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GDWN Goodwin Plc

6,140.00
40.00 (0.66%)
17 May 2024 - Closed
Delayed by 15 minutes
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
  40.00 0.66% 6,140.00 6,100.00 6,240.00 6,260.00 6,060.00 6,100.00 3,086 16:35:26
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Engineering Services 185.74M 15.9M 2.1178 28.90 459.59M

Goodwin PLC Half-year Report (3793X)

20/12/2023 7:00am

UK Regulatory


Goodwin (LSE:GDWN)
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TIDMGDWN

RNS Number : 3793X

Goodwin PLC

20 December 2023

GOODWIN PLC

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

for the half year ended 31st October 2023

CHAIRMAN'S STATEMENT

I am pleased to report our half-year results for the first six months ending 31st October 2023. The Group has realised a pre-tax trading profit of GBP11.2 million, marking a notable 23.1% uplift from the previous year's GBP9.1 million. This successful outcome is attributed to an increased revenue of GBP97.6 million. Both of the Group's Divisions have played a significant role in this achievement during the first six months, and we anticipate a continuation of this increased performance for the rest of the financial year, with a current forward order book of GBP266 million.

The Refractory Engineering Division has continued to advance its profitability. Notably, the sales of our internally developed, patent-protected fire extinguishing agent for lithium-ion battery fires, known as AVD, have reached a milestone at the mid-year point, equalling the total sales for the previous financial year.

AVD achieved Underwriters Laboratory (UL) certification for component recognition as an extinguishing agent, and a six-litre fire extinguisher containing AVD received UL8 certification. This has opened up substantial opportunities, particularly in the United States, which we anticipate will emerge as a rapidly expanding market for our product, with sales to the USA already starting to grow at a good pace. There is ever-growing interest and adoption that extends way beyond the automotive sector, encompassing a diverse range of applications worldwide. To support this demand, proactive measures have been taken to expand AVD manufacturing capacity. The Group has acquired a 2.5-acre site with a 5,000 square metre industrial building, conveniently located close to Dupré Minerals L imi t e d's primary manufacturing facility in Staffordshire. The site is ready for immediate use with the planned commissioning date of the new, higher-capacity AVD manufacturing line set for April 2024.

The new Calciner at Hoben International Limited has proved to be approximately 15% more efficient than the original Calciner due to the strategic design modifications that were incorporated into the initial design. This efficiency improvement has translated into enhanced productivity and energy cost savings. Hoben's sales of Soluform concrete bags continue to grow and there is wider adoption amongst some project engineers who are increasingly favouring it as their product of choice.

The Refractory Engineering Division's sales of investment casting powder to the global jewellery casting industry has benefited from the jewellery and brass casting market in China returning to a level of normality and due to the Chinese consumers increasing confidence post COVID.

The Mechanical Engineering D i vision is witnessing the continual progression of activities that was anticipated due to the substantial forward order book. More to do with timing rather than anything else, the Group's cash position has det erior ated in the first six months of the financial year which is due to the increasing levels of working capital that have been accumulating through the increased activity of the Division. However, whilst we have sufficient facility headroom available we expect this position to improve by the financial year end.

There are also a significant number of additional future pro j ects for the Mechanical Engineering Division, for which , at the time of writing, orders have yet to be placed. We anticipate addressing these as they emerge. Reflecting on our active pursuit of major opportunities in the Mechanical Engineering Division over the past three years, it is reassuring to note that none have been lost. However, the slow pace of third party decision making has been a source of frustration. Nevertheless, we are well prepared to capitali s e on these opportunities as they arise, whether at Goodwin Steel Castings Limited , Goodwin International Limited or Easat Radar Systems Limited . In all instances, be it technical performance, proven track record or the fact our proposals offer the best value proposition for our customers, globally, we are confident that the existing businesses will continue delivering improved results once we add on some of these new contracts to the existing business activity.

Keeping one eye on the future, our patent pending polyimide resin production company, Duvelco Limited , remains on track to have its production plant commissioned and operational by June 2024. All the major capital expenditure has been completed with the majority of any spend left being labour to finish off the wiring, pipework and commissioning. All initial chemicals to make up to 30 tonnes of polymer resin are on site, so there should not be any large increases in working capital affecting the Group's future cash position , as it should become self - funding once operational.

After due consideration, from listening to shareholder enquiries at the AGM, we recognise the importance of providing more frequent updates. Considering our Group's diverse and complex operations, we have decided to introduce quarterly trading updates to keep our investors more informed.

The Group's overall net debt stands at GBP54.6 million (31st October 2022: GBP46.1 million) which equates to a gearing ratio of 47.8% which is in line with the Group's forecasts and due to an end in large amounts of capital expenditure and stabilisation of working capital levels, will fall back towards 30% within the next 18 months.

The Board and I want to thank the employees for their continued efforts in pushing the Group performance forward, and wish everyone a very Happy Christmas and a prosperous New Year.

 
 T.J.W. Goodwin 
 Chairman         19 December 2023 
 

MANAGEMENT REPORT

Financial Highlights

 
                                                                Unaudited      Unaudited      Audited 
                                                                Half Year      Half Year   Year ended 
                                                                       to             to 
                                                             31st October   31st October   30th April 
                                                                     2023           2022         2023 
                                                                     GBPm           GBPm         GBPm 
 Consolidated Results 
 Revenue                                                             97.6           89.3        185.7 
 Operating profit                                                    12.5            9.8         20.3 
 Trading profit *                                                    11.2            9.1         18.9 
 Unrealised gain on 10 year interest rate swap derivative             0.9            3.1          3.2 
 Profit before tax                                                   12.1           12.2         22.1 
 Profit after tax                                                     9.2            9.1         16.5 
 
 Capital additions 
 Property, plant and equipment (PPE) owned                            7.0            7.8         21.2 
 Property, plant and equipment (PPE) right-of-use assets              0.1            1.1          1.5 
 Operating lease assets (former IAS 17 definition)                     --          (0.2)        (0.4) 
 Intangible assets                                                    0.4            0.3          1.8 
----------------------------------------------------------  -------------  -------------  ----------- 
 Capital expenditure for KPI purposes                                 7.5            9.0         24.1 
----------------------------------------------------------  -------------  -------------  ----------- 
 
                                                                   115.66 
 Earnings per share - basic                                             p       113.93 p     206.81 p 
                                                                   115.66 
 Earnings per share - diluted                                           p       113.93 p     206.81 p 
 

* Trading profit is defined as profit before taxation less the movement in fair value of interest rate swap.

Revenue

Revenue of GBP97.6 million for the six months represents a 9.3% increase from the GBP89.3 million achieved for the same six month period last year .

Trading profit

Trading profit for the six months of GBP11.2 million represents a 23.1% increase from the GBP9.1 million achieved for the same six month period last year.

Key performance indicators

 
                                                            Unaudited   Unaudited       Audited 
                                                            Half Year   Half Year    Year ended 
                                                              to 31st     to 31st    30th April 
                                                              October     October 
                                                                 2023        2022          2023 
 Trading profit (GBP'm)                                          11.2         9.1          18.9 
 Post tax profit + depreciation + amortisation (GBP'm) *         12.7        10.5          22.7 
 
 Gross profit % of revenue                                     26.7 %      26.5 %        24.9 % 
 Trading profit % of revenue                                   11.5 %      10.2 %        10.2 % 
 Gearing %                                                     47.8 %      40.9 %        26.3 % 
 
 Non cash charges (GBP'm) 
 Depreciation                                                     3.9         3.6           7.5 
 Amortisation and impairment                                      0.7         0.6           1.3 
                                                           ----------  ----------  ------------ 
 Total non cash charges                                           4.6         4.2           8.8 
                                                           ----------  ----------  ------------ 
 

Alternative performance measures mentioned above are defined on page 104 of the Group Annual Accounts to 30th April 2023.

* The figure for 31st October 2022 has been restated to show the interest rate swap adjustment net of tax, to be consistent with the other periods.

2023/24 Outlook

The Group's increased levels of activity that have occurred in the first half of the year are expected to continue throughout the second half of the year, generating a similar level of profitability as was achieved in the first six months.

Within the Mechanical Engineering Division, whilst it is unlikely to immediately create activity within the factory before the year end, we remain confident that over the next six months Easat Radar Systems will be announced as the successful bidder of a number of contracts that will create a level of workload for the company that will allow it to generate respectable profits for the next two to three years whilst continuing to compete for more projects that are being tendered. The reason the Board remains confident is due to the fact that the vast majority of the opportunities that we referenced in a previous statement ("an additional GBP47 million of firm buy radar systems were quoted") have either been delayed or re-tendered due to the specification of the requirement changing, typically to our advantage due to the company now being able to offer the full suite of surveillance systems.

If a few of the notable contracts that are expected to arrive over the coming months do not get delayed again for the Mechanical Engineering Division, the forward workload will be further increased by the year end.

In the second half of the year , we will also see the completion of the 7,690 square metre new building in India that will substantially increase the manufacturing capacity of both the investment powders and the submersible slurry pump businesses. These increases will not only enable the Group to benefit from the growing domestic market over the next decade but will also support the growth of the other submersible pump companies in the Group, which for the last three years have grown at an average compound rate of 18% per year, and is expected to continue. Currently the pump companies represent approximately 12% of Group turnover.

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 risk s and uncertainties affecting the Group. We would refer you to pages 13 to 14 of the Group Annual Accounts to 30th April 2023 which describe the principal risks and uncertainties, and to note 28 , starting on page 81 , which describes in detail the key financial risks and uncertainties affect ing 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.

The Group has mitigated the impact of rising interest rates by fixing the effective base rate at less than 1% for a notional GBP30 million of debt until August 2031.

Report on Expected Developments

This report describes the expected development of the Group during the year ended 30th April 2024 . 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 by building on the increase in activity seen in the second half of the previous financial year and, with the current order book levels where they are, this should continue and improve in the second half of this financial year and into the next financial year. The Group has continued with its value added activities and traded throughout this period and previous periods with minimal disruptions to manufacturing activities from the challenges that have been seen over the last few years that have affected many other businesses. As at 31st October 2023, the Group's net debt stood at GBP54.6 m illion (31st October 2022 GBP46.1 m illion ) as set out in note 16 of these accounts. Whilst the net debt levels are higher than those recorded at April 2023 and October 2022 , they are in line with the Group's forecasts and are expected to reduce over time, as working capital unwinds, along with lower forecasted capital expenditure . Given the abovementioned, the Directors, after having reviewed the Group projections and possible challenges that may lie ahead, do not see an issue with the continued ability of the Group to meet its financial commitments as they fall due for at least twelve months from the date of these accounts and have drawn up these accounts to reflect that 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 United Kingdom; and

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 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         19 December 2023 
 

Condensed Consolidated Statement of Profit or Loss

for the half year to 31st October 2023

 
                                                                               Unaudited      Unaudited      Audited 
                                                                               Half Year      Half Year   Year ended 
                                                                                      to             to 
                                                                            31st October   31st October   30th April 
                                                                                    2023           2022         2023 
                                                                                 GBP'000        GBP'000      GBP'000 
 Continuing operations 
 Revenue                                                                          97,584         89,335      185,742 
 Cost of sales                                                                  (71,493)       (65,645)    (139,521) 
                                                                           -------------  -------------  ----------- 
 Gross profit                                                                     26,091         23,690       46,221 
 Distribution expenses                                                           (1,700)        (2,056)      (3,741) 
 Administrative expenses                                                        (11,872)       (11,801)     (22,167) 
                                                                           -------------  -------------  ----------- 
 Operating profi t                                                                12,519          9,833       20,313 
 Finance costs (net)                                                             (1,351)          (761)      (1,438) 
 Share of profit of associate company                                                 34             33           65 
                                                                           -------------  -------------  ----------- 
 Profit before taxation and movement in fair value of interest rate swap          11,202          9,105       18,940 
 Unrealised gain on 10 year interest rate swap derivative                            938          3,132        3,189 
                                                                           -------------  -------------  ----------- 
 Profit before taxation                                                           12,140         12,237       22,129 
 Tax on profit                                                                   (2,971)        (3,157)      (5,616) 
                                                                           -------------  -------------  ----------- 
 Profit after taxation                                                             9,169          9,080       16,513 
                                                                           -------------  -------------  ----------- 
 
 Attributable to: 
 Equity holders of the parent                                                      8,729          8,761       15,904 
 Non -controlling interests (NCI)                                                    440            319          609 
                                                                           -------------  -------------  ----------- 
 Profit for the period                                                             9,169          9,080       16,513 
                                                                           -------------  -------------  ----------- 
 
                                                                                  115.66 
 Basic earnings per ordinary share (note 13 )                                          p       113.93 p     206.81 p 
                                                                           -------------  -------------  ----------- 
 
                                                                                  115.66 
 Diluted earnings per ordinary share (note 13 )                                        p       113.93 p     206.81 p 
                                                                           -------------  -------------  ----------- 
 

Condensed Consolidated Statement of Comprehensive Income

for the half year to 31st October 2023

 
                                                                               Unaudited        Unaudited      Audited 
                                                                               Half Year        Half Year   Year ended 
                                                                                      to               to 
                                                                            31st October     31st October   30th April 
                                                                                    2023             2022         2023 
                                                                                 GBP'000          GBP'000      GBP'000 
 
 Profit for the period                                                             9,169            9,080       16,513 
 
 Other comprehensive expense 
 Items that are or may be reclassified subsequently to the income 
 statements 
 Foreign exchange translation differences                                          (218)            (167)      (1,412) 
 Effective portion of changes in fair value of cash flow hedges                  (3,243)          (4,958)        3,741 
 Ineffective portion of changes in fair value of cash flow hedges                  (177)             (92)          518 
 Change in fair value of cash flow hedges transferred to profit or loss            (242)              949        1,308 
 Effective portion of changes in fair value of cost of hedging                     1,466               96      (1,447) 
 Ineffective portion of changes in fair value of cost of hedging                       9               --         (76) 
 Change in fair value of cost of hedging transferred to profit or loss                37             (15)           33 
 Tax on items that are or may be reclassified subsequently to profit or 
  loss                                                                               495              950        (919) 
                                                                           -------------  ---------------  ----------- 
 Other comprehensive expense for the period, net of income tax                   (1,873)          (3,237)        1,746 
                                                                           -------------  ---------------  ----------- 
 Total comprehensive income for the period                                         7,296            5,843       18,259 
                                                                           -------------  ---------------  ----------- 
 
 Attributable to: 
 Equity holder of the parent                                                       6,950            5,633       17,726 
 Non-controlling interests                                                           346              210          533 
                                                                           -------------  ---------------  ----------- 
                                                                                   7,296            5,843       18,259 
                                                                           -------------  ---------------  ----------- 
 

Condensed Consolidated Statement of Changes in Equity

for the half year to 31st October 2023

 
                          Share   Translation   Share-based      Cash   Cost of   Retained          Total   Non-controlling     Total 
                        capital       reserve      payments      flow   hedging   earnings   attributable         interests    equity 
                                                    reserve     hedge   reserve                 to equity 
                                                              reserve                             holders 
                                                                                                   of the 
                                                                                                   parent 
                        GBP'000       GBP'000       GBP'000   GBP'000   GBP'000    GBP'000        GBP'000           GBP'000   GBP'000 
  Half Y ear to 31st 
  October 2022 
   (Unaudited) 
 Balance at 1st May 
  2022                      769           463         5,244   (2,746)       140    111,440        115,310             4,433   119,743 
 Total comprehensive 
  income: 
 Profit                      --            --            --        --        --      8,761          8,761               319     9,080 
 Other comprehensive 
  income: 
 Foreign exchange 
  translation 
  differences                --          (81)            --        --        --         --           (81)              (86)     (167) 
 Net movements on 
  cash 
  flow hedges                --            --            --   (3,114)        67         --        (3,047)              (23)   (3,070) 
                       --------  ------------  ------------  --------  --------  ---------  -------------  ----------------  -------- 
 Total comprehensive 
  income / expense 
  for 
  the period                 --          (81)            --   (3,114)        67      8,761          5,633               210     5,843 
 Dividends paid              --            --            --        --        --    (4,145)        (4,145)             (380)   (4,525) 
 Dividends declared *        --            --            --        --        --    (4,144)        (4,144)                --   (4,144) 
                       --------  ------------  ------------  --------  --------  ---------  -------------  ----------------  -------- 
 Balance at 31st 
  October 
  2022                      769           382         5,244   (5,860)       207    111,912        112,654             4,263   116,917 
                       --------  ------------  ------------  --------  --------  ---------  -------------  ----------------  -------- 
 

* The statement of changes in equity has been restated to reflect the dividends declared .

Condensed Consolidated Statement of C hanges in Equity

for the half year to 31st October 2023

 
                              Share   Translation   Share-based      Cash   Cost of   Retained          Total   Non-controlling     Total 
                            capital       reserve      payments      flow   hedging   earnings   attributable         interests    equity 
                                                        reserve     hedge   reserve                 to equity 
                                                                  reserve                             holders 
                                                                                                       of the 
                                                                                                       parent 
                            GBP'000       GBP'000       GBP'000   GBP'000   GBP'000    GBP'000        GBP'000           GBP'000   GBP'000 
  Year ended 3 0th April 
  2023 
   (Audited) 
 Balance at 1st May 2022        769           463         5,244   (2,746)       140    111,440        115,310             4,433   119,743 
 Total comprehensive 
  income: 
 Profit                          --            --            --        --        --     15,904         15,904               609    16,513 
 Other comprehensive 
  income: 
 Foreign exchange 
  translation 
  differences                    --       (1,312)            --        --        --         --        (1,312)             (100)   (1,412) 
 Net movements on cash 
  flow hedges                    --            --            --     4,250   (1,116)         --          3,134                24     3,158 
                           --------  ------------  ------------  --------  --------  ---------  -------------  ----------------  -------- 
 Total comprehensive 
  income / expense for 
  the period                     --       (1,312)            --     4,250   (1,116)     15,904         17,726               533    18,259 
 Dividends paid                  --            --            --        --        --    (8,289)        (8,289)             (556)   (8,845) 
 Balance at 3 0th April 
  2023                          769         (849)         5,244     1,504     (976)    119,055        124,747             4,410   129,157 
                           --------  ------------  ------------  --------  --------  ---------  -------------  ----------------  -------- 
 

Condensed Consolidated Balance Sheet

 
                                           Unaudited    Unaudited      Audited 
                                          as at 31st   as at 31st   as at 30th 
                                             October      October   April 2023 
                                                2023         2022 
                                             GBP'000      GBP'000      GBP'000 
                                                         Restated 
                                                                * 
 Non-current assets 
 Property, plant and equipment                99,623       92,104      101,243 
 Right-of-use assets                          11,344        6,956        6,763 
 Investment in associates                        978          912          964 
 Intangible assets                            25,126       24,380       25,448 
 Derivative financial assets                   5,644        5,446        5,932 
                                             142,715      129,798      140,350 
 --------------------------------------  -----------  -----------  ----------- 
 Current assets 
 Inventories                                  48,835       43,323       47,955 
 Contract assets                              19,808       17,811       16,257 
 Trade and other financial assets             36,737       30,341       29,757 
 Corporation tax receivable                      418        1,339        1,337 
 Other receivables                             5,796        5,984        4,775 
 Deferred tax asset                              119           59           57 
 Derivative financial assets                   1,577        2,105        2,684 
 Cash and cash equivalents                    13,404        8,604       19,661 
                                         -----------  -----------  ----------- 
                                             126,694      109,566      122,483 
 --------------------------------------  -----------  -----------  ----------- 
 Total assets                                269,409      239,364      262,833 
                                         -----------  -----------  ----------- 
 Current liabilities 
 Bank overdrafts and interest-bearing 
  liabilities                                 13,942        3,318        6,729 
 Contract liabilities * *                     31,412       19,462       32,747 
 Trade payables and other financial 
  liabilities                                 23,065       18,722       25,164 
 Other payables                                6,873        6,266        6,601 
 Dividends payable                             4,318        4,144           -- 
 Derivative financial liabilities              2,121        4,984        2,383 
 Liabilities for current tax                   2,009        1,194          921 
 Provisions for liabilities and 
  charges                                        229          206          266 
                                         -----------  -----------  ----------- 
                                              83,969       58,296       74,811 
 --------------------------------------  -----------  -----------  ----------- 
 Non-current liabilities 
 Interest-bearing liabilities                 55,357       53,042       47,256 
 Derivative financial liabilities                108        2,326           -- 
 Provisions for liabilities and 
  charges                                        304          333          246 
 Deferred tax liabilities                     10,983        8,450       11,363 
                                         -----------  -----------  ----------- 
                                              66,752       64,151       58,865 
 --------------------------------------  -----------  -----------  ----------- 
 Total liabilities                           150,721      122,447      133,676 
                                         -----------  -----------  ----------- 
 Net assets                                  118,688      116,917      129,157 
                                         -----------  -----------  ----------- 
 Equity attributable to equity 
  holders of the parent 
 Share capital                                   751          769          769 
 Translation reserve                           (957)          382        (849) 
 Share-based payments reserve                  5,244        5,244        5,244 
 Cash flow hedge reserve                     (1,298)      (5,860)        1,504 
 Cost of hedging reserve                         155          207        (976) 
 Retained earnings                           110,297      111,912      119,055 
                                         -----------  -----------  ----------- 
 Total equity attributable to equity 
  holders of the parent                      114,192      112,654      124,747 
 Non-controlling interests                     4,496        4,263        4,410 
                                         -----------  -----------  ----------- 
 Total equity                                118,688      116,917      129,157 
                                         -----------  -----------  ----------- 
 

* The balance sheet has been restated to reflect the dividends payable at 31st October 2022.

** Contract liabilities include advance payments from customers of GBP30,462,000 (31(st) October 2022: GBP18,627,000), with the balance of GBP950,000 (31(st) October 2022: GBP835,000) being costs accrued for contracts.

Condensed Consolidated Statement of Cash Flows

for the half year ended 31st October 2023

 
                                                                                 Unaudited      Unaudited      Audited 
                                                                              Half Year to   Half Year to   Year ended 
                                                                              31st October   31st October   30th April 
                                                                                      2023           2022         2023 
                                                                                   GBP'000        GBP'000      GBP'000 
 Cash flow from operating activities 
 Profit from continuing operations after tax                                         9,169          9,080       16,513 
 Adjustments for: 
 Depreciation of property, plant and equipment                                       3,153          2,965        6,272 
 Depreciation of right-of-use assets                                                   717            642        1,198 
 Amortisation and impairment of intangible assets                                      654            610        1,257 
 Financ e costs (net)                                                                1,351            761        1,438 
 Foreign exchange losses / (gains)                                                     267        (1,965)        1,213 
 Loss / (p rofit ) on sale of property, plant and equipment                           (27)              7          134 
 Unrealised gain on 10 year interest rate swap derivative                            (938)        (3,132)      (3,189) 
 Share of profit of associate companies                                               (34)           (33)         (65) 
 UK tax incentive credit on research and development                                    --             --        (610) 
 Tax expense                                                                         2,971          3,157        5,616 
                                                                             -------------  -------------  ----------- 
 Cash generated from operating activities before changes in working capital 
  and provisions                                                                    17,283         12,092       29,777 
 Increase in inventories                                                             (980)        (3,112)      (8,377) 
 In crease in contract assets                                                      (3,572)        (5,461)      (3,804) 
 Increase in trade and other receivables                                           (8,213)        (5,426)      (5,304) 
 (Decrease) / increase in contract liabilities                                     (1,325)          4,720       17,954 
 (Decrease) / increase in trade and other payables                                 (1,364)        (2,488)        4,072 
 Cash inflow from operations                                                         1,829            325       34,318 
 Interest paid                                                                     (1,629)          (763)      (1,940) 
 Corporation tax paid                                                                (885)        (2,196)      (3,251) 
                                                                             -------------  -------------  ----------- 
 Net cash from operating activities                                                  (685)        (2,634)       29,127 
                                                                             -------------  -------------  ----------- 
 
 Cash flows from investing activities 
 Proceeds from sale of property, plant and equipment                                   196             39          218 
 Acquisition of property, plant and equipment                                      (2,385)        (6,796)     (18,871) 
 Acquisition of intangible assets                                                     (91)          (143)        (675) 
 Development expenditure capitalised                                                 (307)          (166)      (1,196) 
                                                                             -------------  -------------  ----------- 
 Net cash outflow from investing activities                                        (2,587)        (7,066)     (20,524) 
                                                                             -------------  -------------  ----------- 
 
 Cash flows from financing activities 
 Buy back of shares                                                                (8,869)             --           -- 
 Payment of capital element of lease obligations                                   (1,325)          (882)      (1,874) 
 Dividends paid                                                                    (4,318)        (4,145)      (8,289) 
 Dividends paid to non-controlling interests                                         (260)          (380)        (556) 
 Proceeds from new loans and committed facilities                                   12,500         13,000       11,500 
 Repayment of loans and committed facilities                                         (613)          (868)      (1,181) 
 Change in bank overdrafts                                                           (119)             --          119 
                                                                             -------------  -------------  ----------- 
 Net cash (outflow) / inflow from financing activities                             (3,004)          6,725        (281) 
                                                                             -------------  -------------  ----------- 
 
 Net (d ecrease ) / increase in cash and cash equivalents                          (6,276)        (2,975)        8,322 
 
 Cash and cash equivalents at beginning of year                                     19,661         11,651       11,651 
 Effect of exchange rate fluctuations on cash held                                      19           (72)        (312) 
                                                                             -------------  -------------  ----------- 
 Closing cash and cash equivalents                                                  13,404          8,604       19,661 
                                                                             -------------  -------------  ----------- 
 
   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 2023 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 2023 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 United Kingdom. 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 2023 .

The comparative figures for the financial year ended 30th April 2023 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 19 December 2023 .

   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 2023 , except where accounting standards have been amended and the Group has adopted these amendments during the current period.

The following amendments , which have bec o me effective for the current reporting period, and therefore have been adopted by the Group , are not expected to have a significant impact on the Group's financial statements .

-- Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies - (effective for periods commencing on or after 1 st January 2023).

-- Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 'Definition of Accounting Estimates' - (effective for periods commencing on or after 1 st January 2023).

-- Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction - (effective for periods commencing on or after 1 st January 2023).

-- Amendments to IAS 12 Income Taxes: International Tax Reform - Pillar Two Model Rules (effective for periods commencing on or after 1st January 2023).

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 amendments have not yet been adopted by the Group:

-- Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current - Deferral of Effective Date - (effective for periods commencing on or after 1 st January 202 4 ).

-- Amendments to IAS 1 Presentation of Financial Statements: Non-current liabilities with covenants - (effective for periods commencing on or after 1 st January 202 4 ).

The Group does not expect the above amendments to have a material impact on profit, earnings per share and net assets in future periods.

   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 2023 .

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 

For reporting to the chief operating decision maker, the Board of Directors, the Group is organised into two reportable operating segments, according to the different products and services provided by the Mechanical Engineering and Refractory Engineering Divisions. Segment assets and liabilities include items directly attributable to segments as well as group centre balances, which 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.

In previous years, the segmental analysis of net assets, capital expenditure and depreciation was based on the legal structure of the Group. As the analysis from 30(th) April 2023 has been prepared on the basis of the operational structure of the Group, the comparative figures for 31(st) October 2022 have been restated accordingly.

   6 .    Operating segment revenue 
 
                                                Unaudited                                              Unaudited                                               Audited 
                                            Half Year to 31st                                  Half Year to 31st October                                Year ended 30th April 
                                               October 2023                                               2022                                                   2023 
                              Mechanical         Refractory            Total         Mechanical         Refractory            Total         Mechanical         Refractory            Total 
                                 GBP'000            GBP'000          GBP'000            GBP'000            GBP'000          GBP'000            GBP'000            GBP'000          GBP'000 
       Total revenue              80,549             38,657          119,206             70,276             40,039          110,315            147,538             80,340          227,878 
       Inter-segment 
        revenue                 (14,723)            (6,899)         (21,622)           (12,226)            (8,754)         (20,980)           (23,771)           (18,365)         (42,136) 
                       -----------------  -----------------  ---------------  -----------------  -----------------  ---------------  -----------------  -----------------  --------------- 
       External 
        revenue                   65,826             31,758           97,584             58,050             31,285           89,335            123,767             61,975          185,742 
                       -----------------  -----------------  ---------------  -----------------  -----------------  ---------------  -----------------  -----------------  --------------- 
 
   7 .    Operating segment profit 
 
                                          Unaudited                   Unaudited                    Audited 
                                      Half year to 31st           Half year to 31st            Year ended 30th 
                                         October 2023                October 2022                 April 2023 
                                       %         GBP'000           %         GBP'000           %         GBP'000 
       Mechanical 
        Engineering                   52           7,719          47           5,809          49          12,171 
       Refractory 
        Engineering                   48           7,146          53           6,525          51          12,772 
                              ----------  --------------  ----------  --------------  ----------  -------------- 
       Segment operating 
        profit                       100          14,865         100          12,334         100          24,943 
       Group centre                              (2,346)                     (2,501)                     (4,630) 
                                          --------------              --------------              -------------- 
       Group operating 
        profit                                    12,519                       9,833                      20,313 
       Group finance costs 
        (net)                                    (1,351)                       (761)                     (1,438) 
       Share of profit of 
        Refractory associate 
        company                                       34                          33                          65 
                                          --------------              --------------              -------------- 
       Profit before 
        taxation 
        and movement in fair 
        value of interest 
        rate swap                                 11,202                       9,105                      18,940 
                                          --------------              --------------              -------------- 
       Unrealised gain on 
        10 Year Interest 
        rate swap                                    938                       3,132                       3,189 
                                          --------------              --------------              -------------- 
       Profit before tax                          12,140                      12,237                      22,129 
       Tax                                       (2,971)                     (3,157)                     (5,616) 
                                          --------------              --------------              -------------- 
       Profit after tax                            9,169                       9,080                      16,513 
                                          --------------              --------------              -------------- 
 

8 . Operating segment assets and liabilities

 
                                                       Unaudited                                                               Unaudited 
                                            Half Year to 31st October 2023                                            Half Year to 31 October 2022 
                            Mechanical         Refractory           Group             Total         Mechanical         Refractory           Group              Total 
                                                                   Centre                                                                  Centre 
                               GBP'000            GBP'000         GBP'000           GBP'000            GBP'000            GBP'000         GBP'000            GBP'000 
 Net assets 
       Total assets            187,155             61,843          20,411           269,409            159,760             60,908          18,696            239,364 
       Total 
        liabilities          (121,959)           (23,149)         (5,613)         (150,721)           (98,900)           (18,013)         (5,534)          (122,447) 
                     -----------------  -----------------  --------------  ----------------  -----------------  -----------------  --------------  ----------------- 
       Total                    65,196             38,694          14,798           118,688             60,860             42,895          13,162            116,917 
                     -----------------  -----------------  --------------  ----------------  -----------------  -----------------  --------------  ----------------- 
 
                                                                                                                                A udited 
                                                                                                                       Year ended 3 0 April 2023 
                                                                                                                                            Group 
                                                                                                    Mechanical         Refractory          Centre         Mechanical 
       Net assets 
       Total assets                                                                                    175,023             69,166          18,644            262,833 
       Total 
        liabilities                                                                                  (103,234)           (27,621)         (2,821)          (133,676) 
                                                                                             -----------------  -----------------  --------------  ----------------- 
       Total                                                                                            71,789             41,545          15,823            129,157 
                                                                                             -----------------  -----------------  --------------  ----------------- 
 
 
   9 .    Operating segment capital expenditure, depreciation and amortisation 
 
                                                        Unaudited                                                               Unaudited 
                                                Half Year to 31st October                                               Half Year to 31st October 
                                                           2023                                                                    2022 
                             Mechanical         Refractory           Group              Total         Mechanical         Refractory           Group           Total 
                                                                    centre                                                                   centre 
                                GBP'000            GBP'000         GBP'000            GBP'000            GBP'000            GBP'000         GBP'000         GBP'000 
       Capital 
       expenditure 
       on: 
       Property, 
        plant and 
        equipment                 5,420              1,019             494              6,933              5,567              2,144             115           7,826 
       Right-of-use 
        assets                       --                 34              34                 68                976                 66              62           1,104 
       Intangible 
        assets                      381                 17              --                398                208                 45               9             262 
                      -----------------  -----------------  --------------  -----------------  -----------------  -----------------  --------------  -------------- 
       Total capital 
        expenditure               5,801              1,070             528              7,399              6,751              2,255             186           9,192 
                      -----------------  -----------------  --------------  -----------------  -----------------  -----------------  --------------  -------------- 
 
       Depreciation               2,445                858             567              3,870              2,338                761             508           3,607 
       Amortisation                 225                408              21                654                221                359              30             610 
       Total                      2,670              1,266             588              4,524              2,559              1,120             538           4,217 
                      -----------------  -----------------  --------------  -----------------  -----------------  -----------------  --------------  -------------- 
                                                                                                                       Audited 
                                                                                                              Year ended 30th April 2023 
                                                                                   Mechanical         Refractory              Group                           Total 
                                                                                                                             centre 
                                                                                      GBP'000            GBP'000            GBP'000                         GBP'000 
       Capital 
       expenditure 
       on 
       Property, 
        plant 
        and 
        equipment                                                                      15,623              4,928                630                          21,181 
       Right-of-use 
        assets                                                                          1,233                 66                220                           1,519 
       Intangible 
        assets                                                                            508              1,305                 11                           1,824 
                                                                            -----------------  -----------------  -----------------  ------------------------------ 
       Total capital 
        expenditure                                                                    17,364              6,299                861                          24,524 
                                                                            -----------------  -----------------  -----------------  ------------------------------ 
 
       Depreciation 
        - property, 
        plant and 
        equipment                                                                       4,872              1,528              1,070                           7,470 
       Amortisation                                                                       446                747                 64                           1,257 
       Total                                                                            5,318              2,275              1,134                           8,727 
                                                                            -----------------  -----------------  -----------------  ------------------------------ 
 
 
          10 .            Geographical segments 
 
                                                   Unaudited                                                               Unaudited 
                                        Half Year to 31st October 2023                                          Half Year to 31st October 2022 
                        Revenue             Net         Non-current             Capital         Revenue             Net         Non-current             Capital 
                                         assets              assets         expenditure                          assets              assets         expenditure 
                        GBP'000         GBP'000             GBP'000             GBP'000         GBP'000         GBP'000             GBP'000             GBP'000 
       UK                34,171          73,302             115,763               5,130          25,108          71,240             102,487               7,957 
       Rest of 
        Europe           10,526           6,530               4,258                 330          13,360           9,096               3,981                 385 
       USA                9,458              --                  --                  --           7,807              --                  --                  -- 
       Pacific 
        Basin            21,865          16,378               6,656                 199          18,349          16,993               7,395                 119 
       Rest of 
        World            21,564          22,478              10,394               1,740          24,711          19,588              10,489                 731 
                 --------------  --------------  ------------------  ------------------  --------------  --------------  ------------------  ------------------ 
       Total             97,584         118,688             137,071               7,399          89,335         116,917             124,352               9,192 
                 --------------  --------------  ------------------  ------------------  --------------  --------------  ------------------  ------------------ 
 
 
                                                              A udit e d 
                                                     Y ear ended 3 0th April 2023 
                                    Revenue         Net assets         Non-current          Capital 
                                                                            assets          expendi 
                                                                                              t ure 
                                    GBP'000            GBP'000             GBP'000          GBP'000 
       UK                            55,867             82,669             114,235           21,533 
       Rest of Europe                28,367             10,636               4,224              790 
       USA                           19,854                 --                  --               -- 
       Pacific Basin                 34,725             15,982               7,029              330 
       Rest of Wo r ld               46,929             19,870               8,930            1,871 
                             --------------  -----------------  ------------------  --------------- 
       Total                        185,742            129,157             134,418           24,524 
                             --------------  -----------------  ------------------  --------------- 
 

11 . 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.

 
                                               Unaudited                                             Unaudited                                              Audited 
                                           Half Year to 31st                                     Half Year to 31st                                   Year ended 30th April 
                                              October 2023                                          October 2022                                              2023 
                             Mechanical         Refractory           Total         Mechanical         Refractory           Total         Mechanical         Refractory           Total 
                                GBP'000            GBP'000         GBP'000            GBP'000            GBP'000         GBP'000            GBP'000            GBP'000         GBP'000 
       Primary 
       geographical 
       markets 
       UK                        25,594              8,577          34,171             17,916              7,193          25,109             41,112             14,755          55,867 
       Rest of 
        Europe                    6,478              4,048          10,526              9,322              4,038          13,360             21,269              7,098          28,367 
       USA                        9,069                389           9,458              7,400                407           7,807             19,141                713          19,854 
       Pacific Basin             10,082             11,783          21,865              5,885             12,464          18,349             12,253             22,472          34,725 
       Rest of World             14,603              6,961          21,564             17,527              7,183          24,710             29,992             16,937          46,929 
                      -----------------  -----------------  --------------  -----------------  -----------------  --------------  -----------------  -----------------  -------------- 
       Total                     65,826             31,758          97,584             58,050             31,285          89,335            123,767             61,975         185,742 
                      -----------------  -----------------  --------------  -----------------  -----------------  --------------  -----------------  -----------------  -------------- 
 
       Product lines 
       Standard 
        products and 
        consumables               7,043             31,758          38,801              7,222             31,285          38,507             13,767             61,975          75,742 
       Bespoke 
        engineered 
        products 
        - point in 
        time                      8,377                 --           8,377             17,468                 --          17,468             30,002                 --          30,002 
                      -----------------  -----------------  --------------  -----------------  -----------------  --------------  -----------------  -----------------  -------------- 
       Total point 
        in time 
        revenue                  15,420             31,758          47,178             24,690             31,285          55,975             43,769             61,975         105,744 
                      -----------------  -----------------  --------------  -----------------  -----------------  --------------  -----------------  -----------------  -------------- 
       Minimum 
        period 
        contracts 
        for goods 
        and services              2,840                 --           2,840              2,252                 --           2,252              4,335                 --           4,335 
       Bespoke 
        engineered 
        products 
        - over time              47,566                 --          47,566             31,108                 --          31,108             75,663                 --          75,663 
                      -----------------  -----------------  --------------  -----------------  -----------------  --------------  -----------------  -----------------  -------------- 
       Total over 
        time revenue             50,406                 --          50,406             33,360                 --          33,360             79,998                 --          79,998 
                      -----------------  -----------------  --------------  -----------------  -----------------  --------------  -----------------  -----------------  -------------- 
       Total revenue             65,826             31,758          97,584             58,050             31,285          89,335            123,767             61,975         185,742 
                      -----------------  -----------------  --------------  -----------------  -----------------  --------------  -----------------  -----------------  -------------- 
 

12 . Dividends

The Directors do not propose the payments of an interim dividend.

 
                                                      Unaudited            Unaudited            Audited 
                                                      Half Year            Half Year         Year ended 
                                                             to                   to 
                                                   31st October         31st October         30th April 
                                                           2023                 2022               2023 
                                                        GBP'000              GBP'000            GBP'000 
       Equity dividends paid during the 
        period: 
       Ordinary dividends paid in respect 
        of the year ended 30th April 2023                 4,318                   --                 -- 
       Ordinary dividends paid in respect 
        of the year ended 30th April 2022                    --                4,145              8,289 
                                            -------------------  -------------------  ----------------- 
       Total                                              4,318                4,145              8,289 
                                            -------------------  -------------------  ----------------- 
 

As noted in the Group Annual Accounts to 30th April 2023, the dividend payments for the year ended 30th April 2023 are being paid in two equal instalments, with the second payment due in April 2024.

13 . Earnings per share

 
                                                       Unaudited            Unaudited            Audited 
                                                           as at                as at              as at 
                                                    31st October         31st October         30th April 
                                                            2023                 2022               2023 
                                                                 Number of ordinary shares 
       Ordinary shares in issue 
       Opening balance                                 7,689,600            7,689,600          7,689,600 
       Shares bought back in the period                (180,000)                   --                 -- 
                                             -------------------  -------------------  ----------------- 
       Closing balance                                 7,509,600            7,689,600          7,689,600 
                                             -------------------  -------------------  ----------------- 
 
       Weighted average number of ordinary 
        shares in issue                                7,546,774            7,689,600          7,689,600 
                                             -------------------  -------------------  ----------------- 
 
                                                                          GBP'000 
       Relevant profits attributable to 
        shareholders                                       8,729                8,761             15,904 
                                             -------------------  -------------------  ----------------- 
 

The Company bought back 180,000 of its ordinary shares on 7th June 2023 and cancelled them off the register, following a tender offer to its shareholders.

14 . Property, plant and equipment and intangible assets

 
                                                 Unaudited                                                 Unaudited 
                                         Half Year to 31st October                                 Half Year to 31st October 
                                                    2023                                                      2022 
                             Property,         Right-of-use         Intangible         Property,         Right-of-use         Intangible 
                             plant and               assets             assets         plant and               assets             assets 
                             equipment                                                 equipment 
                               GBP'000              GBP'000            GBP'000           GBP'000              GBP'000            GBP'000 
       Net book 
        value at 
        the 
        beginning of 
        the period             101,243                6,763             25,448            87,594                6,191             24,817 
       Additions                 6,933                   68                398             7,826                1,104                262 
       Disposals (at 
        net 
        book value)              (169)                   --                 --              (46)                   --                 -- 
       Transfers               (5,242)                5,242                 --             (306)                  306                 -- 
       Depreciation            (3,153)                (717)                 --           (2,965)                (642)                 -- 
       Amortisation                 --                   --              (654)                --                   --              (610) 
       Exchange 
        adjustment                  11                 (12)               (66)                 1                  (3)               (89) 
                      ----------------  -------------------  -----------------  ----------------  -------------------  ----------------- 
       Net book 
        value at 
        the end of 
        the period              99,623               11,344             25,126            92,104                6,956             24,380 
                      ----------------  -------------------  -----------------  ----------------  -------------------  ----------------- 
 

The depreciation on right-of-use assets maybe be analysed as follows:

 
                                                            Unaudited         Unaudited 
                                                            Half Year         Half Year 
                                                              to 31st           to 31st 
                                                              October           October 
                                                                 2023              2022 
                                                              GBP'000           GBP'000 
       Finance leases (former IAS 17 definition)                  439               365 
       Operating leases (former IAS 17 definition)                278               277 
                                                     ----------------  ---------------- 
                                                                  717               642 
                                                     ----------------  ---------------- 
 

15 . Interest-bearing liabilities

 
                                                          Unaudited            Unaudited            Audited 
                                                              as at                as at              as at 
                                                       31st October         31st October         30th April 
                                                               2023                 2022               2023 
                                                            GBP'000              GBP'000            GBP'000 
       Bank overdrafts                                           --                   --                119 
       Bank loans - repayable by instalments                  1,072                1,058              1,154 
       Bank loans - rolling credit facilities                10,000                   --              3,500 
       Lease liabilities                                      2,870                2,260              1,956 
                                                -------------------  -------------------  ----------------- 
       Due within one year                                   13,942                3,318              6,729 
                                                -------------------  -------------------  ----------------- 
 
       Bank loans - repayable by instalments                  6,443                7,367              6,985 
       Bank loans - rolling credit facilities                42,000               41,000             36,000 
       Lease liabilities                                      6,914                4,675              4,271 
                                                -------------------  -------------------  ----------------- 
       Due after more than one year                          55,357               53,042             47,256 
                                                -------------------  -------------------  ----------------- 
 
       Bank overdrafts                                           --                   --                119 
       Bank loans - repayable by instalments                  7,515                8,425              8,139 
       Bank loans - rolling credit facilities                52,000               41,000             39,500 
       Lease liabilities                                      9,784                6,935              6,227 
                                                -------------------  -------------------  ----------------- 
       Total                                                 69,299               56,360             53,985 
                                                -------------------  -------------------  ----------------- 
 
       Former IAS 17 analysis of lease 
        liabilities 
       Finance leases                                         8,510                5,306              4,725 
       Operating leases                                       1,274                1,629              1,502 
                                                -------------------  -------------------  ----------------- 
                                                              9,784                6,935              6,227 
                                                -------------------  -------------------  ----------------- 
 
 
          16 .            Capital management 

As at 31st October 2023 the capital utilised was GBP 168,813,000 , as shown below:

 
                                                                    Unaudited            Unaudited            Audited 
                                                                        As at                As at              As at 
                                                                 31st October         31st October         30th April 
                                                                         2023                 2022               2023 
                                                    Note              GBP'000              GBP'000            GBP'000 
       Cash and cash equivalents                                     (13,404)              (8,604)           (19,661) 
       Bank overdrafts                               15                    --                   --                119 
       Bank loans and committed facilities           15                59,515               49,425             47,639 
       Lease liabilities                             15                 9,784                6,935              6,227 
                                                          -------------------  -------------------  ----------------- 
       Net debt in accordance with IFRS 
        16                                                             55,895               47,756             34,324 
       Operating lease debt (former 
        IAS 17 definition)                           15               (1,274)              (1,629)            (1,502) 
                                                          -------------------  -------------------  ----------------- 
       Relevant net debt for KPI purposes                              54,621               46,127             32,822 
       Total equity attributable to 
        equity holders of the parent                                  114,192              112,654            124,747 
                                                          -------------------  -------------------  ----------------- 
       Capital                                                        168,813              158,781            157,569 
                                                          -------------------  -------------------  ----------------- 
 
 

17 . 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 2023 . The carrying amount is a reasonable approximation of fair value for all financial assets and financial liabilities.

 
                                               Fair value          Fair value         Amortised         Total carrying 
                                                  hedging             through              cost               amount / 
                                              instruments          profit and                               fair value 
                                                                         loss                                   amount 
                                                  GBP'000             GBP'000           GBP'000                GBP'000 
       Financial assets measured at 
        fair value 
       Forward exchange contracts 
        used 
        for hedging                                   335                  --                --                    335 
       Other forward exchange 
        contracts                                      --                  19                --                     19 
       Interest rate swap                              --               6,867                --                  6,867 
                                      -------------------  ------------------  ----------------  --------------------- 
                                                      335               6,886                --                  7,221 
                                      -------------------  ------------------  ----------------  --------------------- 
       Financial assets not measured 
        at fair value 
       Cash and cash equivalents                       --                  --            13,404                 13,404 
       Contract assets                                 --                  --            19,808                 19,808 
       Trade receivables and other 
        financial 
        assets                                         --                  --            36,737                 36,737 
       Corporation tax receivable                      --                  --               418                    418 
                                      -------------------  ------------------  ----------------  --------------------- 
                                                       --                  --            70,367                 70,367 
                                      -------------------  ------------------  ----------------  --------------------- 
       Financial liabilities 
       measured 
       at fair value 
       Forward exchange contracts 
        used 
        for hedging                                 1,528                  --                --                  1,528 
       Other forward exchange 
        contracts                                      --                 701                --                    701 
                                      -------------------  ------------------  ----------------  --------------------- 
                                                    1,528                 701                --                  2,229 
                                      -------------------  ------------------  ----------------  --------------------- 
       Financial liabilities not 
       measured 
       at fair value 
       Bank loans                                      --                  --            59,515                 59,515 
       Lease liabilities                               --                  --             9,784                  9,784 
       Contract liabilities                            --                  --            31,412                 31,412 
       Trade payables and other 
        financial 
        liabilities                                    --                  --            23,065                 23,065 
       Corporation tax payable                         --                  --             2,009                  2,009 
                                      -------------------  ------------------  ----------------  --------------------- 
                                                       --                  --           125,785                125,785 
                                      -------------------  ------------------  ----------------  --------------------- 
 

The interest rate SWAP and 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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