FLO Flowtech Fluidpower Plc

TIDMFLO

RNS Number : 3119H

Flowtech Fluidpower PLC

03 August 2021

 
 NEWS RELEASE 
  Issued on behalf of Flowtech Fluidpower 
  plc 
  Immediate Release 
 

FLOWTECH FLUIDPOWER PLC

(the "Group")

Group Trading Update and Notice of Half-year Results

London: Tuesday, 3 August 2021 : AIM listed specialist technical fluid power products supplier Flowtech Fluidpower plc (LSE: symbol FLO) , announces the following unaudited trading update on its performance for the six-month financial reporting period ended 30 June 2021.

"We continue to make good progress with all aspects of the implementation of our long-term strategy and remain focussed on addressing the short-term challenges presented by supply chain issues and inflationary pressures."

GROUP Trading Update AND FINANCIALS

Our Revenue streams have increased significantly although have yet to fully recover to pre COVID-19 levels. We have implemented price increases across our businesses to reflect both uplifts levied by certain of our suppliers and higher carriage costs following Brexit. We have also invested in the plans underway to bring our Flowtech business to market under one brand; our e-business/digital agenda as well as a refreshed focus on improving the efficiency of our logistic centres and supply chain management operations.

The above factors combine to a position where at half-year end our profitability is slightly in excess of our expectations.

 
 Segment revenue:                 HY1          HY1          HY1          FY       Change      Change 
                                  2021         2020         2019        2020      HY1 2021    HY1 2021 
                                Unaudited    Unaudited    Unaudited    Audited       v           v 
                                  GBP'm        GBP'm        GBP'm       GBP'm     HY1 2020    HY1 2019 
----------------------------  -----------  -----------  -----------  ---------  ----------  ---------- 
 Flowtech                         26.7         22.7         27.5        46.1       17.6%       -2.9% 
 Fluidpower group solutions       20.1         16.4         22.5        33.6       22.6%      -10.7% 
 Fluidpower group services        8.5          7.4          9.6         15.4       14.9%      -11.5% 
 
 Total Group revenue 
  for the period                  55.3         46.5         59.6        95.1       18.9%       -7.2% 
----------------------------  -----------  -----------  -----------  ---------  ----------  ---------- 
 Net debt*                        13.3         14.6         18.8        11.6 
----------------------------  -----------  -----------  -----------  ---------  ----------  ---------- 
 

*Excludes IFRS16 related debt but including c.GBP0.8m (HY 2020:GBP1.6m) of deferred VAT linked to Government COVID-19 related support schemes.

In our 2020 annual report we highlighted the transition to reporting our results on a three-segment basis. Essentially, we have split the Components segment into two, "Flowtech" which captures our business with distributors and end-users and " Solutions " which is more concentrated on OEM markets. We have included comparatives for 2019 which are clearly more meaningful than a 2020 period which contains a significant COVID-19 impacted period.

NET DEBT/BANKING FACILITIES

We continue to focus on all areas of working capital management to ensure our cash position remains well controlled. Net debt at 30 June 2021 was GBP13.3m, representing a GBP1.7m increase from the position at 31 December 2020; this is in line with our expectations and previous messaging and is driven by the impact of increased revenue on our working capital position.

SUMMARY & OUTLOOK

Current trading remains encouraging; however, it is difficult to assess both the likely short-term demand from our customers and any ongoing and widely experienced disruption in our supply chain. We will continue to invest in the key areas we have highlighted above. Overall, we expect our FY2021 result to be in line with market expectations.

NOTICE OF RESULTS

The Group is planning to announce Half-year results for the period ended 30 June 2021 on Tuesday, 7 September 2021. The Report will also be available to view and download from the Company's website www.flowtechfluidpower.com .

 
 Enquiries: 
  Flowtech Fluidpower plc 
  Bryce Brooks, Chief Executive 
  Russell Cash, Chief Financial Officer 
  Tel: +44 (0) 1695 52759 
  Email: info@flowtechfluidpower.com 
 Zeus Capital Limited (Nominated Adviser and Joint Broker) 
  Andrew Jones, Kieran Russell (corporate finance) 
  Dominic King (sales & broking) 
  Tel: +44 (0) 20 3829 5000 
 
  finnCap Capital Markets (Joint Broker) 
  Ed Frisby, Kate Bannatyne (corporate finance) 
  Rhys Williams, Andrew Burdis (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 
 
 
 About Flowtech Fluidpower plc 
  Founded as Flowtech in 1983, the Flowtech Fluidpower Group is a group of 
  specialist fluid power businesses. Working in partnership with customers 
  and suppliers, we deliver essential components, customer solutions and 
  high-quality servicing support to keep global industry moving. The business 
  joined the AIM market in 2014. Since the start of 2021, the Group has been 
  operating under three distinct branded segments : with Flowtech and Fluidpower 
  Group Solutions forming what was 'Components', and Fluidpower Group Services 
  the remainder. To read more about the Group please visit www.flowtechfluidpower.com 
  . 
 Segment:           What we do:                               Locations: 
-----------------  ----------------------------------------  ---------------------------------- 
 Flowtech           Supply of both hydraulic and pneumatic    Flowtechnology Benelux (Deventer) 
                     consumables, predominantly through        Flowtechnology China ( Guangzhou 
                     distribution for maintenance and          ) 
                     repair operations across all industry     Flowtechnology UK (Skelmersdale) 
                     markets and supported by supply           Indequip (Skelmersdale) 
                     agreements direct to a broad range        Beaumanor (Leicester) 
                     of original equipment manufacturers       Hydravalve (Willenhall) 
 
                     Channels to market: 
                     E-commerce websites, customer white 
                     label e-commerce websites, catalogues, 
                     own and customer trade counters 
-----------------  ----------------------------------------  ---------------------------------- 
 Fluidpower         Supply specialist technical hydraulic     Primary Fluid Power Components 
  group solutions    components & systems predominantly        (Skelmersdale) 
                     into OEMs and end-user channels           Nelson Hydraulics (Dublin, 
                     to all industry markets and supported     Lisburn, Dungannon, UK) 
                     by supply agreements direct to            HTL (Ludlow) 
                     a broad range of manufacturer brands.     Hi-Power Hydraulics (Cork, 
                                                               Dublin, Belfast Manchester) 
                     Channels to market:                       Hydroflex (Brussels, Rotterdam 
                     Engineering collaboration, e-commerce     and OudBeijerland) 
                                                               Hydraulic Equipment Supermarkets 
                                                               (Gloucester, Leeds) 
                                                               Derek Lane & Co (Newton Abbot, 
                                                               Devon) 
                                                               HES Tractec (Gloucester) 
-----------------  ----------------------------------------  ---------------------------------- 
 Fluidpower         Bespoke design, manufacturing,            Primary Fluid Power Systems 
  group services     commissioning, installation, and          (Knowsley) 
                     servicing of systems to manufacturers     Branch Hydraulic Systems and 
                     of specialised industrial and mobile      HES Automatec (Gloucester) 
                     hydraulic OEMs and additionally           HES Lubemec (Gloucester) 
                     a wide range of industrial end            HES Onsite (Leeds, Gloucester) 
                     users. Capital project-based revenue.     Flow Connect (Gloucester) 
                                                               Orange County (Spennymoor) 
                     Channels to market: 
                     In-house design and build, combined 
                     with on-site installation, servicing 
                     and support 
-----------------  ----------------------------------------  ---------------------------------- 
 
   All the Group's divisions have overlapping product sets, allowing procurement 
   synergies to be maximised. The above segments are supported by a centralised 
   back-office team based at the Skelmersdale, Lancashire, and Wilmslow, Cheshire 
   sites in the UK and a procurement and quality control team in Shanghai, 
   China. In total, the business employs 636 people. For more information 
   please visit, Our business | Flowtech Fluidpower plc 
 

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August 03, 2021 02:00 ET (06:00 GMT)