Half-year Report

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 £7.7 million (2020: £5.8 million) on a revenue of £69 million.

At the half year the Group's workload remains steady at £156 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 £34.8 million (31st October 2020: £31.1 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

15th December 2021

 

Management report

Financial Highlights






Unaudited  Half Year to 31st October 2021

Unaudited  Half Year to

Audited  Year Ended


31st October

31st October

30th April


2021

2020

2021


£'m

£'m

£'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 £68,884,000 for the half year represents a 10% increase from the £62,628,000 achieved during the same period last year.

Profit Before Tax

Profit before tax for the six months of £7,723,000 represents a 34% increase from the £5,774,000 achieved for the same six month period last year.

Key performance indicators

The key performance indicators for the business are listed below:






Unaudited  Half Year to

Unaudited  Half Year to

Audited  Year Ended


31st October

31st October

30th April


2021

2020

2021





Gross profit as a % of turnover

29.5

25.9

29.7

Other income (in £ millions)

-

-

0.8

Profit before tax (in £ millions)

7.7

5.8

16.5

Gearing %

31.7

29.8

15.4

Non cash charges (in £millions)




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 £30 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 £34.8 million (31st Oct 2020 £31.1 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 to

Half Year to

Year Ended

 

31st October

31st October

30th April

 

2021

2020

2021

 

£'000

£'000

£'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 to

Half Year to

Year Ended

 

31st October

31st October

30th April

 

2021

2020

2021

 

£'000

£'000

£'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


Share capital

Translat-ion reserve

Share-based payments reserve

Cash flow hedge reserve

Cost of hedging reserve

Retained earnings

Total attribut-able to equity holders of the parent

Non-controll-ing interests


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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  


Share capital

Translat-ion reserve

Share-based payments reserve

Cash flow hedge reserve

Cost of hedging reserve

Retained earnings

Total attribut-able to equity holders of the parent

Non-controll-ing interests


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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











 


Share capital

Translat-ion reserve

Share-based payments reserve

Cash flow hedge reserve

Cost of hedging reserve

Retained earnings

Total attribut-able to equity holders of the parent

Non-controll-ing interests

Total equity

 


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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



£'000

£'000

£'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 £13,766,000 (October 2020: £24,991,000), with the balance of £776,000 (October 2020: £470,000) being costs accrued for contracts.

 

Condensed Consolidated Statement of Cash Flows

for the half year ended 31st October 2021






Unaudited

Unaudited

Audited


Half Year  to 31st October 2021

Half Year  to 31st October  2020

Year ended 30th  April  2021


£'000

£'000

£'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 Half Year Ended  31st October 2021  

Unaudited Half Year Ended  31st October 2020  

Audited Year  Ended 30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st October 2020  

Audited Year  Ended  30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st October 2020  

Audited Year  Ended 30th  April  2021


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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 Half Year Ended  31st  October  2021  

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st October 2020  

Audited Year  Ended  30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st  October 2020  

Audited Year  Ended 30th  April  2021


£'000

£'000

£'000

£'000

£'000

£'000

£'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 Half Year Ended  31st  October  2021  

Unaudited Half Year Ended  31st  October  2020  

Audited Year  Ended  30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st October 2020  

Audited Year  Ended  30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st  October 2020  

Audited Year  Ended 30th  April  2021


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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 Half Year Ended  31st  October  2021  

Unaudited Half Year Ended  31st  October  2020  

Audited Year  Ended  30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st October 2020  

Audited Year  Ended  30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st  October 2020  

Audited Year  Ended 30th  April  2021


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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

Goodwin PLC



Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st October 2020  

Audited Year  Ended  30th  April  2021

Unaudited Half Year Ended  31st October 2021

Unaudited Half Year Ended  31st  October 2020  

Audited Year  Ended 30th  April  2021



£'000

£'000

£'000

£'000

£'000

£'000



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 2021

Half Year Ended 31st October 2020


Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited


Revenue

Operational net assets

Non-current assets

PPE capital expenditure

Revenue

Operational net assets

Non-current assets

PPE capital expenditure


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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 net assets

Non-current assets

PPE capital expenditure






£'000

£'000

£'000

£'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 Engineering

Refractory Engineering

Total

 

 

£'000

£'000

£'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 Engineering

Refractory Engineering

Total

 

 

£'000

£'000

£'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 to

Half Year to

Year Ended

 

 

31st October 2021

31st October 2020

30th April 2021

 

 

£'000

£'000

£'000

Equity Dividends Paid:

 

 

 

 

Ordinary dividends paid during the period in respect of the year ended 30th April 2021 (102.24p per share)

 

7,862

-

-

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 2021

31st October 2020

30th April 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

 

 

 

 

 

 

 




 

 

£'000

£'000

£'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 £144,774,000, as shown below:

 

 





 

 

 

Unaudited

Unaudited

Audited

 

 

as at

as at

as at

 

 

31st October 2021

31st October 2020

30th April 2021

 

 

£'000

£'000

£'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 2021

31st October 2021

31st October 2020

31st October 2020

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

Right-of-use assets

Property, plant and equipment

Right-of-use assets

 

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 2021

31st October 2020

 

 

£'000

£'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 2021

31st October 2020

30th April 2021

 

 

£'000

£'000

£'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 2021

31st October 2020

30th April 2021

 

 

£'000

£'000

£'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 - hedging instruments

Fair value through profit and loss (FVTPL)

Amortised cost

Total carrying amount / fair value amount

 

 

£'000

£'000

£'000

£'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).

END

 

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