TIDMFLO
RNS Number : 7520T
Flowtech Fluidpower PLC
17 October 2017
NEWS RELEASE
Issued on behalf of Flowtech
Fluidpower plc
Immediate Release
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
FLOWTECH FLUIDPOWER PLC
("Flowtech", the "Group" or "Company")
Q3 Group Trading Update
"The Group's strong performance reflects the mix of further
organic growth, up 12.4%,
and, acquisitive developments linked to consistent stable
margins"
London: Tuesday, 17 October 2017: AIM listed specialist
technical fluid power products supplier Flowtech Fluidpower plc
(LSE: symbol FLO), issues the following unaudited Q3 Trading Update
for the nine-month financial reporting period ended
30 September 2017:
GROUP Trading Update
Group revenue during the first nine months of the current year
increased by 34.4%. Our strong performance is being driven by
continued momentum across all the business divisions and further
enhanced by the contribution from new subsidiaries.
Revenue for the nine-month period
ended 30 September 2017
YTD 2017 PYTD Growth
2016
Flowtechnology GBP28.33m GBP26.62m 6%
Power Motion
Control (PMC) GBP21.61m GBP11.88m 82%
Process GBP4.51m GBP2.00m 126%
--------------------- ----------- ----------- -------
Total Group revenue
for the period GBP54.45m GBP40.50m 34%
--------------------- ----------- ----------- -------
Net debt GBP12.10m GBP15.70m
--------------------- ----------- ----------- -------
Since reporting our HY1 2017 results and market update in early
September the business has experienced a solid trading period which
remains in line with market expectations. Of note is organic sales
growth in the Q3 period of 12.4%. The comparative quarter in 2016
reflects the period immediately following the June Brexit vote when
markets and currencies softened, and consequently a strong rebound
was expected. However, it is pleasing to report that combined with
this expected uplift we delivered further organic growth through a
mixture of price increases and strong volume gains at consistent
gross margins - this is further evidence that our multi-channel
strategy is gaining traction.
ACQUISITONS
Since the start of this financial year we have concluded six
acquisitions of which, the following three were concluded during
Q3:
-- UK: Orange County (OCL) and Group HES
-- Europe: Hydroflex Hydraulics (Hydroflex)
These acquisitions have all added or enhanced the Group's
position with key European and global suppliers (such as Eaton
Corporation, Danfoss Power Solutions, Parker Hannifin, Brugg
Pipesystems and Ebsray Pumps), broadened our sector and
geographical coverage, and added to our technical competence. Our
four-channel approach to the creation of a fluid power specialist
group is continuing to present further prospects for expansion, and
the Board believes that the Group can continue to exploit this
"pipeline" in both the short and medium term, whilst at the same
time ensuring that net bank borrowings remain well within
facilities.
INVESTMENT FOR THE FUTURE
By way of an update since the HY Report, the redesigned Shared
Logistics Centre in Skelmersdale is now expected to be completed by
the end of October. As well as modernised office and conference
facilities, the enhanced layout will offer an increase in capacity
of around 40% and, will deliver operational and stocking
improvements for use by all our Profit Centres. It will also
provide considerable scope for both the profitable integration of
future acquisitions to the Group, and provide scope for further
organic growth within the current portfolio. The process has been
completed with no disruption to the market leading service level
offered by the Skelmersdale operation. At the date of this
announcement, we are currently working towards securing a dedicated
new site in Knowsley, on Merseyside for our Shared Engineering
Centre. This initiative when launched will enhance the Primary
Fluid Power operation based nearby and underpin our objective of
creating a Centre of Excellence and become recognised as a complete
service provider to the fluid power sector. As we announced last
week we are also to officially launch our Onsite Services Division
in 2018.
SUMMARY
Our focus remains growth through both acquisitive and organic
means backed up by our four-layered approach to extracting
synergistic benefits over the short, medium and long term. This
targeted approach ensures we can achieve both a concentration and
enhancement to our product set which is the core of our business
model.
The Board believe that the acquisitions so far, this financial
year clearly reinforce the ongoing strategy to develop a focused
Fluid Power Group that serves a wide number of industry sectors,
allowing a de-risking of some of the cyclic nature of the
business.
The Group's current performance will deliver another year of
solid progress. As a business, we are confident in our strategy,
commercial opportunities and the prospects of the Group and, the
business remains on track to meet current market expectations for
the year ending 31 December 2017.
Enquiries:
Flowtech Fluidpower plc
Sean Fennon, Chief Executive
Bryce Brooks, Chief Financial Officer
Tel: +44 (0) 1695 52796
Email: info@flowtechfluidpower.com
Zeus Capital Limited (Nominated Adviser and Broker)
Andrew Jones, Alistair Donnelly (corporate finance)
Dominic King, John Goold (sales & broking)
Tel: +44 (0) 20 3829 5000
finnCap Limited (Joint Broker)
Ed Frisby, Kate Bannatyne (corporate finance)
Rhys Williams, Emily Morris (sales & broking)
Tel: +44 (0) 20 7220 0500
TooleyStreet Communications (IR and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
or email: fiona@tooleystreet.com
EDITORS NOTES
-------------------------------------------------------------------------------------------------------
To listen to an interview with CEO, Sean Fennon and
CFO Bryce Brooks from 07.00hrs, please go to
Live link: https://www.brrmedia.co.uk/broadcasts-embed/59e4eb91affa4e6b10c67b29/event&popup=true
About Flowtech Fluidpower plc
-------------------------------------------------------------------------------------------------------
Founded as Flowtech in 1983, the Flowtech Group is
the UK's leading specialist supplier of technical
fluid power products. The business joined AiM in 2014.
Today, the Group has four distinct divisions:
Division: What we do: Locations:
--------------------- ---------------------------------------- --------------------------------------
Flowtechnology Focus on supplying distributors Flowtechnology Benelux
and resellers of industrial (Deventer)
MRO products, primarily Flowtechnology China
serving urgent orders (Guangzhou)
rather than bulk offerings. Flowtechnology UK
It offers an unrivalled (Skelmersdale)
range of OEM and Exclusive Indequip (Skelmersdale)
Brand products to over
3,400 distributors and
resellers. The catalogue
is recognised as the
definitive source for
fluid power products,
containing 100,000 individual
product lines and are
distributed to more
than 80,000 industrial
MRO end users.
--------------------- ---------------------------------------- --------------------------------------
Power Motion Specialise in the design, Primary Fluid Power
Control assembly and supply (Knowsley)
(PMC) of engineering components Nelson Fluid Power
and hydraulic systems (Dublin, Lisburn,
and is further enhanced Dungannon)
by a service and repair TripleSix (West Yorkshire)
function. Albroco (Knowsley)
Hydraulics & Transmissions
(Ludlow)
HiPower Hydraulics
(Cork, Dublin, Belfast
Manchester)
Hydroflex (Brussels,
Rotterdam and OudBeijerland)
Hydraulic Equipment
Supermarkets (Gloucester,
Leeds, Birmingham,
Durham)
Branch Hydraulics
(Gloucester)
--------------------- ---------------------------------------- --------------------------------------
Process Focus on the supply Hydravalve (Willenhall)
of industrial components Orange County (Spennymoor)
and solutions to the
process sectors.
--------------------- ---------------------------------------- --------------------------------------
Onsite Services In 2018, the Group will HES Onsite (Durham,
extend its service offering Leeds, Birmingham,
to include Onsite Technical Gloucester)
Maintenance
through highly skilled
engineers.
--------------------- ---------------------------------------- --------------------------------------
All four of the Group's divisions have overlapping
product sets, allowing procurement synergies to be
maximised.
The above divisions are supported by a centralised
back office team at the Skelmersdale site and a procurement
and quality control team in Shanghai. In total, the
business employs over 400 people. For more information
please visit, www.flowtechfluidpower.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTOKADBKBDBAKD
(END) Dow Jones Newswires
October 17, 2017 02:00 ET (06:00 GMT)
Flowtech Fluidpower (LSE:FLO)
Historical Stock Chart
From Apr 2024 to May 2024
Flowtech Fluidpower (LSE:FLO)
Historical Stock Chart
From May 2023 to May 2024