NEWS
RELEASE
Issued on behalf of Flowtech Fluidpower
plc
Immediate Release
FLOWTECH
FLUIDPOWER PLC
(the
"Group")
Group Trading
Update
and
Notice of Interim
Results
London: Tuesday, 30 July 2024: AIM listed Flowtech Fluidpower plc (LSE: FLO),
the specialist technical provider of fluid power
and motion control products and engineering services provides a
trading update for the six months ended 30 June 2024 (H1
2024).
GROUP Trading Update
The first half delivered profit
performance in line with expectations with further improvements
made to gross margins, cost control and overall service levels,
offsetting more challenging market headwinds which have impacted
top line growth. Revenue reduced by 5.5% compared with H1 2023 but
with more positive momentum of 4.9% growth against the second half
of last year, underpinned by continued progress in executing the
Performance Improvement Plan. Further progress is anticipated
during the second half as we see benefits of these improvement
actions together with an expectation of a slow market
recovery.
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H1 2024
Unaudited
£m
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H1 2023
Unaudited
£m
|
FY
2023* Audited
£m
|
Change
H1 2024
v
H1 2023
|
H2 2023
Unaudited
£m
|
Change
H1 2024
v
H2 2023
|
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Segment revenue:
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Great Britain
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38.3
|
40.7
|
77.4
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-5.9%
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36.7
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4.4%
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Ireland
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11.8
|
12.5
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24.1
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-5.5%
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11.6
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1.4%
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Benelux
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5.6
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5.8
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10.6
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-2.9%
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4.8
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16.8%
|
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Total Group revenue or the
period
|
55.7
|
59.0
|
112.1
|
-5.5%
|
53.1
|
4.9%
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|
|
|
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Net debt **
|
13.5
|
15.4
|
14.7
|
-1.9
|
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-1.2
|
Notes:
*.To show like for like comparisons,
the split of revenue by segment in the FY23 figures has been
adjusted to reflect that certain elements of Irish revenues are now
being controlled by Irish management
** Net debt is bank debt; this
excludes lease liabilities under IFRS 16.
Pre IFRS 16 net debt was £13.5m as
at 30 June 2024 (H1 2023: £15.4m), a reduction of £1.9m in the past
year, leaving an unutilised £11.5m on the Group's £25m banking
facilities. Management continues to focus on working capital
efficiency and further debt reduction is expected in the second
half of the year.
SUMMARY & OUTLOOK
Market conditions proved more
challenging than anticipated across all segments as a slowdown in
many industrial verticals has led to extended project cycles,
reduced component basket size and a reduction of project-based
expenditure. There has been continued progress executing all areas
of self-help in the Performance Improvement Plan with many
improving data points indicating that Flowtech is now in a far
stronger position in commercial, operational and service
performance capability. We remain on track with our plans to
fully re-platform the Flowtech website to a scalable and improved
customer experience during the second half of the year.
The new leadership team has nine
months of learned experience, with the majority of brand and
organisational changes implemented. Operational basics are now
embedded with a step change in service levels and commercial
excellence. The Group sales pipeline and forward order book have
begun to strengthen through the period aided by the refocusing of
our sales and marketing efforts around the 'one Flowtech' value
proposition.
We remain confident that the
Performance Improvement Plan and Strategy for growth is on track
and that we are setting ourselves up well to deliver the mid-term
value creation goals outlined in our recent annual
report.
NOTICE OF RESULTS
The Group is planning to announce
its unaudited interim results for the six months ended 30 June 2024
on Tuesday,10 September 2024; the results will be available to view
and download from the Company's website www.flowtechfluidpower.com.
The Group will also be holding a
'live' presentation which will be hosted by CEO Mike England and
CFO Russell Cash on the Investor Meet
Company platform at 10.00am on Tuesday 10 September 2024.
Registration to join the event can be made following this
link:
https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor
Note:
Market expectations compiled by the
Company prior to this announcement for the year ending 31 December
2024 were Group revenue of £115m, underlying EBITDA of £11.0m, and
Net debt of £11.0m (excluding IFRS16 lease liabilities).
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ENQUIRIES:
Flowtech Fluidpower
plc
Mike England, Chief Executive
Officer
Russell Cash, Chief Financial
Officer
Tel: +44 (0) 1695 52759
Email: info@flowtechfluidpower.com
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Panmure Liberum Limited
(Nominated adviser and broker)
Richard Lindley Will King
Tel: 44 (0) 20 3100 2000
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TooleyStreet Communications (IR and media
relations)
Fiona Tooley
Tel: +44 (0) 7785 703523 or
email: fiona@tooleystreet.com
EDITORS NOTE:
Flowtech Fluidpower
plc, is the largest supplier of fluid power products, systems and
solutions in the UK, Ireland and Benelux. As a specialist we have
the expertise and experience our customers need to help them
minimise downtime, optimise performance and maximise the lifespan
of operations. Today, the Company is a strong market leader in a
highly fragmented £30bn European market. We work across virtually
all industry sectors, serving the needs of our customers who are
designing, building, maintaining and improving industrial plant,
equipment and operations. To read more about the Group, please
visit: www.flowtechfluidpower.com.
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