AGM Statement

RNS Number : 4165Q

Flowtech Fluidpower PLC

06 June 2018

 

NEWS RELEASE Issued on behalf of Flowtech Fluidpower plc Wednesday, 6 June 2018 Immediate Release

FLOWTECH FLUIDPOWER PLC ("Flowtech Fluidpower" the "Group" or "Company") 2018 Annual General Meeting Statement

At today's (6 June 2018) Annual General Meeting of the Company the Chairman, Malcolm Diamond MBE, will make the following statement: "A busy period of acquisitions and business enhancements, the activities of 2017 and the early part of 2018 have been the most demonstrative to date of the Group's strategy to create a full-service fluid power provider, strengthening its market position across the UK, Ireland and northern Europe and delivering strong financial performance.  In our Q1 trading update we reported that Group revenue during the first three months of the current year increased by 49.7%, of which 6.3% was organic.  In the two months since that report I can confirm that we have continued to see this positive trading momentum. Our acquisition programme, which includes seven completed deals in the last seventeen months, has created new complementary services, brands, products and customer sectors.  Having made these significant enhancements, the Group will use 2018 as an opportunity to consolidate the processes and systems in place and start to exploit synergy opportunities in procurement, operations and back office, as well as continue to target organic growth. Following significant refurbishment at the Skelmersdale site, which was largely complete towards the end of 2017, the Group created a Shared Logistics Centre to support all subsidiaries, streamline logistics operations and identify greater product synergies for the Group. In addition, the acquisition of Beaumanor in March of this year immediately increased the Group's market share within the maintenance, repair and operation (MRO) market and gave access to a second warehouse based in the Midlands.  This acquisition will allow us to both realise greater procurement synergies and additionally de-risk operations at the flagship distribution centre based in Lancashire.  I can also confirm that trading at Beaumanor, and its sister business, Derek Lane, has been strong since purchase in March, and in line with our expectations. Starting with our 2017 acquisition of Hydroflex in the Benelux, the Board has placed greater attention on our European businesses, investigating the c€12.6bn European market, and setting firm foundations to expand into Western Europe, which the Group will look to do in 2019 and beyond. In summary, the Directors remain confident about the future; we fully expect our underlying performance to deliver another year of solid progress and we look forward to providing our next Trading Update for Q2 in early July." Enquiries to: Flowtech Fluidpower plc Malcolm Diamond MBE, Chairman Sean Fennon, Chief Executive Officer Bryce Brooks, Chief Financial Officer & Company Secretary Tel: [phone] Zeus Capital Limited (Nominated Adviser and Broker) Andrew Jones, Alistair Donnelly (corporate finance) Dominic King, John Goold (sales & broking) Tel: [phone] finnCap Limited (Joint Broker) Ed Frisby, Kate Bannatyne (corporate finance) Rhys Williams, Emily Morris (sales & broking) Tel: [phone] TooleyStreet Communications (IR and media relations) Fiona Tooley Tel: [phone] or email: [e-mail]

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 and resellers of industrial MRO products, primarily serving urgent orders rather than bulk offerings. It offers an unrivalled range of OEM and Exclusive Brand products to over 5,000 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. Flowtechnology Benelux (Deventer) Flowtechnology China (Guangzhou) Flowtechnology UK (Skelmersdale) Indequip (Skelmersdale) Beaumanor (Leicester) Power Motion Control (PMC) Specialise in the design, assembly and supply of engineering components and hydraulic systems and is further enhanced by a service and repair function. Primary Fluid Power (Knowsley) Nelson Hydraulics (Dublin, Lisburn, Dungannon, UK) TSL Fluid Power (West 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 components and solutions to the process sectors. Hydravalve (Willenhall) Orange County (Spennymoor) Onsite Services During 2018, the Group is extending its service offering to include Onsite Technical Maintenance through highly skilled engineers. HES Onsite (Durham, Leeds, Birmingham, Gloucester) 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 550 people.  For more information please visit, www.flowtechfluidpower.com

 

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