REG - Flowtech Fluidpower - Trading update -nine month period to 30 Sept 2019

Flowtech FluidpowerAnnouncement

22/10/2019 07:05

RNS Number : 6217Q
Flowtech Fluidpower PLC
22 October 2019
 





NEWS RELEASE
Issued on behalf of Flowtech Fluidpower plc
Immediate Release
 







 
 
 
 
FLOWTECH FLUIDPOWER PLC
("Flowtech Fluidpower", the "Group" or "Company")
 
Trading Update
 
London: Tuesday, 22 October 2019:  AIM listed specialist technical fluid power products supplier Flowtech Fluidpower (LSE: symbol FLO), issues the following unaudited Q3 Trading Update for the nine-month financial reporting period ended 30 September 2019 (the "Period"):
 
GROUP Trading Update AND FINANCIALS
 



Revenue for the nine-month period ended 30 September 2019




Divisions:


Period
2019
Unaudited
£m


Period
2018
Unaudited
£m


Growth




Components


75.0


70.9


5.8%




Services


12.3


12.8


(3.8%)




Total Group revenue for the period


87.3


83.7


4.3%




Net debt*


19.1


17.6







 
 
trading
Since reporting our HY1 2019 results in September the business has proved resilient in difficult market conditions; we are pleased to report organic growth for the year to date of 1.8%.  Overall revenue growth in the first nine months was 4.3%, the balance coming from the full period impact of the Balu businesses which were acquired in March 2018.  Gross margins and costs remain consistent with previous reports.
 
cash flow/net debt
Net debt* at 30 September 2019 was £19.1m.  Net cash generated from operating activities (after accounting for tax paid) in Q3 was strong at £3.9m.  After taking account of dividend payments of £2.5m, earn-out consideration regarding historic acquisition activity of £1.0m and £0.7m in respect of other investing and financing activities (including capital expenditure, lease payments and interest costs), net debt increased by £0.3m in Q3.  There is no further deferred consideration to pay and Q4 is expected to be cash generative.
 
SUMMARY & OUTLOOK
Our short-term focus is firmly on the delivery of sustained operational improvements, procurement benefits and wider Group synergies; detailed plans to achieve these savings are currently being finalised with the main phase of implementation beginning in early 2020.  We are confident that these actions, combined with our continued focus on working capital management, will deliver improved profit and cash performance.  Notwithstanding the current difficult market conditions, the Board remains confident in the Group's strategy and the outlook for future growth remains positive.
 
INTERIM DIVIDEND
As previously announced, the half-year dividend of 2.13p per share will be paid on 29 October 2019, to those members on the register at close of business on 4 October 2019.
 
*Net debt excludes IFRS16 lease debt
 



ENQUIRIES:










FLOWTECH FLUIDPOWER PLC




Malcolm Diamond MBE, Non-Executive Chairman
Bryce Brooks, Chief Executive Officer
Russell Cash, Chief Financial Officer
Tel: +44 (0) 1695 52796 
Email: info@flowtechfluidpower.com










Corporate Marketing Manager: Eve Rigby Tel: +44 (0) 7384 254161










Zeus Capital Limited (Nominated Adviser and Joint Broker)
Andrew Jones, Kieran Russell (Corporate Finance)
Dominic King, John Goold (Sales & Broking)
Tel: + 44 (0) 20 3829 5000










finnCap Limited (Joint Broker)
Ed Frisby, Kate Bannatyne (Corporate Finance)
Rhys Williams, Andrew Burdis (Sales & Broking)
Tel: + 44 (0) 20 7220 0500










TooleyStreet Communications (IR and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523 or email: fiona@tooleystreet.com



 
 



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 original equipment manufacturers (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, Knowsley)
Hydroflex (Brussels, Rotterdam and OudBeijerland)
Hydraulic Equipment Supermarkets (Gloucester, Leeds, Birmingham, Durham)
Derek Lane & Co (Newton Abbot, Devon)
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 (Knowsley)
Branch Hydraulic Systems (Gloucester)
Automatec (Gloucester)
Lubemec (Gloucester)
Onsite (Durham, Leeds, Birmingham, Gloucester)
Flow Connect (Gloucester)
Orange County (Spennymoor)
 




 
Both Group 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







 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTPGGUCUUPBGMG