TIDMGDWN
RNS Number : 6649V
Goodwin PLC
15 December 2021
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2021
CHAIRMAN'S STATEMENT
The pre-tax profit for the Group for the first six month period
ending 31st October 2021 was GBP7.7 million (2020: GBP5.8 million)
on a revenue of GBP69 million.
At the half year the Group's workload remains steady at GBP156
million and does not yet contain some of the major projects that
the Mechanical Engineering Division has confidently been pursuing
within the military, nuclear waste re-processing and surveillance
markets.
The Refractory Engineering Division has delivered a strong
performance and its activity continues to travel on an upward
trajectory, delivering like-for-like sales growth of 40%. With the
recent acquisitions now generating revenue; our end user markets
growing; our research and development investment programmes in the
fire protection and construction products now gaining traction in
their respective markets, the Division currently represents 40% of
the Group's revenue. The Division's focus on price increases,
global sourcing, network capabilities and operational footprint has
enabled it to date to manage the price pressures and supply chain
disruptions.
The Mechanical Engineering Division has experienced low levels
of activity due to customer approval delays on documentation for
cast and machined products going into complex stakeholder
environments. This, coupled with navigating supply availability and
increased energy costs (with there being a time lag before such
costs can be passed on to the end users), has impacted both sales
and profitability in the first six months of the year. We now have
in place fixed price energy contracts that go out until June 2023
that will remove the extreme spikes in energy prices that were seen
in September 2021. A pragmatic approach has also been taken to
highlight and reduce the amount of red tape and address the
increased costs of production that will enable efficient
production, moving forward, of orders in hand.
The Group's net debt stands at GBP34.8 million (31st October
2020: GBP31.1 million) with a relatively moderate level of gearing
of 31.7%. During the six month period just completed, the Group's
cash generation has been reduced by the requirement of additional
working capital as new projects start to ramp up. Furthermore, the
Group has proceeded as planned with its investment programme that
is spread across both Divisions, including projects that will
reduce its carbon footprint and its reliance on the energy markets,
details of which will be released in the next Annual Report.
T. J. W. Goodwin
Chairman 15(th) December
2021
Management report
Financial Highlights
Unaudited Unaudited Audited Year
Half Year Half Year Ended
to 31st October to
2021
31st October 31st October 30th April
2021 2020 2021
GBP'm GBP'm GBP'm
Consolidated Results
Revenue 68.9 62.6 131.2
Operating profit 8.2 6.1 17.1
Profit before tax 7.7 5.8 16.5
Profit after tax 6.0 4.5 13.0
Capital Additions:
Property, plant and equipment [PPE]
owned 9.0 7.5 11.9
PPE (right-of-use assets) 1.1 0.8 2.4
Operating lease assets (IAS 17 definition) - (0.1) (1.1)
Intangible assets 0.6 0.6 1.7
-------------------------------------------- ----------------- ------------- -------------
Capital Expenditure for KPI purposes 10.7 8.8 14.9
-------------------------------------------- ----------------- ------------- -------------
Earnings per share - basic 72.12p 56.64p 167.82p
Earnings per share - diluted 72.12p 55.42p 164.23p
Turnover
Sales revenue of GBP68,884,000 for the half year represents a
10% increase from the GBP62,628,000 achieved during the same period
last year.
Profit Before Tax
Profit before tax for the six months of GBP7,723,000 represents
a 34% increase from the GBP5,774,000 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
2021 2020 2021
Gross profit as a % of turnover 29.5 25.9 29.7
Other income (in GBP millions) - - 0.8
Profit before tax (in GBP millions) 7.7 5.8 16.5
Gearing % 31.7 29.8 15.4
Non cash charges (in GBPmillions)
Depreciation 2.9 2.7 5.7
Depreciation of right-of-use assets 0.5 0.4 1.0
Amortisation 0.7 0.7 1.6
Total non cash charges 4.1 3.8 8.3
Alternative performance measures mentioned above are defined in
note 34 on page 84 of the Group Annual A ccounts to 30th April 2021
.
2021/22 Outlook
Even with the expectation of an increased order input over the
next six months, we expect the second half year pre-tax profits of
this financial year to be possibly slightly better than the first
half and for the benefit of increased activity and profitability to
be realised over the next eighteen months.
This improvement is a feature of the strategic transformation of
the foundry and its progress in creating an efficient environment
to deliver high volume, high quality products for nuclear waste and
cast naval components for its new customer base following the
decline of its traditional oil and gas business. Furthermore,
whilst we continue to experience inflationary pressures, the
offsetting benefit of increased selling prices will be recognised
within the next financial year.
The momentum within the Refractory Engineering Division shows no
signs of slowing and the Group's eight companies supplying
consumables to the jewellery casting, fire protection and
construction sectors are well placed moving forward to continue to
deliver strong results subject to raw material availability and
consumer demand.
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 12 to 13 of the Group Annual
Accounts to 30th April 2021 which describe the principal risks and
uncertainties, and to note 26 (starting on page 73) 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.
The Group (see page 76 of the Group Annual Accounts to 30th
April 2021) 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 for the next ten years.
Report on Expected Developments
This report describes the expected developments of the Group
during the year ended 30th April 2022 . 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 once again 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.
Whereas many companies have struggled with the impacts of Covid-19,
the Group has remained open to carry on with its value added
activities. 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 2021, the Group net debt stood at GBP34.8 million (31st Oct
2020 GBP31.1 million) as set out in note 10 to these accounts.
Whilst the net debt levels are higher than those recorded as at
April 2021 and October 2020 the gearing level at 31.7% is still
modest and the Board considers that the banking headroom
(facilities versus utilisation) is acceptable. 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 United Kingdom 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 15th December
2021
Condensed Consolidated Statement of Profit or Loss
for the half year to 31st October 2021
Unaudited Unaudited Audited
Half Year Half Year Year Ended
to to
31st October 31st October 30th April
2021 2020 2021
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 68,884 62,628 131,231
Cost of sales (48,529) (46,404) (92,230)
Gross profit 20,355 16,224 39,001
Other income - - 763
Distribution expenses (1,817) (1,320) (2,988)
Administrative expenses (10,335) (8,833) (19,682)
Operating profit 8,203 6,071 17,094
Finance costs (net) (513) (323) (640)
Share of profit of associate companies 33 26 60
Profit before taxation 7,723 5,774 16,514
Tax on profit (1,719) (1,289) (3,508)
Profit after taxation 6,004 4,485 13,006
Attributable to:
Equity holders of the parent 5,546 4,171 12,494
Non-controlling interests (NCI) 458 314 512
Profit for the period 6,004 4,485 13,006
Basic earnings per ordinary share
(Note 9) 72.12p 56.64p 167.82p
Diluted earnings per ordinary share
(Note 9) 72.12p 55.42p 164.23p
Condensed Consolidated Statement of Comprehensive Income
for the half year to 31st October 2021
Unaudited Unaudited Audited
Half Year Half Year Year Ended
to to
31st October 31st October 30th April
2021 2020 2021
GBP'000 GBP'000 GBP'000
Profit for the period 6,004 4,485 13,006
Other comprehensive (expense) /
income
Items that are or may be reclassified
subsequently to the income statement
Foreign exchange translation differences (697) 593 (1,371)
Effective portion of changes in
fair value of cash flow hedges 754 (293) 1,296
Ineffective portion of changes
in fair value of cash flow hedges - (617) (657)
Change in fair value of cash flow
hedges transferred to profit or
loss (731) 935 1,932
Effective portion of changes in
fair value of cost of hedging (145) 88 (37)
Ineffective portion of change in
fair value cost of hedging - 581 631
Change in fair value of cost of
hedging transferred to profit or
loss (10) 281 381
Tax on items that are or may be
reclassified subsequently to profit
or loss (91) (186) (673)
Other comprehensive (expense) /
income for the period, net of income
tax (920) 1,382 1,502
Total comprehensive income for
the period 5,084 5,867 14,508
Attributable to:
Equity holders of the parent 4,732 5,465 14,081
Non-controlling interests 352 402 427
5,084 5,867 14,508
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2021
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
2021
(Unaudited)
Balance at
1st May 2021 753 (852) 5,244 1,601 (1) 106,396 113,141 4,887 118,028
Total
comprehensive
income:
Profit - - - - - 5,546 5,546 458 6,004
Other
comprehensive
income:
Foreign exchange
translation
differences - (591) - - - - (591) (106) (697)
Net movements
on cash flow
hedges - - - (113) (110) - (223) - (223)
Total
comprehensive
income /
(expense)
for the period - (591) - (113) (110) 5,546 4,732 352 5,084
Issue of shares 16 - - - - - 16 - 16
Dividends
paid - - - - - (7,862) (7,862) (187) (8,049)
Acquisition
of NCI without
a change in
control - - - - - (74) (74) (356) (430)
Balance at
31st October
2021 769 (1,443) 5,244 1,488 (111) 104,006 109,953 4,696 114,649
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2021
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 2021
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
2021
(Audited)
Balance at
1st May 2020 736 361 5,244 (499) (743) 99,918 105,017 4,585 109,602
Total
comprehensive
income:
Profit - - - - - 12,494 12,494 512 13,006
Other
comprehensive
income:
Foreign
exchange
translation
differences - (1,255) - - - - (1,255) (116) (1,371)
Net movements
on cash flow
hedges - - - 2,100 742 - 2,842 31 2,873
Total
comprehensive
income /
(expense)
for the
period - (1,255) - 2,100 742 12,494 14,081 427 14,508
Issue of
shares 17 - - - - - 17 - 17
Dividends
paid - - - - - (6,016) (6,016) (125) (6,141)
Recycling
of
translation
reserve on
disposal
of subsidiary - 42 - - - - 42 - 42
Balance at
30th April
202 1 753 (852) 5,244 1,601 (1) 106,396 113,141 4,887 118,028
Condensed Consolidated Balance Sheet
as at 31st October 2021
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2021 2020 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 82,949 74,404 77,063
Right-of-use assets 4,276 5,728 3,691
Investment in associates 815 853 829
Intangible assets 24,500 24,770 24,813
Derivative financial assets 613 1,145 191
Other financial assets at amortised cost - 137 -
113,153 107,037 106,587
Current assets
Inventories 37,315 45,359 34,547
Contract assets 13,245 15,685 15,844
Trade and other financial assets 23,940 23,959 20,540
Other receivables 6,298 5,669 5,498
Deferred tax asset 144 151 129
Derivative financial assets 3,001 1,067 4,106
Cash and cash equivalents 12,257 10,915 15,160
96,200 102,805 95,824
Total assets 209,353 209,842 202,411
Current liabilities
Bank overdrafts and interest-bearing liabilities 1,853 33,661 1,607
Contract liabilities * 14,542 25,461 14,332
Trade payables and other financial liabilities 16,606 19,724 21,730
Other payables 4,102 4,260 4,025
Derivative financial liabilities 1,262 1,011 2,016
Liabilities for current tax 1,689 1,881 1,174
Provisions for liabilities and charges 512 81 608
40,566 86,079 45,492
Non-current liabilities
Interest-bearing liabilities 47,053 9,709 33,066
Derivative financial liabilities 336 474 -
Provisions for liabilities and charges 304 414 251
Deferred tax liabilities 6,445 3,822 5,574
54,138 14,419 38,891
Total liabilities 94,704 100,498 84,383
Net assets 114,649 109,344 118,028
Equity attributable to equity holders of the parent
Share capital 769 752 753
Translation reserve (1,443) 863 (852)
Share-based payments reserve 5,244 5,244 5,244
Cash flow hedge reserve 1,488 (431) 1,601
Cost of hedging reserve (111) (19) (1)
Retained earnings 104,006 98,073 106,396
Total equity attributable to equity holders of the parent 109,953 104,482 113,141
Non-controlling interests 4,696 4,862 4,887
Total equity 114,649 109,344 118,028
* Contract liabilities include advance payments from customers of GBP13,766,000 (October 2020: GBP24,991,000), with the balance of GBP776,000 (October 2020: GBP470,000) being costs accrued for contracts.
Condensed Consolidated Statement of Cash Flows
for the half year ended 31st October 2021
Unaudited Unaudited Audited
Half Half Year Year ended
Year to to 31st 30th April
31st October October 2021
2021 2020
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit from continuing operations after
tax 6,004 4,485 13,006
Adjustments for:
Depreciation of property, plant and
equipment 2,932 2,715 5,696
Depreciation of right-of-use assets 456 424 972
Amortisation of intangible assets 747 745 1,566
Finance costs (net) 513 323 640
Foreign exchange losses 125 48 292
Profit on sale of property, plant and
equipment (95) (32) (745)
Profit on disposal of subsidiary - - (32)
Share of profit of associate companies (33) (26) (60)
Tax expense 1,719 1,289 3,508
Cash generated from operating activities
before changes in working capital and
provisions 12,368 9,971 24,843
(Increase) / decrease in inventories (3,073) 85 10,344
Decrease / (increase) in contract assets 2,583 (9,083) (9,242)
(Increase) / decrease in trade and other
receivables (4,076) (53) 2,885
Increase / (decrease) in contract liabilities 266 6,509 (4,428)
(Decrease) / increase in trade and other
payables (5,192) (3,351) 1,047
Decrease / (increase) in unhedged derivative
balances 180 181 (438)
Cash inflow from operations 3,056 4,259 25,011
Interest paid (513) (388) (734)
Corporation tax paid (576) (958) (3,068)
Net cash from operating activities 1,967 2,913 21,209
Cash flows from investing activities
Proceeds from sale of property, plant
and equipment 213 136 1,958
Acquisition of property, plant and equipment (9,220) (7,261) (11,738)
Additional investment in existing subsidiaries (430) - -
Acquisition of intangible assets (269) (600) (719)
Development expenditure capitalised (408) (450) (1,420)
Net cash outflow from investing activities (10,114) (8,175) (11,919)
Cash flows from financing activities
Proceeds from issue of share capital 16 16 17
Payment of capital element of lease
obligations (385) (787) (1,635)
Dividends paid (7,862) (6,016) (6,016)
Dividends paid to non-controlling interests (187) (125) (125)
Proceeds from new loans and committed
facilities 14,200 12,048 35,048
Repayment of loans and committed facilities (355) (389) (30,772)
Net cash inflow / (outflow) from financing
activities 5,427 4,747 (3,483)
Net (decrease) / increase in cash and
cash equivalents (2,720) (515) 5,807
Cash and cash equivalents at beginning
of year 15,160 9,449 9,449
Effect of exchange rate fluctuations
on cash held (183) 109 (96)
Closing cash and cash equivalents (Note
13) 12,257 9,043 15,160
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 2021 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 2021 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 2021.
The comparative figures for the financial year ended 30th April
2021 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 15th December 2021.
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 2021. 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 2022.
The following amendments became effective and therefore were
adopted by the Group.
-- Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS
9, IAS 39, IFRS 7, IFRS4 and IFRS 16)
The above amendments have not had a material impact on profit,
earnings per share and net assets.
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 16 - Property, plant and equipment:
proceeds before intended use (effective for annual periods
beginning on or after 1st January 2022)
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 2021.
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, pumps,
surveillance and general engineering
-- Refractory Engineering - jewellery investment casting powder
and mineral processing
Information regarding the Group's operating segments is reported
in the following tables.
Segmental 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
2021 2020 2021 2021 2020 2021 2021 2020 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External
sales 41,544 43,121 86,616 27,340 19,507 44,615 68,884 62,628 131,231
Inter-segment
sales 8,203 9,418 20,871 7,103 4,651 11,526 15,306 14,069 32,397
Total revenue 49,747 52,539 107,487 34,443 24,158 56,141 84,190 76,697 163,628
Reconciliation to consolidated
revenues:
Inter-segment sales (15,306) (14,069) (32,397)
Consolidated revenue for
the period 68,884 62,628 131,231
Segmental 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
2021 2020 2021 2021 2020 2021 2021 2020 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Profits
Segment
result
including
associates 3,565 4,587 10,823 6,048 2,309 9,340 9,613 6,896 20,163
Group administration costs (1,377) (799) (3,009)
Group finance costs (net) (513) (323) (640)
Consolidated profit before
tax for the period 7,723 5,774 16,514
Tax (1,719) (1,289) (3,508)
Consolidated profit after
tax for the period 6,004 4,485 13,006
Segmental 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
2021 2020 2021 2021 2020 2021 2021 2020 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Mechanical
Engineering 104,014 105,602 92,929 76,441 78,068 66,909 27,573 27,534 26,020
Refractory
Engineering 46,094 42,239 44,114 18,376 21,643 20,591 27,718 20,596 23,523
Sub total
reportable
segment 150,108 147,841 137,043 94,817 99,711 87,500 55,291 48,130 49,543
Goodwin PLC (the Company)
net assets 75,450 76,944 83,998
Elimination of Goodwin
PLC investments (25,822) (25,801) (25,392)
Goodwill 9,730 10,071 9,879
Consolidated total net
assets 114,649 109,344 118,028
Segmental Capital Expenditure
Property, plant and
equipment Right-of-use assets Intangible 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
2021 2020 2021 2021 2020 2021 2021 2020 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Goodwin
PLC 6,094 4,107 5,315 1,078 690 1,180 188 29 151
Mechanical
Engineering 2,228 2,459 4,952 - 71 1,146 420 495 1,123
Refractory
Engineering 715 932 1,570 - - 74 21 40 456
Total 9,037 7,498 11,837 1,078 761 2,400 629 564 1,730
Segmental Depreciation and Amortisation
Depreciation Amortisation and impairment
Unaudited Unaudited Unaudited Unaudited
Half Half Audited Half Half Audited
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
31st 31st 30th 31st 31st 30th
October October April October October April
2021 2020 2021 2021 2020 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Goodwin PLC 1,733 1,506 2,970 506 510 1,106
Mechanical Engineering 988 1,020 2,346 21 3 20
Refractory Engineering 667 613 1,352 220 232 440
Total 3,388 3,139 6,668 747 745 1,566
6. Geographical segments
Half Year Ended 31st October Half Year Ended 31st October
2021 2020
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 17,815 76,575 92,602 8,854 17,928 72,558 85,076 6,638
Rest of
Europe 9,212 8,069 3,878 926 9,598 9,208 3,515 183
USA 6,159 - - - 5,557 - - -
Pacific
Basin 16,025 15,044 7,375 97 13,267 14,734 8,875 615
Rest of
World 19,673 14,961 9,298 238 16,278 12,844 9,571 823
Total 68,884 114,649 113,153 10,115 62,628 109,344 107,037 8,259
Year Ended 30th April 2021
Audited Audited Audited Audited
Revenue Operational Non-current PPE capital
net assets assets expenditure
GBP'000 GBP'000 GBP'000 GBP'000
UK 39,755 81,982 89,944 11,911
Rest of
Europe 21,473 8,309 3,264 276
USA 8,027 - - -
Pacific
Basin 28,255 13,708 6,499 734
Rest of
World 33,721 14,029 6,880 1,316
Total 131,231 118,028 106,587 14,237
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
2021
UK 11,256 6,559 17,815
Rest of Europe 5,327 3,885 9,212
USA 5,796 363 6,159
Pacific Basin 5,461 10,564 16,025
Rest of World 13,704 5,969 19,673
Total 41,544 27,340 68,884
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
Audited year ended 30th April 202
1
UK 28,258 11,497 39,755
Rest of Europe 15,123 6,350 21,473
USA 7,596 431 8,027
Pacific Basin 10,899 17,356 28,255
Rest of World 24,740 8,981 33,721
Total 86,616 44,615 131,231
Product lines
Unaudited half year ended 31st October
2021
Standard products and consumables 5,105 27,340 32,445
Bespoke engineered products - point
in time 6,022 - 6,022
Point in time revenue 11,127 27,340 38,467
Minimum period contracts for goods
and services 1,879 - 1,879
Bespoke engineered products - over
time 28,538 - 28,538
Over time revenue 30,417 - 30,417
Total revenue 41,544 27,340 68,884
Mechanical Refractory Total
Engineering Engineering
GBP'000 GBP'000 GBP'000
Product lines
Unaudited half year ended 31st October
202 0
Standard products and consumables 4,487 19,507 23,994
Bespoke engineered products - point
in time 9,702 - 9,702
Point in time revenue 14,189 19,507 33,696
Minimum period contracts for goods
and services 1,626 - 1,626
Bespoke engineered products - over
time 27,306 - 27,306
Over time revenue 28,932 - 28,932
Total revenue 43,121 19,507 62,628
Audited year ended 30th April 202
1
Standard products and consumables 10,630 44,615 55,245
Bespoke engineered products - point
in time 11,203 - 11,203
Point in time revenue 21,833 44,615 66,448
Minimum period contracts for goods
and services 3,306 - 3,306
Bespoke engineered products - over
time 61,477 - 61,477
Over time revenue 64,783 - 64,783
Total revenue 86,616 44,615 131,231
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
2021 2020 2021
GBP'000 GBP'000 GBP'000
Equity Dividends Paid:
Ordinary dividends paid during the 7,862 - -
period in respect of the year ended
30th April 2021 (102.24p per share)
Ordinary dividends paid during the
period in respect of the year ended
30th April 2020 (81.71p per share) - 6,016 6,016
Total dividends paid during the period 7,862 6,016 6,016
9. Earnings Per Share
Number of ordinary shares
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2021 2020 2021
Ordinary shares in issue
Opening balance 7,526,400 7,363,200 7,363,200
Shares issued in the period 163,200 163,200 163,200
Closing balance 7,689,600 7,526,400 7,526,400
Outstanding ordinary share options - 163,200 163,200
Total ordinary shares (issued and
options) 7,689,600 7,689,600 7,689,600
Weighted average number of ordinary
shares in issue 7,689,600 7,364,087 7,445,024
Weighted average number of outstanding
ordinary share options - 162,632 162,651
Denominator used for diluted earnings
per share calculation 7,689,600 7,526,719 7,607,675
GBP'000 GBP'000 GBP'000
Relevant profits attributable to ordinary
shareholders 5,546 4,171 12,494
10. Capital Management, Issuance and Repayment of Debt
At 31st October 2021 the capital utilised was GBP144,774,000, as
shown below:
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2021 2020 2021
GBP'000 GBP'000 GBP'000
Cash and cash equivalents (12,257) (10,915) (15,160)
Total lease liabilities (Note 14) 3,997 2,785 3,374
Bank loans and committed facilities
(Note 14) 44,909 38,713 31,299
Bank overdrafts (Note 14) - 1,872 -
Net debt in accordance with IFRS 16 36,649 32,455 19,513
Operating lease debt (IAS 17 definition) (1,828) (1,334) (2,082)
Relevant net debt for KPI purposes 34,821 31,121 17,431
Total equity attributable to equity
holders of the parent 109,953 104,482 113,141
Capital 144,774 135,603 130,572
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
2021 2021 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000
Property, Right-of-use Property, Right-of-use
plant and assets plant and assets
equipment equipment
Net book value at the beginning
of the period 77,063 3,691 69,626 5,343
Additions 9,037 1,078 7,498 761
Disposals (at net book value) (117) - (104) -
Depreciation (2,932) (456) (2,715) (424)
Exchange adjustment (102) (37) 99 48
Net book value at the end
of the period 82,949 4,276 74,404 5,728
12. Intangible assets
Unaudited Unaudited
as at as at
31st October 31st October
2021 2020
GBP'000 GBP'000
Net book value at the beginning of the period 24,813 24,695
Additions 629 564
Amortisation (747) (745)
Exchange adjustment (195) 256
Net book value at the end of the period 24,500 24,770
13. Cash and cash equivalents
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2021 2020 2021
GBP'000 GBP'000 GBP'000
Cash and cash equivalents per balance
sheet 12,257 10,915 15,160
Bank overdrafts - (1,872) -
Cash and cash equivalents per cash
flow statement 12,257 9,043 15,160
14. Interest-bearing liabilities
Unaudited Unaudited Audited
as at as at as at
31st October 31st October 30th April
2021 2020 2021
GBP'000 GBP'000 GBP'000
Bank overdrafts - 1,872 -
Bank loans - repayable by instalments 833 749 761
Bank loans - rolling credit facilities - 30,000 -
Lease liabilities 1,020 1,040 846
Due within one year 1,853 33,661 1,607
Bank loans - repayable by instalments 4,076 4,964 4,538
Bank loans - rolling credit facilities 40,000 3,000 26,000
Lease liabilities 2,977 1,745 2,528
Due after more than one year 47,053 9,709 33,066
Bank overdrafts - 1,872 -
Bank loans - repayable by instalments 4,909 5,713 5,299
Bank loans - rolling credit facilities 40,000 33,000 26,000
Lease liabilities 3,997 2,785 3,374
Total 48,906 43,370 34,673
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 2021. The carrying
amount is a reasonable approximation of fair value for all
financial assets and financial liabilities.
Fair value Total carrying
Fair value through profit amount /
- hedging and loss 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 1,153 - - 1,153
Other forward exchange contracts - 2,081 - 2,081
Interest rate SWAP 380 - - 380
1,533 2,081 - 3,614
Financial assets not measured
at fair value
Cash and cash equivalents - - 12,257 12,257
Contract assets - - 13,245 13,245
Trade receivables and other
financial assets 23,940 23,940
Corporation tax receivable 1,083 1,083
- - 50,525 50,525
Financial liabilities measured
at fair value
Forward exchange contracts
used for hedging 457 - - 457
Other forward exchange contracts - 1,141 - 1,141
457 1,141 - 1,598
Financial liabilities not
measured at fair value
Bank loans - - 44,909 44,909
Lease liabilities - - 3,997 3,997
Contract liabilities - - 14,542 14,542
Trade payables and other
financial liabilities 16,606 16,606
Corporation tax payable - - 1,689 1,689
- - 81,743 81,743
The forward exchange and interest rate SWAP 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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IR ZZMMZMDLGMZZ
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December 15, 2021 02:00 ET (07:00 GMT)
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