Business
Preliminary Results Year to 30th April 2011
Preliminary Results Year to 30th April 2011.
About this update from Goodwin Plc
[{"type":"text","content":"\n \nRNS Number : 0711N Goodwin PLC 26 August 2011 \n \n\nGOODWIN PLC\n \nPRELIMINARY ANNOUNCEMENT\n \nGoodwin PLC today announces its preliminary results for the year to 30th April 2011.\n \nChairman's statement\nI am pleased to report the results for the Group for the twelve month period ending 30th April 2011. The pre-tax profits were £8.2 million (2010: £13.3 million), a decrease of 38% on a revenue of £92.9 million (2010: £93.0 million) which is marginally down on the figures reported for the same period last financial year. The Directors propose a dividend of 29.166p (2010: 27.777p).\nWhilst the reported profit before tax is down by 38% as compared to last year, the gross margin earned, £25.4 million, was only lower by 9%. Part of the £5.1 million drop in pre tax profit relates to increased overheads of the Group associated with Group companies having hired some 50 additional managers in our 22 companies worldwide to assist with the aspired growth over the next five years. The combined cost of hiring and employing these additional people over the last 12 months amounted to just over £2.0 million, and these additional management people will enhance future growth opportunities where the returns should far exceed the investment costs.\nSignificant amounts of money have been spent on R & D, together with higher than expected non capitalised costs of setting up computerised financial and management accounting systems in Brazil where much of the available software is unable to keep pace with the government tax regulation changes.\nOn the more positive side, the Refractories Engineering segment of the Group where we have seven overseas companies in China, India, Thailand & Brazil, along with our pump company in India, did particularly well this year and achieved an average of 24% pre-tax profit growth contributing over £4.2 million to Group profits in the year just completed.\nIn the Engineering segment our two valve companies, Goodwin International Ltd. and Noreva GmbH, had a more difficult year. For the past three years they have recorded excellent results, but with a keenness to not lose market share during the downturn over the past 18 months in the petrochemical business, they took on many smaller contracts that overloaded their administration systems. This coupled with the requirement for even m...