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).
END
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IR MZMMZGKZGGZZ
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December 16, 2020 02:00 ET (07:00 GMT)
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