Group Trading Update & Notice of HY1 2022 results

RNS Number : 3465U

Flowtech Fluidpower PLC

01 August 2022

 

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: Monday, 1 August 2022: 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 2022 (HY1 2022).

GROUP Trading Update

The Group is pleased to announce the delivery of a HY1 2022 performance in line with the Board's expectations.  On a like for like trading day basis Group Revenue has increased by 4.8% relative to the comparative 2021 period. Revenue splits by division are detailed below:  

	HY1 2022	HY1 2021	FY 2021	cHANGE
	Unaudited	Unaudited	Audited	HY12022 v HY1 2021
	£m	£m	£m
Segment revenue:
Flowtech	26.8	26.7	52.1	0.4%
Flowtech Group Solutions	21.2	20.1	39.6	5.5%
Flowtech Group Services	9.5	8.5	17.4	11.8%
Total Group revenue for the period	57.5	55.3	109.1	4.0%
Net debt (*)	19.7	13.3	15.4
(*) Net debt is Bank debt less cash and cash equivalents. It excludes lease liabilities under IFRS16.  At the end of HY1 2021, net debt also included VAT liability linked to Government Covid-19 related support schemes of £0.8m.

Pre IFRS 16 net debt was £19.7m at 30 June 2022 (HY1 2021: £13.3m), £5.3m of headroom within the Group's banking facilities.  Given the supply chain related pressures encountered in late 2021, which have continued into this period, we decided to continue our investment in inventory, which increased by £11m in the 12-month period to 30 June 2022. This has supported delivery of a solid trading performance in the first half of 2022.  Inventory levels are a key focus of management; we expect a degree of unwind of this position in the remainder of the year as we benefit from a more predictable supply chain environment.

SUMMARY & OUTLOOK

We recognise the current challenges, not least those linked to inflationary pressures and the wider macroeconomic environment; however, we continue to work hard to mitigate these risks and are pleased with the progress that has been made with implementing the necessary operational efficiencies.  We look forward to the impact of the general investment we have made, specifically the introduction of our new e-commerce website on 17 May 2022, and our broader e-business agenda which should provide attractive returns over the coming years.

NOTICE OF RESULTS

The Group is planning to announce unaudited Half-year results for the period ended 30 June 2022 on Wednesday, 31 August 2022.  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]

Liberum Capital Limited (Nominated adviser and Sole Broker)

Richard Lindley / Ben Cryer / William Hall / Will King

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	Our focus Supply of both hydraulic and pneumatic consumables, predominantly through distribution for maintenance and repair operations across all industry markets but supported by supply agreements direct to a broad range of original equipment manufacturers (OEMs) Channels to market: E-commerce websites, customer white label e-commerce websites, 70,000+catalogues, own and customer trade counters	Flowtech (Skelmersdale, Leicester, Birmingham) Flowtechnology Benelux (Deventer)
Fluidpower Group Solutions	Our focus Supply specialist technical hydraulic components & systems, predominantly into OEMs and end-user channels to all industry markets, supported by supply agreements with a broad range of manufacturer brands Channels to market: Engineering collaboration through sales offices providing national and local coverage. In 2022 enhanced by new e-commerce capabilities	Primary Fluid Power Components (Skelmersdale) Nelson Hi-Power (Dublin, Cork, Dungannon) HTL (Ludlow) Hydroflex (Brussels, Rotterdam and OudBeijerland) Derek Lane & Co (Newton Abbot, Devon) HES Tractec (Gloucester)
Fluidpower Group Services	Our focus 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 (Gloucester) HES Onsite (Leeds, Gloucester) Orange County (Spennymoor) Hi Power Transport (Dublin, Cork, Belfast)
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 teams based at the Skelmersdale, Lancashire and Wilmslow, Cheshire sites in the UK.   In total, the business employs 605 people.  For more information please visit,   Our business | Flowtech Fluidpower plc

 

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