Group Trading Update & Notice of Half-Year results

RNS Number : 3049F

Flowtech Fluidpower PLC

12 July 2019

 

NEWS RELEASE Issued on behalf of Flowtech Fluidpower plc Immediate Release

FLOWTECH FLUIDPOWER PLC

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

Group Trading Update

and

Notice of Half-year Results

"Flowtech Fluidpower has achieved further organic growth of 2.9% and reduced net debt by £1.1m in H1 2019.  The Group expects to achieve another year of solid progress; results are in line with market expectations"

London: Friday, 12 July 2019:  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 2019: 

GROUP Trading Update AND FINANCIALS

	HY1 2019 Unaudited £'m	HY1 2018 Unaudited £'m	FY 2018 Audited £'m	Growth H1 2019 v H1 2018
Divisional revenue:
Components	50.0	46.9		6.5%
Services	9.6	9.5		1.4%
Total Group revenue for the period	59.6	56.4	111.1	5.7%
Net debt	18.8	18.0	19.9

Group revenue during the first six months of the current year increased by 5.7%.  On a like-for-like trading days' basis organic growth was 2.9%, the balance resulting from 2018 acquisitions. Quarter 2 saw a reduction in organic revenue growth, relative to Quarter 1, reflecting the wider economic conditions.

Net debt at 30 June 2019 was £18.8m.  This represents a £1.1m reduction from the position as at 31 December 2018 and compares favourably with a net debt increase of £3.0m for the comparative period in 2018.  The £1.1m reduction in debt is after making contingent consideration payments of £1.6m relating to prior year acquisition activity.

Our continuing focus on working capital management should lead to further debt reduction by the end of 2019.  

SUMMARY

Overall, our trading in the first half is in line with full year market expectations and we continue to expect to deliver another year of solid progress despite less buoyant market conditions.  The Directors remain confident about the future for the Group and look forward to updating shareholders on its cost reduction and working capital initiatives at the time of the Half-year results.

NOTICE OF RESULTS

The Group is planning to release its Half-year results on Tuesday, 24 September 2019.  The announcement will be available to view and download from the Company's website www.flowtechfluidpower.com.  Further information can be obtained from TooleyStreet Communications, details of which are shown below.

Enquiries: FLOWTECH FLUIDPOWER PLC Bryce Brooks, Chief Executive Russell Cash, Chief Financial Officer Tel: [phone] Email: [e-mail] To read more about the Group please visit www.flowtechfluidpower.com

Zeus Capital Limited (Nominated Adviser and Joint 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, 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 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 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 Manchester) Hydroflex (Brussels, Rotterdam and OudBeijerland) Hydraulic Equipment Supermarkets (Gloucester, Leeds, Birmingham, Durham) Derek Lane & Co (Newton Abbot, Devon) HES 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 Fluid Power (West Yorkshire) Branch Hydraulic Systems and HES Automatec (Gloucester) HES Lubemec (Gloucester) HES Onsite (Durham, Leeds, Birmingham, Gloucester) Flow Connect (Gloucester) Orange County (Spennymoor)
Both Group's 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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