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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 | |
---|---|---|---|---|---|---|---|---|---|---|
50.00 | 0.75% | 6,680.00 | 6,500.00 | 6,700.00 | 6,700.00 | 6,320.00 | 6,320.00 | 4,677 | 15:55:53 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Engineering Services | 185.74M | 15.9M | 2.1178 | 31.54 | 501.64M |
TIDMGDWN
RNS Number : 7754I
Goodwin PLC
16 December 2020
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2020
CHAIRMAN'S STATEMENT
The pre-tax profit for the Group for the six month period ending 31st October 2020 was GBP5.8 million (2019 GBP7.4 million) a 22% decrease on revenue of GBP62.6 million. The Group cash flow and banking headroom are in line with the Board's expectations, and the order book remains robust at GBP174 million as at 31st October 2020 but caution is needed with the Covid-19 uncertainty delaying some capital projects and the downturn in the oil and gas industry, which is now likely to be a permanent feature and so a smaller percentage of our targeted business going forwards.
Within the Refractory Engineering Division, the current activity levels are climbing to similar levels to those seen prior to the onset of Covid-19. However, we remain uncertain where we will stand after the effects of the second and possible third lock down. The Castaldo silicone rubber technology and plant that we purchased during the previous financial year has been successfully relocated from the USA to our company in Thailand, Siam Casting Powders. This plant is now installed, commissioned and producing.
Without neglecting the huge recognition due to the dedicated hard work of all Group employees, through careful management of overhead and expenditure combined with the quality of our customer base and the order book that has been built with them, the Group has suffered less than many throughout the pandemic, for which we are grateful. With the high levels of uncertainty that Covid-19 continues to subject the world to, coupled with the side effects of Brexit in the UK, there have been exceedingly challenging trading conditions, which should correct themselves with the markets we address, once normality can resume.
T. J. W. Goodwin Chairman 16th December 2020
Management report
Financial Highlights
Unaudited Unaudited Audited Year Half Year Half Year Ended to 31st October to 2019 31st October 31st October 30th April 2020 2019 2020 GBP'm GBP'm GBP'm Consolidated Results Revenue 62.6 70.1 144.5 Operating profit 6.1 7.8 12.9 Profit before tax 5.8 7.4 12.1 Profit after tax 4.5 5.6 8.3 ---------------------------------------- ----------------- ------------- ------------- Capital Expenditure (owned and finance lease assets) 8.3 3.0 6.1 ---------------------------------------- ----------------- ------------- ------------- Earnings per share - basic 56.64p 72.92p 107.93p ---------------------------------------- ----------------- ------------- ------------- Earnings per share - diluted 55.42p 69.77p 103.31p
Turnover
Sales revenue of GBP62,628,000 for the half year represents a 11% decrease from the GBP70,090,000 achieved during the same period last year.
Profit Before Tax
Profit before tax for the six months of GBP5,774,000 is a 22% decrease from the GBP7,406,000 achieved for the same six month period last year.
Key performance indicators
The key performance indicators for the business are listed below:
Unaudited Unaudited Audited Year Half Year Half Year Ended to to 31st October 31st October 30th April 2020 2019 2020 Gross profit as a % of turnover 25.9 27.8 24.1 Other income (in GBP millions) - 0.7 0.7 Profit before tax (in GBP millions) 5.8 7.4 12.1 Gearing % (excluding deferred consideration) 29.8 25.7 17.9 Non cash charges (in GBPmillions) Depreciation (in GBP millions) 2.7 3.2 5.9 Depreciation of finance leased assets (in GBP millions) 0.2 0.1 0.3 Amortisation (in GBP millions) 0.7 0.5 1.3 Total non cash charges (in GBP millions) 3.6 3.8 7.5
Alternative performance measures mentioned above are defined in note 36 on page 86 of the Group Annual accounts to 30th April 2020 .
2020/21 Outlook
With the upcoming completion of several radar systems in East Asia, the commencement of manufacturing works across our nuclear contracts and, hopefully, an improving Refractory Engineering Division performance, we expect the second half year pre-tax profits to be similar, if not improving on, the first half of this financial year.
Despite conditions remaining tough for our foundry, which is still transitioning away from its historic baseload of petrochemical related work, it is well placed to benefit from the upcoming increase in military expenditure and nuclear related casting requirements as its precision heavy castings niche skillset will be required. However, like all projects within this industry, a significant amount of time is required until the design and procurement of components can occur and value can be realised. Armed with the baseload of casting nuclear waste boxes we believe that going forward it will be able to build its way back to sustainable profitability over time.
Within the Refractory Engineering Division, trading conditions remain difficult due to several market sectors being affected by lockdowns with reduced confidence in consumer spending. The short to medium term outlook will be dependent on the market recovery and consumer spending.
The Board continues to manage working capital and expenditure to maintain a modest level of gearing. Prior to the end of this current financial year, we will be repaying the Bank of England CCFF loan that we took out as an insurance policy against global financial trauma caused by Covid-19.
Risks and Uncertainties
The Group, mainly through its centralised management structure, makes best endeavours to have in place internal control procedures to identify and manage the key risks and uncertainties affecting the Group. We would refer you to pages 11 to 13 of the Group Annual Accounts to 30th April 2020 which describe the principal risks and uncertainties, and to note 28 (starting on page 75) which describes in detail the key financial risks and uncertainties affecting the business such as credit risk and foreign exchange risk.
Judging the future relationship of the major currency pairs of the US Dollar, Sterling and the Euro continues to be a challenge.
Report on Expected Developments
This report describes the expected developments of the Group during the year ended 30th April 2021 . The report may contain forward-looking statements and information based on current expectations, and assumptions and forecasts made by the Group. These expectations and assumptions are subject to various known and unknown risks, uncertainties and other factors, which could lead to substantial differences between the actual future results, financial performance and the estimates and historical results given in this report. Many of these factors are outside the Group's control. The Group accepts no liability to publicly revise or update these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.
Going concern
The Group continues to trade profitably and with the current order book level we are confident that this will continue and improve, especially as we move in to the next financial year, dependent, in the main, on Covid-19 related resolutions as discussed elsewhere in the accounts. As in previous periods, the levels of depreciation and amortisation (both non cash items) remain significant thus masking the true cash generating capability of the Group. As at 31st October 2020 , the Group net debt stood at GBP31.1 million (31st Oct 2019 GBP27.2 million) as set out in note 10 to these accounts. Whilst the net debt levels are higher than those recorded as at April 2020 and October 2019 the gearing level at 29.8% is still modest and our banking headroom (facilities versus utilisation) is significant. Furthermore, within the second half of this financial year we would expect to significantly reduce our investment in working capital. Given the foregoing, the Directors do not see an issue with the continued ability of the Group to meet its financial commitments and so have drawn up these accounts on a going concern basis.
Responsibility statement of the Directors in respect of the half-yearly financial report
The Directors confirm to the best of their knowledge that 1) this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that 2) the Interim Management Report and condensed financial statements include a fair review of the information required by Disclosure and Transparency Rules 4.2.7R (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year) and 4.2.8R (being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so).
T.J. W. Goodwin Chairman 16(th) December 2020
Condensed Consolidated Statement of Profit or Loss
for the half year to 31st October 2020
Unaudited Unaudited Audited Half Year Half Year Year Ended to to 31st October 31st October 30th April 2020 2019 2020 GBP'000 GBP'000 GBP'000 Continuing operations Revenue 62,628 70,090 144,512 Cost of sales (46,404) (50,610) (109,743) Gross profit 16,224 19,480 34,769 Other income - 689 690 Distribution expenses (1,320) (1,629) (2,792) Administrative expenses (8,833) (10,715) (19,809) Operating profit 6,071 7,825 12,858 Financial expenses (323) (449) (809) Share of profit of associate companies 26 30 66 Profit before taxation 5,774 7,406 12,115 Tax on profit (1,289) (1,812) (3,775) Profit after taxation 4,485 5,594 8,340 Attributable to: Equity holders of the parent 4,171 5,260 7,866 Non-controlling interests 314 334 474 Profit for the period 4,485 5,594 8,340 Basic earnings per ordinary share (Note 9) 56.64p 72.92p 107.93p Diluted earnings per ordinary share (Note 9) 55.42p 69.77p 103.31p
Condensed Consolidated Statement of Comprehensive Income
for the half year to 31st October 2020
Unaudited Unaudited Audited Half Year Half Year Year Ended to to 31st October 31st October 30th April 2020 2019 2020 GBP'000 GBP'000 GBP'000 Profit for the period 4,485 5,594 8,340 Other comprehensive income / (expense) Items that are or may be reclassified subsequently to the income statement Foreign exchange translation differences 593 (162) (1,007) Goodwill arising from purchase of non-controlling interest in subsidiaries - (63) (72) Effective portion of changes in fair value of cash flow hedges (293) 1,928 (355) Ineffective portion of changes in fair value of cash flow hedges (617) - - Change in fair value of cash flow hedges transferred to profit or loss 935 379 522 Effective portion of changes in fair value of cost of hedging 88 (515) (843) Ineffective portion of change in fair value cost of hedging 581 - - Change in fair value of cost of hedging transferred to profit or loss 281 276 395 Tax on items that are or may be reclassified subsequently to profit or loss (186) (347) 77 Other comprehensive income / (expense) for the period, net of income tax 1,382 1,496 (1,283) Total comprehensive income for the period 5,867 7,090 7,057 Attributable to: Equity holders of the parent 5,465 6,761 6,587 Non-controlling interests 402 329 470 5,867 7,090 7,057
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2020
Total attribut-able Cash to equity Share-based flow Cost holders Share Translat-ion payments hedge of hedging Retained of the Non-controll-ing Total capital reserve reserve reserve reserve earnings parent interests equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Half year to 31st October 2020 (Unaudited) Balance at 1st May 2020 736 361 5,244 (499) (743) 99,918 105,017 4,585 109,602 Total comprehensive income: Profit - - - - - 4,171 4,171 314 4,485 Other comprehensive income: Foreign exchange translation differences - 502 - - - - 502 91 593 Net movements on cash flow hedges - - - 68 724 - 792 (3) 789 Total comprehensive income for the period - 502 - 68 724 4,171 5,465 402 5,867 Issue of shares 16 - - - - - 16 - 16 Dividends paid - - - - - (6,016) (6,016) (125) (6,141) Balance at 31st October 2020 752 863 5,244 (431) (19) 98,073 104,482 4,862 109,344
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2020
Total attribut-able Cash to equity Share-based flow Cost holders Share Translat-ion payments hedge of hedging Retained of the Non-controll-ing Total capital reserve reserve reserve reserve earnings parent interests equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Half year to 31st October 2019 (Unaudited) Balance at 1st May 2019 720 1,044 4,991 (573) (426) 99,409 105,165 4,126 109,291 Total comprehensive income: Profit - - - - - 5,260 5,260 334 5,594 Other comprehensive income: Goodwill arising from purchase of NCI interest in subsidiary - - - - - (63) (63) - (63) Foreign exchange translation differences - (198) - - - - (198) 36 (162) Net movements on cash flow hedges - - - 1,937 (175) - 1,762 (41) 1,721 Total
comprehensive income for the period - (198) - 1,937 (175) 5,197 6,761 329 7,090 Issue of shares 16 - - - - - 16 - 16 Dividends paid - - - - - (6,927) (6,927) - (6,927) Acquisition of NCI without a change of control - - - - - - - (11) (11) Other transactions - 358 - - - (358) - - - Balance at 31st October 2019 736 1,204 4,991 1,364 (601) 97,321 105,015 4,444 109,459
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2020
Total attribut-able Cash to equity Share-based flow Cost holders Share Translat-ion payments hedge of hedging Retained of the Non-controll-ing Total capital reserve reserve reserve reserve earnings parent interests equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Year ended 30th April 2020 (Audited) Balance at 1st May 2019 720 1,044 4,991 (573) (426) 99,409 105,165 4,126 109,291 Total comprehensive income: Profit - - - - - 7,866 7,866 474 8,340 Other comprehensive income: Foreign exchange translation differences - (964) - - - - (964) (43) (1,007) Goodwill arising from purchase of NCI interest in subsidiaries - - - - - (72) (72) - (72) Net movements on cash flow hedges - - - 74 (317) - (243) 39 (204) Total comprehensive income for the period - (964) - 74 (317) 7,794 6,587 470 7,057 Issue of shares 16 - - - - - 16 - 16 Tax on equity-settled share-based payment transactions - - 253 - - - 253 - 253 Dividends paid - - - - - (6,927) (6,927) - (6,927) Acquisition of NCI without a change of control - - - - - - - (11) (11) Disposal of equity investments - (77) - - - - (77) - (77) Reclassification - 358 - - - (358) - - - Balance at 30th April 2020 736 361 5,244 (499) (743) 99,918 105,017 4,585 109,602
Condensed Consolidated Balance Sheet
as at 31st October 2020
Unaudited Unaudited Audited as at as at as at 31st October 31st October 30th April 2020 2019 2020 GBP'000 GBP'000 GBP'000 Non-current assets Property, plant and equipment 80,132 75,279 74,969 Investment in associates 853 817 816 Intangible assets 24,770 22,483 24,695 Derivative financial assets 1,145 - 749 Other financial assets at amortised cost 137 361 252 107,037 98,940 101,481 Current assets Inventories 45,359 56,913 44,887 Contract assets 15,685 9,846 6,558 Trade and other financial assets 23,959 24,620 24,486 Other receivables 5,669 3,694 4,506 Deferred tax asset 151 84 60 Derivative financial assets 1,067 2,247 456 Cash and cash equivalents 10,915 9,416 9,840 102,805 106,820 90,793 Total assets 209,842 205,760 192,274 Current liabilities Bank overdrafts and interest-bearing liabilities 33,661 9,551 14,624 Contract liabilities * 25,461 27,068 18,965 Trade payables and other financial liabilities 19,724 18,174 23,485 Other payables 4,260 6,471 3,298 Deferred consideration - 204 - Derivative financial liabilities 1,011 1,552 1,071 Liabilities for current tax 1,881 1,393 1,873 Warranty provision 81 235 160 86,079 64,648 63,476 Non-current liabilities Interest-bearing liabilities 9,709 28,652 15,599 Derivative financial liabilities 474 - 202 Warranty provision 414 219 324 Deferred tax liabilities 3,822 2,782 3,071 14,419 31,653 19,196 Total liabilities 100,498 96,301 82,672 Net assets 109,344 109,459 109,602 Equity attributable to equity holders of the parent Share capital 752 736 736 Translation reserve 863 1,204 361 Share-based payments reserve 5,244 4,991 5,244 Cash flow hedge reserve (431) 1,364 (499) Cost of hedging reserve (19) (601) (743) Retained earnings 98,073 97,321 99,918 Total equity attributable to equity holders of the parent 104,482 105,015 105,017 Non-controlling interests 4,862 4,444 4,585 Total equity 109,344 109,459 109,602
* Contract liabilities include advance payments from customers of GBP24,991,000, with the balance of GBP470,000 being costs accrued for contracts.
Condensed Consolidated Statement of Cash Flows
for the half year ended 31st October 2020
Unaudited Unaudited Audited Half Half Year Year ended Year to to 31st 30th April 31st October October 2020 2020 2019 GBP'000 GBP'000 GBP'000 Cash flow from operating activities Profit from continuing operations after tax 4,485 5,594 8,340 Adjustments for: Depreciation 2,715 3,180 5,874 Depreciation of right-of-use assets - formerly finance leases 159 141 290 Depreciation of right-of-use assets - formerly operating leases 265 248 537 Amortisation of intangible assets 745 484 1,328 Financial expenses 323 449 809 Foreign exchange losses 48 143 203 (Profit) / loss on sale of property, plant and equipment (32) 2 52 Share of profit of associate companies (26) (30) (66) Profit on disposal of subsidiary - - (172) Tax expense 1,289 1,812 3,775 Operating profit before changes in working capital and provisions 9,971 12,023 20,970 Decrease / (increase) in inventories 85 (6,430) 4,748 Increase in contract assets (9,083) (6,107) (2,863) Increase in trade and other receivables (53) (849) (2,549) Increase in contract liabilities 6,509 8,829 874 (Decrease) / increase in trade and other payables (3,351) (522) 2,310 Decrease / (increase) in unhedged derivative balances 181 (126) (980) Cash inflow from operations 4,259 6,818 22,510 Interest paid (346) (320) (747) Interest element of lease obligations - formerly finance leases (14) (21) (41) Interest element of lease obligations - formerly operating leases (28) (27) (56) Corporation tax paid (958) (1,775) (2,493) Net cash from operating activities 2,913 4,675 19,173 Cash flow from investing activities Proceeds from sale of property, plant and equipment 136 75 139 Acquisition of property, plant and equipment (7,965) (3,156) (6,062) Additional investment in existing subsidiaries - (74) (83) Acquisition of intangible assets (600) (74) (1,855) Development expenditure capitalised (450) (297) (1,105) Net cash outflow from investing activities (8,879) (3,526) (8,966) Cash flows from financing activities Proceeds from issue of share capital 16 16 16 Payment of capital element of finance lease obligations (524) (547) (954) Payment of capital element of operating lease liabilities (263) (167) (509) Proceeds from new finance leases 704 54 102 Dividends paid (6,016) (6,927) (6,927) Dividends paid to non-controlling interests (125) - - Net proceeds from loans and committed facilities 11,659 11,949 7,556 Net cash inflow / (outflow) from financing activities 5,451 4,378 (716) Net (decrease) / increase in cash and cash equivalents (515) 5,527 9,491 Cash and cash equivalents at beginning of year 9,449 493 493 Effect of exchange rate fluctuations on cash held 109 56 (535) Closing cash and cash equivalents (note 13) 9,043 6,076 9,449
Notes
to the Condensed Consolidated Interim Financial Statements
1. Reporting entity
Goodwin PLC (the "Company") is a company incorporated in England and Wales. The unaudited condensed consolidated interim financial statements of the Company as at and for the six months ended 31st October 2020 comprise the Company, its subsidiaries, and the Group's interests in associates (together referred to as the "Group").
The audited consolidated financial statements of the Group as at and for the year ended 30th April 2020 are available upon request from the Company's registered office at Ivy House Foundry, Hanley, Stoke-on-Trent, ST1 3NR or via the Company's web site: www.goodwin.co.uk.
2. Statement of compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted in the EU. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 30th April 2020.
The comparative figures for the financial year ended 30th April 2020 are extracts and not the full Group's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The Audit Committee has reviewed these unaudited condensed consolidated interim financial statements and has advised the Board of Directors that, taken as a whole, they are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group's half year performance. These unaudited condensed consolidated interim financial statements were approved by the Board of Directors on 16(TH) December 2020.
3. Significant accounting policies
The accounting policies applied by the Group in these unaudited condensed consolidated financial statements are the same as those applied by the Group in its audited consolidated financial statements as at and for the year ended 30th April 2020. The changes in accounting policies are to be reflected in the Group's consolidated financial statements as at and for the year ending 30th April 2021.
The following standards and amendments became effective and therefore were adopted by the Group.
-- Amendments to IFRS 3 - Definition of a business (effective for annual periods beginning on or after 1st January 2020)
-- Amendments to IAS 1 and IAS 8 - Definition of material (effective for annual periods beginning on or after 1st January 2020)
-- Amendments to References to the Conceptual Framework in IFRS Standards (effective for annual periods beginning on or after 1st January 2020)
The Group has considered the impact on profit, earnings per share and net assets in future periods, of the other new standards and interpretations referred to above, and none of the above standards or interpretations is expected to have a material impact.
New IFRS standards, amendments and interpretations not adopted
The IASB and IFRIC have issued additional standards and amendments which are effective for periods starting after the date of these financial statements. The following standards and amendments have not yet been adopted by the Group:
-- Amendments to IFRS 16 - Covid-19 Related Rent Concessions (effective for annual periods beginning on or after 1st June 2020)
-- Annual Improvements to IFRS Standards 2018-2000 Cycle (effective for annual periods beginning on or after 1st January 2022)
-- Amendments to IFRS 3 - Reference to the Conceptual Framework (effective for annual periods beginning on or after 1st January 2022)
4. Accounting estimates and judgements
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these unaudited consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited consolidated financial statements as at and for the year ended 30th April 2020.
The tax charge in the period is based on management's estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period, and the impact of any disallowed costs.
5. Operating Segments
Products and services from which reportable segments derive their revenues
In accordance with the requirements of IFRS 8 "Operating Segments" the Group's reportable segments based on information reported to the Group's Board of Directors for the purposes of resource allocation and assessment of segment performance are as follows:
-- Mechanical Engineering - casting, machining and general engineering -- Refractory Engineering - powder manufacture and mineral processing
Information regarding the Group's operating segments is reported in the following tables.
Segment Revenue
Mechanical Engineering Refractory Engineering Sub Total Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Half Half Audited Half Half Audited Half Half Audited Year Year Year Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended Ended Ended Ended 31st 31st 30th 31st 31st 30th 31st 31st 30th October October April October October April October October April 2020 2019 2020 2020 2019 2020 2020 2019 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Revenue External sales 43,121 47,244 100,078 19,507 22,846 44,434 62,628 70,090 144,512 Inter-segment sales 9,418 13,085 25,821 4,651 4,757 8,361 14,069 17,842 34,182 Total revenue 52,539 60,329 125,899 24,158 27,603 52,795 76,697 87,932 178,694 Reconciliation to consolidated revenues: Inter-segment sales (14,069) (17,842) (34,182) Consolidated revenue for the period 62,628 70,090 144,512
Segment profits
Mechanical Engineering Refractory Engineering Sub Total Unaudited Unaudited Unaudited Unaudited Half Half Audited Half Half Audited Unaudited Unaudited Year Year Year Year Year Year Half Year Half Year Audited Ended Ended Ended Ended Ended Ended Ended Ended Year Ended 31st 31st 30th 31st 31st 30th 31st October 31st October 30th April October October April October October April 2020 2019 2020 2020 2019 2020 2020 2019 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Profits Segment result including associates 4,587 5,419 8,065 2,309 3,446 7,034 6,896 8,865 15,099 Group administration costs (799) (1,010) (2,175) Group finance and expenses (323) (449) (809) Consolidated profit before tax for the period 5,774 7,406 12,115 Tax (1,289) (1,812) (3,775) Consolidated profit after tax for the period 4,485 5,594 8,340
Segment Assets and Liabilities
Segmental total assets Segmental total liabilities Segmental net assets Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Half Half Audited Half Half Audited Half Half Audited Year Year Year Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended Ended Ended Ended 31st 31st 30th 31st 31st 30th 31st 31st 30th October October April October October April October October April 2020 2019 2020 2020 2019 2020 2020 2019 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Mechanical Engineering 105,602 110,736 95,193 78,068 80,245 72,207 27,534 30,491 22,986 Refractory Engineering 42,239 44,191 41,962 21,643 23,125 22,850 20,596 21,066 19,112 Sub total reportable segment 147,841 154,927 137,155 99,711 103,370 95,057 48,130 51,557 42,098 Goodwin PLC (the Company) net assets 76,944 73,384 83,415 Elimination of Goodwin PLC investments (25,801) (25,301) (25,801) Goodwill 10,071 9,819 9,890 Consolidated total net assets 109,344 109,459 109,602 Segmental property, plant and equipment (PPE) capital expenditure (owned and finance lease assets) Goodwin PLC 4,701 1,456 2,824 Mechanical Engineering 2,489 1,249 2,655 Refractory Engineering 1,069 259 633 8,259 2,964 6,112 6. Geographical segments Half Year Ended 31st October Half Year Ended 31st October 2020 2019 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Revenue Operational Non-current PPE capital Revenue Operational Non-current PPE capital net assets assets expenditure net assets assets expenditure GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 UK 17,928 72,558 85,076 6,638 16,836 73,865 80,895 2,623 Rest of Europe 9,598 9,208 3,515 183 10,852 6,990 3,496 80 USA 5,557 - - - 6,787 - - - Pacific Basin 13,267 14,734 8,875 615 16,377 15,464 7,528 122 Rest of World 16,278 12,844 9,571 823 19,238 13,140 7,021 139 Total 62,628 109,344 107,037 8,259 70,090 109,459 98,940 2,964 Year Ended 30th April 2020 Audited Audited Audited Audited Revenue Operational Non-current PPE capital net assets assets expenditure GBP'000 GBP'000 GBP'000 GBP'000 UK 39,609 76,467 84,198 5,148 Rest of Europe 20,004 8,346 3,439 173 USA 12,749 - - - Pacific Basin 34,844 13,513 7,132 225 Rest of
World 37,306 11,276 6,712 566 Total 144,512 109,602 101,481 6,112 7. Revenue
The Group's revenue is derived from contracts with customers. The following tables provide an analysis of revenue by geographical market and by product line.
Mechanical Refractory Engineering Engineering Total GBP'000 GBP'000 GBP'000 Primary Geographical markets Unaudited half year ended 31st October 2020 UK 12,548 5,380 17,928 Rest of Europe 6,677 2,921 9,598 USA 5,444 113 5,557 Pacific Basin 4,698 8,569 13,267 Rest of World 13,754 2,524 16,278 Total 43,121 19,507 62,628 Mechanical Refractory Engineering Engineering Total GBP'000 GBP'000 GBP'000 Primary Geographical markets Unaudited half year ended 31st October 2019 UK 11,584 5,252 16,836 Rest of Europe 7,053 3,799 10,852 USA 6,735 52 6,787 Pacific Basin 6,988 9,389 16,377 Rest of World 14,884 4,354 19,238 Total 47,244 22,846 70,090 Product lines Unaudited half year ended 31st October 2020 Standard products and consumables 4,487 19,507 23,994 Minimum period contracts for goods and services 1,626 - 1,626 Bespoke engineered products - over time 27,306 - 27,306 Bespoke engineered products - point in time 9,702 - 9,702 Total 43,121 19,507 62,628 Unaudited half year ended 31st October 2019 Standard products and consumables 5,131 22,846 27,977 Minimum period contracts for goods and services 2,171 - 2,171 Bespoke engineered products - over time 25,146 - 25,146 Bespoke engineered products - point in time 14,796 - 14,796 Total 47,244 22,846 70,090 8. Dividends
The Directors do not propose the payment of an interim dividend.
Unaudited Unaudited Audited Half Year Half Year Year Ended to to 31st October 31st October 30th April 2020 2019 2020 GBP'000 GBP'000 GBP'000 Equity Dividends Paid: Ordinary dividends paid during the 6,016 - - period in respect of the year ended 30th April 2020 (81.71p per share) Ordinary dividends paid during the period in respect of the year ended 30th April 2019 (96.21p per share) - 6,927 6,927 Total dividends paid during the period 6,016 6,927 6,927 9. Earnings Per Share
The calculation of the basic earnings per ordinary share is based on the number of ordinary shares in issue. The weighted average number of ordinary shares in issue during the six months ended 31st October 2020 was 7,364,087 (31st October 2019 : 7,213,304). The relevant profits attributable to ordinary shareholders were GBP4,171,000, (six months ended 31st October 2019 : GBP5,260,000).
There is a share option scheme in place for the Directors of the Company under the Company's Equity Long Term Incentive Plan (LTIP), based on the Company exceeding a target growth in the total shareholder return of the Company over the period from 1st May 2016 to 30th April 2019. Under the scheme, a maximum of 489,600 share options vested at 1st May 2019 of which 163,200 were exercised during this period and 163,200 during the previous six month period. The total number of shares used as the denominator for the diluted earnings per share is 7,526,719 (half year ended 31st October 201 9: 7,538,727; year ended 30th April 20 20: 7,613,654).
10. Capital Management, Issuance and Repayment of Debt
At 31st October 2020 the capital utilised was GBP135,603,000, as shown below:
Unaudited Unaudited Audited as at as at as at 31st October 31st October 30th April 2020 2019 2020 GBP'000 GBP'000 GBP'000 Cash and cash equivalents (10,915) (9,416) (9,840) Lease liabilities - finance leases (note 14) 1,451 1,684 1,256 Bank loans and committed facilities (note 14) 38,713 31,390 27,010 Bank overdrafts (note 14) 1,872 3,340 391 Deferred consideration - 204 - Net debt 31,121 27,202 18,817 Total equity attributable to equity holders of the parent 104,482 105,015 105,017 Capital 135,603 132,217 123,834 11. Property, Plant and Equipment Unaudited Unaudited Unaudited Unaudited as at as at as at as at 31st October 31st October 31st October 31st October 2020 2020 2020 2020 GBP'000 GBP'000 GBP'000 GBP'000 Owned assets Right-of-use Right-of-use Total assets - assets - formerly formerly finance leases operating leases Net book value at the beginning of the period 69,626 3,805 1,538 74,969 Additions 7,498 761 - 8,259 Disposals (at net book value) (104) - - (104) Depreciation (2,715) (159) (265) (3,139) Exchange adjustment 99 19 29 147 Net book value at the end of the period 74,404 4,426 1,302 80,132 Unaudited Unaudited Unaudited Unaudited as at as at as at as at 31st October 31st October 31st October 31st October 2019 2019 2019 2019 GBP'000 GBP'000 GBP'000 GBP'000 Owned assets Right-of-use Right-of-use Total assets - assets - formerly formerly finance leases operating leases Net book value at the beginning of the period 74,106 - - 74,106 Balance recognised on transition to IFRS 16 - - 1,055 1,055 Additions 2,887 77 929 3,893 Transfer to right-of-use assets - on transition (3,959) 3,959 - - Disposals (at net book value) (77) - - (77)
Depreciation (3,180) (141) (248) (3,569) Exchange adjustment (162) (10) 43 (129) Net book value at the end of the period 69,615 3,885 1,779 75,279 12. Intangible assets Unaudited Unaudited as at as at 31st October 31st October 2020 2019 GBP'000 GBP'000 Net book value at the beginning of the period 24,695 22,354 Additions 564 535 Amortisation (745) (484) Exchange adjustment 256 78 Net book value at the end of the period 24,770 22,483 13. Cash and cash equivalents Unaudited Unaudited Audited as at as at as at 31st October 31st October 30th April 2020 2019 2020 GBP'000 GBP'000 GBP'000 Cash and cash equivalents per balance sheet 10,915 9,416 9,840 Bank overdrafts (1,872) (3,340) (391) Cash and cash equivalents per cash flow statement 9,043 6,076 9,449 14. Interest-bearing liabilities Unaudited Unaudited Audited as at as at as at 31st October 31st October 30th April 2020 2019 2020 GBP'000 GBP'000 GBP'000 Bank overdrafts 1,872 3,340 391 Bank loans and committed facilities 30,749 4,740 12,750 Lease liabilities - formerly finance leases 731 948 992 Lease liabilities - formerly operating leases 309 523 491 Due within one year 33,661 9,551 14,624 Bank loans and committed facilities 7,964 26,650 14,260 Lease liabilities - formerly finance leases 720 736 264 Lease liabilities - formerly operating leases 1,025 1,266 1,075 Due after more than one year 9,709 28,652 15,599 Bank overdrafts 1,872 3,340 391 Bank loans and committed facilities 38,713 31,390 27,010 Lease liabilities - formerly finance leases 1,451 1,684 1,256 Lease liabilities - formerly operating leases 1,334 1,789 1,566 Total 43,370 38,203 30,223 15. Total Financial Assets and Financial Liabilities
The following table sets out the Group's accounting classification of its financial assets and financial liabilities, and their carrying amounts at 31st October 2020. The carrying amount is a reasonable approximation of fair value for all financial assets and financial liabilities.
Total carrying Fair value amount / - hedging Amortised fair value instruments FVTPL cost amount GBP'000 GBP'000 GBP'000 GBP'000 Financial assets measured at fair value Forward exchange contracts used for hedging 1,152 - - 1,152 Other forward exchange contracts - 1,060 - 1,060 1,152 1,060 - 2,212 Financial assets not measured at fair value Cash and cash equivalents - - 10,915 10,915 Contract assets - - 15,685 15,685 Trade receivables and other financial assets - - 24,096 24,096 - - 50,696 50,696 Financial liabilities measured at fair value Forward exchange contracts used for hedging 753 - - 753 Other forward exchange contracts - 732 - 732 753 732 - 1,485 Financial liabilities not measured at fair value Bank overdrafts - - 1,872 1,872 Bank loans - - 38,713 38,713 Finance lease liabilities - - 1,451 1,451 Contract liabilities - - 25,461 25,461 Trade payables and other financial liabilities - - 19,724 19,724 - - 87,221 87,221
The forward exchange contract assets and liabilities fair values in the above table are derived using Level 2 inputs as defined by IFRS 7 as detailed in the paragraph below.
IFRS 7 requires that the classification of financial instruments at fair value be determined by reference to the source of inputs used to derive the fair value. This classification uses the following three-level hierarchy: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).
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