Trading Update & Notice of Annual Results

RNS Number : 1101M

Flowtech Fluidpower PLC

18 January 2016

 

Issued on behalf of Flowtech Fluidpower PLC

Monday, 18 January 2016

Flowtech Fluidpower plc ("Flowtech", "Company" or "Group") Trading Update Flowtech Fluidpower plc (AIM: FLO), issues the following unaudited Trading update ahead of the Group's annual financial results for the year ended 31 December 2015, which will be announced on 12 April 2016. 2015 HIGHLIGHTS ·      Group revenue is expected to be 18% up on 2014 at approximately £44.7 million ·      Gross margins remain robust and in line with management expectations ·      The Balance Sheet at 31 December 2015 remained lowly geared with net debt expected to be c.£8.9 million ·      Overall, solid performance which is anticipated to result in earnings and profitability being within market estimates DIVIDEND Our aim is to continue on capital growth through investment in the business and increasing ROCE.  As a Board, we remain committed to a progressive dividend policy. Based on the year's performance and our confidence as a whole, the Board will, barring any unforeseen situation, be intending to propose to shareholders a final dividend for the year ended 31 December 2015 in line with current market expectations, which will deliver a 5% increase over 2014. LOOKING AHEAD Whilst industrial markets are currently presenting some challenges, the Directors view the future with confidence and are optimistic that the Company can continue to grow both organically and by acquisition, with a number of acquisition opportunities being actively pursued. The Flowtech Group now operates in two divisions: specialist Power Motion Control and Distribution; this allows us to showcase our significant technical expertise & high service levels to our customers across the business.  This approach gives us a solid platform for growth as well as creating new opportunities particularly for the Group's growing interest in the hydraulic equipment and components sector.  PEOPLE As part of this focused drive we are pleased to announce senior appointments within the business. ·      On I March 2016 Nick Fossey will take up a new role as Managing Director of the Power Motion Control Division and will be appointed to the Group Operating Board.  He joins us from Eaton Corporation where he spent almost 13 years, including as a Director of Sales and Marketing EMEA for nearly ten years.  Prior to this he was Managing Director at Rockwell Automation.  Through his senior leadership roles, he has gained an extensive knowledge of the hydraulics distribution sector internationally, particularly within Europe, which will be invaluable to the future development of our business model. ·      Paul McGrady was promoted from Sales Director to Managing Director of Primary Fluid Power on 1 January 2016 and also joined the Operating Board.  Paul has a strong understanding of the PMC market having been closely involved with Stephen Merrie in its evolution since 1999.    ·      Stephen Merrie retired from Primary on 31 December 2015.  On behalf of all stakeholders, the Board would like to thank him for his significant contribution during his time as part of the Group and wish him well in his retirement. SUMMARY Management continue to remain optimistic about both the commercial opportunities and the prospects of the Group as a whole.  The Board has a clear strategy to develop the opportunities that will deliver future growth and, despite some headwinds Flowtech is expected to deliver another year of solid progress. The Directors look forward to updating shareholders further on the Group's overall performance at the time of the preliminary results in April.

Enquiries:
Flowtech Fluidpower plc AIM: FLO Sean Fennon, Chief Executive Officer Bryce Brooks, Chief Financial Officer & Company Secretary Tel: [phone] Email: [e-mail]
Zeus Capital Limited (Nominated Adviser and Broker) Andrew Jones Dominic King Ross Andrews Tel: [phone]
TooleyStreet Communications (IR and media relations) Fiona Tooley Tel: [phone] Email: [e-mail]

Editors' note:

Flowtech Fluidpower plc, founded as Flowtech in 1983, is the UK's leading specialist supplier of technical fluid power products with modern distribution facilities in the UK and Benelux.  It offers an unrivalled range of Original Equipment Manufacturer (OEM) and Exclusive Brand products to over 3,600 distributors and resellers. Its catalogue is recognised as the definitive source for fluid power products, containing approximately 52,000 individual product lines and is distributed to more than 85,000 industrial Maintenance, Repair and Overhaul end users (MRO).  Over 80% of product is stocked and if ordered by 10pm, can be delivered next day in the UK, providing 'best in industry' service offering.  The Group's headquarters is located in the UK where its main distribution centre is based in Skelmersdale, Lancashire, with further operational centres in Netherlands and China.  The Power Motion Control Division (PMC) has operations in Merseyside, Northern Ireland and the Republic of Ireland.  In total, the Group employs 270 people. For more information please visit: www.flowtechfluidpower.com  or email: [e-mail]

 

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