Profits ease at Goodwin as administration costs increase

Dec. 21, 2010 - Metals casting company Goodwin reported pre-tax profits for the half-year to end-October were 5.8m (2009 6.8m) from revenue of 45.9m (2009 45.8m). Margins remained in-line but overhead and administration costs increased.
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.
Dupr Minerals within the 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 Dupr to further consolidate its position in the world vermiculite market.
The cash flow position has deteriorated by some 8m over the past six 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 said it 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.