Final Results
Goodwin PLC
26 August 2005
Goodwin PLC - Final Results
Goodwin PLC today announces its preliminary results for the year to 30th April
2005.
I am pleased to report annual pre-tax profits for the Group for the year to 30th
April 2005 of £3.53 million (2004: £2.80 million), an increase of 26% on a
turnover of £45 million (2004: £34 million), up 32%. The directors propose that
a dividend of 13.889p per share (2004: 11.806p) be paid. This would result in
shareholders' remaining funds increasing by £1.45 million, 13.8% (2004: 10.7%).
Record sales figures reflect exports of UK manufactured goods into the growing
energy markets. The planned increase in efficiency from investment in machine
tools and better processing plant, together with longer term forward order
commitments, has enabled the Group to remain competitive. This has been achieved
despite rising raw material and energy costs, not all of which could be passed
on to our customers. All Group UK companies traded profitably with Goodwin
International, the valve company, and Easat, the radar antenna company,
performing particularly well again this year.
The new financial year started with the order books in our foundry and our valve
company substantially higher than the same time last year which, again, should
provide the opportunity for a further increase in annual turnover and profit.
Our manufacture of valves, both check valves for the petrochemical, oil, gas and
LNG industries as well as steam valves for the power generation industries,
should ensure we remain busy for the foreseeable future due to demand in the
developing world from where 80% of our sales growth has come, despite the
strength of sterling during the period.
As the Group continues to grow further, the factory space that was built last
year has been fully utilised in catering for the increased demand. This demand
is reflected by the increase in sales, work in progress and corresponding
down-payments resulting in a healthy net cash inflow from operating activities.
J W Goodwin
Chairman
26th August, 2005
GOODWIN PLC
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 30th April 2005
2005 2004
£000 £000
TURNOVER 44,945 34,018
-------- --------
OPERATING PROFIT 4,085 3,103
Interest payable and similar charges (553) (299)
------- -------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 3,532 2,804
Tax on profit on ordinary activities (1,016) (854)
--------- -------
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 2,516 1,950
Minority interests - equity (42) (31)
------ ------
PROFIT FOR THE FINANCIAL YEAR 2,474 1,919
Proposed ordinary dividend (1,000) (850)
--------- -------
RETAINED PROFIT FOR THE FINANCIAL YEAR 1,474 1,069
======= =======
EARNINGS PER ORDINARY SHARE - BASIC AND DILUTED 34.36p 26.65p
GROUP BALANCE SHEET
at 30th April 2005
2005 2004
£000 £000
FIXED ASSETS
Intangible assets 127 160
Tangible assets 10,920 10,391
-------- --------
11,047 10,551
-------- --------
CURRENT ASSETS
Stocks 10,004 7,339
Debtors 9,743 9,602
Cash at bank and in hand 275 229
----- -----
20,022 17,170
CREDITORS:
AMOUNTS FALLING DUE WITHIN ONE YEAR (17,354) (15,486)
--------- ----------
NET CURRENT ASSETS 2,668 1,684
------- -------
TOTAL ASSETS LESS CURRENT LIABILITIES 13,715 12,235
CREDITORS:
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (576) (603)
PROVISIONS FOR LIABILITIES AND CHARGES (951) (940)
------- -------
NET ASSETS 12,188 10,692
======== ========
CAPITAL AND RESERVES
Called up share capital 720 720
Profit and loss account 11,239 9,785
-------- -------
SHAREHOLDERS' FUNDS - EQUITY 11,959 10,505
MINORITY INTERESTS - EQUITY 229 187
----- -----
12,188 10,692
======== ========
GROUP CASH FLOW STATEMENT
for the year ended 30th April 2005
2005 2004
£000 £000
NET CASH INFLOW FROM OPERATING ACTIVITIES 8,965 510
RETURNS ON INVESTMENT AND SERVICING OF FINANCE (553) (299)
TAXATION (753) (812)
CAPITAL EXPENDITURE (2,152) (3,240)
ACQUISITIONS (10) -
EQUITY DIVIDENDS PAID (851) (750)
------- -------
CASH INFLOW/(OUTFLOW) BEFORE FINANCING 4,646 (4,591)
FINANCING (435) (469)
------- -------
INCREASE/(DECREASE) IN CASH IN THE YEAR 4,211 (5,060)
======= =========
RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW
FROM OPERATING ACTIVITIES
for the year ended 30th April 2005
2005 2004
£000 £000
Operating Profit 4,085 3,103
Depreciation and Amortisation Charges 1,549 1,075
Loss on Disposal of Fixed Assets 43 13
Increase in Work in Progress (1,461) (2,758)
Increase in Other Stocks (1,204) (164)
Increase in Debtors (156) (1,943)
Increase/(Decrease) in Payments on Account 3,301 (137)
Increase in Trade and Other Creditors 2,808 1,321
------- -------
NET CASH INFLOW FROM OPERATING ACTIVITIES 8,965 510
======= =====
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
for the year ended 30th April 2005
2005 2004
£000 £000
INCREASE/(DECREASE) IN CASH IN THE YEAR 4,211 (5,060)
Finance Lease Payments 435 469
----- -----
CHANGE IN NET DEBT RESULTING FROM CASH FLOWS 4,646 (4,591)
New Finance Leases (309) (690)
Foreign Exchange Translation Difference (10) (27)
------ ------
MOVEMENT IN NET DEBT IN THE PERIOD 4,327 (5,308)
Net Debt at Start of Year (5,888) (580)
--------- -------
NET DEBT AT END OF YEAR (1,561) (5,888)
========= =========
NOTES
1. The Directors propose the payment of an ordinary dividend of 13.889p per
share (2004: 11.806p)
2. The proposed dividend will be paid on 4th November 2005 to shareholders on
the register at the close of business on 7th October 2005.
3. The basic earnings per ordinary share has been calculated on profit on
ordinary activities after taxation (and minority interests) of £2,474,000
(2004: £1,919,000) 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 diluted earnings per share.
4. The Annual General Meeting will be held at 10.30 a.m. on 2nd November 2005 at
the Saxon Cross Hotel, Sandbach, Cheshire.
5. The financial information contained in this report does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act
1985 for the years ended 30th April 2004 or 2005. Statutory accounts for 2004
have been delivered to the Registrar of Companies and those for 2005 will be
delivered following the company's annual general meeting. The auditors have
reported on the accounts for 2004 and 2005; their reports were unqualified
and did not contain statements under Section 237(2) or (3) of the Companies
Act 1985.
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