Goodwin Regulatory News (GDWN)

25 Aug 2006 15:00

Goodwin PLC25 August 2006 Goodwin PLC - Final Results Goodwin PLC today announces its preliminary results for the year to 30th April2006. I am pleased to report annual pre-tax profits for the Group for the year to 30thApril 2006 of £5.13 million (2005: £3.53 million), an increase of 45% on aturnover of £58 million (2005: £45 million) up 29% on the previous year. Thedirectors propose that a dividend of 15.278p per share (2005: 13.889p) be paid. As a key performance indicator, the strategy of investing into our manufacturingbase to enable the profitable supply of technically advanced goods to growthmarkets continues to prove successful. The underlying demand for energy andelectricity whether generated, from coal, oil, gas or wave power has meant thatdemand for our castings and valves supplied to these markets has remainedstrong. The above results were accomplished by the valve company, GoodwinInternational, and Goodwin Steel Castings yet again achieving recordoverseas sales. In recognition of this, Goodwin Steel Castings, supported byGoodwin International, was awarded the Queen's Enterprise Award for Export inApril 2006. Last year we commented on the changes occurring in the jewellery castingindustry and its migration to the Pacific Basin as indeed is being carried outby many other manufacturing operations. In addressing some of the geographicalchanges in business activity I am pleased to report that the Group now has six active companies in the Pacific Basin employing 75 people in addition to the 579 people employed in the UK making a total employed by the Group of 654. I am alsopleased to be able to say that the combined profitability of these six overseasoperations, although relatively small, amounted to £320,000. There are twocompanies in India, two companies in China, one in Thailand and one in SouthKorea. These companies are served by well established local generalmanagers, are replicating our UK activities to a lesser or greater extent and are selling our proven track record products. The new financial year was started with an order book in the valve companysubstantially higher than at the same time last year, which again should providethe opportunity for a further increase in annual turnover and profit. Technological innovation and engineering has been driven by customers'environmental considerations for efficient energy use, water and wastemanagement. Work we have carried out during the year on cast steels in place offorgings for the more efficient operation of turbines at higher temperatures hasenabled us in the UK to offer savings to our customers worldwide using advancedchrome steels. Technological innovation is also at the front of Easat's winning of orders tocover ground movement radar. Our small but profitable internet service provider, Internet Central,significantly improved its turnover and profitability this year and reportedprofits of £181,000. Internet Central's provision of Voice-over-IP equipment tobusinesses has been a factor in this improvement. The continued increase in turnover provides us with the challenges of managingthe cash consumed to fund this, but during the year additional credit facilitieswere negotiated to cover this demand. The Group profitability achieved over the past eight years of 16% compound growth has been achieved by organic growth where we have excelled in our field.The Board is now considering whether it is appropriate for certain of the Groupcompanies to continue their growth by acquisition and it is for this reason thatthe dividend increase to £1.1 million is relatively modest at 10%. This allows us to suitably position the company to undertake such acquisition(s). The Board again wishes to thank the employees for their relentless efforts inpushing the Group performance forward. J W GoodwinChairman 25th August, 2006 Consolidated income statementfor the year ended 30 April 2006 2006 2005 £000 £000 Continuing operationsRevenue 58,180 44,945Cost of sales (45,429) (34,635) -------- -------- Gross profit 12,751 10,310 Distribution costs (1,873) (1,506)Administrative expenses (5,345) (4,716) -------- -------- Operating profit 5,533 4,088 Financial expenses (401) (553) -------- -------- Profit before taxation 5,132 3,535 Taxation (1,629) (1,016) -------- -------- Profit after taxation 3,503 2,519 ======== ======== Attributable to:Equity holders of the parent 3,361 2,477Minority interest 142 42 -------- -------- Profit for the year 3,503 2,519 ======== ======== Basic and diluted earnings per ordinary share 46.68p 34.40p ======== ======== Consolidated statement of recognised income and expensefor the year ended 30 April 2006 2006 2005 £000 £000 Foreign exchange translation differences 44 (20)Effective portion of changes in fair value of (398) -* cash flow hedgesChange in fair value of cash flow hedges (2,359) -* transferred to profit or lossTax recognised on income and expenses recognised 827 -* directly in equity Net income and expense recognised directly in equity (1,886) (20) Profit for the year 3,503 2,519 ------- -------- Total recognised income and expense 1,617 2,499 ======== ======== Total recognised income and expense for the periodis attributable to: Equity holders of the parent 1,475 2,457 Minority interest 142 42 -------- -------- 1,617 2,499 ======== ======== Effect of change in accounting policyEffect of adoption of IAS 32 and 39, net of tax,on 1 May 2005 (with 2005 not restated) on: Cash flow hedge reserve 2,856 -* ======== ======== * No entries are shown in respect of hedging for the year ended 30 April 2005 due to the fact that the company has adopted IAS 32 and IAS 39 prospectively from 1 May 2005 onwards. There is no requirement under IAS 32 and IAS 39 to restate the effect on the prior year result. Consolidated balance sheetat 30 April 2006 2006 2005 £000 £000 Non-current assetsProperty, plant and equipment 11,118 10,920Intangible assets 354 130 -------- -------- 11,472 11,050 -------- -------- Current assetsInventories 10,270 10,004Trade and other receivables 13,609 9,743Cash and cash equivalents 545 275 -------- -------- 24,424 20,022 -------- -------- Total assets 35,896 31,072 -------- -------- Current liabilitiesBank overdraft 3,569 945Other interest-bearing loans and 291 315 borrowingsTrade and other payables 12,520 14,459Tax payable 842 635 -------- -------- 17,222 16,354 -------- -------- Non-current liabilitiesOther interest-bearing loans and 520 576 borrowingsDeferred tax liabilities 1,427 951 -------- -------- 1,947 1,527 -------- -------- Total liabilities 19,169 17,881 -------- -------- Net assets 16,727 13,191 ======== ========= Equity attributable to equity holders ofthe parentShare capital 720 720Translation reserve 24 (20)Cash flow hedge reserve 926 -Retained earnings 14,623 12,262 ------- ------- 16,293 12,962 Minority interest 434 229 ------- -------- Total equity 16,727 13,191 ======= ======== Consolidated cash flow statementat 30 April 2006 2006 2005 £000 £000Cash flow from operating activitiesProfit for the year 3,503 2,519 Adjustments for: Depreciation 1,590 1,506 Amortisation of intangible assets 54 40 Financial expense 401 553 Loss on sale of property, plant and equipment 29 43 Tax expense 1,629 1,016 ------- ------- Operating profit before changes in working 7,206 5,677 capital and provisions Increase in trade and other receivables (2,543) (156) Increase in inventories (222) (2,665) Increase in trade and other payables 769 2,808 (excluding payments on account) (Decrease)/increase in payments on account (2,850) 3,301 -------- -------- Cash generated from operations 2,360 8,965 Interest paid (344) (505) Corporation tax paid (1,295) (753) Interest element of finance lease obligations (57) (48) -------- -------- Net cash from operating activities 664 7,659 Cash flow from investing activities Proceeds from sale of property, plant and equipment 31 25 Acquisition of property, plant and equipment (1,595) (2,177) Acquisition of subsidiary interests (136) (11) -------- -------- Net cash from investing activities (1,700) (2,163) Cash flows from financing activities Payment of capital element of finance (325) (435) lease obligations Dividends paid (1,000) (850) Net cash from financing activities (1,325) (1,285) Net (decrease)/increase in cash and cash (2,361) 4,211 equivalents Opening cash and cash equivalents (670) (4,871) Effect of exchange rate fluctuations on 7 (10) cash held -------- -------- Closing cash and cash equivalents (3,024) (670) ======== ======== GOODWIN PLC RESULTS FOR THE YEAR ENDED 30TH APRIL 2006 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 presented on this basis. The comparative results for the year ended 30th April 2005 and the opening balance sheet on 1 May 2004 have also been presented on this basis with the exception of the accounting of financial instruments which, as permitted by the transitional arrangement of IAS 32 and IAS 39, is on a different basis in 2006 and 2005. Details of the transition to IFRS were given in the interim report. 2. The group is managed as one business but operates in the following principle 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. 2006 Operational Capital Revenue assets expenditure £000 £000 £000 UK 12,352 15,544 1,371Rest of Europe 8,101 73 - USA 3,396 - - Pacific Basin 30,055 672 118 Rest of world 4,276 708 323 ------- ------- -------Total 58,180 16,997 1,812 ======= ======= ======= 2005 Operational Capital Revenue assets expenditure £000 £000 £000 UK 10,525 12,299 2,102Rest of Europe 8,920 49 - USA 4,793 - - Pacific Basin 15,933 529 10 Rest of world 4,774 314 8 ------- ------- -------Total 44,945 13,191 2,120 ======= ======= ======= 3. The Directors propose the payment of an ordinary dividend of 15.278p per share (2005: 13.889p) The proposed dividend will be paid on 3rd November 2006 to shareholders on the register at the close of business on 6th October 2006. 4. The earnings per ordinary share has been calculated on profit after taxation for the year attributable to equity holders of the parent of £3,361,000 (2005: £2,477,000) 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 1st November 2006 at Crewe Hall, Weston Road, Crewe, Cheshire, CW1 6UZ. 6. Copies of the 2006 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 2005 or 2006. Statutory accounts for 2005, which were prepared under UK Generally Accepted Accounting Principles (GAAP), have been delivered to the Registrar of Companies and those for 2006, prepared under IFRS, will be delivered following the company's annual general meeting. The auditors have reported on the accounts for 2005 and 2006; their reports were unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange