange risk, the Group at its discretion uses hedges where deemed appropriate by the Board. The majority of the Group's hedging activity is in relation to UK subsidiary sales contracts in US Dollars and Euros. Since the UK took the decision to leave the EU on the 23rd June 2016, Sterling has depreciated against all major currencies including the US Dollar and the Euro. As at the 31st October 2016, the cash flow hedge reserve is significantly negative which reflects the marked to market values of currencies sold to / purchased from the banks in relation to the Group's underlying currency sales and purchase requirements and does not impact on the reported profits of the Group.
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 2016. The fair values of all financial assets and financial liabilities are not materially different to the carrying values.
Carrying
value/
Fair value
GBP000
Financial assets
Cash and cash equivalents 5,269
Receivables
Trade receivables 28,534
Other receivables 4,285
Designated cash flow
hedge relationships
Derivative financial
assets designated
and effective
as cash flow hedging
instruments 1,235
Total financial assets 39,323
Financial liabilities
Financial liabilities
at amortised cost
Bank overdraft 9,347
Trade payables 12,916
Other payables 13,731
Deferred consideration 500
Finance lease liabilities 3,878
Bank loans 28,767
Corporation tax 2,234
Designated cash flow
hedge relationships
Derivative financial
liabilities designated
and
effective as cash
flow hedging instruments 13,293
Total financial liabilities 84,666
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
END
IR ZMMMZZVFGVZM
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