GOODWIN PLC

Earnings Release • Jul 25, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 2920N

Goodwin PLC

25 July 2014

PRELIMINARY ANNOUNCEMENT

Goodwin PLC today announces its preliminary results for the year ended 30th April 2014.

CHAIRMAN'S STATEMENT

I am pleased to report that the pre-tax profit for the Group for the twelve month period ended 30th April 2014 was £24.1 million (2013: £20.3 million), an increase of 18.7% on a revenue of £130.8 million (2013: £127.0 million). The Directors propose an ordinary dividend of 42.348p per share (2013: ordinary dividend of 35.290p, extraordinary dividend of 17.645p).

The gross profit earned of £44.8 million was higher by 10.5% than for the previous financial year. This further improvement in gross profit and pre-tax profit earned stems from the energy market sector having remained buoyant throughout the financial year, allowing us to make use of our investment on capital equipment working 24 hours a day, 6.5 days a week, especially at Goodwin International and Goodwin Steel Castings.

The tax charge has been substantially lower this year for three main reasons: the Group has benefited from firstly the recently enacted patent box relief, secondly the lower effective corporation tax rate within the UK, and thirdly the revision of prior year estimates.

The Group continues to focus on mechanical engineering and refractory engineering as described below and in our business model and strategy in the following pages. Our activities, products and KPI's are detailed on our website www.goodwin.co.uk/2014.

Other than our traditional business in the oil and gas and power generation industries, our Mechanical Engineering Division continues to target engineering work for large construction projects which we believe will continue to add to our market sector diversity. The Group order work load as at 30th April 2014 was 10% higher than 12 months earlier and stood at £101 million, which should provide the Group with an opportunity of further improvement in this new financial year. However, since the commencement of the new financial year there has been a noticeable slow down in order input from the oil and gas industries which is in line with the statements in the press by a number of chairmen of major oil companies, who have indicated that they are slowing down their capital investment programmes. Whether we are able to further increase our global market penetration and find additional customers to overcome this only time will tell, but any impact is more likely to affect the financial year 2015/2016.

Whilst the energy mix is changing over the long term, it is considered that fossil fuels will likely remain the dominant energy resource in the future and hold 80% of the energy mix by 2035. Crude oil, natural gas (including shale gas) and coal we think will be evenly split in the energy market and it is unlikely by then that there will be any dominant energy form. These sectors by definition have a long term future as the world population continues to grow and attain higher living standards, especially in the Pacific Basin. Over the past 50 years the world population has more than doubled from 3.2 billion to 7.3 billion people and in that same time the average energy consumption per person has also gone up by 50%. As the developing world continues to evolve, this average increase in energy consumption per person on the planet is unlikely to subside, so long term there will remain a significant demand for industrial products for the fossil fuel industries.

In my statement last year, I noted that the Group's Refractory Division had suffered a downturn. I am pleased to report that this year the Refractory Division, despite the continuing difficult market conditions, has delivered a 6.9% increase in sales and a 19.3% increase in pre-tax profits over the previous financial year. We are hopeful given the hard work by all involved that this trend will continue in this new financial year.

The dividend this year is proposed to be £3,049,056, an increase of 20% on last year's ordinary dividend, similar to the post-tax profit increase. Despite having £15.5 million of capital expenditure this last year we will likely need to further invest over the next two years if we are to maintain our position as the leading global supplier of super nickel cast alloys.

Shareholders' equity has risen by £15.2 million from £58.4 million at 30th April 2013 to £73.6 million at 30th April 2014,  and Total Shareholder Return has again substantially increased this year by more than 100% but very much more over a 5, 10 or 20 year period.

The Group has invested heavily during the year on land and buildings and on plant and machinery. This expenditure will generate some of the additional capacity needed for the future growth of the Group. It is pleasing that the cash flow situation, that was unsatisfactory last year, has significantly improved through the hard work of many Group personnel, despite the very substantial capital investments this year. However, we must remain vigilant as a further £12.7 million of additional capital expenditure has already been authorised for the new financial year. Of this, £4.0 million was already committed as at the balance sheet date with an additional £8.7 million being sanctioned subsequent to the year end. As mentioned above we will likely need to further invest in our super nickel alloy casting manufacturing capability as well as in certain other specific projects if we are to sustain future growth in exports. The expected growth will also result in increased working capital needs. Financial incentives from the Government will enable the release of necessary capital expenditure which otherwise may be constrained by our cash management.

Research and Development costs of £2.0 million during the year were mainly on the ongoing projects associated with higher efficiency electricity generation allied to CO2 capture. In the previous year, R&D spend was £2.6 million.

As part of our risk analysis, external independent reviews have been carried out on the Group's financial arrangements, insurance policy wordings, insured values, cyber security, intellectual property rights, health of key staff and operatives, energy efficiency and business continuity. The assessments which are being undertaken by specialist firms with extensive global experience, remain work in progress, but to date, no significant issues have come to light. The reviews have contributed to the Group's awareness of business risks and training needs as our stream of apprentices progress in the Group.

We are once again extremely grateful to our UK and overseas directors and employees for their hard work in driving forward the performance of the Group.

25th July 2014	J.W. Goodwin Chairman

OBJECTIVES, STRATEGY AND BUSINESS MODEL

The Group's main OBJECTIVE is to have a sustainable long term engineering based business with good potential for profitable growth while providing a fair return to our shareholders.

The Board's STRATEGY to achieve this is:

•               to supply a range of technically advanced products to growth markets in the mechanical engineering and refractory engineering segments in which we have built up a global reputation for engineering excellence, quality, efficiency, reliability, price and delivery;

•               to manufacture advanced technical products profitably, efficiently, and economically;

•               to maintain an ongoing programme of investment in plant, facilities, sales and marketing, research and development with a view to increasing efficiency, reducing costs, increasing performance, delivering better products for our customers, expanding our global customer base and keeping us at the forefront of technology within our markets;

•               to control our working capital and investment programme to ensure a safe level of gearing;

•               to maintain a strong capital base to retain investor, customer, creditor and market confidence and so help sustain future development of the business;

•               to support a local presence and a local workforce in order to stay close to our customers;

•               to invest in training and development of skills for the Group's future.

BUSINESS MODEL

The Group's focus is on manufacturing within two sectors; mechanical engineering and refractory engineering and through this division of our manufacturing activities, the Group benefits from market diversity. Further details of our business and products are shown on our website www.goodwin.co.uk/2014.

Mechanical Engineering

The Group produces a wide range of dual plate and axial nozzle check valves to serve the oil, petrochemical, gas, LNG and water treatment markets. We create value by globally sourcing the best quality raw material at good prices, manufacturing in highly efficient facilities using up to date technology to provide the very reliable products to the required specification, at competitive prices and with timely deliveries.

Our mechanical engineering markets also include high alloy castings, machining and general engineering products which typically form part of large construction projects such as power generation plants, oil refineries, high integrity offshore structural components and bridges. The Group through its foundry and CNC machine shop has the capability to pour the castings, radiograph and also finish them in-house. This capability is also targeting the defence industry.  

Goodwin International, the largest company in the Mechanical Engineering Division, designs and manufactures dual plate and axial nozzle valves and also undertakes specialised CNC machining and fabrication work. Noreva GmbH also designs and manufactures axial nozzle valves. Both Goodwin International and Noreva purchase the majority of their sand mould castings from Goodwin Steel Castings and this vertical integration gives rise to competitive benefits, increased efficiencies, and timely deliveries.

At Goodwin Pumps India we manufacture a superior range of submersible slurry pumps for end users in India, China, Brazil and Africa. Easat Antennas designs and builds bespoke high-performance radar antennas to the global market of major defence contractors, civil aviation authorities and border security agencies. We create value on these by innovative design and assembly in our own facilities using bought in or engineered in-house components.

Refractory Engineering

Within the Refractory Engineering Division, Goodwin Refractory Services, GRS (UK), creates value by developing, manufacturing and selling investment casting powders, waxes, silicone rubber and machinery for use in the following operations: jewellery casting, aerospace, tyre moulding and the compressor wheels for turbochargers. The Division has six other investment casting powder companies around the world that carry out the same activities as GRS (UK), located in China, India, Thailand and Brazil. These seven companies are vertically integrated with another of our UK refractory companies, Hoben International, which manufactures cristobalite that it sells to the seven group jewellery casting manufacturing companies, as well as producing ground silica which also goes into casting powders.

The other UK refractory company is Dupré Minerals which focuses on producing exfoliated vermiculite that is used in insulation, brake linings and fire protection products including textiles that can withstand high temperatures. Dupré also sells consumables to the shell moulding casting industry.

CONSOLIDATED INCOME STATEMENT

for the year ended 30th April 2014

		2014	2013
		£000	£000
Continuing operations
Revenue		130,828	126,964
Cost of sales		(86,010)	(86,404)
Gross profit		44,818	40,560
Distribution expenses		(3,783)	(3,378)
Administrative expenses		(16,494)	(16,026)
Operating profit		24,541	21,156
Financial expenses		(760)	(1,133)
Share of profit of associate companies		314	273
Profit before taxation		24,095	20,296
Tax on profit		(4,448)	(4,609)
Profit after taxation		19,647	15,687
Attributable to:
Equity holders of the parent		19,035	15,247
Non-controlling interests		612	440
Profit for the year		19,647	15,687
Basic and diluted earnings per ordinary share		264.38p	211.76p

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30th April 2014

	2014	2013
	£000	£000
Profit for the year	19,647	15,687
Other comprehensive (expense)/income
Items that may be reclassified subsequently to the income statement
Foreign exchange translation differences	(2,270)	1,123
Effective portion of changes in fair value of cash flow hedges	2,245	(170)
Change in fair value of cash flow hedges transferred to the income statement	218	(492)
Tax charge on items that may be reclassified subsequently to the income statement	(522)	149
Other comprehensive (expense)/ income for the year, net of income tax	(329)	610
Total comprehensive income  for the year	19,318	16,297
Attributable to:
Equity holders of the parent	19,244	15,627
Non-controlling interests	74	670
	19,318	16,297

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 30th April 2014

	Share capital	Translation reserve	Cash flow hedge reserve	Retained earnings	Total attributable to equity holders of the parent	Non- controlling interests	Total equity
	£000	£000	£000	£000	£000	£000	£000
Year ended 30th April 2014
Balance at 1st May 2013	720	1,723	(746)	56,657	58,354	4,173	62,527
Total comprehensive income:
Profit	-	-	-	19,035	19,035	612	19,647
Other comprehensive income:
Foreign exchange translation differences	-	(1,732)	-	-	(1,732)	(538)	(2,270)
Net movements on cash flow hedges	-	-	1,941	-	1,941	-	1,941
Total comprehensive income for the year	-	(1,732)	1,941	19,035	19,244	74	19,318
Transactions with owners of the Company recognised directly in equity
Purchase of non-controlling interest without a change in control	-	-	-	(197)	(197)	(44)	(241)
Dividends paid	-	-	-	(3,811)	(3,811)	(223)	(4,034)
Balance at 30th April 2014	720	(9)	1,195	71,684	73,590	3,980	77,570
Year ended 30th April 2013
Balance at 1st May 2012	720	830	(233)	43,720	45,037	3,671	48,708
Total comprehensive income:
Profit	-	-	-	15,247	15,247	440	15,687
Other comprehensive income:
Foreign exchange translation differences	-	893	-	-	893	230	1,123
Net movements on cash flow hedges	-	-	(513)	-	(513)	-	(513)
Total comprehensive income for the year	-	893	(513)	15,247	15,627	670	16,297
Transactions with owners of the Company recognised directly in equity
Dividends paid	-	-	-	(2,310)	(2,310)	(168)	(2,478)
Balance at 30th April 2013	720	1,723	(746)	56,657	58,354	4,173	62,527

CONSOLIDATED BALANCE SHEET

at 30th April 2014                                                                                                                                                                        

		2014	2013
		£000	£000
Non-current assets
Property, plant and equipment		44,096	33,308
Investment in associates		1,193	1,314
Intangible assets		10,634	11,496
		55,923	46,118
Current assets
Inventories		31,215	31,833
Trade and other receivables		32,851	34,953
Derivative financial assets		2,517	809
Cash and cash equivalents		6,233	5,514
		72,816	73,109
Total assets		128,739	119,227
Current liabilities
Bank overdraft		-	77
Interest-bearing loans and borrowings		2,391	1,902
Trade and other payables		33,685	29,994
Deferred consideration		500	500
Derivative financial liabilities		1,119	1,231
Liabilities for current tax		2,401	2,423
Warranty provision		383	378
		40,479	36,505
Non-current liabilities
Interest-bearing loans and borrowings		7,485	17,130
Warranty provision		336	484
Deferred tax liabilities		2,869	2,581
		10,690	20,195
Total liabilities		51,169	56,700
Net assets		77,570	62,527
Equity attributable to equity holders of the parent
Share capital		720	720
Translation reserve		(9)	1,723
Cash flow hedge reserve		1,195	(746)
Retained earnings		71,684	56,657
Total equity attributable to equity holders of the parent		73,590	58,354
Non-controlling interests		3,980	4,173
Total equity		77,570	62,527

CONSOLIDATED CASH FLOW STATEMENT

for the year ended 30th April 2014

	2014	2014	2013	2013
	£000	£000	£000	£000
Cash flow from operating activities
Profit from continuing operations after tax		19,647		15,687
Adjustments for:
Depreciation		3,415		2,792
Amortisation of intangible assets		703		738
Financial expense		760		1,133
Loss/(profit) on sale of property, plant and equipment		13		(20)
Share of profit of associate companies		(314)		(273)
Tax expense		4,448		4,609
Operating profit before changes in working capital and provisions		28,672		24,666
Decrease/(increase) in trade and other receivables		2,484		(9,144)
(Increase)/decrease in inventories		(115)		1,098
Increase in trade and other payables (excluding payments on   account)		1,835		85
Increase in payments on account		1,794		1,577
Cash generated from operations		34,670		18,282
Interest paid		(814)		(1,097)
Corporation tax paid		(4,688)		(4,581)
Interest element of finance lease obligations		(31)		(19)
Net cash from operating activities		29,137		12,585
Cash flow from investing activities
Proceeds from sale of property, plant and equipment	46		144
Proceeds from disposal of intangible assets	-		265
Acquisition of property, plant and equipment	(15,082)		(9,409)
Purchase of non-controlling interest	(241)		-
Additional payment for existing subsidiary	(45)		(8)
Payment of deferred purchase creditor	-		(2,755)
Dividends received from associate companies	201		308
Net cash outflow from investing activities		(15,121)		(11,455)
Cash flows from financing activities
Payment of capital element of finance lease obligations	(401)		(303)
Dividends paid	(3,811)		(2,310)
Dividends paid to non-controlling interests	(223)		(168)
Proceeds from loans and committed facilities	-		4,345
Proceeds from finance leases	356		683
Repayment of loans and committed facilities	(8,791)		(3,077)
Finance fees	(56)		-
Net cash outflow from financing activities		(12,926)		(830)
Net increase in cash and cash equivalents		1,090		300
Cash and cash equivalents at beginning of year		5,437		5,019
Effect of exchange rate fluctuations on cash held		(294)		118
Cash and cash equivalents at end of year		6,233		5,437

PRINCIPAL RISKS AND UNCERTAINTIES

The Group's operations expose it to a variety of risks and uncertainties, the principal ones being as follows. These risks are no different to previous years, and they are not expected to change substantially in the foreseeable future.

Market risk: The Group provides a range of products and services, and there is a risk that the demand for these products and services will vary from time to time because of competitor action or economic cycles or international trade friction or even wars.  The Group operates across a range of geographical regions, and its turnover is split across the UK, Europe, USA, the Pacific Basin and the rest of the world.  This spread reduces risk in any one territory.  Similarly, the Group operates in both mechanical engineering and refractory engineering sectors, mitigating the risk of a downturn in any one product area.  The potential risk of the loss of any key customer is limited as, typically, no single customer accounts for more than 10% of turnover. As described in the Business Model, the Group generates significant sales from the worldwide energy markets. Whilst these markets may suffer short term short declines, over the medium to long term the growing  worldwide demand for energy will ensure these markets remain buoyant.

Technical risk: The Group develops and launches new products as part of its strategy to enhance the long term value of the Group. Such development projects carry business risks, including reputational risk, abortive expenditure and potential customer claims which may have a material impact on the Group. The potential risk here is seen as manageable given the Group is developing products in areas in which it is knowledgeable and new products are tested prior to their release into the market.

Product failure/Contractual risk: The risks that the Group supplies products that fail or are not manufactured to specification are risks that all manufacturing companies are exposed to but we try to minimise these risks through the use of highly skilled personnel operating within robust  quality control system environments using third party accreditations where appropriate. With regard to the risk of failure in relation to  new products coming on line, the additional risks here are minimised at the R&D stage, where prototype testing and the deployment of a robust closed loop product performance quality control system provides feed back to the design department for the products we manufacture and sell. The risk of not meeting safety expectations, or causing significant adverse impacts to customers or the environment is countered by the combination of the controls mentioned within this section. The risk of product obsolescence is countered by R&D investment.

Health and safety: The Group's operations involve the typical health and safety hazards inherent in manufacturing and business operations. The Group is subject to numerous laws and regulations relating to health and safety around the world. Hazards are managed by carrying out risk assessments and introducing appropriate controls, as well as attending safety training courses.

Acquisitions: The Group's growth plan over recent years has included a number of acquisitions. There is the risk that these, or future acquisitions, fail to provide the planned value. This risk is mitigated through financial and technical due diligence during the acquisition process and the Group's inherent knowledge of the markets they operate in.

Financial risk: The principal financial risks faced by the Group are changes in market prices (interest rates, foreign exchange rates and commodity prices). Detailed information on the financial risk management objectives and policies is set out in note 20 to the financial statements to be published shortly.  The Group has in place risk management policies that seek to limit the adverse effects on the financial performance of the Group by using various instruments and techniques, including credit insurance, stage payments, forward foreign exchange contracts and interest rate swaps.

Regulatory compliance: The Group's operations are subject to a wide range of laws and regulations. Both within Goodwin PLC and its subsidiaries, the Directors and Senior Managers within the companies make best endeavours to comply with the relevant laws and regulations.

Forward Looking Statements

This Preliminary Announcement and the Strategic Report to be published shortly contain forward-looking type 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.

Responsibility statements of the Directors in respect of the annual financial report

We confirm that to the best of our knowledge:

•               The financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole; and

•               The Strategic Report and the Directors' Reports in the financial statements to be published shortly include a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

J.W. Goodwin, Chairman

R.S. Goodwin, Managing Director               

J. Connolly, Director

M.S. Goodwin, Director 

A.J. Baylay, Director

S.R. Goodwin, Director

S.C. Birks, Director                

B.R.E. Goodwin, Director

Accounting policies

Goodwin PLC is a company incorporated in the UK.

The Group financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs").  The accounting policies are included in note 2 of the financial statements to be published shortly.  The comparative results for the year ended 30th April 2013 have also been prepared on this basis.

New IFRS standards and interpretations adopted during 2014

In 2014 the following amendments had been endorsed by the EU, became effective and therefore were adopted by the Group:

·      Amendments to IAS 1 Presentation of Items of Other Comprehensive Income

·      Amendments to IFRS 13 Fair Value Measurement

·      Annual Improvement Projects to IFRS's. The Annual Improvement Project to IFRS's provides a vehicle for making non-urgent but necessary amendments to IFRS's. Amendments to a number of standards have been adopted.

The adoption of these standards and amendments has not had a material impact on the Group's financial statements.

The financial information previously set out does not constitute the Company's statutory accounts for the years ended 30th April 2014 or 2013 but is derived from those accounts. Statutory accounts for 2013 have been delivered to the Registrar of Companies, and those for 2014 will be delivered in due course. The auditors have reported on those accounts; their report was:

i.              unqualified;

ii.             did not include references 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.

Copies of the 2014 accounts are expected to be posted to shareholders within the next two weeks 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.

Note 1     Segmental information

Products and services from which reportable segments derive their revenues

For the purposes of management reporting to the chief operating decision maker, the Board of Directors, the Group is organised into two reportable operating divisions: mechanical engineering and refractory engineering. Financial information for each operating division is also available in a disaggregated form in line with the identified cash generating units. Segment assets and liabilities include items directly attributable to segments as well as those that can be allocated on a reasonable basis. In accordance with the requirements of IFRS 8 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;

·      Mechanical Engineering                 - casting, machining and general engineering

·      Refractory Engineering                   - powder manufacture and mineral processing

Information regarding the Group's operating segments is reported below.  Associates are included in Refractory Engineering.

	Mechanical Engineering		Refractory Engineering		Sub total
Year Ended 30th April	2014	2013	2014	2013	2014	2013
	£000	£000	£000	£000	£000	£000
Revenue
External sales	99,044	97,227	31,784	29,737	130,828	126,964
Inter-segment sales	20,725	22,407	4,576	4,588	25,301	26,995
Total revenue	119,769	119,634	36,360	34,325	156,129	153,959
Reconciliation to consolidated   revenue:
Inter-segment sales					(25,301)	(26,995)
Consolidated revenue for the   year					130,828	126,964
Profits
Segment result including   associates	19,290	18,889	3,763	3,154	23,053	22,043
Group centre					1,802	(614)
Group finance expenses					(760)	(1,133)
Consolidated profit before tax   for the year					24,095	20,296
Tax					(4,448)	(4,609)
Consolidated profit after tax for   the year					19,647	15,687

	Segmental total assets		Segmental total liabilities		Segmental net assets
Year Ended 30th April	2014	2013	2014	2013	2014	2013
	£000	£000	£000	£000	£000	£000
Segmental net assets
Mechanical Engineering	69,717	66,047	54,254	50,339	15,463	15,708
Refractory Engineering	24,399	25,079	11,482	11,749	12,917	13,330
Sub total reportable segment	94,116	91,126	65,736	62,088	28,380	29,038
PLC net assets					58,526	43,214
Investments elimination/  Goodwill adjustments					(8,869)	(8,357)
Other consolidation   adjustments					(467)	(1,368)
Consolidated total net assets					77,570	62,527

For the purposes of monitoring segment performance and allocating resources between segments, the Group's Board of Directors monitors the tangible and financial assets attributable to each segment.  All assets and liabilities are allocated to reportable segments with the exception of those held by the parent Company ('PLC') and those held as consolidation adjustments.

Geographical segments

The Group operates in the following principal 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.

	Year ended 30th April 2014				Year ended 30th April 2013
	Revenue	Operational net assets	Non current assets	PPE Capital ex-penditure	Revenue	Operational net assets	Non current assets	PPE Capital Expenditure
	£000	£000	£000	£000	£000	£000	£000	£000
UK	27,684	63,355	49,891	14,143	26,865	47,952	38,815	8,116
Rest of  Europe	25,209	5,755	130	253	21,456	4,909	555	62
USA	16,541	-	-	-	8,010	-	-	-
Pacific Basin	36,225	7,522	1,038	217	43,056	7,339	1,430	1,171
Rest of World	25,169	938	4,864	866	27,577	2,327	5,318	449
Total	130,828	77,570	55,923	15,479	126,964	62,527	46,118	9,798

Note 2

The directors propose the payment of an ordinary dividend of 42.348 per share (2013: ordinary dividend 35.290p/extraordinary dividend 17.645p).   If approved by shareholders, the ordinary dividend will be paid on 10th October 2014 to shareholders on the register at the close of business on 12th September 2014.

Note 3

The earnings per ordinary share has been calculated on profit after taxation for the year attributable to equity holders of the parent of £19,035,000 (2013: £15,247,000) 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.

Note 4

The Annual General Meeting will be held at 10.30 a.m. on  8th October 2014 at Crewe Hall, Weston Road, Crewe, Cheshire CW1 6UZ.

END

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR LLFITDFISFIS