Goodwin Regulatory News (GDWN)

CHAIRMAN'S STATEMENT

I am pleased to report that the pre-tax profits for the Group for the six month period ending 31st October 2010 were £5.8 million (2009 £6.8 million) from a revenue of £45.9 million (2009 £45.8 million).

Gross margin earned for the period remained in line with the same period last year, but overhead and administration costs increased as a feature of steps being taken such that the Group is appropriately equipped to target significant growth both in the UK and in our overseas subsidiaries over the next five years.

The order input of all Group companies for the first six months of this half year improved by 29 % compared with the same period last year which in itself should provide the Group with the opportunity to increase activity in the second half of the year.

Dupré Minerals within our Refractory Division has enhanced its position as the exclusive distributor of vermiculite from the Ugandan Namekara mine by extending the agreement term from 10 to 25 years. This new distribution opportunity, which was originally signed for in May 2010, will allow Dupré to further consolidate its position in the world vermiculite market.

The cash flow position has deteriorated by some £8 million over the past 6 months. This is a feature of the further release and payment for certain capital expenditure projects within the Group and also an increase in the work in progress and debtors as our activity levels are increasing. It is also now more difficult to obtain satisfactory contract stage payments on large contracts as customers have used the recession as a reason not to appropriately fund contracts and as such we have been faced with adding this cost into our selling prices. The Group now has more than adequate lines of credit that are committed to us over a five year period, and this permitted change in cash flow position is an indication of the confidence the Board has in allowing our companies to expand their product lines and activities.

John Goodwin

Chairman

21st December 2010

Management report

Over 75% of the products made by the Group are for use in overseas markets. The management infrastructure will need continuous investment to further grow the Group in these markets and provide quality of service, whilst minimising the risks.

The sales order backlog stands at seven months at the end of October 2010.

Turnover

Sales revenue virtually unchanged at £45.93 million for the half year represents a 0.2% increase over the £45.83 million achieved during the same period last year.

With the increased order input in the first six months of the year, there is the opportunity of increasing activity levels in the second half of the year.

Profit Before Tax

Profit before tax for the 6 months of £5.80 million is down 14.7% from the £6.80 million achieved for the same period last year. This is largely as a result of an increased level of overhead brought in to service the growth opportunities of the Group over the next 5 years.

Risks and Uncertainties

The Group has in place internal control procedures which, in conjunction with its centralised management structure, identify and manage the key risks and uncertainties affecting the Group.

We would refer you to note 19 (page 31) of the Group annual accounts to 30th April 2010 which describes in detail the key risks and uncertainties affecting the business such as credit risk and foreign exchange risk. This position remains unchanged at the end of October 2010

We see markets connected with energy such as oil, gas, LNG, electricity and water remaining in demand and additional investment in our engineering division is occurring such that we are suitably positioned to tender for business in the nuclear power station construction activity when it starts ramping up world wide.

Probably the biggest unknown for the next 24 months is the relationship of the major currency pairs and this will have an affect on our global competitiveness, although our overseas manufacturing operations have to some extent reduced this risk

Report on Expected Developments

This report describes the expected developments of the Group during the year ended 30th April 2011. 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.

2011 Outlook

The order input of all Group companies for the first six months has improved 29% compared to the same period last year, which should in itself provide the Group with the opportunity to increase activity in the second half of the year.

Responsibility statement of the directors in respect of the half-yearly financial report

The directors confirm to the best of their knowledge that this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that 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) of the United Kingdom's Financial Service Authority.

J. W. Goodwin

Chairman

21st December 2010

CONDENSED CONSOLIDATED INCOME STATEMENT

for the half year to 31st October 2010

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the half year to 31st October 2010

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half year to 31st October 2010

CONDENSED CONSOLIDATED BALANCE SHEET

as at 31st October 2010

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the half year ended 31st October 2010

Notes to the condensed consolidated financial statements

1 Reporting entity

Goodwin PLC (the "Company") is a company incorporated in England. The condensed consolidated interim financial statements of the Company as at and for the six months ended 31st October 2010 comprises the Company, its subsidiaries, and the Group's interests in associates (together referred to as the "Group").

The consolidated financial statements of the Group as at and for the year ended 30th April 2010 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 EU. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30th April 2010.

The comparative figures for the financial year ended 30th April 2010 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.

These condensed consolidated interim financial statements were approved by the Board of Directors on 21st December 2010.

3 Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30th April 2010.

4 Estimates

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 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 consolidated financial statements as at and for the year ended 30 April 2010.

5 Business Segments

Products and services from which reportable segments derive their revenues

In accordance with the requirements of IFRS8 "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:

·; Engineering - casting, machining and general engineering

·; Refractories - powder manufacture and mineral processing

Information regarding the Group's operating segments is reported below. 

Segment revenues and profits

Segmental assets and liabilities

Geographical segments

The Group operates in the above principal locations. In presenting the information on geographical segments, revenue is based on the location of its customers and assets and the location of the assets.

 6 Dividends

The directors do not propose the payment of an interim dividend.

7 Earnings per share

The calculation of the earnings per ordinary share is based on the number of ordinary shares in issue during all periods of 7,200,000 and on the profit for the six months attributable to ordinary shareholders of £ 3,593,000 (half year ended 31st October 2009: £4,709,000). The company has no share options or other diluting interest and accordingly, there is no difference in the calculation of diluted earnings per share.

8. Issuance and repayment of debt

During the 6 months to 31st October 2010, the Group has repaid £350,000 of 5 year drawn down committed lines which remain available to be redrawn when appropriate.

The Group has also entered into a finance lease agreement for a total of £1,046,000 relating to the purchase of new CNC machinery and has repaid capital elements of its finance leases of £177,000.

9. Property, Plant and Equipment

During the six month period, the Group incurred fixed asset expenditure of £ 2.711 million (6 months to 31 October 2009: £1.364 million) on various capital projects throughout the Group.

10. Intangible assets