REG - Flowtech Fluidpower - Group Trading Update & Notice of HY1 2022 results

Flowtech FluidpowerAnnouncement

01/08/2022 07:00

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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 (http://www.flowtechfluidpower.com) .

 

ENQUIRIES:

Flowtech Fluidpower plc

Bryce Brooks, Chief Executive

Russell Cash, Chief Financial Officer

Tel: +44 (0) 1695 52759

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

 

Liberum Capital Limited (Nominated adviser and Sole Broker)

Richard Lindley / Ben Cryer / William Hall / Will King

Tel: 44 (0) 20 3100 2000

 

TooleyStreet Communications (IR and media relations)

Fiona Tooley

Tel: +44 (0) 7785 703523 or email: fiona@tooleystreet.com
(mailto:fiona@tooleystreet.com)

 

 

 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
 (http://www.flowtechfluidpower.com) .

 Segment:          What we do:                                                                      Locations:
 Flowtech

                   Our focus

                   Supply of both hydraulic and pneumatic consumables, predominantly through        Flowtech (Skelmersdale, Leicester, Birmingham)
                   distribution for maintenance and repair operations across all industry markets

                   but supported by supply agreements direct to a broad range of original           Flowtechnology Benelux (Deventer)
                   equipment manufacturers (OEMs)

                   Channels to market:

                   E-commerce websites, customer white label e-commerce websites,
                   70,000+catalogues, own and customer trade counters

 Fluidpower

 Group Solutions   Our focus

                   Supply specialist technical hydraulic components & systems, predominantly        Primary Fluid Power Components (Skelmersdale)
                   into OEMs and end-user channels to all industry markets, supported by supply

                   agreements with a broad range of manufacturer brands                             Nelson Hi-Power (Dublin, Cork, Dungannon)

                                                                                                    HTL (Ludlow)

                   Channels to market:                                                              Hydroflex (Brussels, Rotterdam and OudBeijerland)

                   Engineering collaboration through sales offices providing national and local     Derek Lane & Co (Newton Abbot, Devon)
                   coverage. In 2022 enhanced by new e-commerce capabilities

                                                                                HES Tractec (Gloucester)

 Fluidpower

 Group Services    Our focus

                   Bespoke design, manufacturing, commissioning, installation, and servicing of     Primary Fluid Power Systems (Knowsley)
                   systems to manufacturers of specialised industrial and mobile hydraulic OEMs,

                   and additionally a wide range of industrial end users.  Capital project-based    Branch Hydraulic Systems (Gloucester)
                   revenue.

                                                                                HES Onsite (Leeds, Gloucester)

                                                                                Orange County (Spennymoor)
                   Channels to market:

                                                                                Hi Power Transport (Dublin, Cork, Belfast)
                   In-house design and build, combined with on-site installation, servicing and

                   support

 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
 (https://www.flowtechfluidpower.com/our-business/)

 

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