REG - Flowtech Fluidpower - FULL YEAR TRADING UPDATE

Flowtech FluidpowerAnnouncement

30/01/2025 07:00

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RNS Number : 1954V  Flowtech Fluidpower PLC  30 January 2025

 NEWS RELEASE                                  \

 Issued on behalf of Flowtech Fluidpower plc

 Immediate Release

 Thursday 30 January 2025

 

The information contained within this announcement is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by the Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to be in the
public domain.

 

FLOWTECH FLUIDPOWER PLC

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

 

Our aim is to provide our customers with power, motion & control
solutions, from a single component to integrated engineering systems, in the
most cost-effective way, harnessing the best global brands & products,
services and engineers in the market.

 

FULL YEAR TRADING UPDATE

 "Underlying EBITDA is broadly in line with expectations in a year focused on
 controlling the controllables in a difficult market.

 Strong progress has been made implementing our strategic plan with further
 operational improvements delivering enhancements to gross margins, working
 capital optimisation, service levels, and operational efficiencies. Group
 rebranding and restructuring are complete, and the successful integration of
 Thorite is well ahead of our expectations. With much of the business
 transformation concluded we have a firm, stable and scalable platform from
 which to deliver profitable growth into 2025 and beyond.

 We are well on track with the development of our new digital platform to be
 launched to market in H125 and there is confidence that the broader strategy
 and actions taken to improve operational efficiency within the business will
 drive strong returns and improved shareholder value."

 Mike England, CEO

 

The Board of Flowtech issues the following unaudited Trading Update ahead of
the Group's 2024 annual results.

2024 TRADING UPDATE

The Board is reporting that underlying EBITDA for the year ended 31 December
2024 is expected to be broadly in line with market expectations. We have also
achieved a significant one-off profit , which will be separately disclosed, in
relation to the Thorite acquisition due to having purchased assets below fair
market value and therefore is not included in underlying EBITDA.

 

 Segment revenue:                    FY          FY          Change

                                     2024        2023        2024

                                     Unaudited   Audited *   v

                                     £m          £m          2023
 Great Britain excluding Thorite     71.5        77.4        -7.6%
 Thorite***                          4.7         -           N/A
 Island of Ireland                   21.0        24.1        -12.9%
 Benelux                             10.0        10.6        -5.5%

 Total Group revenue for the period  107.3       112.1       -4.3%
 Net debt**                          15.1        14.7        0.4

 

 Notes
 * Approximately £2m of revenue has been reallocated from GB to Island of
 Ireland to better reflect the manner in which revenue streams are now being
 reported within the business
 ** Excludes IFRS16 related debt
 *** 18-week period

 Consensus forecasts FY24 prior to this announcement were: revenue £109m,
 underlying EBITDA £6.5m

 and underlying operating profit £3.0m

 

The well-documented market headwinds persisted throughout the year, and as a
result the Group experienced a revenue decline of 4.3%. The Thorite
acquisition has been a great success: it is operating profitably, with the
initial capital cost already repaid, and integration has exceeded expectations
providing strong confidence in the stability and growth of this channel into
2025. Like for like revenue decline was 8.6% as customers reduced volumes,
destocked, and delayed project timelines.

 

The British Fluid Power Association (BFPA) has consistently cited market
decline of around 10% in Hydraulics and Pneumatics. As a result, we are
pleased with our relative performance and confident that we have gained market
share in an otherwise difficult year. Our sales pipeline and order book have
continued to strengthen throughout the year, growing with a number of new
exciting orders secured for execution in 2025.

 

Net debt** increased by £0.4m to £15.1m at year end (2023: £14.7m). As a
board, we remain very focused on the management of working capital and are
comfortable with the current debt profile of the business.

 

The team has worked tirelessly to improve the operational performance of the
business, driving improved margins through commercial pricing and cost
control, delivering enhanced service levels and on-time deliveries,
strengthening the senior leadership team and optimising all aspects of the
business. With the rebranding and restructuring now complete, and the new
website launch expected in H1, we expect the improvements made across 2024 to
bear fruit this year. We believe we have a strong, stable, and scalable
platform for improved growth into 2025 and beyond.

 

 

 ENQUIRIES:
 Flowtech Fluidpower plc

 Roger McDowell, Chair

 Mike England, Chief Executive Officer

 Russell Cash, Chief Financial Officer

 Tel: +44 (0) 1695 52759

 Email: info@flowtechfluidpower.com (mailto:info@flowtechfluidpower.com)

 Panmure Liberum (Nominated Adviser and Joint Broker)

 Richard Lindley / Will King

 Tel: +44 (0) 20 3100 2000

 Singer Capital Markets (Joint broker)

 Tom Salvesen, Head of Investment Banking

 James Todd, Associate, Investment Banking

 Tel: +44 (0) 207 496 3000

 TooleyStreet Communications (IR and media relations)

 Fiona Tooley

 Tel: +44 (0) 7785 703523

 or email: fiona@tooleystreet.com (mailto:fiona@tooleystreet.com)

 

 

 EDITORS NOTE:

 Flowtech Fluidpower plc (AIM:FLO), is the largest supplier of fluid power
 products, systems and solutions in the UK, Ireland, and Benelux. As a
 specialist we have the expertise and experience our customers need to help
 them minimise downtime, optimise performance and maximise the lifespan of
 operations. Today, the Company is a strong market leader in a highly
 fragmented £30bn European market. We work across virtually all industry
 sectors, serving the needs of our customers who are designing, building,
 maintaining, and improving industrial plant, equipment, and operations. To
 read more about the Group, please visit: www.flowtechfluidpower.com
 (http://www.flowtechfluidpower.com) .

 

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