REG - Flowtech Fluidpower - Trading Update and Notice of Results

Flowtech FluidpowerAnnouncement

26/01/2023 07:00

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RNS Number : 8885N  Flowtech Fluidpower PLC  26 January 2023

 

 NEWS RELEASE

 Issued on behalf of Flowtech Fluidpower plc

 Immediate Release

 Thursday, 26 January 2023

 

 

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")

Specialist full-service supplier of technical fluid power products and
services

 

 

 "I am pleased to report Flowtech has made good progress in 2022.  Whilst very
 conscious of the actions needed to further improve, I am confident in our team
 and their capability. I remain optimistic for 2023 and beyond."

                Roger McDowell, Non-Executive Chair

 

 

TRADING UPDATE AND NOTICE OF RESULTS

 

The Board of Flowtech issues the following unaudited Trading Update ahead of
the Group's preliminary results for the year ended 31 December 2022.

2022 TRADING UPDATE

The Board is pleased to report that the underlying profit * for the year ended
31 December 2022 is expected to be in line with market expectations.  Group
revenue of c£114.8m is a 5.2% increase on the prior year.

 

 

 Segment revenue:                    FY          FY          Change

                                     2022        2021        2022

                                     Unaudited   Audited**   v

                                     £'m         £'m         2021
 Flowtech                            55.6        57.3**      -3.0%
 Fluidpower Group Solutions          38.1        34.4**      10.6%
 Fluidpower Group Services           21.1        17.4        21.4%

 Total Group revenue for the period  114.8       109.1       5.2%
 Net debt***                         16.0        15.4        0.6

 

Notes

 * Underlying profit is profit before finance costs, tax and separately
 disclosed items which comprise costs relating to amortisation, impairment of
 intangibles, restructuring, acquisition and share based payments.
 ** 2021 disclosed split between Flowtech and Fluidpower Group Solutions has
 been restated to reflect the fact that part of our business has transitioned
 from Fluidpower Group Solutions to Flowtech during the course of 2022.
 *** Excludes IFRS16 related debt.

 

 

Overall, the Board is satisfied with the trading performance in the year and
pleased with the progress made against our key strategic objectives.  Actions
taken to pass on inflationary cost pressures and actively manage our cost
base, notably the reduction in headcount, have assisted in returning the
business to pre-pandemic levels of profitability.  The performance across our
segments is varied but shows strong correlation to the relative strength of
the Pneumatics and Hydraulics markets in which they operate.

 

NET DEBT

Net debt*** at 31 December 2022 was £16.0m; this represents a reduction of
£3.7m in the second half of 2022. We expect this trend to continue into 2023
as inventory continues to be reduced.

 

NOTICE OF RESULTS

The Company will update shareholders further at the time of the 2022
preliminary results announcement, scheduled to be released by the end of March
2023.

 

 

 ENQUIRIES:
 Flowtech Fluidpower plc

 Roger McDowell, Chair

 Bryce Brooks, Chief Executive

 Russell Cash, Chief Financial Officer

 Tel: +44 (0) 1695 52759

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

 Liberum (Nominated adviser and Sole Broker)

 Richard Lindley / Ben Cryer / 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.

 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
                   distribution for maintenance and repair operations across all industry markets

                   but supported by supply agreements direct to a broad range of original           (Skelmersdale, Leicester, Birmingham)
                   equipment manufacturers (OEMs)

                                                                                Flowtechnology Benelux

                                                                                (Deventer)
                   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)

                   Channels to market:                                                              HTL

                   Engineering collaboration through sales offices providing national and local     (Ludlow)
                   coverage. In 2022 enhanced by new e-commerce capabilities

                                                                                Hydroflex

                                                                                                    (Brussels, Rotterdam and OudBeijerland)

                                                                                                    Derek Lane & Co

                                                                                                    (Newton Abbot)

                                                                                                    HES Tractec

                                                                                                    (Gloucester)

 Fluidpower

 Group Services    Our focus

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

                   and additionally a wide range of industrial end users.  Capital project-based    (Knowsley)
                   revenue.

                                                                                Branch Hydraulic Systems

                                                                                (Gloucester)
                   Channels to market:

                                                                                HES Onsite
                   In-house design and build, combined with on-site installation, servicing and

                   support                                                                          (Leeds, Gloucester)

                                                                                                    Orange County

                                                                                                    (Spennymoor)

                                                                                                    Hi Power Transport

                                                                                                    (Dublin, Cork, Belfast)

 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 Skelmersdale and Wilmslow sites in the UK. In
 total, the business employs 572 people.

 For more information please visit,  Our business | Flowtech Fluidpower plc
 (https://www.flowtechfluidpower.com/our-business/)

 

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