Goodwin Regulatory News (GDWN)

24 Aug 2007 15:01

Goodwin PLC24 August 2007 GOODWIN PLC PRELIMINARY ANNOUNCEMENT Goodwin PLC today announces its preliminary results for the year to 30th April2007. I am pleased to report annual pre-tax profits for the Group for the year to 30thApril 2007 of £7.04 million (2006: £5.13 million), an increase of 37% on arevenue of £65 million which is up 12% on the previous year. The directorspropose that a dividend of 18.403p per share (2006: 15.278p) be paid. The above results were accomplished by our valve company, Goodwin International,yet again achieving record overseas sales to the oil and gas markets and GoodwinSteel Castings continuing to supply significant quantities of steam valves tothe power generation markets around the world. The new financial year againstarted with a very healthy order book in our valve company. I am pleased to announce this year there were two new main board Directorsappointed: John Connolly who is a Chartered Accountant (ACA) and has been with us now forover 10 years after having spent 7 years with Deloitte Touche and then a further8 years in industry before joining the Group in 1996. Matthew S. Goodwin has been a director of Goodwin International Ltd specialisingin the valve production growth since 2004. He had previously worked on our majorinvestment refractory project within the Group, having graduated from ImperialCollege, London as a materials engineer. He is the first of the sixth generationof Goodwins working as an executive in the Group to be appointed to the mainboard. During the year the Group acquired 75% of the equity of a German nozzle checkvalve company Noreva GmbH. The nozzle check valve range is complimentary to theGoodwin dual plate check valve range and will be manufactured both in Germanyand at Goodwin International's existing valve facility in Stoke on Trent. Also during the year the Group purchased the manufacturing plant and customerlist of Dupre Vermiculite. By this purchase we expect to substantially increaseour turnover and margins in this product line with enhanced manufacturing andpurchase efficiencies. Our small but profitable internet service provider, Internet Central, continuedto improve its profitability this year and reported profits of £230,000 on aturnover of £2.0 million. The weakness of the US Dollar continues to provide virtually all our EuropeanGroup companies with a challenge, but with our pragmatic steady drive to growthe Group's profit earning capacity in the Pacific Basin and with ourmanufacturing efficiencies in the UK, we do not expect a deterioration in Groupperformance in this financial year despite the Dollar effectively being at 2:1to Sterling. The Board's policy remains consistent in that all Group companies are requiredto engineer for growth in turnover and profit without unnecessarily burdeningthe Group with excessive debt. To ensure this is achieved a long term view isadopted. A synopsis of historic performance over the past five years can be seen byreferring to the Investor section on our web site, www.goodwin.co.uk, clickingon Shareholder Information and then on the Company Fact Sheet. The investmentrate of return this year is similar to last year and equates to nine hundred percent for the five year period as will be seen in the Total Shareholder Returngraph contained in the full accounts to be released. The Board again wishes to thank the employees for their relentless efforts inpushing the Group performance forward. Consolidated income statementfor the year ended 30 April 2007 2007 2006 £000 £000Continuing operationsRevenue 65,314 58,180Cost of sales (50,135) (45,429) -------- --------Gross profit 15,179 12,751 Distribution costs (1,903) (1,873)Administrative expenses (5,518) (5,345) -------- --------Operating profit 7,758 5,533 Financial expenses (716) (401) -------- --------Profit before taxation 7,042 5,132 Tax on profit (2,198) (1,629) -------- -------- Profit after taxation 4,844 3,503 ======== ======== Attributable to:Equity holders of the parent 4,687 3,361Minority interest 157 142 -------- --------Profit for the year 4,844 3,503 ======== ======== Basic and diluted earnings per ordinary share 65.10p 46.68p ======== ======== Consolidated statement of recognised income and expensefor the year ended 30 April 2007 2007 2006 £000 £000 Foreign exchange translation differences 9 44Effective portion of changes in fair value of cash flow hedges 589 (398)Change in fair value of cash flow hedges transferred to profit or loss (935) (2,359) Tax recognised on income and expenses recognised directly in equity 104 827 -------- --------Net income and expense recognised directly in equity (233) (1,886) Profit for the year 4,844 3,503 -------- -------- Total recognised income and expense 4,611 1,617 ======== ======== Total recognised income and expense for theperiod is attributable to: Equity holders of the parent 4,454 1,475 Minority interest 157 142 -------- -------- 4,611 1,617 ======== ======== Consolidated balance sheetat 30 April 2007 2007 2006 £000 £000Non-current assetsProperty, plant and equipment 13,305 11,118Intangible assets 5,050 354 -------- -------- 18,355 11,472 -------- --------Current assetsInventories 14,367 10,270Financial assets 17,186 13,609Cash and cash equivalents 412 545 -------- -------- 31,965 24,424 -------- --------Total assets 50,320 35,896 -------- -------- Current liabilitiesBank overdraft 2,493 3,569Other interest-bearing loans and borrowings 5,626 291Trade and other payables 16,598 12,520Tax payable 1,303 842 -------- -------- 26,020 17,222 -------- --------Non-current liabilitiesOther interest-bearing loans and borrowings 1,280 520Deferred consideration 1,509 -Deferred tax liabilities 1,395 1,427 -------- -------- 4,184 1,947 -------- --------Total liabilities 30,204 19,169 -------- --------Net assets 20,116 16,727 ======== ======== Equity attributable to equity holders of the parentShare capital 720 720Translation reserve 33 24Cash flow hedge reserve 684 926Retained earnings 18,210 14,623 -------- -------- 19,647 16,293Minority interest 469 434 -------- --------Total equity 20,116 16,727 ======== ======== Consolidated cash flow statementat 30 April 2007 2007 2006 £000 £000 Cash flow from operating activities Profit for the year 4,844 3,503 Adjustments for: Depreciation 1,495 1,590 Amortisation of intangible assets 101 54 Financial expense 716 401 Loss on sale of property, plant and equipment 9 29 Tax expense 2,198 1,629 -------- --------Operating profit before changes in working capital and provisions 9,363 7,206 Increase in trade and other receivables (2,910) (2,543) Increase in inventories (1,736) (222) (Decrease)/increase in trade and other payables (excluding payments on account) (597) 769 Increase/(decrease) in payments on account 1,793 (2,850) -------- --------Cash generated from operations 5,913 2,360 Interest paid (657) (344) Corporation tax paid (1,768) (1,295) Interest element of finance lease obligations (59) (57) -------- --------Net cash from operating activities 3,429 664 Cash flow from investing activities Proceeds from sale of property, plant and equipment 25 31 Acquisition of property, plant and equipment (2,403) (1,595) Acquisition of brand name/customer list (880) - Acquisition of subsidiary net of cash acquired (2,739) (136) -------- --------Net cash from investing activities (5,997) (1,700) Cash flows from financing activities Payment of capital element of finance lease obligations (382) (325) Dividends paid (1,100) (1,000) Proceeds of new loans 5,000 - -------- --------Net cash from financing activities 3,518 (1,325) Net increase / (decrease) in cash and cash equivalents 950 (2,361) Opening cash and cash equivalents (3,024) (670) Effect of exchange rate fluctuations on cash held (7) 7 -------- --------Closing cash and cash equivalents (2,081) (3,024) ======== ======== GOODWIN PLC RESULTS FOR THE YEAR ENDED 30TH APRIL 2007 NOTES 1. As required, the Group's financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS) and the above accounts have been prepared on this basis. The comparative results for the year ended 30th April 2006 have also been prepared on this basis. 2. The Group is managed as one business but operates in the following principal locations. In presenting the information on geographical segments, revenue is based on the location of its customers and assets on the location of the assets. 2007 2006 Operational Capital Operational Capital Revenue assets expenditure Revenue assets expenditure £000 £000 £000 £000 £000 £000 UK 12,754 18,060 2,786 12,352 15,544 1,371Rest of Europe 9,911 545 - 8,101 73 -USA 4,544 - - 3,396 - -Pacific Basin 27,466 868 203 30,055 672 118Rest of world 10,639 683 153 4,276 708 323 ------ ------ ------ ------ ------- ------Total 65,314 20,156 3,142 58,180 16,997 1,812 ====== ====== ====== ====== ======= ====== 3. The Directors propose the payment of an ordinary dividend of 18.403p per share (2006: 15.278p). The proposed dividend will be paid on 12th November 2007 to shareholders on the register at the close of business on 12th October 2007. 4. The earnings per ordinary share has been calculated on profit after taxation for the year attributable to equity holders of the parent of £4,687,000 (2006: £3,361,000) and by reference to the 7,200,000 ordinary shares in issue throughout both years. The company has no share options or other diluting instruments and accordingly there is no difference in the calculation of diluted earnings per share. 5. The Annual General Meeting will be held at 10.30 a.m. on 8th November 2007 at Crewe Hall, Weston Road, Crewe, Cheshire CW1 6UZ 6. Copies of the 2007 accounts will be sent to all shareholders and will also be available on the Company's website: www.goodwin.co.uk and from the Company's Registered Office: Ivy House Foundry, Hanley, Stoke-on-Trent ST1 3NR. 7. The financial information contained in this report does not constitute the statutory accounts within the meaning of Section 240 of the Companies Act 1985 for the years ended 30th April 2006 or 2007. Statutory accounts for 2006, which were prepared under IFRS, have been delivered to the Registrar of Companies and those for 2007, also prepared under IFRS, will be delivered following the company's Annual General Meeting. The auditors have reported on the accounts for 2006 and 2007; their reports were unqualified and did not contain statements under Section 237 (2) or (3) of the Companies Act 1985. END. This information is provided by RNS The company news service from the London Stock Exchange