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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 20.00 | 0.32% | 6,320.00 | 6,320.00 | 6,520.00 | 6,560.00 | 6,320.00 | 6,560.00 | 430 | 09:03:11 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Engineering Services | 185.74M | 15.9M | 2.1178 | 29.84 | 474.61M |
From Apr 2019 to Apr 2024
TIDMGDWN
RNS Number : 5902F
Goodwin PLC
29 July 2016
PRELIMINARY ANNOUNCEMENT
Goodwin PLC today announces its preliminary results for the year ended 30th April 2016.
CHAIRMAN'S STATEMENT
The pre-tax profit for the Group for the twelve month period ending 30th April 2016 was GBP12.3 million (2015: GBP20.1 million), a decrease of 39% on a revenue of GBP124 million (2015: GBP127 million) which is 3% down on the figures reported for the same period last financial year. The Directors propose an unchanged ordinary dividend of 42.348p (2015: 42.348p).
The diversity of products that address different world markets is part of the Group's strength, but even the history of diversity between our foundry, our valve companies that primarily address the oil, gas and LNG industries, our pump companies that primarily address the mining industries, our radar systems company and our ten refractory companies has not been enough to prevent the decline in profits over the past two years.
The severe contraction of the oil and gas industry worldwide, with over US$530 billion of cancelled or delayed projects, and the mining industries who have had a very difficult year has presented a challenge and the resultant reduced spending levels in the jewellery markets and the slowdown in China have all been unhelpful. There is, however, brightness on the horizon, with Easat Radar Systems, which absorbed NRPL Aero Oy, Finland this last year, and has a record work load of GBP12.5 million. Noreva GmbH has a similar order book level for its nozzle valves, which results from a combination of winning large orders in Saudi Arabia and from the USA LNG industry, and also starts the new year with a record order book.
Steps have been taken at Goodwin International over the past two years to add additional market sectors to its portfolio of products and customers by offering machining and high integrity fabrication for other customers. This has resulted in additional order input for the new financial year but as yet not enough to compensate for the drop off of the oil and gas sector where we are still winning some orders of the few that are available. Some of this new non valve work will be spread out over multi-year contracts, but nevertheless it has in part allowed the Group to mitigate some of the major damage from such a vast contraction of the oil, gas and mining industry activity where we will be unlikely to see significant signs of regeneration for another two years.
Goodwin Refractory Services benefitted from the asset purchase it made last year from a complementary French casting powder company and grew its pre-tax profits by 47% to GBP1.47 million. Similarly, in this new financial year, following intangible asset purchases in October 2015 from Westland (GB Trading) Limited and having spent six months of last year constructing a new perlite plant at Hoben International, both Dupré Minerals and Hoben International are expected to significantly improve their profitability as compared to the financial year just completed.
All the above does not alter the fact that our steel foundry and UK valve manufacturing activity have less orders and the ones we have are on tighter margins, but at least the new areas of business are softening the unwelcome severe downturn in the oil and gas and mining industries. It would be appropriate to thank all those involved in developing these new areas of business which have programmes that run for many years.
The Group order work load as at 30th April 2016 is 16 % higher than 12 months earlier and stood at GBP92 million. Although some of this workload has tighter margins, it provides a better start to the new year which will be difficult with world trading conditions being less than buoyant.
Goodwin International will be launching its newly developed and patented axial piston control and shut off valve at the Düsseldorf Valve World Exhibition this coming November and, similarly in Düsseldorf, Goodwin Steel Castings will be presenting a paper at the Duplex Conference in October on higher performing duplex stainless steel castings and welding electrode wire and rod.
The Group's net cash generated from operating activities prior to investments amounted to GBP9.9 million (2015: GBP18.0 million) and the Group's gearing at the year end was 26.1 % (2015: 12.3 %).
Shareholders' equity has risen from GBP82.7 million to GBP86.3 million. It has been decided by the Board that it would be appropriate, subject to shareholder approval at the AGM, to incentivise the Executive Directors of Goodwin PLC to drive back the total shareholder return (TSR) towards the levels it enjoyed two years ago by increasing Group turnover and pre-tax profitability. Whilst this may not occur in one year, the three year programme targeted to bring in new products and customers will hopefully, with hard work, position the Group in a more favourable situation. Accordingly, shareholders are also being asked to approve a revised Directors' Remuneration Policy incorporating the new long term incentive plan.
For the key performance indicators and ratios please refer to the web site www.goodwin.co.uk/2016.
We take the opportunity of thanking the employees and the Directors both in our UK and overseas companies for the hard work put in to achieve these Group results.
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28th July, 2016 J.W. Goodwin
Chairman
OBJECTIVES, STRATEGY AND BUSINESS MODEL
The Group's main OBJECTIVE 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 STRATEGY to achieve this is:
-- to supply a range of technically advanced products to growth markets in the mechanical engineering and refractory engineering segments in which we have built up a global reputation for engineering excellence, quality, efficiency, reliability, 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;
-- 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.
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, the Group benefits from market diversity. Further details of our business and products are shown on our website www.goodwin.co.uk/2016.
Mechanical Engineering
The Group produces a wide range of dual plate and axial nozzle check valves to serve the oil, petrochemical, gas, LNG and water markets. We create value by globally sourcing the best quality raw material at good prices, manufacturing in highly efficient facilities using up to date technology to provide the very reliable products to the required specification, at competitive prices and with timely deliveries.
Our mechanical engineering markets also include high alloy castings, machining and general engineering products which typically form part of large construction projects such as power generation plants, oil refineries, high integrity offshore structural components and bridges. The Group through its foundry and CNC machine shop has the capability to pour the castings, radiograph and also finish them in-house. This capability is also targeting the defence industry.
Goodwin International, the largest company in the Mechanical Engineering Division, designs and manufactures dual plate and axial nozzle valves and also undertakes specialised CNC machining and fabrication work. Noreva GmbH also designs and manufactures axial nozzle valves. Both Goodwin International and Noreva purchase the majority of their sand mould castings from Goodwin Steel Castings and this vertical integration gives rise to competitive benefits, increased efficiencies, and timely deliveries.
At Goodwin Pumps India we manufacture a superior range of submersible slurry pumps for end users in India, China, Brazil and Africa. Easat Radar Systems designs and builds bespoke high-performance radar antennas to the global market of major defence contractors, civil aviation authorities and border security agencies. We create value on these by innovative design and assembly in our own facilities using bought in or engineered in-house components.
Refractory Engineering
Within the Refractory Engineering Division, Goodwin Refractory Services (GRS), creates value by developing, manufacturing and selling investment casting powders, waxes, silicone rubber and machinery for use in the following operations: jewellery casting, aerospace, tyre moulding and the compressor wheels for turbochargers. The Division has nine other investment casting powder companies around the world that carry out the same activities as GRS, located in China, India, Thailand and Brazil. These nine companies are vertically integrated with another of our UK refractory companies, Hoben International, which manufactures cristobalite that it sells to the ten group jewellery casting manufacturing companies, as well as producing ground silica which also goes into casting powders. Towards the end of the year Hoben International started to manufacture and sell perlite products.
The other UK refractory company is Dupré Minerals which focuses on producing exfoliated vermiculite that is used in insulation, brake linings and fire protection products including textiles that can withstand high temperatures. Dupré also sells consumables to the shell moulding casting industry.
CONSOLIDATED INCOME STATEMENT
for the year ended 30th April, 2016
2016 2015
GBP000 GBP000
CONTINUING OPERATIONS
Revenue 123,539 127,049
Cost of sales (89,196) (85,754)
GROSS PROFIT 34,343 41,295
Distribution expenses (3,311) (3,586)
Administrative expenses (18,284) (17,262)
OPERATING PROFIT 12,748 20,447
Financial expenses (775) (682)
Share of profit of associate companies 341 288
PROFIT BEFORE TAXATION 12,314 20,053
Tax on profit (3,376) (4,601)
PROFIT AFTER TAXATION 8,938 15,452
ATTRIBUTABLE TO:
Equity holders of the parent 8,838 15,025
Non-controlling interests 100 427
PROFIT FOR THE YEAR 8,938 15,452
BASIC AND DILUTED EARNINGS PER ORDINARY
SHARE 122.75p 208.68p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30th April, 2016
2016 2015
GBP000 GBP000
PROFIT FOR THE YEAR 8,938 15,452
OTHER COMPREHENSIVE EXPENSE
ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY
TO THE INCOME STATEMENT:
Foreign exchange translation differences 279 (1,176)
Effective portion of changes in
fair value of cash flow hedges (728) 2,630
Change in fair value of cash flow
hedges transferred to the income
statement (1,923) (2,197)
Tax charge on items that may be
reclassified subsequently to the
income statement 516 (87)
OTHER COMPREHENSIVE EXPENSE FOR
THE YEAR, NET OF INCOME TAX (1,856) (830)
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR 7,082 14,622
ATTRIBUTABLE TO:
Equity holders of the parent 7,018 14,024
Non-controlling interests 64 598
7,082 14,622
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30th April, 2016
Total
Cash attributable
flow to equity Non-
Share Translation hedge Retained holders controlling Total
capital reserve reserve earnings of interests equity
the parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
YEARED 30TH
APRIL, 2016
Balance at 1st
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
differences - 315 - - 315 (36) 279
Net movements
on cash flow
hedges - - (2,135) - (2,135) - (2,135)
TOTAL COMPREHENSIVE
INCOME FOR THE
YEAR - 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
interests 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
YEARED 30TH
APRIL, 2015
Balance at 1st
May, 2014 720 (9) 1,195 71,684 73,590 3,980 77,570
Total comprehensive
income:
Profit - - - 15,025 15,025 427 15,452
Other comprehensive
income:
Foreign exchange
translation
differences - (1,347) - - (1,347) 171 (1,176)
Net movements
on cash flow
hedges - - 346 - 346 - 346
TOTAL COMPREHENSIVE
INCOME FOR THE
YEAR - (1,347) 346 15,025 14,024 598 14,622
Purchase of
non-controlling
interest without
a change in
control - - - (1,824) (1,824) (709) (2,533)
Dividends paid - - - (3,049) (3,049) (88) (3,137)
BALANCE AT 30TH
APRIL, 2015 720 (1,356) 1,541 81,836 82,741 3,781 86,522
CONSOLIDATED BALANCE SHEET
at 30(th) April, 2016
2016 2015
GBP000 GBP000
NON-CURRENT ASSETS
Property, plant and equipment 62,530 55,659
Investment in associates 1,640 1,477
Intangible assets 17,565 10,865
81,735 68,001
CURRENT ASSETS
Inventories 35,631 32,771
Trade and other receivables 33,792 26,364
Derivative financial
assets 2,107 4,624
Cash and cash equivalents 4,970 7,732
76,500 71,491
TOTAL ASSETS 158,235 139,492
CURRENT LIABILITIES
Interest-bearing loans
and borrowings 8,531 277
Trade and other payables 32,608 26,938
Deferred consideration 500 500
Derivative financial
liabilities 2,818 2,587
Liabilities for current
tax 1,785 1,540
Warranty provision 151 224
46,393 32,066
NON-CURRENT LIABILITIES
Interest-bearing loans
and borrowings 18,497 17,149
Warranty provision 179 297
Deferred tax liabilities 3,049 3,458
21,725 20,904
TOTAL LIABILITIES 68,118 52,970
NET ASSETS 90,117 86,522
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT
Share capital 720 720
Translation reserve (1,041) (1,356)
Cash flow hedge reserve (594) 1,541
Retained earnings 87,209 81,836
TOTAL EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT 86,294 82,741
NON-CONTROLLING INTERESTS 3,823 3,781
TOTAL EQUITY 90,117 86,522
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30th April, 2016
2016 2016 2015 2015
GBP000 GBP000 GBP000 GBP000
CASH FLOW FROM OPERATING ACTIVITIES
Profit from continuing operations
after tax 8,938 15,452
Adjustments for:
Depreciation 4,748 4,903
Amortisation of intangible
assets 583 359
Impairment of intangible assets 340 59
Gain arising on bargain purchase (143) -
Financial expenses 775 682
(Profit) / Loss on sale of
property, plant and equipment (456) 175
Share of profit of associate
companies (341) (288)
Tax expense 3,376 4,601
OPERATING PROFIT BEFORE CHANGES
IN WORKING CAPITAL AND PROVISIONS 17,820 25,943
(Increase) / decrease in trade
and other receivables (5,707) 5,192
Increase in inventories (2,357) (1,743)
Decrease in trade and other payables (excluding payments on account) (1,453) (2,292) Increase / (decrease) in payments on account 5,402 (3,434) CASH GENERATED FROM OPERATIONS 13,705 23,666 Interest paid (703) (705) Corporation tax paid (3,058) (4,904) Interest element of finance lease obligations (20) (28) NET CASH FROM OPERATING ACTIVITIES 9,924 18,029 CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 968 199 Acquisition of intangible assets (4,319) (1,263) Acquisition of property, plant and equipment (7,707) (17,401) R&D Expenditure capitalised (1,430) Acquisition of subsidiaries net of cash acquired (2,005) Purchase of non-controlling interest - (2,533) Additional payment for existing subsidiary (330) (80) Additional investment in associate companies (30) (64) Dividends received from associate companies 173 180 NET CASH OUTFLOW FROM INVESTING ACTIVITIES (14,680) (20,962) CASH FLOWS FROM FINANCING ACTIVITIES Payment of capital element of finance lease obligations (274) (449) Dividends paid (3,105) (3,049) Dividends paid to non-controlling interests (196) (88) Proceeds from loans and committed facilities 3,305 10,000 Repayment of loans and committed facilities (3,000) (2,000) Finance fees (100) - NET CASH (OUTFLOW) / INFLOW FROM FINANCING ACTIVITIES (3,370) 4,414 NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (8,126) 1,481 Cash and cash equivalents at beginning of year 7,732 6,233 Effect of exchange rate fluctuations on cash held (19) 18 CASH AND CASH EQUIVALENTS AT OF YEAR (413) 7,732
PRINCIPAL RISKS AND UNCERTAINTIES
The Group's operations expose it to a variety of risks and uncertainties. These risks are no different to previous years, and they are not expected to change substantially in the foreseeable future. The Directors confirm that they have carried out a robust assessment of the principal risks facing the company, including those that would threaten its business model, future performance, solvency or liquidity. The key risks are discussed below.
Market risk: The Group provides a range of products and services, and there is a risk that the demand for these products and services will vary from time to time because of competitor action or economic cycles or international trade friction or even wars. As shown in note 2 to the financial statements, 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. This spread reduces risk in any one territory. Similarly, the Group operates in both mechanical engineering and refractory engineering sectors, mitigating the risk of a downturn in any one product area. The potential risk of the loss of any key customer is limited as, typically, no single customer accounts for more than 10% of turnover. As described in the Business Model, the Group generates significant sales from the worldwide energy markets. Whilst these markets may suffer short term short declines, over the medium to long-term the growing worldwide demand for energy will ensure these markets remain buoyant.
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 and new products are tested prior to their release into the market.
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 R&D stage, where prototype testing and the deployment of a robust closed loop product performance quality control system provides feed back 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. The risk of product obsolescence is countered by R&D investment.
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 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). Detailed information on the financial risk management objectives and policies is set out in note 20 to the financial statements. 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, and interest rate swaps.
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 comply with the relevant laws and regulations.
Assessment of Principal Risks: Changes and likely impact: The lead up to the vote on whether to leave or remain in the EU saw delays in the release of public and private infrastructure investments. Although a post balance sheet event the UK's vote to exit from the EU will impose new challenges and uncertainties. The review of trade agreements and legislation is an unknown. However, we see the immediate effect of a weakening of sterling as being a major competitive advantage in our favour. For year end 30th April, 2015 60% of our exports were to countries other than those in the EU and this year over 50% of sales are to non EU areas where we will now be more competitive.
Forward looking statements
The Preliminary Statement 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.
Statement of directors' responsibilities in respect of the annual report and the financial statements
We confirm that to the best of our knowledge:
-- 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 or loss of the Company and the undertakings included in the consolidation taken as a whole; and
-- the Group Strategic 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.
We consider the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy.
J. W. Goodwin, Chairman
R. S. Goodwin, Managing Director
J. Connolly, Director
M. S. Goodwin, Director
S. R. Goodwin, Director
S. C. Birks, Director
B. R. E. Goodwin, Director
T. J. W. Goodwin, Director
J. E. Kelly, Non-Executive Director
Accounting Policies
Goodwin PLC (the "Company") is incorporated in the UK.
The Group Financial Statements consolidate those of the Company and its subsidiaries (together referred to as the "Group") and equity account the Group's interest in associates.
The Group financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"). The accounting policies are included in note 1 of the financial statements to be published shortly. The comparative results for the year ended 30th April, 2015 have also been prepared on this basis.
New IFRS standards and interpretations adopted during 2016
In 2016 the following amendments had been endorsed by the EU, became effective and therefore were adopted by the Group:
-- Annual improvements to IFRSs 2010-2012 Cycle (effective for annual periods beginning on or after 1 February, 2015
-- Annual improvements to IFRSs 2011-2013 Cycle (endorsed on 18(th) December, 2014)
The adoption of these standards and amendments has not had a material impact on the Group's financial statements.
The financial information previously set out does not constitute the Company's statutory accounts for the years ended 30th April, 2016 or 2015 but is derived from those accounts. Statutory accounts for 2015 have been delivered to the Registrar of Companies, and those for 2016 will be delivered in due course. The auditors have reported on those accounts; their report was:
i. unqualified;
ii. did not include references 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.
Copies of the 2016 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 the purposes of management reporting to the chief operating decision maker, the Board of Directors, the Group is organised into two reportable operating divisions: mechanical engineering and refractory engineering. Financial information for each operating division is also available in a disaggregated form in line with the identified cash generating units. Segment assets and liabilities include items directly attributable to segments as well as those that can be allocated on a reasonable basis. In accordance with the requirements of IFRS 8 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. Associates are included in Refractory Engineering.
Mechanical Refractory
Engineering Engineering Sub total
Year Ended 30th,
April 2016 2015 2016 2015 2016 2015
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
External sales 88,747 93,545 34,792 33,504 123,539 127,049
Inter-segment
sales 18,248 24,899 4,534 5,912 22,782 30,811
Total revenue 106,995 118,444 39,326 39,416 146,321 157,860
Reconciliation to
consolidated revenue:
Inter-segment
sales (22,782) (30,811)
Consolidated revenue
for the year 123,539 127,049
Profits
Segment result
including associates 10,961 16,397 4,211 5,139 15,172 21,536
Group centre (2,083) (801)
Group finance
expenses (775) (682)
Consolidated profit before
tax for the year 12,314 20,053
Tax (3,376) (4,601)
Consolidated profit after
tax for the year 8,938 15,452
Segmental Segmental total Segmental net
total assets liabilities assets
Year Ended 2016 2015 2016 2015 2016 2015
30th, April
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Segmental
net assets
Mechanical
Engineering 82,569 60,088 65,432 48,082 17,137 17,553
Refractory
Engineering 43,207 35,164 28,455 16,572 14,752 18,690
Sub total
reportable
segment 125,776 95,252 93,887 64,654 31,889 36,243
Goodwin PLC
net assets 71,620 68,794
Elimination of Goodwin
PLC investments (22,441) (24,122)
Goodwill 8,994 7,970
Other consolidation
adjustments 55 (2,363)
Consolidated
total net
assets 90,117 86,522
Segmental property, plant and
equipment (PPE) capital expenditure
Goodwin PLC 5,633 7,586
Mechanical Engineering 3,405 4,843
Refractory Engineering 3,030 4,542
12,068 16,971
Depreciation,
Amortisation,
Impairment
2016 2015
GBP000 GBP000
Mechanical
Engineering 2,690 2,188
Refractories
Engineering 1,200 957
Goodwin PLC 1,781 2,176
5,671 5,321
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 those held by the parent Company, Goodwin PLC, and those held as consolidation adjustments.
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.
Year ended 30th April, Year ended 30th April,
2016 2015
Revenue Operational Non- PPE Revenue Operational Non-current PPE
net assets current Capital net assets Capital
assets ex-penditure assets Expenditure
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
UK 36,776 66,292 69,383 9,771 25,415 63,150 56,658 11,876
Rest of
Europe 21,656 8,035 1,120 453 24,680 5,921 724 602
USA 13,974 - - - 13,009 - - -
Pacific
Basin 26,958 11,497 5,610 708 39,321 12,430 5,587 3,799
Rest of
World 24,175 4,293 5,622 1,136 24,624 5,021 5,032 694
Total 123,539 90,117 81,735 12,068 127,049 86,522 68,001 16,971
Note 2 Intangible assets
During the year, the Group added to its portfolio of goodwill and intangible assets. The main additions are described below:
GBP3.5 million on manufacturing rights and customer lists relating to the acquisition of the vermiculite and perlite activities from Westland (GB Trading) Limited during October 2015 satisfied fully by cash.
GBP1.07 million of goodwill relating to the 100% acquisition by Easat Radar Systems Limited (Easat) of NRPL Aero Oy, a Finnish transceiver company. The transaction comprised cash of GBP1.56 million and the transfer of 20% of the equity of Easat to the former owner of NRPL Aero Oy. Management have assessed the fair value of the NRPL brand name to be GBP408,000 based on the expected net present value of future cash flows.
GBP640,000 on the acquisition of the manufacturing rights and non-compete agreements in relation to a Chinese lost wax investment powder manufacturing company in China.
GBP736,000 has been capitalised during the year in relation to transceiver development expenditure by NRPL.
GBP594,000 has been capitalised during the year in relation to the development of a new check valve range by Goodwin International.
Note 3 Acquisitions
Easat Radar Systems Limited (Easat) acquired 100% of the share capital of NRPL Aero Oy during the year for a cash consideration of GBP1.525 million plus 20% of the share capital of Easat. The fair value of the Easat shares was assessed as 20% of the net asset value of Easat as at the 31(st) May 2015. The transaction costs involved in completing the acquisition were not significant. The acquisition gives the Group the capability to supply complete radar systems to the air traffic control and coastal surveillance market place.
Ultratec Jewelry Supplies Limited acquired 100% of the share capital of Shenzhen King-Top Modern Hi-Tech Company Limited in January 2016 for a cash consideration of USD $600,000. The transaction costs involved were not significant. The acquisition has strengthened the Group's presence within the Chinese investment powder supplies market.
Note 4
The directors propose the payment of an ordinary dividend of 42.348 per share (2015: ordinary dividend of 42.348p). If approved by shareholders, the ordinary dividend will be paid on 7th October, 2016 to shareholders on the register at the close of business on 9th September, 2016.
Note 5
The earnings per ordinary share has been calculated on profit after taxation for the year attributable to equity holders of the parent of GBP8,838,000 (2015: GBP15,025,000) and by reference to the 7,200,000 ordinary shares in issue throughout both years.
The Company has no share options or other diluting instruments and accordingly there is no difference in the calculation of diluted earnings per share.
Note 6
The Annual General Meeting will be held at 10.30 a.m. on 5th October, 2016 at Crewe Hall, Weston Road, Crewe, Cheshire CW1 6UZ.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR RPMRTMBJTBLF
(END) Dow Jones Newswires
July 29, 2016 02:00 ET (06:00 GMT)
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