Trading update -nine month period to 30 Sept 2019

RNS Number : 6217Q

Flowtech Fluidpower PLC

22 October 2019

 

NEWS RELEASE Issued on behalf of Flowtech Fluidpower plc Immediate Release

FLOWTECH FLUIDPOWER PLC

("Flowtech Fluidpower", the "Group" or "Company")

Trading Update

London: Tuesday, 22 October 2019:  AIM listed specialist technical fluid power products supplier Flowtech Fluidpower (LSE: symbol FLO), issues the following unaudited Q3 Trading Update for the nine-month financial reporting period ended 30 September 2019 (the "Period"):

GROUP Trading Update AND FINANCIALS

Revenue for the nine-month period ended 30 September 2019
Divisions:	Period 2019 Unaudited £m	Period 2018 Unaudited £m	Growth
Components	75.0	70.9	5.8%
Services	12.3	12.8	(3.8%)
Total Group revenue for the period	87.3	83.7	4.3%
Net debt*	19.1	17.6

trading

Since reporting our HY1 2019 results in September the business has proved resilient in difficult market conditions; we are pleased to report organic growth for the year to date of 1.8%.  Overall revenue growth in the first nine months was 4.3%, the balance coming from the full period impact of the Balu businesses which were acquired in March 2018.  Gross margins and costs remain consistent with previous reports.

cash flow/net debt

Net debt* at 30 September 2019 was £19.1m.  Net cash generated from operating activities (after accounting for tax paid) in Q3 was strong at £3.9m.  After taking account of dividend payments of £2.5m, earn-out consideration regarding historic acquisition activity of £1.0m and £0.7m in respect of other investing and financing activities (including capital expenditure, lease payments and interest costs), net debt increased by £0.3m in Q3.  There is no further deferred consideration to pay and Q4 is expected to be cash generative.

SUMMARY & OUTLOOK

Our short-term focus is firmly on the delivery of sustained operational improvements, procurement benefits and wider Group synergies; detailed plans to achieve these savings are currently being finalised with the main phase of implementation beginning in early 2020.  We are confident that these actions, combined with our continued focus on working capital management, will deliver improved profit and cash performance.  Notwithstanding the current difficult market conditions, the Board remains confident in the Group's strategy and the outlook for future growth remains positive.

INTERIM DIVIDEND

As previously announced, the half-year dividend of 2.13p per share will be paid on 29 October 2019, to those members on the register at close of business on 4 October 2019.

*Net debt excludes IFRS16 lease debt

ENQUIRIES:

FLOWTECH FLUIDPOWER PLC

Malcolm Diamond MBE, Non-Executive Chairman Bryce Brooks, Chief Executive Officer Russell Cash, Chief Financial Officer Tel: [phone] Email: [e-mail]

Corporate Marketing Manager: Eve Rigby Tel: [phone]

Zeus Capital Limited (Nominated Adviser and Joint Broker) Andrew Jones, Kieran Russell (Corporate Finance) Dominic King, John Goold (Sales & Broking) Tel: + 44 (0) 20 3829 5000

finnCap Limited (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: [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 two distinct divisions: Division: What we do: Locations: Components Supply of hydraulic and pneumatic consumables, predominantly through distribution for urgent maintenance and repair operations across all industry sectors.  Additionally, support a broad range of original equipment manufacturers (OEMs) supplying off-the-shelf and tailored components and assemblies. Flowtechnology Benelux (Deventer) Flowtechnology China (Guangzhou) Flowtechnology UK (Skelmersdale) Indequip (Skelmersdale) Beaumanor (Leicester) Hydravalve (Willenhall) Primary Fluid Power Components (Knowsley) Albroco (Knowsley) Nelson Hydraulics (Dublin, Lisburn, Dungannon, UK) HTL (Ludlow) Hi-Power Hydraulics (Cork, Dublin, Belfast, Knowsley) Hydroflex (Brussels, Rotterdam and OudBeijerland) Hydraulic Equipment Supermarkets (Gloucester, Leeds, Birmingham, Durham) Derek Lane & Co (Newton Abbot, Devon) Tractec (Gloucester) Services Bespoke design, manufacturing, commissioning, installation and servicing of systems to manufacturers of specialised industrial and mobile hydraulic original equipment manufacturers (OEMs) and additionally a wide range of industrial end users. Primary Fluid Power Systems (Knowsley) TSL (Knowsley) Branch Hydraulic Systems (Gloucester) Automatec (Gloucester) Lubemec (Gloucester) Onsite (Durham, Leeds, Birmingham, Gloucester) Flow Connect (Gloucester) Orange County (Spennymoor) Both Group divisions have overlapping product sets, allowing procurement synergies to be maximised. The above divisions 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 over 550 people.  For more information please visit, www.flowtechfluidpower.com

 

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