Group Trading Update & Notice of Half-year Results

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 2021 Unaudited £'m	HY1 2020 Unaudited £'m	HY1 2019 Unaudited £'m	FY 2020 Audited £'m	Change HY1 2021 v HY1 2020	Change HY1 2021 v 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.£0.8m (HY 2020:£1.6m) 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 £13.3m, representing a £1.7m 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: [phone] Email: [e-mail]

Zeus Capital Limited (Nominated Adviser and Joint Broker) Andrew Jones, Kieran Russell (corporate finance) Dominic King (sales & broking) Tel: [phone] finnCap Capital Markets (Joint Broker) Ed Frisby, Kate Bannatyne (corporate finance) Rhys Williams, Andrew Burdis (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 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 consumables, predominantly through distribution for maintenance and repair operations across all industry markets and supported by supply agreements direct to a broad range of original equipment manufacturers Channels to market: E-commerce websites, customer white label e-commerce websites, catalogues, own and customer trade counters	Flowtechnology Benelux (Deventer) Flowtechnology China ( Guangzhou ) Flowtechnology UK (Skelmersdale) Indequip (Skelmersdale) Beaumanor (Leicester) Hydravalve (Willenhall)
Fluidpower group solutions	Supply specialist technical hydraulic components & systems predominantly into OEMs and end-user channels to all industry markets and supported by supply agreements direct to a broad range of manufacturer brands. Channels to market: Engineering collaboration, e-commerce	Primary Fluid Power Components (Skelmersdale) Nelson Hydraulics (Dublin, Lisburn, Dungannon, UK) HTL (Ludlow) Hi-Power Hydraulics (Cork, Dublin, Belfast Manchester) Hydroflex (Brussels, Rotterdam and OudBeijerland) Hydraulic Equipment Supermarkets (Gloucester, Leeds) Derek Lane & Co (Newton Abbot, Devon) HES Tractec (Gloucester)
Fluidpower group services	Bespoke design, manufacturing, commissioning, installation, and servicing of systems to manufacturers of specialised industrial and mobile hydraulic OEMs and additionally a wide range of industrial end users.  Capital project-based revenue. Channels to market: In-house design and build, combined with on-site installation, servicing and support	Primary Fluid Power Systems (Knowsley) Branch Hydraulic Systems and HES Automatec (Gloucester) HES Lubemec (Gloucester) HES Onsite (Leeds, Gloucester) Flow Connect (Gloucester) Orange County (Spennymoor)
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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