Goodwin Share Discussion Threads

[redartbmud] 05/9/2019 17:40

PS

Pity that they couldn't spell it out, in the 2019 accounts, now that they have vested!

[redartbmud] 05/9/2019 17:30

Wilm

Thanks for that, I searched high and low to find the number.
It was clearly buried, in one of the documents, certainly not writ large, as they say. In the end, I decided it must be nil. Certainly didn't see it in the 2018 accounts, where the awards vested.

I have in front of me the Explanatory Notes for the 2016 AGM, Agenda items 8 and 9.
1.1 (c) Awards granted under the LTIP will be in the form of options with an exercise price equal to the nominal value of the ordinary shares ("Options").

They don't exactly hit you in the face with it!!
The nominal value is 10p. I would pay £6,120 for £1.94m worth of shares.

Many thanks.

red

[wilmdav] 05/9/2019 16:43

Exercise price is 10p, as near zero as makes no difference.

[redartbmud] 05/9/2019 11:06

I think that they are at zero price.
The number of potential shares, that could be earned (maximum of 1% of the existing share capital, of the company = 8% total) and the zero coupon, caused a big wave when it was unveiled.

It was also complex to value, based on the information provided.
There were a number of quite tough targets to hit, one of which was the average share price on 30 April 2019, £31.70 and the opening share price on 1 May £32.38.
A start reference was the 5 October share price of £22.20.

Wilm
Sorry if I confused you. The maximum that could have been earned was 1% each, for the 'Great 8' but in the event only 85% vested = 6.8% or 61,200 shares each = 489,600 shares.


It is just my opinion, on how they will take their entitlements, but 6 out of 8 are certainly family, and the other 2 may be related in some way, If not, they are very closely aligned.
They will have big tax bills to meet, so an even spread, over 5 years, may be their best option, from a personal tax and cash flow standpoint, based on the current income tax regime.
If too many of them took the 30%, in the same year, it has the potential to adversely affect the share price, and disadvantaging their co-directors.
The Goodwins have a history of buying, and holding forever.
If you look back, any sales have been matched, by an equal purchase, into some form of tax wrapper that includes spouses, and they buy Goodwin shares annually to put into their ISA accounts.

[wilmdav] 05/9/2019 10:28

Many thanks to all who have thrown light on the complex LTIP.

At the risk of displaying my ignorance, is it not true that the vesting price is the price each director must pay to exercise his options? In which case the company will receive 61,200 x £32.38 = £1,981,656 from each director who exercises all his shares. So whilst the share capital would be diluted, the company's coffers would benefit from £15,853,248 if all 8 directors exercise in full.

redartmud

Each director is entitled to 61,200 shares, a total of 489,600 shares.
So increased share capital will be 7,200,000 + 489,600 = 7,689,600 shares
In which case the dilution at end of 5 year term = 7,689,600 / 7,200,000 = 6.8%, not 8%.
Have I got it wrong?

[luderitz] 05/9/2019 09:59

oops! spoke to soon down -120 now which is more in keeping.

[luderitz] 05/9/2019 09:57

Thanks Glaws2 share price usually retreats but not so far on this one which seems rather odd to me, am I the only one?

Just to say I don't hold but they are on my watch list.

[glaws2] 05/9/2019 09:39

Yes today ex div day - 96.21p

[luderitz] 05/9/2019 09:32

No or little movement as GDWN goes Ex Divi today, they have gone Ex Div haven't they?

[redartbmud] 04/9/2019 10:02

mw

Yes, the LTIP is an interesting conundrum.

Reading pages 27 and 28 of the accounts, for the year ended 30 April 2019, it would appear that the LTIP vested, on 1 May 2019 at 85%, so 61,200 shares are due to each of the 8 eligible directors. The vesting price is £32.38 each, for calculation purposes.
In the remuneration for each director, the sum of £1,940 millions, is included in the LTIP column.
Under the scheme rules, any director must take the value over a 5 year period, with no more than one third of the value taken in any one calendar year.

The logical move would be for them to act in concert, and take equal amounts, in each of the next 5 years. In that scenario, the company would issue 97.920 shares,per year, in each of those years.
The current share capital is 7,200,000 shares
The annual dilution, in each the 5 years, is therefore 1.36% or 97,920 shares issued pa. Presumably the timing is at the discretion of the directors.
At the end of that term, the share capital will have increased by 8%

[wilmdav] 04/9/2019 09:25

Bottomfisher

Thanks for that. I must confess I usually skip over the Risks section of annual reports.

[mw8156] 01/9/2019 14:49

everything set fair for the ordinary shareholders except for the LTIP and the prospect of the China trade in refractories being disrupted by the trade war.

[bottomfisher] 31/8/2019 15:32

Given the endless stories of doom and gloom about the impact of Brexit on Britain's manufacturing industry it is rather reassuring to see one well managed Midlands engineering company put its head above the parapet, and state that a 'no deal' Brexit will be positive for its business.

Goodwin PLC, which employs just over 1,000 people in its engineering and refractory businesses, says on page 11 of its latest annual report that it sees the impact of a 'no deal' Brexit as a positive for the Group. "Whilst we would accept that the reversion to default WTO tariff rates may impact negatively on our cost base, the Group is 70% an exporter to ultimate customers outside Europe. The weakening of Sterling, that would be likely to happen as a result, would further enhance the impact of our growing overseas companies’ profitability, and our ability to increase exports".

[kinwah] 22/8/2019 16:32

I think it is more than just Easat where the working capital has moved adversely. Inventories and trade debtors are up by £26 million with borrowings up by £13 million. No doubt there has been some Brexit stocking up ahead of the year end.

[mw8156] 22/8/2019 08:13

suspect wrangling with the auditors over the work in progress figure for EASAT was the reason the results were delayed? Otherwise have to agree this is a very strong statement.

[mw8156] 22/8/2019 08:08

reads very well save for the working cap tied up in EASAT which is ?only a relatively small part of the group. Order book is enormously enlarged and looks as though they have a unique ability to cast massive 35 ton castings and patents in nickel superalloys mentioned in previous statements.

[kneecaps2] 22/8/2019 07:15

Another amazing statement today from Goodwin surely the shares will now reach new all time highs.

[steve3sandal] 13/8/2019 13:46

1 share £37 trades probably a fat finger, 2 Share Uncrossed Trade at £37 reversing?

[luderitz] 13/8/2019 13:08

Spotted this Company by accident but having done some background research I do like the look of them.

[westofengland] 13/8/2019 11:14

Worth noting that many of the family bought shares in April 2019 and May 2019 which was the last time they could buy them ahead of these pending results.

[crazycoops] 13/8/2019 10:09

And they are so confident, they bought 1 share :-)

[alexisk] 13/8/2019 09:23

Share price at highest for 5 years. Looks like someone thinks the results to be announced on 22 August are going to be good. I hope they are right.

[wjccghcc] 30/7/2019 08:42

Financial Calendar on their website says week commencing 5/8 (TBC).

[westofengland] 26/7/2019 21:29

It's not a question of convention; it's about being good stewards of the business. On that front their record speaks for itself
. Like Kneecaps2, I am proud to be a Goodwin shareholder.