Business
COVID-19 and Liquidity Update
COVID-19 and Liquidity Update.
About this update from Goodwin Plc
[{"type":"text","content":"\n \n \n RNS Number : 1807P\n Goodwin PLC\n 08 June 2020\n \n \n \n \n \n \n \n GOODWIN PLC (the \"Company\" or the \"Group\")\n \n \n \n \n \n COVID-19\n \n \n Whilst there has been global disruption gripping the world with the onset of COVID-19 since January, the Company is pleased to confirm that its UK companies have remained open for business since the start of the pandemic, taking appropriate measures in accordance with government guidance.\n \n \n The overseas operations have been working in accordance with their local legislation, and wherever legally allowable, remaining operational. There are currently no Goodwin Group companies closed for business. \n \n \n With the disruption in the last quarter of the financial year ended 30th April 2020, there have been delays in executing certain capital goods contracts due to the Company's customers' inability to travel. However, with limited international travel and social distancing becoming the new 'norm', working practices have been adapted for business to continue in a routine manner.\n \n \n The medium-term impact of COVID-19 is becoming clearer, and the Company is pleased to confirm that the manufacturing of its engineering capital goods should continue positively as expected, with the Group's current record forward order book of £177 million (some 94% higher than the average for the past 6 years) being predominantly for projects and applications that are not consumer orientated. So, with newly adapted working practices that we along with our customers could not have envisaged doing only six months ago, the business continues to progress.\n \n \n The Group's UK and overseas refractory companies, whilst all operational, primarily manufacture products utilised in the manufacture of luxury consumer goods and in construction industries. Whilst in May they have been fulfilling existing orders, they are now predicting a 20%-25% reduction in consumer business activity for the next few months. However, the elements of the business making refractories used for the manufacture of industrial goods are expected to fare much better. \n \n \n Liquidity\n \n \n The Group remains in a financially resilient position. Cash flow and net debt are in line with the Board's expectations, with the Company only utilising approximately 50% of its £50million traditional debt ...