REG - Flowtech Fluidpower - Trading update

Flowtech FluidpowerAnnouncement

30/01/2024 07:00

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RNS Number : 2855B  Flowtech Fluidpower PLC  30 January 2024

 NEWS RELEASE

 Issued on behalf of Flowtech Fluidpower plc

 Immediate Release

 Tuesday, 30 January 2024

 

 

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.

 

 

TRADING UPDATE

 

"In 2023, we welcomed Mike England as our new CEO.  With some significant
team changes, he has focussed on implementing the near term performance
improvement plan and the refreshed strategy to enable the firm platform from
which the business can grow over the medium term.  Whilst 2023 has been a
more difficult year, I am confident that the actions Mike and his team are
taking will drive strong returns in shareholder value."

Roger McDowell, Non-Executive Chair

 

 

 

The Board of Flowtech issues the following unaudited Trading Update ahead of
the Group's 2023 annual results.

2023 Trading update

The Board is pleased to report that the underlying profit* for the year ended
31 December 2023 is expected to be in line with market expectations.^

 

 Segment revenue:                    FY          FY          Change

                                     2023        2022        2023

                                     Unaudited   Audited**   v

                                     £m          £m          2022
 Great Britain ("GB")                79.3        84.5        -6.2%
 Island of Ireland ("Ireland")       22.0        19.5        13.1%
 The Benelux                         10.8        10.8        0.5%

 Total Group revenue for the period  112.1       114.8       -2.2%
 Net debt**                          14.7        16.0        1.3

 

Notes

 * Underlying profit (EBIT) 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.
 ** Excludes IFRS16 related debt.

 

In a subdued market, the Group experienced a modest decline in revenue of 2.2%
with weaker performance in GB specifically in product distribution and in
Engineering Services where a small number of larger original equipment
manufacturer customers (OEMs) experienced market headwinds and resulting
volume reduction.  Despite this, the Board is pleased with the advancements
made against the performance improvement plan and refreshed strategy
introduced by our new CEO, Mike England, and his strengthened leadership team.
 Our business in Ireland showed particularly strong growth and our intention
to build on this success aiming for similar growth in other regions is a key
priority in 2024.

 

The industry market forecasts remain subdued.  We have continued to invest in
the performance improvement plan and, whilst we see much self-help which will
start to drive benefits in 2024 and beyond, we are more cautious about current
year growth.

 

Net debt

Net debt** reduced to £14.7m by year-end (2022: £16.0m).  This is in excess
of market expectations and largely results from an investment in fast moving
inventory towards the year-end; notwithstanding this, we continue to focus on
inventory reduction and improving inventory turnover.

 

Including IFRS16, year-end net debt was £20.3m, representing a £2.4m
reduction over FY23.

 

 

^Market forecasts for FY23 prior to the release of this announcement were:

revenue of £115m, underlying EBIT £6.0m, and underlying PBT £4.6m

 

 

 Enquiries:
 Flowtech Fluidpower plc

 Roger McDowell, Non-Executive Chair

 Mike England, Chief Executive Officer

 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, we provide 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.  We operate across three
 regions in Great Britain, Island of Ireland, and The Benelux as well as
 serving customers around the world.  Flowtech joined the AIM market in
 2014.  To read more about the Group please visit: www.flowtechfluidpower.com
 (http://www.flowtechfluidpower.com) .

 

 OUR PURPOSE | To provide power and motion solutions, keeping industry moving
 and creating a more sustainable world.

 OUR VISION | To be the trusted adviser and solutions partner in a world of
 motion.

 The value we create for our customers

 Flowtech works across all industry sectors serving the needs of customers who
 are designing, building, maintaining and improving industrial plant, equipment
 and operations.

 We add value by being a technical specialist and trusted adviser to
 Maintenance, Repair & Operations (MRO) customers, Original Equipment
 Manufacturers (OEMs) and through our long-standing Distributor Partner
 channels.  We provide essential technical products combined with a broad
 range of specialist engineering services across the world of Power, Motion
 & Control.

 Easy access to the widest Technical Product range

 We stock over 75,000 Power, Motion & Control products including hydraulic
 and pneumatic consumables and trade through our channels including E-commerce
 Websites, Central Sales, Technical and Customer Support teams and through our
 localised Engineering Centres across GB, Ireland and Benelux.  We partner and
 distribute for the world's largest power, motion and control brands and have
 access to over 0.5 million technical products through over 2,000 leading
 suppliers.  We provide a market leading quality own brand offering
 complementing our branded supplier portfolio.

 Market Leading Distributor Partner Programme

 We operate a leading Distributor Partners Programme supplying our wide range
 of Products and Engineering Services through our strategic network of
 Distributors and Service Providers giving them the support they need to
 service their end-customers.  This is enabled by our tried and tested white
 label catalogue, E-commerce and fulfilment business model.

 Engineered Systems and Solutions

 We supply specialist technical Power, Motion & Control components &
 systems with our core being centred around pneumatics and hydraulic industrial
 and mobile applications.  This includes bespoke design, manufacturing,
 commissioning, installation, and servicing of systems to manufacturers of
 specialised industrial and mobile OEMs, and additionally a wide range of
 industrial end users.  From a simple technical system build such as a
 Hydraulic Power Pack to the repair of pumps, values and cylinders through to
 site-based diagnostics and services to fully integrated turn-key solutions, we
 have a strong engineering pedigree at our core making us the trusted adviser
 and solutions partner for our customers.

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

 

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