Flowtech Fluidpower PLC Trading update - nine month period ended 30.9.18 (8228E)
23 October 2018 - 5:00PM
UK Regulatory
TIDMFLO
RNS Number : 8228E
Flowtech Fluidpower PLC
23 October 2018
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 Fluidpower", the "Group" or "Company")
Trading Update
London: Tuesday, 23 October 2018: AIM listed specialist
technical fluid power products supplier Flowtech Fluidpower (LSE:
symbol FLO), issues the following unaudited Q3 Trading Update for
the nine-month financial reporting period ended 30 September
2018:
GROUP Trading Update AND FINANCIALS
Revenue for the nine-month period ended 30 September 2018
Divisions: YTD 2018 YTD 2017 Growth
Unaudited Unaudited
GBP'm GBP'm
------------------------------ ----------- ----------- -------
Flowtechnology 34.8 28.3 23%
Power Motion Control (PMC) 42.9 21.7 98%
Process 6.0 4.5 33%
------------------------------ ----------- ----------- -------
Total Group revenue for the
period 83.7 54. 5 54%
------------------------------ ----------- ----------- -------
Net debt 17.6 12.1
------------------------------ ----------- ----------- -------
Group revenue during the first nine months of the current
financial year increased by 54%, of which 6.7% was organic with the
balance coming from operations acquired in the reporting
periods.
Since reporting our HY1 2018 results and market update in
September the business has experienced a solid trading period which
remains in line with market expectations. Gross margins also remain
in line with previous reports. Trading from the Profit Centres
acquired as part of the Balu acquisition in March, being Beaumanor
Fluidpower and Derek Lane, continues to be in line with the plan
outlined at the time of the acquisition and the outlook for both as
part of the Group's efforts to extract synergy benefits remains
good.
Net debt at 30 September 2018 was GBP17.6m. Net cashflow from
operating activities in the quarter to 30 September 2018 was
+GBP4.1m (2017: +GBP1.4m), which was also in line with
expectations.
PEOPLE
The Board looks forward to Russell Cash taking up his position
of Chief Financial Officer on 1 November. Working with the
management team, his focus will be to optimise cash generation and
extract the operational cost efficiencies available following the
strong acquisitive and organic growth seen in recent months.
OUTLOOK
As previously reported, the buoyant conditions seen in the first
half have now given way to a steadier pace of growth. The Board
remains positive, although cautious, about overall growth rates for
the fluid power market as we move into 2019, and this view is
supported by the very broad spread of sectors within the Group's
customer portfolio, both in the UK, and its euro-based
operations.
Regarding the order for c.GBP1.5m to design, manufacture and
supply hydraulic cylinders and power units to an appointed
sub-contractor on the Thames Tideway project, reported last month,
the Board is pleased to confirm that a return to positive progress
has been made. A further update will be given in the full year
trading update in January 2019.
SUMMARY
The Group is expected to deliver another year of positive
progress. Whilst the scope for significant growth by acquisitive
means remains compelling, our short-term focus is firmly on
management actions and investment that can deliver sustained
operational improvements, procurement benefits and wider Group
synergies. Overall, the Board remains confident in the Group's
strategy and the outlook for future growth remains strong.
INTERIM DIVIDEND
As previously announced, the half-year dividend of 2.03p will be
paid on 26 October 2018, to those members who were on the register
at close of business on 28 September 2018.
ENQUIRIES:
FLOWTECH FLUIDPOWER PLC
Malcolm Diamond MBE, Non-Executive Chairman
Bryce Brooks, Chief Executive Officer and Chief Financial Officer
Tel: +44 (0) 1695 52796
Email: info@flowtechfluidpower.com
Zeus Capital Limited (Nominated Adviser and Joint Broker)
Andrew Jones, Alistair Donnelly (corporate finance)
Dominic King, John Goold (sales and broking)
Tel: +44 (0) 20 3829 5000
FinnCap Ltd (Joint Broker)
Ed Frisby, Kate Bannatyne (corporate finance)
Rhys Williams, Andrew Burdis (sales and 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
About Flowtech Fluidpower plc
Founded as Flowtech in 1983, the Flowtech Fluidpower 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 serving Flowtechnology China
urgent orders rather than bulk (Guangzhou)
offerings. It offers an unrivalled Flowtechnology UK (Skelmersdale)
range of OEM and Exclusive Indequip (Skelmersdale)
Brand products to over 5,000 Beaumanor (Leicester)
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 Control Specialise in the design, assembly Primary Fluid Power (Knowsley)
(PMC) and supply of engineering components Nelson Hydraulics (Dublin,
and hydraulic systems and is Lisburn, Dungannon, UK)
further enhanced by a service TSL Fluid Power (West
and repair function. Yorkshire)
Albroco (Knowsley)
HTL (Ludlow)
Hi-Power Hydraulics (Cork,
Dublin, Belfast Manchester)
Hydroflex (Brussels,
Rotterdam and OudBeijerland)
Hydraulic Equipment Supermarkets
(Gloucester, Leeds, Birmingham,
Durham)
Branch Hydraulic Systems
(Gloucester)
HES Tractec (Gloucester)
HES Automatec (Gloucester)
HES Lubemec (Gloucester)
Derek Lane & Co (Newton
Abbot, Devon)
--------------------- -------------------------------------- ----------------------------------
Process Focus on the supply of industrial Hydravalve (Willenhall)
components and solutions to Orange County (Spennymoor)
the process sectors.
--------------------- -------------------------------------- ----------------------------------
Onsite Services During 2018, the Group is extending HES Onsite (Durham, Leeds,
its service offering to include Birmingham, Gloucester)
Onsite Technical 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
600 people. For more information please visit, www.flowtechfluidpower.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTPGGUPUUPRPUP
(END) Dow Jones Newswires
October 23, 2018 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