Half-year Results

CHAIRMAN'S STATEMENT

I am delighted to report that the "trading" pre-tax profit for the Group for the six-month period ending 31st October 2024 was £17.1 million, representing a 53% increase in profitability versus the same period last year. Furthermore, the current forward order book (otherwise known as workload) has continued to strengthen and as at the time of writing stands at £296 million (December 2023: £266 million).

The significant growth in profitability and order book, both of which have more than doubled over the past three years, is primarily driven by the foundry and machine shop's success in securing and delivering high-integrity products for the nuclear decommissioning and naval vessel markets. In particular, the contract to supply the 29 tonne Self Shielding Boxes (SSB's) has started to ramp up, as the foundry has reached its production target rate of ten per month. With customer documentation reviews becoming more efficient, the nuclear waste storage boxes are now being regularly delivered to Sellafield.

Duvelco Ltd has reached a significant milestone with the successful production of polyimide resin powder at its cutting-edge, purpose-built facility. This bespoke plant, developed over thirty months, can now produce polyimide resin on an industrial scale.

The facility has two dedicated production lines to ensure zero cross-contamination: one for unfilled polyimide resin and the other for graphite-enhanced resin. The graphite-containing line is scheduled to be online by the end of January, allowing the company to also release graphite-containing trial samples to customers shortly thereafter. This significant step marks the beginning of a new phase for Duvelco as customers can commence validation tests for their specific applications. To complement customers' own validations, formal data sheets are scheduled for publication in the second quarter of 2025.

The Board is delighted by this achievement, which significantly reduces the risks associated with launching this new technology. We are confident that, as major end-users complete their validation processes-for which, timelines vary by sector-Duvelco will become a major contributor to the Group's profitability in the years ahead. This milestone represents a key step forward in delivering long-term value to our shareholders and we look forward to providing further updates in the future.

The cash generation of the Group in the first six months has been strong, resulting in the net debt as at 31st October 2024 being £38.8 million (31st October 2023: £54.6 million) which equates to a gearing of 31% (31st October 2023: 48%). With a lower level of capital expenditure forecast, long-term contracts successfully negotiated with multiple cash milestones as well as the increase in profitability, the Group will benefit from a lower level of debt as it starts to fall within the facility we arranged in 2021 to borrow money at an interest rate of 1% until 2031.

It is the dedication and hard work of the Group's employees over the last few years, which has put the Group in the position that it is in today. The Board would like to extend its sincere gratitude to all of its directors, managers and employees for their focus and determination, which has continually set the Group apart, whether that be breaking into new markets or continually adapting existing products and processes to obtain incremental gains. Thank you.

* Trading profit is defined as profit before taxation excluding the movement in fair value of the interest rate swap.

Revenue

Revenue of £106.4 million for the six months represents a 9.0% increase from the £97.6 million achieved for the same six month period last year.

Trading profit

Trading profit for the six months of £17.1 million represents a 52.7% increase from the £11.2 million achieved for the same six month period last year.

Key performance indicators

Alternative performance measures mentioned above are defined on page 105 of the Group Annual Accounts to 30th April 2024.

2024/25 Outlook

Whilst a similar level of activity for the Group is expected for the second half of the year ending 30th April 2025, it is pleasing to report, after many years, that the long-promised future growth for Easat Radar Systems is now coming to fruition. The radar business has signed a significant contract to supply two additional turnkey surveillance systems to an existing Airforce customer based in Southeast Asia, which will return the company to profitability. In addition to this, and following contract award notifications by other customers, Easat is in the final stages of signing two further contracts to supply its proven state-of-the-art primary and secondary surveillance system. This will provide Easat with a workload in excess of £25 million, enabling the company to operate at a higher level of activity, that will further enhance the Group's profitability over the short to medium term.

Within the Refractory Engineering Division, a stable level of profitability will continue to be generated from its core products, where incremental gains are being targeted within their well-established position in the market. For the newer growth products, such as the fire extinguishing agent for lithium ion battery fires, known as AVD, interest and momentum continue to grow for the superior product, despite alternatives entering the market. Furthermore, with the extinguisher-filling plant having now been commissioned and certified, this will reduce the cost of production of the lithium ion battery fire extinguishers and enable AVD Fire Ltd to have greater control from order placement through to delivery.

Risks and Uncertainties

The Group, mainly through its centralised management structure, makes best endeavours to have in place internal control procedures to identify and manage the key risks and uncertainties affecting the Group. We would refer you to pages 12 to 13 of the Group Annual Accounts to 30th April 2024 which describe the principal risks and uncertainties, and to note 28, starting on page 83, which describes in detail the key financial risks and uncertainties affecting the business.

Judging the future relationship of the major currency pairs of the US Dollar, Sterling and the Euro continues to be a challenge.

The Group has mitigated the impact of rising interest rates by fixing the effective base rate at less than 1% for a notional £30 million of debt until August 2031.

Report on Expected Developments

This report describes the expected development of the Group during the year ended 30th April 2025. The report may contain forward-looking 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.

Going concern

The Group continues to trade profitably by building on the increase in activity seen in the second half of the previous financial year and, with the strength of the current order book levels, this should continue and improve in the second half of this financial year and into the next financial year. As at 31st October 2024, the Group's net debt stood at £38.8 million (31st October 2023 £54.6 million) as set out in note 15 of these accounts. The net debt levels are lower than those recorded at both October 2023 and April 2024, which is in line with the Board's expectations and will continue to be reviewed and managed across the Group. Given the above, the Directors, after having reviewed the Group projections and possible challenges that may lie ahead, do not see an issue with the continued ability of the Group to meet its financial commitments as they fall due for at least twelve months from the date of these accounts and have prepared these accounts on a going concern basis.

Responsibility statement of the Directors in respect of the half-yearly financial report

The Directors confirm to the best of their knowledge that:

• this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the United Kingdom; and
• the Interim Management Report and condensed financial statements include a fair review of the information required by Disclosure and Transparency Rules:
• 4.2.7R (being an indication of important events that have occurred during the first six months of the year); and
• 4.2.8R (being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so).

* The Board took the decision to present the statutory reporting of gross profit to allocate costs, which align more appropriately with the Group's operational structure and how it is calculated with the Group's management accounts, to ensure that the end user of the statutory accounts can review the financial performance of the Group on the same basis as the Board. The comparative figures for October 2023 have been updated to be consistent with the revised presentation of costs.

Condensed Consolidated Statement of Comprehensive Income

for the half year to 31st October 2024

Other comprehensive income / (expense)

Items that are or may be reclassified subsequently to the income statements

* The split between financial and non-financial liabilities has been updated to be consistent with the classification at April 2024.

** Contract liabilities include advance payments from customers of £47,473,000 (31st October 2023: £30,462,000), with the balance of £260,000 (31st October 2023: £950,000) being costs accrued for contracts.

Condensed Consolidated Statement of Changes in Equity

for the half year to 31st October 2024

* The comparatives have been adjusted to report separately the interest received from the interest rate swap.

Notes

Reporting Entity

Goodwin PLC (the "Company") is a Company incorporated in England and Wales. The unaudited condensed consolidated interim financial statements of the Company as at and for the six months ended 31st October 2024 comprise the Company, its subsidiaries, and the Group's interests in associates (together referred to as the "Group").

The audited consolidated financial statements of the Group as at and for the year ended 30th April 2024 are available upon request from the Company's registered office at Ivy House Foundry, Hanley, Stoke-on-Trent, ST1 3NR or via the Company's web site: www.goodwin.co.uk.

Statement of compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted in the United Kingdom. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 30th April 2024.

The comparative figures for the financial year ended 30th April 2024 are extracts and not the full Group's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference 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.

The Audit Committee has reviewed these unaudited condensed consolidated interim financial statements and has advised the Board of Directors that, taken as a whole, they are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group's half year performance. These unaudited condensed consolidated interim financial statements were approved by the Board of Directors on 16 December 2024.

Significant Accounting Policies

The accounting policies applied by the Group in these unaudited condensed consolidated financial statements are the same as those applied by the Group in its audited consolidated financial statements as at and for the year ended 30th April 2024, except where accounting standards have been amended and the Group has adopted these amendments during the current period.

The following amendments, which have become effective for the current reporting period, and therefore have been adopted by the Group, are not expected to have a significant impact on the Group's financial statements.

• Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current - (effective for periods commencing on or after 1st January 2024).
• Amendments to IAS 1 Presentation of Financial Statements: Non-current liabilities with covenants - (effective for periods commencing on or after 1st January 2024).

New IFRS standards, amendments and interpretations not adopted

The IASB and IFRIC have issued additional standards and amendments which are effective for periods starting after the date of these financial statements. The following amendments have not yet been adopted by the Group:

• Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments (effective for periods beginning on or after 1st January 2025).
• Annual Improvements to IFRS Accounting Standards - volume 11 (effective for periods beginning on or after 1st January 2026).
• IFRS 18 Presentation and Disclosure in Financial Statements (effective for periods commencing on or after 1st January 2027).

The Group does not expect the above amendments to have a material impact on profit, earnings per share and net assets in future periods.

Accounting Estimates and Judgements

In preparing these unaudited consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited consolidated financial statements as at and for the year ended 30th April 2024.

The tax charge in the period is based on management's estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period, and the impact of any disallowed costs.

Operating Segments

For reporting to the chief operating decision maker, the Board of Directors, the Group is organised into two reportable operating segments, according to the different products and services provided by the Mechanical Engineering and Refractory Engineering Divisions. Segment assets and liabilities include items directly attributable to segments as well as group centre balances, which can be allocated on a reasonable basis. The Group's associate company is included in Refractory Engineering. In accordance with the requirements of IFRS 8, information regarding the Group's operating segments is reported below.

There are no other reportable segments apart from those identified.

Operating segment revenue and profit

• Operating segment capital expenditure, depreciation and amortisation

Revenue

The Group's revenue is derived from contracts with customers. The following tables provide an analysis of revenue by

geographical market and by product line.

Dividends

The Directors do not propose the payment of an interim dividend.

As noted in the Group Annual Accounts to 30th April 2024, the dividend payments for the year ended 30th April 2024 are being

made in two equal instalments. The second payment will be made on 11th April, 2025 to shareholders on the register on 21st

March 2025.

Earnings per Share

The Company bought back 180,000 of its ordinary shares on 7th June 2023 and cancelled them off the register, following a

tender offer to its shareholders.

Property, plant and equipment and intangible assets

Capital management

As at 31st October 2024 the capital employed was £162,705,000, as shown below:

Total financial assets and financial liabilities

The following table sets out the Group's accounting classification of its financial assets and financial liabilities, and their

carrying amounts at 31st October 2024. The carrying amount is a reasonable approximation of fair value for all

financial assets and financial liabilities.

The interest rate swap and forward exchange contract assets and liabilities fair values in the above table are derived using Level 2

inputs as defined by IFRS 7 as detailed in the paragraph below.

IFRS 7 requires that the classification of financial instruments at fair value be determined by reference to the source of inputs

used to derive the fair value. This classification uses the following three level hierarchy: Level 1 - quoted prices (unadjusted) in

active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices included within Level 1 that are observable

for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); Level 3 - inputs for the asset or liability

that are not based on observable market data (unobservable inputs).