TIDMGDWN
RNS Number : 6363Z
Goodwin PLC
18 December 2017
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2017
CHAIRMAN'S STATEMENT
I am pleased to report that the pre-tax profit for the Group for
the first six month period ending 31st October 2017 was GBP6.10
million (2016 : GBP6.05 million), an increase of 1% from a revenue
of GBP61.89 million.
The current workload as at 31st October 2017 stands at GBP84
million, unchanged from 12 months ago. The order input for the
first six months of this financial year is the same as for the same
period last financial year. Due to the persistent low activity in
the oil, gas and mining industries which is now into its third
year, the Group had no alternative than to further reduce the
labour force by 50 since April 2017 and the total number of Group
employees now stands at 1,070.
Due to the further improvement on the refractory engineering
side of our business, we expect to see the Group profitability for
the second half of the year starting to move forward again
especially as compared to the Group figures for the six months to
30th April 2017.
The pre-tax profit for the first half of this financial year
benefitted from a gain of GBP1.61 million that was realised when
Gold Star Powders India sold its one acre of land and factory
facility it purchased in 2003 for GBP110,000. Gold Star Powders has
now moved to the same site as Goodwin Pumps India and currently
rents its building from Goodwin Pumps India who purchased three
acres of land in 2005 for GBP325,000.
Considerable effort and focus on cash flow improvement is being
made and, whilst the cash flow position at the half year is largely
unchanged as compared to 30th April 2017, we expect to see a
significant improvement by 30th April 2018.
Although the oil price is now just over US Dollar 60 per barrel
and the iron ore price is similarly just over US Dollar 60 per
tonne, there is little reason to expect an upturn in the release of
orders for new capacity in these capital equipment needy markets
until 2020. We are, however, not relying on an immediate upturn in
these industries and have been focusing on trying to win business
in nuclear recycling and decommissioning and processing of mining
industry waste materials where our potential customers are
receiving closer scrutiny by environmental agencies.
An example of success here is the receipt in the first half of
this financial year of a US Dollar 7.3 million order for large
machined and fabricated stainless steel castings for the nuclear
fuel decommissioning industry in the USA.
J. W. Goodwin
Chairman 18th December
2017
Management report
Financial Highlights
Unaudited Unaudited Audited
Half Year Half Year Year Ended
to to
31st October 31st October 30th April
2017 2016 2017
GBP'm GBP'm GBP'm
Consolidated Results
Revenue 61.9 69.9 131.6
Operating profit 6.4 6.5 9.9
Profit before tax 6.1 6.0 9.2
Profit after tax 4.4 4.2 6.8
---------------------- ------------- ------------- ------------
Capital Expenditure 4.0 3.2 7.6
---------------------- ------------- ------------- ------------
Earnings per share
(Basic and Diluted) 58.38p 54.53p 84.47p
Turnover
Sales revenue of GBP61,893,000 for the half year represents an
11.4% decrease from the GBP69,889,000 achieved during the same
period last year.
Profit Before Tax
Profit before tax for the six months of GBP6,108,000 is up 1.0%
from the GBP6,047,000 achieved for the same six month period last
year.
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 page 8 of the Group Annual
Accounts to 30th April 2017 which describes the principal risks and
uncertainties, and to note 20 (page 52) 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 2018. 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.
2018/19 Outlook
Despite the continued shortage of work within our foundry, where
we have been taking the opportunity of enhancing our facility and
capacity in this quiet period of activity, we expect the Group
overall to start showing improved profitability and cash flow by
the financial year end 30th April 2018.
This improvement is a feature of a continued expansion of
activity and profitability in the refractory engineering part of
the Group especially in our eight companies that supply consumables
to the jewellery casting industry which, in line with the world
economy overall, is in a period of revival. The performance of
these refractory companies has also been enhanced by the demise of
our major world competitor based in the USA, who was the world
leader 20 years ago. In September 2017 they finally closed their
doors, which has resulted in a substantial surge in order input for
our price-competitive, consistent products that we have developed a
global reputation for supplying.
As mentioned in the year end accounts to 30th April 2017,
excellent progress is being made in India where there is
significant growth in the overall economy and our submersible pump
company and jewellery investment powder company are expected to
achieve record trading results for the year ending 30th April 2018.
The results in our Indian submersible pump company are also
benefitting from sales orders arriving from our newly formed pump
company in South Africa, which we are pleased to report will make
respectable profits and sales in its first full year of
trading.
Going concern
The Group cash flow has deteriorated by a modest GBP333,000
since the start of the new financial year. As stated in previous
half year reports it is not unusual for the Group to see a
significant deteriorating cash flow picture in the first half of
the financial year due to the impact of dividend payments, working
capital movements and our capital expenditure programmes. The
modest deterioration in our cash position to the current half year
end bodes well for the full year end position and supports the
comment already made on projected debt levels within the Chairman's
Statement.
The Group's bank facilities are materially unchanged from those
reported within the full year accounts. We would refer you in
particular to Note 20.b) on page 53 of those accounts where you can
see that our unutilised facilities are significant. Given the
profitability of the Group, the modest gearing levels and the bank
facilities available to it, the Directors have concluded that
drawing up the accounts on a going concern basis is
appropriate.
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).
J. W. Goodwin
Chairman 18th December
2017
Condensed Consolidated Income Statement
for the half year to 31st October 2017
Unaudited Unaudited Audited
Half Year Half Year Year Ended
to to
31st October 31st October 30th April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 61,893 69,889 131,587
Cost of sales (44,758) (51,442) (97,836)
Gross profit 17,135 18,447 33,751
Distribution expenses (1,881) (1,731) (3,486)
Administrative expenses (8,892) (10,210) (20,317)
Operating profit 6,362 6,506 9,948
Financial expenses (419) (560) (873)
Share of profit of associate
companies 165 101 169
Profit before taxation 6,108 6,047 9,244
Tax on profit (1,656) (1,829) (2,487)
Profit after taxation 4,452 4,218 6,757
Attributable to:
Equity holders of the
parent 4,203 3,927 6,082
Non-controlling interests 249 291 675
Profit for the period 4,452 4,218 6,757
Basic and diluted earnings
per ordinary share (Note
7) 58.38p 54.53p 84.47p
Condensed Consolidated Statement of Comprehensive Income
for the half year to 31st October 2017
Unaudited Unaudited Audited
Half Year Half Year Year Ended
to to
31st October 31st October 30th April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Profit for the period 4,452 4,218 6,757
Other comprehensive income
/ (expense)
Items that are or may
be reclassified subsequently
to the income statement
Foreign exchange translation
differences 258 5,796 3,619
Effective portion of changes
in fair value of cash
flow hedges (196) (15,696) (6,526)
Change in fair value of
cash flow hedges transferred
to the income statement 932 (608) 2,142
Tax on items that are
or may be reclassified
subsequently to the income
statement (125) 2,765 738
Other comprehensive income
/ (expense) for the period,
net of income tax 869 (7,743) (27)
Total comprehensive income
/ (expense) for the period 5,321 (3,525) 6,730
Attributable to:
Equity holders of the
parent 5,151 (4,618) 5,654
Non-controlling interests 170 1,093 1,076
5,321 (3,525) 6,730
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2017
Total
attribut-able
Cash to equity
Share-based flow holders
Share Translat-ion payments hedge Retained of the Non-controll-ing Total
capital reserve reserve reserve earnings parent interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Half year
to 31st October,
2017
(Unaudited)
Balance at
1st May, 2017 720 2,154 601 (4,240) 90,201 89,436 4,225 93,661
Total
comprehensive
income:
Profit - - - - 4,203 4,203 249 4,452
Other
comprehensive
income:
Foreign exchange
translation
differences - 194 - - - 194 64 258
Net movements
on cash flow
hedges - - - 754 - 754 (143) 611
Total
comprehensive
income for
the period - 194 - 754 4,203 5,151 170 5,321
Equity-settled
share-based
payment
transactions - - 515 - - 515 - 515
Dividends
paid - - - - (3,137) (3,137) - (3,137)
Balance at
31st October
2017 720 2,348 1,116 (3,486) 91,267 91,965 4,395 96,360
Half year
to 31st October,
2016
(Unaudited)
Balance at
1st May, 2016 720 (1,041) - (594) 87,209 86,294 3,823 90,117
Total
comprehensive
income:
Profit - - - - 3,927 3,927 291 4,218
Other
comprehensive
income:
Foreign exchange
translation
differences - 4,994 - - - 4,994 802 5,796
Net movements
on cash flow
hedges - - - (13,539) - (13,539) - (13,539)
Total
comprehensive
income for
the period - 4,994 - (13,539) 3,927 (4,618) 1,093 (3,525)
Dividends
paid - - - - (3,114) (3,114) (339) (3,453)
Balance at
31st October
2016 720 3,953 - (14,133) 88,022 78,562 4,577 83,139
Total
attribut-able
Cash to equity
Share-based flow holders
Share Translat-ion payments hedge Retained of the Non-controll-ing Total
capital reserve reserve reserve earnings parent interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Year ended
30th April,
2017
Balance at
1st May, 2016 720 (1,041) - (594) 87,209 86,294 3,823 90,117
Total
comprehensive
income:
Profit - - - - 6,082 6,082 675 6,757
Other
comprehensive
income:
Foreign
exchange
translation
differences - 3,218 - - - 3,218 401 3,619
Net movements
on cash flow
hedges - - - (3,646) - (3,646) - (3,646)
Total
comprehensive
income for
the period - 3,218 - (3,646) 6,082 5,654 1,076 6,730
Transactions
with owners
of the Company
recognised
directly in
equity - (23) - 21 (2) 1 (1)
Equity-settled
share-based
payment
transactions - - 601 - - 601 - 601
Dividends
paid - - - - (3,111) (3,111) (675) (3,786)
Balance at
30th April,
2017 720 2,154 601 (4,240) 90,201 89,436 4,225 93,661
Condensed Consolidated Balance sheet
as at 31st October 2017
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 66,792 65,207 65,739
Investment in associates 2,229 2,032 2,045
Intangible assets 18,603 18,584 18,240
87,624 85,823 86,024
Current assets
Inventories 35,473 43,605 37,657
Trade and other receivables 29,688 32,819 26,338
Derivative financial assets 556 1,235 1,756
Cash and cash equivalents 7,813 5,269 5,172
73,530 82,928 70,923
Total assets 161,154 168,751 156,947
Current liabilities
Bank overdrafts 9,737 9,347 6,655
Interest-bearing loans
and borrowings 3,918 3,074 2,887
Trade and other payables 21,962 26,647 22,454
Deferred consideration 500 500 500
Derivative financial liabilities 2,228 13,293 2,492
Liabilities for current
tax 2,043 2,234 1,592
Warranty provision 88 132 90
40,476 55,227 36,670
Non-current liabilities
Interest-bearing loans
and borrowings 21,198 29,571 23,675
Warranty provision 337 296 305
Deferred tax liabilities 2,783 518 2,636
24,318 30,385 26,616
Total liabilities 64,794 85,612 63,286
Net assets 96,360 83,139 93,661
Equity attributable to equity
holders of the parent
Share capital 720 720 720
Translation reserve 2,348 3,953 2,154
Share-based payments reserve 1,116 - 601
Cash flow hedge reserve (3,486) (14,133) (4,240)
Retained earnings 91,267 88,022 90,201
Total equity attributable
to equity holders of the
parent 91,965 78,562 89,436
Non-controlling interests 4,395 4,577 4,225
Total equity 96,360 83,139 93,661
Condensed Consolidated Cash Flow Statement
for the half year ended 31st October 2017
Unaudited Unaudited Audited
Half Year Half Year Year
to 31st to 31st ended
October October 30th
April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Cash flow from operating
activities
Profit from continuing
operations after tax 4,452 4,218 6,757
Adjustments for:
Depreciation 2,644 2,718 5,597
Amortisation of intangible
assets 552 393 938
Financial expenses 419 560 873
(Profit)/loss on sale
of property, plant and
equipment (1,610) (2) 52
Share of profit of associate
companies (165) (101) (169)
Equity-settled share-based
provision 515 - 601
Tax expense 1,656 1,829 2,487
Operating profit before
changes in working capital
and provisions 8,463 9,615 17,136
(Increase) / decrease
in trade and other receivables (3,194) (2,972) 8,025
Decrease / (increase)
in inventories 2,343 (6,167) (1,014)
Decrease in trade and
other payables (excluding
payments on account) (1,020) (5,732) (9,445)
Increase / (decrease)
in payments on account 3,094 (1,207) (5,825)
Cash inflow / (outflow)
from operations 9,686 (6,463) 8,877
Interest paid (383) (469) (802)
Corporation tax paid (1,254) (1,460) (2,675)
Interest element of finance
lease obligations (45) (91) (115)
Net cash from operating
activities 8,004 (8,483) 5,285
Cash flow from investing
activities
Proceeds from sale of
property, plant and equipment 1,811 79 237
Acquisition of intangible
assets (354) (60) (149)
Acquisition of property,
plant and equipment (4,850) (3,218) (7,411)
R&D expenditure capitalised (355) (354) (791)
Net cash outflow from
investing activities (3,748) (3,553) (8,114)
Cash flows from financing
activities
Payment of capital element
of finance lease obligations (429) (466) (930)
Dividends paid (3,137) (3,114) (3,111)
Dividends paid to non-controlling
interests - (339) (675)
Proceeds from loans and
committed facilities - 11,459 5,871
Repayment of loans and
committed facilities (1,023) (21) (44)
Net cash (outflow) / inflow
from financing activities (4,589) 7,519 1,111
Net decrease in cash and
cash equivalents (333) (4,517) (1,718)
Cash and cash equivalents
at beginning of year (1,483) (413) (413)
Effect of exchange rate
fluctuations on cash held (108) 852 648
Closing cash and cash
equivalents (1,924) (4,078) (1,483)
Notes
to the Condensed Consolidated 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 2017 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 2017 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 2017.
The comparative figures for the financial year ended 30th April
2017 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 18th December 2017.
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 2017. The
following standards and amendments became effective and therefore
were adopted by the Group.
-- Annual Improvements to IFRSs - 2014-2016 Cycle - minor
amendments to IFRS 12 (effective for annual periods beginning on or
after 1st January 2017)
-- Amendments to IAS 12 - Recognition of Deferred Tax Assets for
unrealised losses (effective for annual periods beginning on or
after 1st January 2017)
-- Amendments to IAS 7 - Disclosure initiative (effective for
annual periods beginning on or after 1st January 2017)
The Group has considered the impact of these new standards and
interpretations in future periods on profit, earnings per share and
net assets. 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:
-- Annual Improvements to IFRSs - 2014-2016 Cycle - minor
amendments to IFRS 1 and IAS 28 (effective for annual periods
beginning on or after 1st January 2018)
-- Amendments to IFRS 2 - Classification and Measurement of
Share-based Payment Transactions (effective for annual periods
beginning on or after 1st January 2018)
-- Amendments to IFRS 4 - Applying IFRS 9 Financial Instruments
with IFRS 4 Insurance Contracts (effective for annual periods
beginning on or after 1st January 2018)
-- IFRS 9 - Financial Instruments (effective for annual periods
beginning on or after 1st January 2018)
-- IFRS 15 - Revenue from Contracts with Customers (effective
for annual periods beginning on or after 1st January 2018)
-- IFRS 15 - Clarifications (effective for annual periods
beginning on or after 1st January 2018)
-- Amendments to IFRS 40 - Transfers of Investment Property
(effective for annual periods beginning on or after 1st January
2018)
-- IFRIC Interpretation 22 - Foreign Currency Transactions and
Advance Consideration (effective for annual periods beginning on or
after 1st January 2018)
-- IFRS 16 - Leases (Not yet endorsed. IASB effective date 1st January 2019)
-- Amendments to IFRS 2 - Classification and Measurement of
Share-based Payment Transactions (not yet endorsed)
4. Estimates
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 2017.
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. Business Segments
Products and services from which reportable segments derive
their revenues
In accordance with the requirements of IFRS8 "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
below.
Segment Revenue and Profits
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
2017 2016 2017 2017 2016 2017 2017 2016 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External
sales 39,779 50,262 91,335 22,114 19,627 40,252 61,893 69,889 131,587
Inter-segment
sales 10,189 13,910 29,084 4,350 2,988 6,522 14,539 16,898 35,606
Total
revenue 49,968 64,172 120,419 26,464 22,615 46,774 76,432 86,787 167,193
Reconciliation to
consolidated revenues:
Inter-segment
sales (14,539) (16,898) (35,606)
Consolidated revenue
for the period 61,893 69,889 131,587
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
2017 2016 2017 2017 2016 2017 2017 2016 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Profits
Segment
result
including
associates 2,733 4,798 6,982 5,313 2,241 5,933 8,046 7,039 12,915
Group administration
costs (1,004) (604) (2,197)
LTIP equity plan provision (515) - (601)
Group finance and
treasury costs (419) (376) (873)
Consolidation adjustments - (12) -
Consolidated profit
before tax for the
period 6,108 6,047 9,244
Tax (1,656) (1,829) (2,487)
Consolidated profit
after tax for the
period 4,452 4,218 6,757
Segment Assets and Liabilities
Segmental total Segmental total Segmental net
assets liabilities 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
2017 2016 2017 2017 2016 2017 2017 2016 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Mechanical
Engineering 85,793 97,284 80,968 66,798 85,210 65,036 18,995 12,074 15,932
Refractory
Engineering 45,425 44,635 41,717 24,527 29,285 23,321 20,898 15,350 18,396
Sub total
reportable
segment 131,218 141,919 122,685 91,325 114,495 88,357 39,893 27,424 34,328
Goodwin PLC (the
Company) net assets 68,841 68,467 71,944
Elimination of Goodwin
PLC investments (22,084) (22,441) (22,084)
Goodwill 9,710 9,689 9,473
Consolidated total
net assets 96,360 83,139 93,661
Segmental property, plant and equipment
(PPE) capital expenditure
Goodwin PLC 3,049 2,095 5,070
Mechanical Engineering 687 737 1,611
Refractory Engineering 267 386 918
4,003 3,218 7,599
Geographical Segments
Half Year Ended 31st Half Year Ended 31st
October 2017 October 2016
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Revenue Operational Non-current PPE Revenue Operational Non-current PPE
assets assets capital assets assets capital
expenditure expenditure
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
UK 13,698 63,870 71,656 3,610 11,352 52,149 70,611 2,631
Rest of
Europe 14,674 10,483 2,276 136 15,031 10,646 2,480 265
USA 2,544 - - - 3,919 - - -
Pacific
Basin 11,709 14,635 7,505 116 20,615 14,564 5,825 63
Rest of
World 19,268 7,372 6,187 141 18,972 5,780 6,907 259
Total 61,893 96,360 87,624 4,003 69,889 83,139 85,823 3,218
Year Ended 30th April
2017
Audited Audited Audited Audited
Revenue Operational Non-current PPE
assets assets capital
expenditure
GBP'000 GBP'000 GBP'000 GBP'000
UK 24,034 63,451 69,693 6,504
Rest of
Europe 29,712 10,213 2,271 466
USA 6,574 - - -
Pacific
Basin 33,095 14,012 7,459 210
Rest of
World 38,172 5,985 6,601 419
Total 131,587 93,661 86,024 7,599
6. 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
2017 2016 2017
GBP'000 GBP'000 GBP'000
Equity Dividends Paid:
Ordinary dividends paid 3,049 - -
during the period in respect
of the year ended 30th
April 2017 (42.348p per
share)
Ordinary dividends paid
during the period in respect
of the year ended 30th
April 2016 (42.348p per
share) - 3,049 3,049
Dividends paid to minority
shareholders in Noreva
GmbH 88 65 62
Total dividends paid during
the period 3,137 3,114 3,111
7. Earnings Per Share
The calculation of the basic earnings per ordinary share is
based on the number of ordinary shares in issue during all periods
of 7,200,000, and on the profit for the six months attributable to
ordinary shareholders of GBP4,203,000 (six months to 31st October
2016: GBP3,927,000).
8. Capital Management, Issuance and Repayment of Debt
At 31st October 2017 the capital utilised was GBP119,505,000 as
shown below:
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Cash and cash equivalents (7,813) (5,269) (5,172)
Finance leases 2,984 3,878 3,413
Bank loans and committed
facilities 22,132 28,767 23,149
Bank overdrafts 9,737 9,347 6,655
Deferred consideration 500 500 500
Net debt 27,540 37,223 28,545
Total equity attributable
to equity holders of the
parent 91,965 78,562 89,436
Capital 119,505 115,785 117,981
9. Property, Plant and Equipment
Unaudited Unaudited
as at as at
31st October 31st October
2017 2016
GBP'000 GBP'000
Net book value at the beginning
of the period 65,739 62,530
Additions 4,003 3,218
Disposals (at net book value) (201) (77)
Depreciation (2,644) (2,718)
Exchange adjustment (105) 2,254
Net book value at the end of
the period 66,792 65,207
10. Intangible assets
Unaudited Unaudited
as at as at
31st October 31st October
2017 2016
GBP'000 GBP'000
Net book value at the beginning
of the period 18,240 17,565
Additions 709 484
Amortisation (552) (393)
Exchange adjustment 206 928
Net book value at the end of
the period 18,603 18,584
11. Hedge reserve
The Group is exposed to sales and purchases in foreign currency
and, in order to mitigate the foreign exchange risk, the Group at
its discretion uses hedges where deemed appropriate by the Board.
The majority of the Group's hedging activity is in relation to UK
company sales contracts in US Dollars and Euros.
12. Total Financial Assets and Financial Liabilities
The table below sets out the Group's accounting classification
of its financial assets and financial liabilities, and their
carrying values / fair values at 31st October 2017. The fair values
of all financial assets and financial liabilities are not
materially different to the carrying values.
Carrying
value
/ Fair
value
GBP'000
Financial assets
Cash and cash equivalents 7,813
Receivables
Trade receivables 23,847
Other receivables 5,841
At fair value through the income
statement
Derivative financial assets
not designated in a cash flow
hedge relationship 535
Designated cash flow hedge
relationships
Derivative financial assets
designated and effective as
cash flow hedging instruments 21
Total financial assets 38,057
Financial liabilities
Financial liabilities at amortised
cost
Bank overdraft 9,737
Trade payables 9,199
Other payables 12,763
Deferred consideration 500
Finance lease liabilities 2,984
Bank loans 22,132
Corporation tax 2,043
At fair value through the income
statement
Derivative financial liabilities
not designated in a cash flow
hedge relationship 32
Designated cash flow hedge
relationships
Derivative financial liabilities
designated and effective as
cash flow hedging instruments 2,196
Total financial liabilities 61,586
Derivative financial assets and financial liabilities fair
values in the above table are derived using Level 2 inputs as
defined by IFRS 7 as detailed in the paragraph below*. All other
financial assets and financial liabilities fair values are
determined using Level 3 inputs.
*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).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DMMMZGRNGNZM
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