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Goodwin PLC reported half-year results for the period ended 31st October 2023, with revenue increasing 9.3% to £97.6 million and pre-tax trading profit rising 23.1% to £11.2 million. During this period, the company's AVD fire extinguishing agent achieved Underwriters Laboratory (UL) and UL8 certifications, and a 2.5-acre site was acquired for an AVD manufacturing expansion, with commissioning planned for April 2024. Additionally, Goodwin PLC bought back and cancelled 180,000 ordinary shares on June 7, 2023, while net debt stood at £54.6 million as of October 31, 2023.
| Date | 20 Dec 2023 |
| Time | 07:00:14 |
| Category | Results |
| ID | 3793X |
GOODWIN PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year ended 31st October 2023
CHAIRMAN'S STATEMENT
I am pleased to report our half-year results for the first six months ending 31st October 2023. The Group has realised a pre-tax trading profit of £11.2 million, marking a notable 23.1% uplift from the previous year's £9.1 million. This successful outcome is attributed to an increased revenue of £97.6 million. Both of the Group's Divisions have played a significant role in this achievement during the first six months, and we anticipate a continuation of this increased performance for the rest of the financial year, with a current forward order book of £266 million.
The Refractory Engineering Division has continued to advance its profitability. Notably, the sales of our internally developed, patent-protected fire extinguishing agent for lithium-ion battery fires, known as AVD, have reached a milestone at the mid-year point, equalling the total sales for the previous financial year.
AVD achieved Underwriters Laboratory (UL) certification for component recognition as an extinguishing agent, and a six-litre fire extinguisher containing AVD received UL8 certification. This has opened up substantial opportunities, particularly in the United States, which we anticipate will emerge as a rapidly expanding market for our product, with sales to the USA already starting to grow at a good pace. There is ever-growing interest and adoption that extends way beyond the automotive sector, encompassing a diverse range of applications worldwide. To support this demand, proactive measures have been taken to expand AVD manufacturing capacity. The Group has acquired a 2.5-acre site with a 5,000 square metre industrial building, conveniently located close to Dupré Minerals Limited's primary manufacturing facility in Staffordshire. The site is ready for immediate use with the planned commissioning date of the new, higher-capacity AVD manufacturing line set for April 2024.
The new Calciner at Hoben International Limited has proved to be approximately 15% more efficient than the original Calciner due to the strategic design modifications that were incorporated into the initial design. This efficiency improvement has translated into enhanced productivity and energy cost savings. Hoben's sales of Soluform concrete bags continue to grow and there is wider adoption amongst some project engineers who are increasingly favouring it as their product of choice.
The Refractory Engineering Division's sales of investment casting powder to the global jewellery casting industry has benefited from the jewellery and brass casting market in China returning to a level of normality and due to the Chinese consumers increasing confidence post COVID.
The Mechanical Engineering Division is witnessing the continual progression of activities that was anticipated due to the substantial forward order book. More to do with timing rather than anything else, the Group's cash position has deteriorated in the first six months of the financial year which is due to the increasing levels of working capital that have been accumulating through the increased activity of the Division. However, whilst we have sufficient facility headroom available we expect this position to improve by the financial year end.
There are also a significant number of additional future projects for the Mechanical Engineering Division, for which, at the time of writing, orders have yet to be placed. We anticipate addressing these as they emerge. Reflecting on our active pursuit of major opportunities in the Mechanical Engineering Division over the past three years, it is reassuring to note that none have been lost. However, the slow pace of third party decision making has been a source of frustration. Nevertheless, we are well prepared to capitalise on these opportunities as they arise, whether at Goodwin Steel Castings Limited, Goodwin International Limited or Easat Radar Systems Limited. In all instances, be it technical performance, proven track record or the fact our proposals offer the best value proposition for our customers, globally, we are confident that the existing businesses will continue delivering improved results once we add on some of these new contracts to the existing business activity.
Keeping one eye on the future, our patent pending polyimide resin production company, Duvelco Limited, remains on track to have its production plant commissioned and operational by June 2024. All the major capital expenditure has been completed with the majority of any spend left being labour to finish off the wiring, pipework and commissioning. All initial chemicals to make up to 30 tonnes of polymer resin are on site, so there should not be any large increases in working capital affecting the Group's future cash position, as it should become self-funding once operational.
After due consideration, from listening to shareholder enquiries at the AGM, we recognise the importance of providing more frequent updates. Considering our Group's diverse and complex operations, we have decided to introduce quarterly trading updates to keep our investors more informed.
The Group's overall net debt stands at £54.6 million (31st October 2022: £46.1 million) which equates to a gearing ratio of 47.8% which is in line with the Group's forecasts and due to an end in large amounts of capital expenditure and stabilisation of working capital levels, will fall back towards 30% within the next 18 months.
The Board and I want to thank the employees for their continued efforts in pushing the Group performance forward, and wish everyone a very Happy Christmas and a prosperous New Year.
|
T.J.W. Goodwin |
|
|
Chairman |
19 December 2023 |
MANAGEMENT REPORT
Financial Highlights
|
|
Unaudited |
Unaudited |
Audited |
|
|
Half Year to |
Half Year to |
Year ended |
|
|
31st October |
31st October |
30th April |
|
|
2023 |
2022 |
2023 |
|
|
£m |
£m |
£m |
|
Consolidated Results |
|
|
|
|
Revenue |
97.6 |
89.3 |
185.7 |
|
Operating profit |
12.5 |
9.8 |
20.3 |
|
Trading profit * |
11.2 |
9.1 |
18.9 |
|
Unrealised gain on 10 year interest rate swap derivative |
0.9 |
3.1 |
3.2 |
|
Profit before tax |
12.1 |
12.2 |
22.1 |
|
Profit after tax |
9.2 |
9.1 |
16.5 |
|
|
|
|
|
|
Capital additions |
|
|
|
|
Property, plant and equipment (PPE) owned |
7.0 |
7.8 |
21.2 |
|
Property, plant and equipment (PPE) right-of-use assets |
0.1 |
1.1 |
1.5 |
|
Operating lease assets (former IAS 17 definition) |
‒ |
(0.2) |
(0.4) |
|
Intangible assets |
0.4 |
0.3 |
1.8 |
|
Capital expenditure for KPI purposes |
7.5 |
9.0 |
24.1 |
|
|
|
|
|
|
Earnings per share - basic |
115.66p |
113.93p |
206.81p |
|
Earnings per share - diluted |
115.66p |
113.93p |
206.81p |
* Trading profit is defined as profit before taxation less the movement in fair value of interest rate swap.
Revenue of £97.6 million for the six months represents a 9.3% increase from the £89.3 million achieved for the same six month period last year.
Trading profit for the six months of £11.2 million represents a 23.1% increase from the £9.1 million achieved for the same six month period last year.
|
|
Unaudited |
Unaudited |
Audited |
|
|
Half Year to 31st October |
Half Year to 31st October |
Year ended 30th April |
|
|
2023 |
2022 |
2023 |
|
Trading profit (£'m) |
11.2 |
9.1 |
18.9 |
|
Post tax profit + depreciation + amortisation (£'m) * |
12.7 |
10.5 |
22.7 |
|
|
|
|
|
|
Gross profit % of revenue |
26.7% |
26.5% |
24.9% |
|
Trading profit % of revenue |
11.5% |
10.2% |
10.2% |
|
Gearing % |
47.8% |
40.9% |
26.3% |
|
|
|
|
|
|
Non cash charges (£'m) |
|
|
|
|
Depreciation |
3.9 |
3.6 |
7.5 |
|
Amortisation and impairment |
0.7 |
0.6 |
1.3 |
|
Total non cash charges |
4.6 |
4.2 |
8.8 |
Alternative performance measures mentioned above are defined on page 104 of the Group Annual Accounts to 30th April 2023.
* The figure for 31st October 2022 has been restated to show the interest rate swap adjustment net of tax, to be consistent with the other periods.
2023/24 Outlook
The Group's increased levels of activity that have occurred in the first half of the year are expected to continue throughout the second half of the year, generating a similar level of profitability as was achieved in the first six months.
Within the Mechanical Engineering Division, whilst it is unlikely to immediately create activity within the factory before the year end, we remain confident that over the next six months Easat Radar Systems will be announced as the successful bidder of a number of contracts that will create a level of workload for the company that will allow it to generate respectable profits for the next two to three years whilst continuing to compete for more projects that are being tendered. The reason the Board remains confident is due to the fact that the vast majority of the opportunities that we referenced in a previous statement ("an additional £47 million of firm buy radar systems were quoted") have either been delayed or re-tendered due to the specification of the requirement changing, typically to our advantage due to the company now being able to offer the full suite of surveillance systems.
If a few of the notable contracts that are expected to arrive over the coming months do not get delayed again for the Mechanical Engineering Division, the forward workload will be further increased by the year end.
In the second half of the year, we will also see the completion of the 7,690 square metre new building in India that will substantially increase the manufacturing capacity of both the investment powders and the submersible slurry pump businesses. These increases will not only enable the Group to benefit from the growing domestic market over the next decade but will also support the growth of the other submersible pump companies in the Group, which for the last three years have grown at an average compound rate of 18% per year, and is expected to continue. Currently the pump companies represent approximately 12% of Group turnover.
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 13 to 14 of the Group Annual Accounts to 30th April 2023 which describe the principal risks and uncertainties, and to note 28, starting on page 81, which describes in detail the key financial risks and uncertainties 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 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 until August 2031.
This report describes the expected development of the Group during the year ended 30th April 2024. The report may contain forward-looking statements and information based on current expectations, and assumptions and forecasts made by the Group. These expectations and assumptions are subject to various known and unknown risks, uncertainties and other factors, which could lead to substantial differences between the actual future results, financial performance and the estimates and historical results given in this report. Many of these factors are outside the Group's control. The Group accepts no liability to publicly revise or update these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.
The Group continues to trade profitably by building on the increase in activity seen in the second half of the previous financial year and, with the current order book levels where they are, this should continue and improve in the second half of this financial year and into the next financial year. The Group has continued with its value added activities and traded throughout this period and previous periods with minimal disruptions to manufacturing activities from the challenges that have been seen over the last few years that have affected many other businesses. As at 31st October 2023, the Group's net debt stood at £54.6 million (31st October 2022 £46.1 million) as set out in note 16 of these accounts. Whilst the net debt levels are higher than those recorded at April 2023 and October 2022, they are in line with the Group's forecasts and are expected to reduce over time, as working capital unwinds, along with lower forecasted capital expenditure. Given the abovementioned, the Directors, after having reviewed the Group projections and possible challenges that may lie ahead, do not see an issue with the continued ability of the Group to meet its financial commitments as they fall due for at least twelve months from the date of these accounts and have drawn up these accounts to reflect that on a going concern basis.
The Directors confirm to the best of their knowledge that:
1. this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the United Kingdom; and
2. the Interim Management Report and condensed financial statements include a fair review of the information required by Disclosure and Transparency Rules
· 4.2.7R (being an indication of important events that have occurred during the first six months of the year); and
· 4.2.8R (being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so).
|
T.J.W. Goodwin |
|
|
Chairman |
19 December 2023 |
Condensed Consolidated Statement of Profit or Loss
for the half year to 31st October 2023
|
|
Unaudited |
Unaudited |
Audited |
|
|
Half Year to |
Half Year to |
Year ended |
|
|
31st October |
31st October |
30th April |
|
|
2023 |
2022 |
2023 |
|
|
£'000 |
£'000 |
£'000 |
|
Continuing operations |
|
|
|
|
Revenue |
97,584 |
89,335 |
185,742 |
|
Cost of sales |
(71,493) |
(65,645) |
(139,521) |
|
Gross profit |
26,091 |
23,690 |
46,221 |
|
Distribution expenses |
(1,700) |
(2,056) |
(3,741) |
|
Administrative expenses |
(11,872) |
(11,801) |
(22,167) |
|
Operating profit |
12,519 |
9,833 |
20,313 |
|
Finance costs (net) |
(1,351) |
(761) |
(1,438) |
|
Share of profit of associate company |
34 |
33 |
65 |
|
Profit before taxation and movement in fair value of interest rate swap |
11,202 |
9,105 |
18,940 |
|
Unrealised gain on 10 year interest rate swap derivative |
938 |
3,132 |
3,189 |
|
Profit before taxation |
12,140 |
12,237 |
22,129 |
|
Tax on profit |
(2,971) |
(3,157) |
(5,616) |
|
Profit after taxation |
9,169 |
9,080 |
16,513 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity holders of the parent |
8,729 |
8,761 |
15,904 |
|
Non-controlling interests (NCI) |
440 |
319 |
609 |
|
Profit for the period |
9,169 |
9,080 |
16,513 |
|
|
|
|
|
|
Basic earnings per ordinary share (note 13) |
115.66p |
113.93p |
206.81p |
|
|
|
|
|
|
Diluted earnings per ordinary share (note 13) |
115.66p |
113.93p |
206.81p |
Condensed Consolidated Statement of Comprehensive Income
for the half year to 31st October 2023
|
|
Unaudited |
Unaudited |
Audited |
|
|
Half Year to |
Half Year to |
Year ended |
|
|
31st October |
31st October |
30th April |
|
|
2023 |
2022 |
2023 |
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
Profit for the period |
9,169 |
9,080 |
16,513 |
|
|
|
|
|
|
Other comprehensive expense |
|
|
|
|
Items that are or may be reclassified subsequently to the income statements |
|
|
|
|
Foreign exchange translation differences |
(218) |
(167) |
(1,412) |
|
Effective portion of changes in fair value of cash flow hedges |
(3,243) |
(4,958) |
3,741 |
|
Ineffective portion of changes in fair value of cash flow hedges |
(177) |
(92) |
518 |
|
Change in fair value of cash flow hedges transferred to profit or loss |
(242) |
949 |
1,308 |
|
Effective portion of changes in fair value of cost of hedging |
1,466 |
96 |
(1,447) |
|
Ineffective portion of changes in fair value of cost of hedging |
9 |
‒ |
(76) |
|
Change in fair value of cost of hedging transferred to profit or loss |
37 |
(15) |
33 |
|
Tax on items that are or may be reclassified subsequently to profit or loss |
495 |
950 |
(919) |
|
Other comprehensive expense for the period, net of income tax |
(1,873) |
(3,237) |
1,746 |
|
Total comprehensive income for the period |
7,296 |
5,843 |
18,259 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity holder of the parent |
6,950 |
5,633 |
17,726 |
|
Non-controlling interests |
346 |
210 |
533 |
|
|
7,296 |
5,843 |
18,259 |
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2023
|
|
Share capital |
Translation reserve |
Share-based payments reserve |
Cash flow hedge reserve |
Cost of hedging reserve |
Retained earnings |
Total attributable to equity holders of the parent |
Non-controlling interests |
Total equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Half Year to 31st October 2022 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Balance at 1st May 2022 |
769 |
463 |
5,244 |
(2,746) |
140 |
111,440 |
115,310 |
4,433 |
119,743 |
|
Total comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Profit |
‒ |
‒ |
‒ |
‒ |
‒ |
8,761 |
8,761 |
319 |
9,080 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation differences |
‒ |
(81) |
‒ |
‒ |
‒ |
‒ |
(81) |
(86) |
(167) |
|
Net movements on cash flow hedges |
‒ |
‒ |
‒ |
(3,114) |
67 |
‒ |
(3,047) |
(23) |
(3,070) |
|
Total comprehensive income / expense for the period |
‒ |
(81) |
‒ |
(3,114) |
67 |
8,761 |
5,633 |
210 |
5,843 |
|
Dividends paid |
‒ |
‒ |
‒ |
‒ |
‒ |
(4,145) |
(4,145) |
(380) |
(4,525) |
|
Dividends declared * |
‒ |
‒ |
‒ |
‒ |
‒ |
(4,144) |
(4,144) |
‒ |
(4,144) |
|
Balance at 31st October 2022 |
769 |
382 |
5,244 |
(5,860) |
207 |
111,912 |
112,654 |
4,263 |
116,917 |
* The statement of changes in equity has been restated to reflect the dividends declared .
Condensed Consolidated Statement of Changes in Equity
for the half year to 31st October 2023
|
|
Share capital |
Translation reserve |
Share-based payments reserve |
Cash flow hedge reserve |
Cost of hedging reserve |
Retained earnings |
Total attributable to equity holders of the parent |
Non-controlling interests |
Total equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Year ended 30th April 2023 (Audited) |
|
|
|
|
|
|
|
|
|
|
Balance at 1st May 2022 |
769 |
463 |
5,244 |
(2,746) |
140 |
111,440 |
115,310 |
4,433 |
119,743 |
|
Total comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Profit |
‒ |
‒ |
‒ |
‒ |
‒ |
15,904 |
15,904 |
609 |
16,513 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation differences |
‒ |
(1,312) |
‒ |
‒ |
‒ |
‒ |
(1,312) |
(100) |
(1,412) |
|
Net movements on cash flow hedges |
‒ |
‒ |
‒ |
4,250 |
(1,116) |
‒ |
3,134 |
24 |
3,158 |
|
Total comprehensive income / expense for the period |
‒ |
(1,312) |
‒ |
4,250 |
(1,116) |
15,904 |
17,726 |
533 |
18,259 |
|
Dividends paid |
‒ |
‒ |
‒ |
‒ |
‒ |
(8,289) |
(8,289) |
(556) |
(8,845) |
|
Balance at 30th April 2023 |
769 |
(849) |
5,244 |
1,504 |
(976) |
119,055 |
124,747 |
4,410 |
129,157 |
Condensed Consolidated Balance Sheet
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
as at 31st |
as at 31st |
as at 30th |
|
|
|
October 2023 |
October 2022 |
April 2023 |
|
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
Restated * |
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
99,623 |
92,104 |
101,243 |
|
Right-of-use assets |
|
11,344 |
6,956 |
6,763 |
|
Investment in associates |
|
978 |
912 |
964 |
|
Intangible assets |
|
25,126 |
24,380 |
25,448 |
|
Derivative financial assets |
|
5,644 |
5,446 |
5,932 |
|
|
|
142,715 |
129,798 |
140,350 |
|
Current assets |
|
|
|
|
|
Inventories |
|
48,835 |
43,323 |
47,955 |
|
Contract assets |
|
19,808 |
17,811 |
16,257 |
|
Trade and other financial assets |
|
36,737 |
30,341 |
29,757 |
|
Corporation tax receivable |
|
418 |
1,339 |
1,337 |
|
Other receivables |
|
5,796 |
5,984 |
4,775 |
|
Deferred tax asset |
|
119 |
59 |
57 |
|
Derivative financial assets |
|
1,577 |
2,105 |
2,684 |
|
Cash and cash equivalents |
|
13,404 |
8,604 |
19,661 |
|
|
|
126,694 |
109,566 |
122,483 |
|
Total assets |
|
269,409 |
239,364 |
262,833 |
|
Current liabilities |
|
|
|
|
|
Bank overdrafts and interest-bearing liabilities |
|
13,942 |
3,318 |
6,729 |
|
Contract liabilities ** |
|
31,412 |
19,462 |
32,747 |
|
Trade payables and other financial liabilities |
|
23,065 |
18,722 |
25,164 |
|
Other payables |
|
6,873 |
6,266 |
6,601 |
|
Dividends payable |
|
4,318 |
4,144 |
‒ |
|
Derivative financial liabilities |
|
2,121 |
4,984 |
2,383 |
|
Liabilities for current tax |
|
2,009 |
1,194 |
921 |
|
Provisions for liabilities and charges |
|
229 |
206 |
266 |
|
|
|
83,969 |
58,296 |
74,811 |
|
Non-current liabilities |
|
|
|
|
|
Interest-bearing liabilities |
|
55,357 |
53,042 |
47,256 |
|
Derivative financial liabilities |
|
108 |
2,326 |
‒ |
|
Provisions for liabilities and charges |
|
304 |
333 |
246 |
|
Deferred tax liabilities |
|
10,983 |
8,450 |
11,363 |
|
|
|
66,752 |
64,151 |
58,865 |
|
Total liabilities |
|
150,721 |
122,447 |
133,676 |
|
Net assets |
|
118,688 |
116,917 |
129,157 |
|
Equity attributable to equity holders of the parent |
|
|
|
|
|
Share capital |
|
751 |
769 |
769 |
|
Translation reserve |
|
(957) |
382 |
(849) |
|
Share-based payments reserve |
|
5,244 |
5,244 |
5,244 |
|
Cash flow hedge reserve |
|
(1,298) |
(5,860) |
1,504 |
|
Cost of hedging reserve |
|
155 |
207 |
(976) |
|
Retained earnings |
|
110,297 |
111,912 |
119,055 |
|
Total equity attributable to equity holders of the parent |
|
114,192 |
112,654 |
124,747 |
|
Non-controlling interests |
|
4,496 |
4,263 |
4,410 |
|
Total equity |
|
118,688 |
116,917 |
129,157 |
* The balance sheet has been restated to reflect the dividends payable at 31st October 2022.
** Contract liabilities include advance payments from customers of £30,462,000 (31st October 2022: £18,627,000), with the balance of £950,000 (31st October 2022: £835,000) being costs accrued for contracts.
Condensed Consolidated Statement of Cash Flows
for the half year ended 31st October 2023
|
|
Unaudited |
Unaudited |
Audited |
|
|
Half Year to |
Half Year to |
Year ended |
|
|
31st October |
31st October |
30th April |
|
|
2023 |
2022 |
2023 |
|
|
£'000 |
£'000 |
£'000 |
|
Cash flow from operating activities |
|
|
|
|
Profit from continuing operations after tax |
9,169 |
9,080 |
16,513 |
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment |
3,153 |
2,965 |
6,272 |
|
Depreciation of right-of-use assets |
717 |
642 |
1,198 |
|
Amortisation and impairment of intangible assets |
654 |
610 |
1,257 |
|
Finance costs (net) |
1,351 |
761 |
1,438 |
|
Foreign exchange losses / (gains) |
267 |
(1,965) |
1,213 |
|
Loss / (profit) on sale of property, plant and equipment |
(27) |
7 |
134 |
|
Unrealised gain on 10 year interest rate swap derivative |
(938) |
(3,132) |
(3,189) |
|
Share of profit of associate companies |
(34) |
(33) |
(65) |
|
UK tax incentive credit on research and development |
‒ |
‒ |
(610) |
|
Tax expense |
2,971 |
3,157 |
5,616 |
|
Cash generated from operating activities before changes in working capital and provisions |
17,283 |
12,092 |
29,777 |
|
Increase in inventories |
(980) |
(3,112) |
(8,377) |
|
Increase in contract assets |
(3,572) |
(5,461) |
(3,804) |
|
Increase in trade and other receivables |
(8,213) |
(5,426) |
(5,304) |
|
(Decrease) / increase in contract liabilities |
(1,325) |
4,720 |
17,954 |
|
(Decrease) / increase in trade and other payables |
(1,364) |
(2,488) |
4,072 |
|
Cash inflow from operations |
1,829 |
325 |
34,318 |
|
Interest paid |
(1,629) |
(763) |
(1,940) |
|
Corporation tax paid |
(885) |
(2,196) |
(3,251) |
|
Net cash from operating activities |
(685) |
(2,634) |
29,127 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Proceeds from sale of property, plant and equipment |
196 |
39 |
218 |
|
Acquisition of property, plant and equipment |
(2,385) |
(6,796) |
(18,871) |
|
Acquisition of intangible assets |
(91) |
(143) |
(675) |
|
Development expenditure capitalised |
(307) |
(166) |
(1,196) |
|
Net cash outflow from investing activities |
(2,587) |
(7,066) |
(20,524) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Buy back of shares |
(8,869) |
‒ |
‒ |
|
Payment of capital element of lease obligations |
(1,325) |
(882) |
(1,874) |
|
Dividends paid |
(4,318) |
(4,145) |
(8,289) |
|
Dividends paid to non-controlling interests |
(260) |
(380) |
(556) |
|
Proceeds from new loans and committed facilities |
12,500 |
13,000 |
11,500 |
|
Repayment of loans and committed facilities |
(613) |
(868) |
(1,181) |
|
Change in bank overdrafts |
(119) |
‒ |
119 |
|
Net cash (outflow) / inflow from financing activities |
(3,004) |
6,725 |
(281) |
|
|
|
|
|
|
Net (decrease) / increase in cash and cash equivalents |
(6,276) |
(2,975) |
8,322 |
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
19,661 |
11,651 |
11,651 |
|
Effect of exchange rate fluctuations on cash held |
19 |
(72) |
(312) |
|
Closing cash and cash equivalents |
13,404 |
8,604 |
19,661 |
1. Reporting Entity
Goodwin PLC (the "Company") is a company incorporated in England and Wales. The unaudited condensed consolidated interim financial statements of the Company as at and for the six months ended 31st October 2023 comprise the Company, its subsidiaries, and the Group's interests in associates (together referred to as the "Group").
The audited consolidated financial statements of the Group as at and for the year ended 30th April 2023 are available upon request from the Company's registered office at Ivy House Foundry, Hanley, Stoke-on-Trent, ST1 3NR or via the Company's web site: www.goodwin.co.uk.
2. Statement of compliance
These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted in the United Kingdom. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 30th April 2023.
The comparative figures for the financial year ended 30th April 2023 are extracts and not the full Group's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The Audit Committee has reviewed these unaudited condensed consolidated interim financial statements and has advised the Board of Directors that, taken as a whole, they are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group's half year performance. These unaudited condensed consolidated interim financial statements were approved by the Board of Directors on 19 December 2023.
3. Significant Accounting Policies
The accounting policies applied by the Group in these unaudited condensed consolidated financial statements are the same as those applied by the Group in its audited consolidated financial statements as at and for the year ended 30th April 2023, except where accounting standards have been amended and the Group has adopted these amendments during the current period.
The following amendments, which have become effective for the current reporting period, and therefore have been adopted by the Group, are not expected to have a significant impact on the Group's financial statements.
· Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies - (effective for periods commencing on or after 1st January 2023).
· Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 'Definition of Accounting Estimates' - (effective for periods commencing on or after 1st January 2023).
· Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction - (effective for periods commencing on or after 1st January 2023).
· Amendments to IAS 12 Income Taxes: International Tax Reform - Pillar Two Model Rules (effective for periods commencing on or after 1st January 2023).
New IFRS standards, amendments and interpretations not adopted
The IASB and IFRIC have issued additional standards and amendments which are effective for periods starting after the date of these financial statements. The following amendments have not yet been adopted by the Group:
· Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current - Deferral of Effective Date - (effective for periods commencing on or after 1st January 2024).
· Amendments to IAS 1 Presentation of Financial Statements: Non-current liabilities with covenants - (effective for periods commencing on or after 1st January 2024).
The Group does not expect the above amendments to have a material impact on profit, earnings per share and net assets in future periods.
4. Accounting Estimates and Judgements
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these unaudited consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited consolidated financial statements as at and for the year ended 30th April 2023.
The tax charge in the period is based on management's estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period, and the impact of any disallowed costs.
5. Operating Segments
For reporting to the chief operating decision maker, the Board of Directors, the Group is organised into two reportable operating segments, according to the different products and services provided by the Mechanical Engineering and Refractory Engineering Divisions. Segment assets and liabilities include items directly attributable to segments as well as group centre balances, which can be allocated on a reasonable basis. Associates are included in Refractory Engineering. In accordance with the requirements of IFRS 8, information regarding the Group's operating segments is reported below.
In previous years, the segmental analysis of net assets, capital expenditure and depreciation was based on the legal structure of the Group. As the analysis from 30th April 2023 has been prepared on the basis of the operational structure of the Group, the comparative figures for 31st October 2022 have been restated accordingly.
6. Operating segment revenue
|
|
Unaudited |
Unaudited |
Audited |
||||||
|
|
Half Year to 31st October 2023 |
Half Year to 31st October 2022 |
Year ended 30th April 2023 |
||||||
|
|
Mechanical |
Refractory |
Total |
Mechanical |
Refractory |
Total |
Mechanical |
Refractory |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Total revenue |
80,549 |
38,657 |
119,206 |
70,276 |
40,039 |
110,315 |
147,538 |
80,340 |
227,878 |
|
Inter-segment revenue |
(14,723) |
(6,899) |
(21,622) |
(12,226) |
(8,754) |
(20,980) |
(23,771) |
(18,365) |
(42,136) |
|
External revenue |
65,826 |
31,758 |
97,584 |
58,050 |
31,285 |
89,335 |
123,767 |
61,975 |
185,742 |
7. Operating segment profit
|
|
|
Unaudited |
|
Unaudited |
|
Audited |
|||
|
|
|
Half year to 31st October 2023 |
|
Half year to 31st October 2022 |
|
Year ended 30th April 2023 |
|||
|
|
|
% |
£'000 |
|
% |
£'000 |
|
% |
£'000 |
|
Mechanical Engineering |
|
52 |
7,719 |
|
47 |
5,809 |
|
49 |
12,171 |
|
Refractory Engineering |
|
48 |
7,146 |
|
53 |
6,525 |
|
51 |
12,772 |
|
Segment operating profit |
|
100 |
14,865 |
|
100 |
12,334 |
|
100 |
24,943 |
|
Group centre |
|
|
(2,346) |
|
|
(2,501) |
|
|
(4,630) |
|
Group operating profit |
|
|
12,519 |
|
|
9,833 |
|
|
20,313 |
|
Group finance costs (net) |
|
|
(1,351) |
|
|
(761) |
|
|
(1,438) |
|
Share of profit of Refractory associate company |
|
|
34 |
|
|
33 |
|
|
65 |
|
Profit before taxation and movement in fair value of interest rate swap |
|
|
11,202 |
|
|
9,105 |
|
|
18,940 |
|
Unrealised gain on 10 Year Interest rate swap |
|
|
938 |
|
|
3,132 |
|
|
3,189 |
|
Profit before tax |
|
|
12,140 |
|
|
12,237 |
|
|
22,129 |
|
Tax |
|
|
(2,971) |
|
|
(3,157) |
|
|
(5,616) |
|
Profit after tax |
|
|
9,169 |
|
|
9,080 |
|
|
16,513 |
8. Operating segment assets and liabilities
|
|
Unaudited |
Unaudited |
||||||
|
|
Half Year to 31st October 2023 |
Half Year to 31 October 2022 |
||||||
|
|
Mechanical |
Refractory |
Group Centre |
Total |
Mechanical |
Refractory |
Group Centre |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Net assets |
|
|
|
|
|
|
|
|
|
Total assets |
187,155 |
61,843 |
20,411 |
269,409 |
159,760 |
60,908 |
18,696 |
239,364 |
|
Total liabilities |
(121,959) |
(23,149) |
(5,613) |
(150,721) |
(98,900) |
(18,013) |
(5,534) |
(122,447) |
|
Total |
65,196 |
38,694 |
14,798 |
118,688 |
60,860 |
42,895 |
13,162 |
116,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audited |
|||
|
|
|
|
|
|
Year ended 30 April 2023 |
|||
|
|
|
|
|
|
Mechanical |
Refractory |
Group Centre |
Mechanical |
|
Net assets |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
175,023 |
69,166 |
18,644 |
262,833 |
|
Total liabilities |
|
|
|
|
(103,234) |
(27,621) |
(2,821) |
(133,676) |
|
Total |
|
|
|
|
71,789 |
41,545 |
15,823 |
129,157 |
|
|
|
|
|
|
|
|
|
|
9. Operating segment capital expenditure, depreciation and amortisation
|
|
Unaudited |
Unaudited |
|||||||||||
|
|
Half Year to 31st October 2023 |
Half Year to 31st October 2022 |
|||||||||||
|
|
Mechanical |
Refractory |
Group centre |
Total |
Mechanical |
Refractory |
Group centre |
Total |
|||||
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||||
|
Capital expenditure on: |
|
|
|
|
|
|
|
|
|||||
|
Property, plant and equipment |
5,420 |
1,019 |
494 |
6,933 |
5,567 |
2,144 |
115 |
7,826 |
|||||
|
Right-of-use assets |
‒ |
34 |
34 |
68 |
976 |
66 |
62 |
1,104 |
|||||
|
Intangible assets |
381 |
17 |
‒ |
398 |
208 |
45 |
9 |
262 |
|||||
|
Total capital expenditure |
5,801 |
1,070 |
528 |
7,399 |
6,751 |
2,255 |
186 |
9,192 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation |
2,445 |
858 |
567 |
3,870 |
2,338 |
761 |
508 |
3,607 |
|||||
|
Amortisation |
225 |
408 |
21 |
654 |
221 |
359 |
30 |
610 |
|||||
|
Total |
2,670 |
1,266 |
588 |
4,524 |
2,559 |
1,120 |
538 |
4,217 |
|||||
|
|
|
|
|
|
Audited |
||||||||
|
|
|
|
|
|
Year ended 30th April 2023 |
||||||||
|
|
|
|
|
|
Mechanical |
Refractory |
Group centre |
Total |
|||||
|
|
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|||||
|
Capital expenditure on |
|
|
|
|
|
|
|
|
|||||
|
Property, plant and equipment |
|
|
|
|
15,623 |
4,928 |
630 |
21,181 |
|||||
|
Right-of-use assets |
|
|
|
|
1,233 |
66 |
220 |
1,519 |
|||||
|
Intangible assets |
|
|
|
|
508 |
1,305 |
11 |
1,824 |
|||||
|
Total capital expenditure |
|
|
|
|
17,364 |
6,299 |
861 |
24,524 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation - property, plant and equipment |
|
|
|
|
4,872 |
1,528 |
1,070 |
7,470 |
|||||
|
Amortisation |
|
|
|
|
446 |
747 |
64 |
1,257 |
|||||
|
Total |
|
|
|
|
5,318 |
2,275 |
1,134 |
8,727 |
|||||
10. Geographical segments
|
|
Unaudited |
Unaudited |
||||||
|
|
Half Year to 31st October 2023 |
Half Year to 31st October 2022 |
||||||
|
|
Revenue |
Net assets |
Non-current assets |
Capital expenditure |
Revenue |
Net assets |
Non-current assets |
Capital expenditure |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
UK |
34,171 |
73,302 |
115,763 |
5,130 |
25,108 |
71,240 |
102,487 |
7,957 |
|
Rest of Europe |
10,526 |
6,530 |
4,258 |
330 |
13,360 |
9,096 |
3,981 |
385 |
|
USA |
9,458 |
‒ |
‒ |
‒ |
7,807 |
‒ |
‒ |
‒ |
|
Pacific Basin |
21,865 |
16,378 |
6,656 |
199 |
18,349 |
16,993 |
7,395 |
119 |
|
Rest of World |
21,564 |
22,478 |
10,394 |
1,740 |
24,711 |
19,588 |
10,489 |
731 |
|
Total |
97,584 |
118,688 |
137,071 |
7,399 |
89,335 |
116,917 |
124,352 |
9,192 |
|
|
|
|
|
|
Audited |
|||
|
|
|
|
|
|
Year ended 30th April 2023 |
|||
|
|
|
|
|
|
Revenue |
Net assets |
Non-current assets |
Capital expenditure |
|
|
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
UK |
|
|
|
|
55,867 |
82,669 |
114,235 |
21,533 |
|
Rest of Europe |
|
|
|
|
28,367 |
10,636 |
4,224 |
790 |
|
USA |
|
|
|
|
19,854 |
‒ |
‒ |
‒ |
|
Pacific Basin |
|
|
|
|
34,725 |
15,982 |
7,029 |
330 |
|
Rest of World |
|
|
|
|
46,929 |
19,870 |
8,930 |
1,871 |
|
Total |
|
|
|
|
185,742 |
129,157 |
134,418 |
24,524 |
11. Revenue
The Group's revenue is derived from contracts with customers. The following tables provide an analysis of revenue by geographical market and by product line.
|
|
Unaudited |
Unaudited |
Audited |
||||||
|
|
Half Year to 31st October 2023 |
Half Year to 31st October 2022 |
Year ended 30th April 2023 |
||||||
|
|
Mechanical |
Refractory |
Total |
Mechanical |
Refractory |
Total |
Mechanical |
Refractory |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Primary geographical markets |
|
|
|
|
|
|
|
|
|
|
UK |
25,594 |
8,577 |
34,171 |
17,916 |
7,193 |
25,109 |
41,112 |
14,755 |
55,867 |
|
Rest of Europe |
6,478 |
4,048 |
10,526 |
9,322 |
4,038 |
13,360 |
21,269 |
7,098 |
28,367 |
|
USA |
9,069 |
389 |
9,458 |
7,400 |
407 |
7,807 |
19,141 |
713 |
19,854 |
|
Pacific Basin |
10,082 |
11,783 |
21,865 |
5,885 |
12,464 |
18,349 |
12,253 |
22,472 |
34,725 |
|
Rest of World |
14,603 |
6,961 |
21,564 |
17,527 |
7,183 |
24,710 |
29,992 |
16,937 |
46,929 |
|
Total |
65,826 |
31,758 |
97,584 |
58,050 |
31,285 |
89,335 |
123,767 |
61,975 |
185,742 |
|
|
|
|
|
|
|
|
|
|
|
|
Product lines |
|
|
|
|
|
|
|
|
|
|
Standard products and consumables |
7,043 |
31,758 |
38,801 |
7,222 |
31,285 |
38,507 |
13,767 |
61,975 |
75,742 |
|
Bespoke engineered products - point in time |
8,377 |
‒ |
8,377 |
17,468 |
‒ |
17,468 |
30,002 |
‒ |
30,002 |
|
Total point in time revenue |
15,420 |
31,758 |
47,178 |
24,690 |
31,285 |
55,975 |
43,769 |
61,975 |
105,744 |
|
Minimum period contracts for goods and services |
2,840 |
‒ |
2,840 |
2,252 |
‒ |
2,252 |
4,335 |
‒ |
4,335 |
|
Bespoke engineered products - over time |
47,566 |
‒ |
47,566 |
31,108 |
‒ |
31,108 |
75,663 |
‒ |
75,663 |
|
Total over time revenue |
50,406 |
‒ |
50,406 |
33,360 |
‒ |
33,360 |
79,998 |
‒ |
79,998 |
|
Total revenue |
65,826 |
31,758 |
97,584 |
58,050 |
31,285 |
89,335 |
123,767 |
61,975 |
185,742 |
12. Dividends
The Directors do not propose the payments of an interim dividend.
|
|
Unaudited |
Unaudited |
Audited |
|
|
Half Year to |
Half Year to |
Year ended |
|
|
31st October |
31st October |
30th April |
|
|
2023 |
2022 |
2023 |
|
|
£'000 |
£'000 |
£'000 |
|
Equity dividends paid during the period: |
|
|
|
|
Ordinary dividends paid in respect of the year ended 30th April 2023 |
4,318 |
‒ |
‒ |
|
Ordinary dividends paid in respect of the year ended 30th April 2022 |
‒ |
4,145 |
8,289 |
|
Total |
4,318 |
4,145 |
8,289 |
As noted in the Group Annual Accounts to 30th April 2023, the dividend payments for the year ended 30th April 2023 are being paid in two equal instalments, with the second payment due in April 2024.
13. Earnings per share
|
|
Unaudited |
Unaudited |
Audited |
|
|
as at |
as at |
as at |
|
|
31st October |
31st October |
30th April |
|
|
2023 |
2022 |
2023 |
|
|
Number of ordinary shares |
||
|
Ordinary shares in issue |
|
|
|
|
Opening balance |
7,689,600 |
7,689,600 |
7,689,600 |
|
Shares bought back in the period |
(180,000) |
‒ |
‒ |
|
Closing balance |
7,509,600 |
7,689,600 |
7,689,600 |
|
|
|
|
|
|
Weighted average number of ordinary shares in issue |
7,546,774 |
7,689,600 |
7,689,600 |
|
|
|
|
|
|
|
£'000 |
||
|
Relevant profits attributable to shareholders |
8,729 |
8,761 |
15,904 |
The Company bought back 180,000 of its ordinary shares on 7th June 2023 and cancelled them off the register, following a tender offer to its shareholders.
14. Property, plant and equipment and intangible assets
|
|
Unaudited |
Unaudited |
||||
|
|
Half Year to 31st October 2023 |
Half Year to 31st October 2022 |
||||
|
|
Property, plant and equipment |
Right-of-use assets |
Intangible assets |
Property, plant and equipment |
Right-of-use assets |
Intangible assets |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Net book value at the beginning of the period |
101,243 |
6,763 |
25,448 |
87,594 |
6,191 |
24,817 |
|
Additions |
6,933 |
68 |
398 |
7,826 |
1,104 |
262 |
|
Disposals (at net book value) |
(169) |
‒ |
‒ |
(46) |
‒ |
‒ |
|
Transfers |
(5,242) |
5,242 |
‒ |
(306) |
306 |
‒ |
|
Depreciation |
(3,153) |
(717) |
‒ |
(2,965) |
(642) |
‒ |
|
Amortisation |
‒ |
‒ |
(654) |
‒ |
‒ |
(610) |
|
Exchange adjustment |
11 |
(12) |
(66) |
1 |
(3) |
(89) |
|
Net book value at the end of the period |
99,623 |
11,344 |
25,126 |
92,104 |
6,956 |
24,380 |
The depreciation on right-of-use assets maybe be analysed as follows:
|
|
Unaudited |
Unaudited |
|
|
Half Year to 31st October |
Half Year to 31st October |
|
|
2023 |
2022 |
|
|
£'000 |
£'000 |
|
Finance leases (former IAS 17 definition) |
439 |
365 |
|
Operating leases (former IAS 17 definition) |
278 |
277 |
|
|
717 |
642 |
15. Interest-bearing liabilities
|
|
Unaudited |
Unaudited |
Audited |
|
|
as at |
as at |
as at |
|
|
31st October |
31st October |
30th April |
|
|
2023 |
2022 |
2023 |
|
|
£'000 |
£'000 |
£'000 |
|
Bank overdrafts |
‒ |
‒ |
119 |
|
Bank loans - repayable by instalments |
1,072 |
1,058 |
1,154 |
|
Bank loans - rolling credit facilities |
10,000 |
‒ |
3,500 |
|
Lease liabilities |
2,870 |
2,260 |
1,956 |
|
Due within one year |
13,942 |
3,318 |
6,729 |
|
|
|
|
|
|
Bank loans - repayable by instalments |
6,443 |
7,367 |
6,985 |
|
Bank loans - rolling credit facilities |
42,000 |
41,000 |
36,000 |
|
Lease liabilities |
6,914 |
4,675 |
4,271 |
|
Due after more than one year |
55,357 |
53,042 |
47,256 |
|
|
|
|
|
|
Bank overdrafts |
‒ |
‒ |
119 |
|
Bank loans - repayable by instalments |
7,515 |
8,425 |
8,139 |
|
Bank loans - rolling credit facilities |
52,000 |
41,000 |
39,500 |
|
Lease liabilities |
9,784 |
6,935 |
6,227 |
|
Total |
69,299 |
56,360 |
53,985 |
|
|
|
|
|
|
Former IAS 17 analysis of lease liabilities |
|
|
|
|
Finance leases |
8,510 |
5,306 |
4,725 |
|
Operating leases |
1,274 |
1,629 |
1,502 |
|
|
9,784 |
6,935 |
6,227 |
|
|
|
|
|
16. Capital management
As at 31st October 2023 the capital utilised was £168,813,000, as shown below:
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
As at |
As at |
As at |
|
|
|
31st October 2023 |
31st October 2022 |
30th April 2023 |
|
|
Note |
£'000 |
£'000 |
£'000 |
|
Cash and cash equivalents |
|
(13,404) |
(8,604) |
(19,661) |
|
Bank overdrafts |
15 |
‒ |
‒ |
119 |
|
Bank loans and committed facilities |
15 |
59,515 |
49,425 |
47,639 |
|
Lease liabilities |
15 |
9,784 |
6,935 |
6,227 |
|
Net debt in accordance with IFRS 16 |
|
55,895 |
47,756 |
34,324 |
|
Operating lease debt (former IAS 17 definition) |
15 |
(1,274) |
(1,629) |
(1,502) |
|
Relevant net debt for KPI purposes |
|
54,621 |
46,127 |
32,822 |
|
Total equity attributable to equity holders of the parent |
|
114,192 |
112,654 |
124,747 |
|
Capital |
|
168,813 |
158,781 |
157,569 |
|
|
|
|
|
|
17. Total financial assets and financial liabilities
The following table sets out the Group's accounting classification of its financial assets and financial liabilities, and their carrying amounts at 31st October 2023. The carrying amount is a reasonable approximation of fair value for all financial assets and financial liabilities.
|
|
Fair value hedging instruments |
Fair value through profit and loss |
Amortised cost |
Total carrying amount / fair value amount |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
Financial assets measured at fair value |
|
|
|
|
|
Forward exchange contracts used for hedging |
335 |
‒ |
‒ |
335 |
|
Other forward exchange contracts |
‒ |
19 |
‒ |
19 |
|
Interest rate swap |
‒ |
6,867 |
‒ |
6,867 |
|
|
335 |
6,886 |
‒ |
7,221 |
|
Financial assets not measured at fair value |
|
|
|
|
|
Cash and cash equivalents |
‒ |
‒ |
13,404 |
13,404 |
|
Contract assets |
‒ |
‒ |
19,808 |
19,808 |
|
Trade receivables and other financial assets |
‒ |
‒ |
36,737 |
36,737 |
|
Corporation tax receivable |
‒ |
‒ |
418 |
418 |
|
|
‒ |
‒ |
70,367 |
70,367 |
|
Financial liabilities measured at fair value |
|
|
|
|
|
Forward exchange contracts used for hedging |
1,528 |
‒ |
‒ |
1,528 |
|
Other forward exchange contracts |
‒ |
701 |
‒ |
701 |
|
|
1,528 |
701 |
‒ |
2,229 |
|
Financial liabilities not measured at fair value |
|
|
|
|
|
Bank loans |
‒ |
‒ |
59,515 |
59,515 |
|
Lease liabilities |
‒ |
‒ |
9,784 |
9,784 |
|
Contract liabilities |
‒ |
‒ |
31,412 |
31,412 |
|
Trade payables and other financial liabilities |
‒ |
‒ |
23,065 |
23,065 |
|
Corporation tax payable |
‒ |
‒ |
2,009 |
2,009 |
|
|
‒ |
‒ |
125,785 |
125,785 |
The interest rate SWAP and forward exchange contract assets and liabilities fair values in the above table are derived using Level 2 inputs as defined by IFRS 7 as detailed in the paragraph below.
IFRS 7 requires that the classification of financial instruments at fair value be determined by reference to the source of inputs used to derive the fair value. This classification uses the following three level hierarchy: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).