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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Goodwin | AQSE:GDWN.GB | Aquis Stock Exchange | Ordinary Share | GB0003781050 | Ordinary Shares 10p |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
236.00 | 2.90% | 8,386.00 | 8,000.00 | 8,500.00 | 8,386.00 | 8,150.00 | 8,150.00 | 100 | 09:20:17 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMGDWN
RNS Number : 6925U
Goodwin PLC
03 August 2022
PRELIMINARY ANNOUNCEMENT
Goodwin PLC today announces its preliminary results for the year ended 30(th) April, 2022.
CHAIRMANS STATEMENT
The "Trading" pre-tax profit for the Group for the twelve month period ended 30th April, 2022, was GBP17.2 million (2021: GBP16.5 million) an increase of 4% despite the Group having to contend with GBP3.8 million of additional energy costs versus the prior year. The revenue was GBP144 million (2021: GBP131 million).
Trading profit for this purpose is defined as the Group pre - tax reported profit of GBP19.9 million less the impact of our GBP2.74 million interest rate swap valuation. The GBP2.74 million relates to the 30th April , 2022 valuation of our GBP30 million debt interest rate swap derivative that expires in August 2031 whereby we have fixed our interest rate for ten years at less than 1% for the full term. In our view, this derivative is an effective hedge and should not go through the profit and loss account . The Board's view was that it was highly probable that we would still have 25% gearing in ten years' time, having secured the interest rate swap to fix interest rates at less than 1% on GBP30 million debt for this period. Our auditor was unconvinced that it could meet the highly probable criteria and that other requirements under IFRS9 for hedge accounting were not met. The reason the Board considers the level of debt to be highly probable is due to the Board having a responsibility to invest in a responsible manner to grow the business for all the stakeholders. The Board has, however, complied with the auditor's view and has shown the GBP2.74 million unrealised mark to market gain within the profit before taxation figure. As the GBP2.74 million gain is a non-cash item, it has been excluded for dividend purposes. The Directors propose an increased dividend of 10 7.80 p (2021: 102.24p) per share.
Given that we believe turnover and profitability are projected to rise in future years, the level of dividend payments in line with the current policy is also set to rise. In view of this, coupled with the significant capital expenditure needed to fund the Duvelco activity, the Directors are of the opinion that it will be of long-term benefit for the Group to ease pressures on the Group cash flows by paying the current and future dividends bi-annually. It is proposed that dividend payments will be made in equal instalments o n 7th October , 2022 and 12th April, 2023 .
Refractory Engineering Division
The increase in Group profits achieved in the year having just ended can largely be attributed to the growing Refractory Engineering Division activity, whose year-on-year operating profits have grown a further 37 % following the 40% growth that was achieved in the prior year. The D ivision has continued to maximise its position with sales of jewellery casting consumable products (investment casting powder, waxes, natural and silicone rubbers) and to construction markets that have seen a surge in activity globally.
The Division has also benefited from strong demand for its newer products, AVD being Dupré Minerals' vermiculite-based solution for lithium-ion battery fires that is still in its product life cycle infancy, and has delivered in excess of 100% year-on-year growth, along with Castaldo rubber, which has achieved 45% year - on - year growth.
The challenges faced by companies from the ongoing global supply chain and energy market disruption have been well reported in the news over the past year and the Refractory Division has acted dynamically to ensure cost increases are passed on to our customers to ensure the impact to our margin is minimised . Whilst the success of the Division has been seen across all companies, special mention should be made of our jewellery investment casting powder companies in China and in India having generated record profits in the year, even though the domestic market in China is still depressed due to the prolonged lockdowns and travel restrictions.
Mechanical Engineering Division
Whilst not always being outwardly visible, the Mechanical Engineering D ivision has had a very difficult seven years. Over this period the product offerings pretty much across all the companies have had to evolve to the changing conditions in the markets from which the companies generate their turnover and gross margin.
The fact that the companies within the Division have managed to evolve is a credit to them and their management teams. Contending with huge energy and commodity increases within the year has not been straightforward. The metal pricing volatility has been extreme at its highs with nickel trebling in price and iron more than doubling in price at times. As a matter of course, our long term contracts have variation clauses to adjust for annual inflationary costs. However, the volatility of metals and energy costs has been so extreme that these clauses have proved to be totally ineffective . Therefore, across the board every contract where this could have posed significant issues has been successfully re-negotiated with our customers. If we were not a high quality, critical supplier to our customers , then this could have been more problematic, but that is not the case.
Despite the decline of the workload in our traditional markets over the prior years associated with the demise of our product sales to the non green oil and coal sectors, our re-aligned business offerings are more in demand than they ever have been, which is seen by the growing workload that customers are booking up to be delivered now years in advance. With the confidence of a solid and growing forward order book the tide has turned; all things being equal, the next few years should see the Mechanical Engineering Division returning to its former glory with even higher levels of turnover than at the peak of the o il and gas industry in 2014.
Notably within the year, expanding on the nuclear decommissioning front, Goodwin International L imi t e d has successfully tendered and been awarded 50% of the initial phase of the multi year multi million pound Sellafield Hybrid 2, 63 Can Racks as reported on the OJEU website in October last year. Gaining initial process and documentation approvals to proceed with manufacture will take time , but once ramped up, the initial production rate will be 20 r acks per year, with 80 r acks currently committed. Our customer has the option within the contract to make further commitment(s) of up to an additional 160 racks, as well as increasing the demand to 40 r acks per year.
It is also pleasing to report that in addition to Goodwin Steel Castings Limited having completed its transition away from a reliance on the oil and gas market, the company has also managed to successfully settle the two commercial disputes that were referenced in my Chairman's Statement of year ending 30th April , 2020. Part of the settlement is reflected in these results, with the balance being realised in the current financial year.
On top of its base load, with the excellent work done at getting on to new programmes, Goodwin Steel Castings Limited will build on its workload and expect to finish the current year with forward order levels in excess of the levels the Group experienced when it was really busy a decade ago. However , it will not be for oil and coal industries as it was previously; it will be for nuclear decommissioning; or nuclear power station castings; or surface ship and aircraft carrier castings as well as submarine hull castings.
With these successes, and the hard work and perseverance of the Group in achieving a positive conclusion to prior years ' contractual claims we have been pursuing; the successful re-negotiation of multiple contracts for unforeseeable energy and raw materials pricing volatility whilst at the same time growing, it has resulted in a n excellent Group workload of GBP 175 m illion as at the time of writing. It is pleasing to report that the bulk of the increased workload relates to contracts to supply products that the Group has successfully and consistently delivered before, and is a workload figure that is likely to grow over the coming years even with the knowledge that the Group is likely to achieve record activity levels within this current year.
W hat is not visible yet in the workload figure is an appropriate workload for Easat Radar Systems Limited . Once up to speed (which still may be another year away) the Board and I believe there will be a workload for Easat , the likes of which readers of their accounts for the past thirty years have never seen. Easat order input has been hampered by lack of cash generation at civilian airports globally, and military airports being starved of cash as a result of Covid -19 over the past two years hampering their purchasing decisions. However , it would appear that the r adar market is starting to wake up again. We have considerably more firm buy quotations due for decision in the next six months, and , in order to give a flavour of what we are seeing, in the week following the latest ATM Madrid exhibition in June 2022, an additional GBP47 m illion of firm buy r adar systems were quoted.
Energy
As initially reported in our 31st October, 2021 Interim Statement, over the course of the year the most significant headwind that the Group has faced has been the increased energy costs. Nonetheless, the Group managed to deliver the more than respectable profits reported above, after having incurred a total of GBP3.8 million of additional energy costs due to price increases versus the year end ed 30th April, 2021. Goodwin Steel Castings Limited and Hoben International Limited were the most affected due to their energy intensive operations , melting metal and high temperature treatment of refractories. However , now armed with a multitude of short and long - term hedges in place the Group is set to deliver substantially higher profitability in the current year, partly as a result of not having to absorb the price volatility of the energy markets that have been seen over the past twelve months, irrespective of the improving performance.
Green Investments
We recognise the importance of adopting a strategy to transition to lower carbon manufacturing. We have put in place a separate GBP10 m illion finance line to fund a range of 'green' investments which were approved at the beginning of the financial year end ed 30th April , 2022. A total of 4.8 MWp of solar panels have been installed and commissioned as at the time of writing. Each individual system has been designed specifically to match the power demand at each facility, subject to available roof space. The payback of each system varies dependent on the size and roof configuration and all were between three and six years; however , that payback was calculated prior to energy costs more than doubling, so at current market prices the payback time has halved from the original plan, with all the solar systems having an insurance backed 20 year minimum lifespan. There are other solar projects and plant control modification projects that , subject to us obtaining the agreement from the Electricity Supplier ( District Network Operator ) , for the former we expect to bring on line over the next two years . This will provide a further 7.8 MWp of green electricity generation and so further reduce our consumption. Over the course of the year a total of GBP8.2 m illion has been invested in green projects.
We are also looking at schemes that would reduce our carbon footprint in instances where we cannot reduce or eliminate CO(2) production without ceasing the operation in its entirety. Typically this is where we utilise natural gas in a process, and it is not economically viable or possible to change the process. I look forward to updating you further on this in twelve months' time.
Capital expenditure / cash flow
With the Group's intrinsically strong cash flows , the Group's net debt stands in line with the Board ' s expectations at GBP29. 8 million as at 30th April , 20 22, which is a GBP2 million improvement since the half year despite having proceeded with our substantial investment programme. As mentioned earlier we are making full use of the ten year duration GBP30 million interest swap that was executed at the height of Covid-19 in light of our planned activities, whereby the SONIA interest chargeable to the Company is capped at less than 1% on GBP30 million of borrowings.
The headline investments that the Board has authorised and the Group has been getting on with are four fold, and whilst these activities all commenced in year end ed 30th April , 2022, due to the timescales the latter three are still in the course of construction.
Firstly nearly GBP10 million relates to green investments, with the majority being spent on CO(2) offsetting projects .
Secondly, due to the outstanding performance of the Refractory Engineering Division in growing sales by winning market share so impressively, for both capacity and business continuity requirements, as we are running dangerously close to full capacity , authorisation has been given to spen d GBP4.5 million installing a second calciner at Hoben International Limited , as without it, we would have two problems. We would be limiting the Refractory Division the opportunity to grow further investment powder sales, and in the eventuality of a breakdown we would struggle to ever catch up with the demand again, and would lose market share to competitors who could deliver product to keep our customers operational . This was why the Board deemed this a necessary investment as it is underpinning substantial Group profitability.
Thirdly , for Goodwin Steel Castings Limited, despite allocat ing a significant amount of G roup capital expenditure on infrastructure there in recent years , t o enable the foundry to deliver what will be required of the foundry , there have been additional planning applications approved and work commenced on additional casting pit space which will allow further increased activity. Such modifications would likely be impossible to carry out in a couple of years' time with the envisaged activity levels there.
Finally for Duvelco L imi t e d, part of the Mechanical Engineering D ivision, which was incorporated in January 2020. Over the Company's 139 years existence to date, as well as designing or buying bolt on complimentary products and companies , it has occasionally branched out into totally new product lines whi l st utilising skill-sets within the organisation. After working on this idea for some time , Duvelco L imi t e d was set up as a business to channel the Company's ambition to become a specialist polymer manufacturer, one that we hope will truly excel over the coming decades. We will manufacture high performance polyimide polymer resins that can be moulded into parts and shapes for high temperature and critical applications that very few polymers can be used for.
With the development work that was done before and since the incorporation of Duvelco L imi t e d, utilising a bespoke pilot scale plant the team designed, we have developed the product and a process that will allow us to deliver a higher performing directly comparable polyimide polymer than the market leader. With an annual addressable, and growing, market size bigger than any product tha t the Group has supplied to before, the Board believes that , with limited existing market competition, a very high technology barrier, coupled with the fact we have a patent pending process that gives us markedly better high temperature performance than anybody else for directly comparable chemistry product, this should hopefully give Duvelco Limited, as a market invader, good prospects of long term success, so that one day it should be a major contributor to Group profitability.
The initial, custom designed and bespoke plant the Group is building should be coming into operation in the first half of the calendar year 2024, after which we will start growing the sales internationally as we have done with our other products over the year s . Our initial investment inclusive of R&D costs and working capital for materials is forecast to come in at GBP12.5 million; from this we would have an initial annual capacity in excess of GBP40 million of material. The reason I have elaborated about this is because costs are being incurred now , and it will be a long time until the plant will be in commission . With the effort being put into this by the Group, it should deliver a new niche market, high technology product to the Group with a long life cycle ahead of it , thus providing the Group with long - term benefit, which the Board believes is in the best interest of all stakeholders.
For both Hoben International Limited and Duvelco Limited, most supplier purchase orders w ere placed in Q3 Financial Year 2022, giving suppliers large down payments to have fixed price contracts. If the start of placing orders for either project had been delayed by several months the prices would have been significantly more with labour and materials increasing , as we ourselves have experienced and have had to mitigate and manage. The Board estimates that by getting on with the projects and contracting when we did, the saving versus starting either project today is in excess of 25%.
As contracts within the Mechanical Engineering Division become larger and span longer periods, the engineering companies are being targeted to ensure contracts incorporate down payments / stage payments to allow their execution with as neutral overall cash flow status as can be obtained over the life of a contract, so that work in progress does not consume a disproportionate amount of cash as we get busier.
With the profitability, positive outlook and strong understanding of the various subsidiaries ' cash flows the Board believes it is appropriate to continue to follow the Group's investment plans and pay the proposed dividend that is in line with the dividend policy with 50% being paid on 7th October , 2022 and 50% o n 12th April , 20 23.
We are once again extremely grateful to our UK and overseas Directors, managers and employees for their hard work in driving forward the performance of the Group, which will likely improve again in the new financial year with the strong foundations that have been put in place in many areas around the Group.
3(rd) August 2022
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 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, 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;
-- 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 vessels, nuclear waste treatment, nuclear power generation, liquefied natural gas (LNG), gas, oil, petrochemical, mining, and water markets.
We generate value by creating leading edge technology designs, globally sourcing the best quality raw material at good prices, manufacturing in highly efficient facilities using up to date technology to provide very reliable 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, radiograph and also finish CNC machine and fabricate them at the foundry's sister company, Goodwin International Limited. This capability is targeting the 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. Both Goodwin International Limited and Noreva GmbH purchase the majority of the value 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 and Africa. Easat Radar Systems Limited and its subsidiary, NRPL Aero 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. Easat has a sister company, Easat Radar Systems India Private Limited, that also manufactures, sells and maintains radar systems for air traffic control. We create value on these by innovative design, assembly and testing in our own facilities using bought in or engineered in-house components.
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 five other investment powder manufacturing companies located in China, India and Thailand which sell the casting powders 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, which manufactures cristobalite, which it sells to the six casting powder manufacturing companies as well as producing ground silica that also goes into casting powders and other UK uses of silica. Hoben now 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 in or around rivers.
The other UK refractory company is Dupré Minerals Limited ( Dupré ) which 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 and for lithium -ion battery fire extinguishers. Dupré also sells consumable refractories to the shell moulding precision casting industry. Dupré has designed, patented and is now selling a range of fire extinguishers and an extinguishing agent for lithium -ion battery fires that utilises a vermiculite dispersion as the fire extinguishing agent.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
for the year ended 30th April, 2022
2022 2021 GBP'000 GBP'000 CONTINUING OPERATIONS Revenue 144,108 131,231 Cost of sales (101,404) (92,230) GROSS PROFIT 42,704 39,001 Other income -- 763 Distribution expenses (3,743) (2,988) Administrative expenses (20,654) (19,682) OPERATING PROFIT 18,307 17,094 Finance costs (net) (1,169) (640) Share of profit of associate company 63 60 PROFIT BEFORE TAXATION AND MOVEMENT IN FAIR VALUE OF INTEREST RATE SWAP 17,201 16,514 Unrealised g ain on 10 y ear i nterest r ate s wap d erivative 2,740 -- PROFIT BEFORE TAXATION 19,941 16,514 Tax on profit (6,321) (3,508) PROFIT AFTER TAXATION 13,620 13,006 ---------- --------- ATTRIBUTABLE TO: Equity holders of the parent 12,980 12,494 Non-controlling interests 640 512 PROFIT FOR THE YEAR 13,620 13,006 ---------- --------- BASIC EARNINGS PER ORDINARY SHARE (in pence) 169.14 167.82 ---------- --------- DILUTED EARNINGS PER ORDINARY SHARE (in pence) 169.14 164.23 ---------- ---------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30th April, 2022
2022 2021 GBP'000 GBP'000 PROFIT FOR THE YEAR 13,620 13,006 OTHER COMPREHENSIVE (EXPENSE) / INCOME ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS: Foreign exchange translation differences 1,493 (1,371) Effective portion of changes in fair value of cash flow hedges (3,834) 1,296 Ineffectiveness in cash flow hedges transferred to profit or loss (339) (657) Change in fair value of cash flow hedges transferred to profit or loss (1,432) 1,932 Effective portion of changes in fair value of cost of hedging 275 (37) Ineffectiveness in cost of hedging transferred to profit or loss (23) 631 Change in fair value of cost of hedging transferred to profit or loss (75) 381 Tax credit / (charge) on items that may be reclassified subsequently to profit or loss 1,114 (673) OTHER COMPREHENSIVE (EXPENSE) / INCOME FOR THE YEAR, NET OF INCOME TAX (2,821) 1,502 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 10,799 14,508
-------- -------- ATTRIBUTABLE TO: Equity holders of the parent 10,089 14,081 Non-controlling interests 710 427 -------- -------- 10,799 14,508 -------- --------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30th April, 2022
Share Translation Share-based Cash Cost Retained Total Non-controlling Total capital reserve payments flow of earnings attributable interests equity reserve hedge hedging to equity reserve reserve holders of the parent GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 YEARED 30TH APRIL, 2022 Balance at 1st May, 2021 753 (852) 5,244 1,601 (1) 106,396 113,141 4,887 118,028 Total comprehensive income: Profit for the year -- -- -- -- -- 12,980 12,980 640 13,620 Other comprehensive income: Foreign exchange translation differences -- 1,315 -- -- -- -- 1,315 178 1,493 Effective portion of changes in fair value -- -- -- (3,790) 275 -- (3,515) (44) (3,559) Ineffectiveness transferred to profit or loss -- -- -- (333) (23) -- (356) (6) (362) Change in fair value transferred to profit or loss -- -- -- (1,359) (64) -- (1,423) (84) (1,507) Tax -- -- -- 1,135 (47) -- 1,088 26 1,114 -------- ------------ ------------ -------- -------- --------- ------------- ---------------- -------- TOTAL COMPREHENSIVE INCOME / (EXPENSE) FOR THE YEAR -- 1,315 -- (4,347) 141 12,980 10,089 710 10,799 Transactions with owners: Issue of shares 16 -- -- -- -- -- 16 -- 16 Acquisition of NCI without a change in control -- -- -- -- -- (74) (74) (356) (430) Dividends paid -- -- -- -- -- (7,862) (7,862) (808) (8,670) BALANCE AT 30TH APRIL, 2022 769 463 5,244 (2,746) 140 111,440 115,310 4,433 119,743 -------- ------------ ------------ -------- -------- --------- ------------- ---------------- --------
GOODWIN PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
for the year ended 30th April, 2021
Share Translation Share-based Cash Cost Retained Total Non-controlling Total capital reserve payments flow of earnings attributable interests equity reserve hedge hedging to equity reserve reserve holders of the parent GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 YEARED 30TH APRIL, 2021 Balance at 1st May, 2020 736 361 5,244 (499) (743) 99,918 105,017 4,585 109,602 Total comprehensive income: Profit for the year -- -- -- -- -- 12,494 12,494 512 13,006 Other comprehensive income: Foreign exchange translation differences -- (1,255) -- -- -- -- (1,255) (116) (1,371) Effective portion of changes in fair value -- -- -- 1,252 (42) -- 1,210 49 1,259 Ineffectiveness transferred to profit or loss -- -- -- (617) 596 -- (21) (5) (26) Change in fair value transferred to profit or loss -- -- -- 1,957 362 -- 2,319 (6) 2,313 Tax -- -- -- (492) (174) -- (666) (7) (673) -------- ------------ ------------ -------- -------- --------- ------------- ---------------- -------- TOTAL COMPREHENSIVE INCOME / (EXPENSE) FOR THE YEAR -- (1,255) -- 2,100 742 12,494 14,081 427 14,508 Transactions with owners: Issue of shares 17 -- -- -- -- -- 17 -- 17 Dividends paid -- -- -- -- -- (6,016) (6,016) (125) (6,141) Rec ycl ing of translation reserve on the disp o sal of subsidiary -- 42 -- -- -- -- 42 -- 42 -------- ------------ ------------ -------- -------- --------- ------------- ---------------- -------- BALANCE AT 30TH APRIL, 2021 753 (852) 5,244 1,601 (1) 106,396 113,141 4,887 118,028 -------- ------------ ------------ -------- -------- --------- ------------- ---------------- --------
CONSOLIDATED BALANCE SHEET
at 30th April, 2022
2022 2021 GBP'000 GBP'000 NON-CURRENT ASSETS Property, plant and equipment 87,594 77,063 Right-of-use assets 6,191 3,691 Investment in associate 896 829 Intangible assets 24,817 24,813 Long-term trade receivables 1,191 -- Derivative financial assets 2,741 191 -------- -------- 123,430 106,587 -------- -------- CURRENT ASSETS Inventories 40,364 34,547 Contract assets 12,331 15,844 Trade receivables and other financial assets 23,717 20,540 Other receivables 6,277 5,627 Derivative financial assets 1,211 4,106 Cash and cash equivalents 11,651 15,160 -------- -------- 95,551 95,824 -------- -------- TOTAL ASSETS 218,981 202,411 CURRENT LIABILITIES Borrowings 2,764 1,607 Contract liabilities 14,749 14,332 Trade payables and other financial liabilities 23,004 21,730 Other payables 4,256 4,025 Derivative financial liabilities 2,393 2,016 Liabilities for current tax 1,886 1,174 Provisions for liabilities and charges 205 608 -------- -------- 49,257 45,492 -------- -------- NON-CURRENT LIABILITIES Borrowings 40,376 33,066 Derivative financial liabilities 1,643 -- Provisions for liabilities and charges 251 251
Deferred tax liabilities 7,711 5,574 -------- -------- 49,981 38,891 -------- -------- TOTAL LIABILITIES 99,238 84,383 -------- -------- NET ASSETS 119,743 118,028 -------- -------- EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT Share capital 769 753 Translation reserve 463 (852) Share-based payments reserve 5,244 5,244 Cash flow hedge reserve (2,746) 1,601 Cost of hedging reserve 140 (1) Retained earnings 111,440 106,396 -------- -------- TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 115,310 113,141 -------- -------- NON-CONTROLLING INTERESTS 4,433 4,887 TOTAL EQUITY 119,743 118,028 -------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30th April, 2022
2022 2021 GBP'000 GBP'000 CASH FLOW FROM OPERATING ACTIVITIES Profit from continuing operations after tax 13,620 13,006 Adjustments for: Depreciation of property, plant and equipment 6,202 5,696 Depreciation of right of use assets 1,192 972 Amortisation and impairment of intangible assets 1,572 1,566 Finance costs (net) 1,169 640 Currency (gains) / losses net of unhedged derivative movements (1,535) 292 Profit on sale of property, plant and equipment (18) (745) Profit on disposal of subsidiary -- (32) Unrealised gain on 10 year interest rate swap derivative (2,740) -- Share of profit of associate company (63) (60) UK tax incentive credit on research and development (675) -- Tax expense 6,321 3,508 --------- --------- OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS 25,045 24,843 (Increase) / decrease in inventories (5,175) 10,344 Decrease / (in crease ) in contract assets 3,498 (9,242) (I ncrease) / decrease in trade and other receivables (3,341) 2,885 Increase / (d ecrease) in contract liabilities 472 (4,428) I ncrease in trade and other payables 804 1,047 Decrease / (i ncrease ) in unhedged derivative balances -- (438) --------- --------- CASH GENERATED FROM OPERATIONS 21,303 25,011 Interest received 157 111 Interest paid (1,415) (845) Corporation tax paid (2,051) (3,068) --------- --------- NET CASH INFLOW FROM OPERATING ACTIVITIES 17,994 21,209 --------- --------- CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 341 1,958 Acquisition of property, plant and equipment (16,215) (11,738) Additional investment in existing subsidiaries (430) -- Acquisition of intangible assets (282) (719) Development expenditure capitalised (1,505) (1,420) --------- --------- NET CASH OUTFLOW FROM INVESTING ACTIVITIES (18,091) (11,919) --------- --------- CASH FLOW FROM FINANCING ACTIVITIES Issue of shares 16 17 Payment of capital element of lease liabilities (1,153) (1,635) Dividends paid (7,862) (6,016) Dividends paid to non-controlling interests (808) (125) Proceeds from new loans 6,702 35,048 Repayment of loans and committed facilities (683) (30,772) --------- --------- NET CASH OUTFLOW FROM FINANCING ACTIVITIES (3,788) (3,483) --------- --------- NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (3,885) 5,807 Cash and cash equivalents at beginning of year 15,160 9,449 Effect of exchange rate fluctuations on cash held 376 (96) --------- --------- CASH AND CASH EQUIVALENTS AT OF YEAR 11,651 15,160 --------- ---------
PRINCIPAL RISKS AND UNCERTAINTIES
The Group's operations expose it to a variety of risks and uncertainties. The Directors confirm that they have carried out a robust assessment of the principal risks the Company faced , 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 will vary from time to time because of competitor action or economic cycles or international trade friction or even wars. As shown in note 3 to the financial statements to be published shortly, 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, typically, no single customer accounts for more than 1 0 % of annual turnover.
As described in the Business Model, the Group generates significant sales not only from valves it supplies to LNG, oil, chemical and water markets, but increasingly significant amounts from nuclear new build and decommissioning, naval propulsion marine applications and ship hull components. The Mechanical Engineering Division also supplies submersible pumps that are supplied to the mining industries and radar systems that are supplied for civil and defence applications. The Refractory Engineering Division sells vermiculite and perlite to the insulating and fire prevention industry and our investment casting powder companies indirectly selling 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 and new products are tested as far as possible 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 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. The risk of product obsolescence is countered by research and development investment.
Supply chain and equipment risk: Failure of a major supplier or essential item of equipment presents a constant risk of disruption to the manufacturing in progress, especially in these post Covid -19 pandemic times. 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 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 elsewhere within these financial statements , 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 GBP30 million of notional debt at less than 1% v ersus 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 26 to 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.
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.
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. The Group is in the process of re-evaluating the need to invest further in this area over the next 12 months, but for security reasons we will not be disclosing the details of what we do.
Covid-19 risk: The Covid-19 pandemic continues to have a global impact in varying degrees that has been seen during the year through labour shortages, supply chain disruption, shipping availability and inflationary pressures. The impact of labour shortages ha s been eased by the strength of our employee retention and our apprentice school continuing to feed the Group's requirements with eager engineers. The supply chain issues have been mitigated by the Group's ability to dynamically acquire and hold appropriate levels of stock so as to avoid disruption to the manufacturing processes. Furthermore, the continuation of the post lock down exceptionally high activity levels within the Refractory Division, in addition to the significant workload within the Mechanical Division ha ve meant that the Group has continued to operate as normal across all of its 23 sites around the world for the past twenty-four months.
Energy : The recent geopolitical tensions, with the current conflict in Ukraine, combined with the UK Government ' s energy policy over the last few years to reduce carbon emissions has left the country exposed to the fragile global energy system which has driven significant increases in the cost of power. Following the impact t his has had on the Group earlier on in the year, the Group has amended its strategy to manage the risk through hedging strategies , incorporating price escalation clauses into the longer term contracts , aided by the coming on stream of increasing levels of low cost solar power around the Group. We also have two significant program me s of enhancing the control of plant and utilising more inverter drives around the Group, which within 24 months sh ould save an additional 6% of the Group's electricity and gas consumption.
FORWARD-LOOKING STATEMENTS
The Group Strategic Report 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 below , 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 Com p any 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
S.R. Goodwin
T.J.W. Goodwin
J. Connolly
B.R.E. Goodwin
N. Brown
J.E. Kelly (Non-Executive Director)
Accounting policies
Goodwin PLC (the "Company") is incorporated in England and Wales.
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 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 adopted I nternational A ccounting S tandards (IAS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under UK adopted IFRS.
The financial statements for the year ended 30th April, 2021 were prepared in accordance with international
accounting standards in conformity with the requirements of the Companies Act 2006 and IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. There is no difference for the Group in applying each of these accounting frameworks or on the recognition, measurement or disclosure in the period reported as a result of the change in framework .
The Company has elected to prepare its financial statements in accordance with Financial Reporting Standard (FRS) 101 issued in the UK. These are presented on pages 95 to 107 to the financial statements to be published shortly.
The accounting policies set out below have been applied consistently to all periods presented in these Group financial statements.
Judgements made by the Directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 2 of to the financial statements to be published shortly .
New IFRS standards and interpretations adopted during 2021 / 2022
The IASB and IFRIC issued the following amendments:
-- Amendments to IFRS 9, IAS39, IFRS 7, IFRS 4 and IFRS 16 - Interest rate benchmark reform phase 2, which is effective for annual periods beginning on or after 1st January , 2021.
-- Amendment to IFRS 16 'Leases' - Covid 19 rent concession extensions, which is effective for annual periods beginning on or after 1 st June , 2020
The implementation of these 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, 2022 or 2021 but is derived from those accounts. Statutory accounts for 2021 have been delivered to the Registrar of Companies, and those for 2022 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 2022 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. Segment assets and liabilities include items directly attributable to segments as well as those that can be allocated on a reasonable basis. Associates are included in refractory engineering. In accordance with the requirements of IFRS 8, information regarding the Group's operating segments is reported below.
2022 2021 Mechanical Refractory Total Mechanical Refractory Total Engineering Engineering Engineering Engineering GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Revenue External sales 87,605 56,503 144,108 86,616 44,615 131,231 Inter-segment sales 17,784 15,523 33,307 20,871 11,526 32,397 Total revenue 105,389 72,026 177,415 107,487 56,141 163,628 --------------- -------------------------------------- ----------------------------------- ---------------------- Reconciliation to consolidated revenue: Inter-segment sales (33,307) (32,397) Consolidated revenue for the year 144,108 131,231 -------------------------- ------------------------ 2022 2021 Refractory Mechanical Refractory Mechanical Engineering Engineering Total Engineering Engineering Total Profits Segment o perating profit 9,139 12,657 21,796 10,823 9,280 20,103 ------------------------------ --------------------------- ---------------------------------------------- ----------------------------------- ---------------------- ------------------ ---- % of operating profit 42 % 58 % 100 % 54 % 46 % 100 % Group centre (3,489) (3,009) ---------------------------------------------- ------------------ ---- Group operating profit 18,307 17,094 Share of profit of associate company -- 63 63 -- 60 60 Unrealised gain on 10 year Interest Rate Swap Derivative 2,740 -- Group finance expenses (net) (1,169) (640) -------------------------- ------------------ ---- Consolidated profit before tax for the year 19,941 16,514 Tax (6,321) (3,508) -------------------------- ------------------ ---- Consolidated profit after tax for the year 13,620 13,006 -------------------------- ------------------ ---- 2022 2021 Mechanical Refractory Mechanical Refractory Engineering Engineering Total Engineering Engineering Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Net assets Total assets 93,049 48,843 141,892 92,929 44,114 137,043 Total liabilities (71,950) (22,643) (94,593) (66,909) (20,591) (87,500) ------------------------------ --------------------------- ---------------------------------------------- ----------------------------------- ---------------------- ------------------------ Subtotal 21,099 26,200 47,299 26,020 23,523 49,543 ------------------------------ --------------------------- ---------------------------------------------- ----------------------------------- ---------------------- ------------------------ Goodwin PLC net assets 88,595 83,998
Elimination of Goodwin PLC investments (25,822) (25,392) Goodwill 9,671 9,879 ---------------------------------------------- ------------------------ Consolidated total net assets 119,743 118,028 ---------------------------------------------- ------------------------ 2022 2021 Goodwin PLC Mechanical Refractory Total Goodwin Mechanical Refractory Total Engineering Engineering PLC Engineering Engineering GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Segmental capital expenditure Property, plant and equipment 9,326 5,396 1,631 16,353 5,315 4,952 1,570 11,837 Right-of-use assets 441 2,401 881 3,723 1,180 1,146 74 2,400 Intangible assets 237 1,121 429 1,787 151 1,123 456 1,730 ---------------------- --------------- ------------------ ------------------ ------------ ----------------------------- ------------------ ---------------------- Total 10,004 8,918 2,941 21,863 6,646 7,221 2,100 15,967 ---------------------- --------------- ------------------ ------------------ ------------ ----------------------------- ------------------ ---------------------- Segmental depreciation, amortisation and impairment Depreciation 3,808 2,200 1,386 7,394 2,970 2,346 1,352 6,668 Amortisation and impairment 1,195 47 330 1,572 1,106 20 440 1,566 ---------------------- ------ ------- ------------------ ------------------ ------------ ------------ ----------------- Total 5,003 2,247 1,716 8,966 4,076 2,366 1,792 8,234 ---------------------- ------ ------- ------------------ ------------------ ------------ ------------ -----------------
Geographical segments
The Group operates in the following principal locations. In presenting the information on geogr a phical segments, revenue is based on the location of its customers and assets on the location of the assets.
2022 2021 Revenue Net assets Non-current Capital Revenue Net assets Non-current Capital assets expenditure assets expenditure GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 UK 38,599 77,447 104,995 19,670 39,755 81,982 89,944 13,634 Rest of Europe 21,388 8,648 3,728 1,009 21,473 8,309 3,264 279 USA 14,046 -- -- -- 8,027 -- -- -- Pacific Basin 31,085 15,867 6,703 278 28,255 13,708 6,499 719 Rest of World 38,990 17,781 8,004 906 33,721 14,029 6,880 1,335 -------- ----------- ------------ ------------- -------- ----------- ------------ ------------- Total 144,108 119,743 123,430 21,863 131,231 118,028 106,587 15,967 -------- ----------- ------------ ------------- -------- ----------- ------------ -------------
Note 2
Dividends
The Board proposes to pay a dividend of 10 7.80 pence per share, up 5 % on the previous year (2021: 102.24 p ) . The proposed dividend has been calculated using the Group's profit after taxation figure, plus depreciation and amortisation for the year ending 30th April 2022.
The Board proposes to smooth the Group's cash flow by splitting the payment of the proposed ordinary dividend s of 107.80 pence per share into equal instalments of 53.9 pence per share on 7th October, 2022 and on or around 12th April, 2023 to shareholders on the register on 16th September, 2022 and on or around 24th March, 2023 respectively.
Note 3
Earnings per share
2022 2021 Number Number Ordinary shares in issue Opening shares in issue 7,526,400 7,363,200 Shares issued in the year 163,200 163,200 ---------- ---------- 7,689,600 7,526,400 Outstanding ordinary share options -- 163,200 ---------- ---------- Total ordinary shares (issued and options) 7,689,600 7,689,600 ---------- ---------- Weighted average number of ordinary shares in issue 7,673,951 7,445,024 Weighted average number of outstanding ordinary share options -- 162,651 ---------- ---------- Denominator used for diluted earnings per share calculation 7,673,951 7,607,675 ---------- ---------- 2022 2021 GBP'000 GBP'000 Relevant profits attributable to ordinary shareholders 12,980 12,494 -------- --------
Note 4
Going concern
The Directors, after having reviewed the projections and possible challenges that may lie ahead, believe that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements, and have continued to adopt the going concern basis in preparing the financial statements.
As at 30th April 2022, the Group's gearing ratio stood at 25. 8 % (2021: 15.4%) against a substantial shareholders' net worth of GBP115 million (2021: GBP113 million). The retained reserves of the Group put it in a strong position to deal with unforeseen material adverse issues.
In previous years we have reported on the potential impact of Covid-19 and its limited impact on the business. As you might expect given our previous comments, our pandemic risk profile is low and whilst there are minor Covid-19 impacts we do not see the pandemic as a cause for concern for the Group moving forwards.
The reported results for the year are after having incurred what have been unprecedented increases in energy costs. Whilst the Group is not complacent and there is work to be done here, we do not see the impact of energy costs giving rise to a going concern issue.
Within our severe but plausible stress test model, it is demonstrable that the Group has sufficient funds to cover the Group's and the Company's financial commitments during the forecast period whilst remaining compliant with its financial covenants. The stress test model starts with the forecasts generated by the subsidiary directors and reflects their specific knowledge of the market conditions, strategy and outlook. Each of these subsidiary level forecasts is then reviewed, challenged and approved by the relevant Group Managing Director who themselves are immersed in each of the businesses. The stress test model then predicts the impact of a severe but plausible reduction in the pre-tax profit forecast without pulling back on our capital expenditure forecast. The results of the stress test modelling did not highlight any going concern issues.
Whilst our carrying values of trade debtors and contract assets are significant, we see little risk here in terms of recovery. Where possible, we credit insure the majority of our debtors and our pre credit risk (work in progress), and for significant contracts where credit insurance is not available, we ensure, where possible, that these contracts are backed by letters of credit or cash positive milestone payments.
As discussed elsewhere within these accounts, the Mechanical Engineering order book remains high and the Refractory Engineering segment 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 10.30 a.m. on 5th October, 2022 at Crewe Hall, Weston Road, Crewe, Cheshire CW1 6UZ.
Note 6
ALTERNATIVE PERFORMANCE MEASURES
Measure 2022 2021 Gross profit (GBP'000) 42,704 39,001 Revenue (GBP'000) 144,108 131,231 Gross profit as percentage of revenue (%) 29.6 29.7 -------------- -------------- Profit before tax (GBP'000) 19,941 16,514 Unrealised gain on 10 year interest rate swap derivative (2,740) -- -------------- -------------- Trading profit (GBP'000) 17,201 16,514 -------------- -------------- Operating profit (GBP'000) 18,307 17,094 Capital employed (GBP'000) 145,095 130,572 Return on capital employed (%) 12.6 13.1 -------------- -------------- Net debt (GBP'000) 29,785 17,431 Net assets attributable to equity holders of the parent(GBP'000) 115,310 113,141 Gearing (%) 25.8 15.4 -------------- -------------- Net profit attributable to equity holders of the parent (GBP'000) 12,980 12,494 Net assets attributable to equity holders of the parent(GBP'000) 115,310 113,141 Return on investment (%) 11.3 11.0 -------------- -------------- Revenue (GBP'000) 144,108 131,231 Average number of employees 1,112 1,129 Sales per employee (GBP'000) 130 116 -------------- -------------- Annual post tax profit (GBP'000) 13,620 13,006 Interest rate SWAP mark to market net of tax @ 19% (GBP'000) (2,219) -- Deferred tax rate change (GBP'000) 2,012 -- Depreciation owned assets (GBP'000) 6,202 5,696 Depreciation right-of-use assets (GBP'000) 1,192 972 Amortisation and impairment (GBP'000) 1,572 1,566 Exclude operating lease depreciation (GBP'000) (508) (550) -------------- -------------- Annual post tax profit + depreciation+amortisation (GBP'000) 21,871 20,690 -------------- --------------
END
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