REG - Flowtech Fluidpower - Group Trading Update & Notice of Interim Results

Flowtech FluidpowerAnnouncement

Tue 07:00

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RNS Number : 8820S  Flowtech Fluidpower PLC  29 July 2025

 

 

NEWS RELEASE

Issued on behalf of Flowtech Fluidpower plc

Immediate Release

 

 

 

 

Flowtech Fluidpower plc

(the "Group")

 

Group Trading Update

and

Notice of Interim Results

 

London: Tuesday, 29 July 2025: AIM listed Flowtech Fluidpower plc (LSE: FLO),
the specialist technical provider of hydraulic, pneumatic and process
products, engineering services and projects provides a trading update for the
six months ended 30 June 2025 (H1 2025).

 

GROUP Trading Update

The Group delivered a profit performance for H1 2025 in line with the Board's
expectations with further improvements in gross margins and continued focus on
cost control and overall customer service levels. Combined, the positive
impact of these initiatives has served to offset ongoing challenging
industrial market headwinds which have continued to impact top line growth, in
particular through March and April.

 

Group revenue increased by 2.1% compared with H1 2024. On a like-for-like
basis, removing the contribution from acquisitions, revenue reduced by 11.8%
compared with H1 2024, with similar levels of decline in each of our three
geographical segments. However, H1 2025 delivered revenue growth of 5% on a
like for like basis against H2 2024, highlighting more positive momentum gains
in the period with June representing the strongest month of revenue, gross
margin, and EBITDA contribution for over 12 months. The sales pipeline and
order book continue to strengthen with new higher value contracts secured
which, together with continued self-help initiatives, provide a foundation for
H2 2025 performance.

 

We are pleased with the progress within each of the recently acquired
businesses, all of which are now trading strongly and generating positive
contributions as we capitalise on the opportunities which each present.
Thorite is now firmly established as a Flowtech business and good progress has
been made with both Allswage and Thomas Group, both more recent acquisitions.
We are confident that the three businesses combined, which currently deliver
annualised revenue of approximately £18m, will be a key component of driving
our future organic growth and earnings.

 

                                                                              Excluding                        Excluding

                                                                              Acquisitions                     Acquisitions
 Segment revenue                     H1 2025    H1 2024    FY 2024  Change    H1 2025    Change    H2 2024     Change

                                                                    H1 2025              H1 2025   Excluding   H1 2025

                                                                    v                    v         Thorite     v

                                                                    H1 2024              H1 2024               H2 2024
                                     Unaudited  Unaudited  Audited            Unaudited
                                     £m         £m         £m                 £m                   £m
 Great Britain                       41.7       38.3       75.9     +8.9%     34.0       -11.4%    32.8        3.5%
 Ireland                             10.2       11.8       21.4     -13.86%   10.2       -13.9%    9.6         5.9%
 Benelux                             5.0        5.6        10.0     -10.7%    5.0        -10.7%    4.4         14.1%
 Total Group revenue for the period  56.9       55.7       107.3    2.1%      49.1       -11.8%    46.8        5.0%

 

 Net debt (*)  18.5  13.5  15.1  5.0

 

Note:

* Net debt is bank debt; this excludes lease liabilities under IFRS 16.

 

Pre IFRS 16 net debt was £18.5m as at 30 June 2025 (H1 2024: £13.5m),
leaving headroom of £6.5m in the Group's £25m banking facilities. The £5.0m
movement over the 12-month period to June 2025 reflects the fact that EBITDA
generated has been insufficient to fully absorb interest and lease costs and
the favourable movement in working capital has been more than offset by the
combination of selective capital investment and the dividend paid in H2 2024.
The Company remains comfortable with its level of debt; it is expected that
improved levels of profitability combined with careful assessment of capital
projects and ongoing control of costs and working capital will lead to debt
reduction in the second half of the year and beyond. Whilst there will be
continued investment in the digital agenda, as we move into a
maintenance/continuous improvement phase, spend will be materially lower than
that incurred over recent years.

 

SUMMARY & OUTLOOK

The Group continues to trade in line with the Board's expectations for the
full year ending 31 December 2025.

 

Well documented market headwinds have persisted during the first half, with
increased uncertainty across industrial markets from March resulting from US
trade policy and development of global conflicts. As a result, end customers
are continuing to be prudent on expenditure, holding lower inventory levels,
and delaying projects. However, in June, there were small signs of markets
beginning to stabilise supported by improved economic indicators and
corresponding market confidence across our three regions.

 

The continued focus on improving gross margins and controlling costs has
delivered an effective and efficient operating structure. This, combined with
some well-executed acquisitions alongside targeted sales focus on industry
sectors and gaining Government investment in projects within infrastructure,
defence and transportation, has led to improving momentum towards the end of
the second quarter, and a strengthened sales pipeline and forward order book
for H2 2025, 2026 and beyond. We have also secured new, incremental strategic
supplier agreements during the first half which will also contribute to H2
2025 growth.

 

More information on the recently key projects secured can be read here:

 

 21 May 2025   RNS Reach:                                                                                       Flowtech capitalises on acquisitions opportunities
                                                                                                                (https://www.londonstockexchange.com/news-article/FLO/flowtech-capitalises-on-acquisitions-opportunities/17048000)
 18 June 2025  RNS Reach:                                                                                       Flowtech wins Waterside City bridge contract
               (https://www.flowtechfluidpower.com/results-and-reports/regulatory-news/rns-item/?rid=7717114)   (https://www.londonstockexchange.com/news-article/FLO/flowtech-wins-waterside-city-bridge-contract/17091928)
 22 July 2025  RNS Reach:                                                                                       New Contract wins & Partnerships
                                                                                                                (https://www.londonstockexchange.com/news-article/FLO/new-contract-wins-partnerships/17144983)

We have made solid progress on our digital investment with the new Group
website and e-commerce platforms being introduced to the market in the UK in
July, with further roll out of the platform into our Ireland and Benelux
markets expected during H2 2025. This will enhance digital growth which we
will build upon as we move into 2026 and beyond. Our vision for Flowtech is to
be the leading specialist in digitally enabled product and engineering
solutions across hydraulics, pneumatics, and process (a world of motion).

 

Despite the expected continuation of challenging industrial markets, we
continue to deliver our self-help programme which has protected margins and
profitability. Looking to H2 2025, we have an improved sales pipeline and
order book, the launch of a new website and e-commerce platforms together with
the recent acquisitions performing ahead of our expectations.

 

NOTICE OF RESULTS

The Group is planning to announce its unaudited interim results for the six
months ended 30 June 2025 on Tuesday, 9 September 2025; the results will be
available to view and download from the Company's website
www.flowtechfluidpower.com (http://www.flowtechfluidpower.com) .

 

The Group will also be holding a 'live' presentation which will be hosted by
CEO Mike England and CFO Russell Cash on the Investor Meet Company platform at
10.00am on Tuesday, 9 September 2025. Registration to join the event can be
made following this link:

https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor
(https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor)

 

Further information regarding the above HY programme of events can be obtained
by contacting the advisers detailed below.

 

 

Note:

Market expectations compiled by the Company prior to this announcement for the
year ending 31 December 2025 were Group revenue of £120.2m; underlying EBITDA
of £8.4m; and Net debt of £12.2m (excluding IFRS16 lease liabilities).

 

 

ENQUIRIES:

 

Flowtech Fluidpower plc

Mike England, Chief Executive Officer

Russell Cash, Chief Financial Officer

Tel: +44 (0) 1695 52759

Email: investorrelations@flowtech.co.uk
(mailto:investorrelations@flowtech.co.uk)

Panmure Liberum (Nominated Adviser and Joint Broker)

Nicholas How, Managing Director, Head of Business Services and Industrials

William King, Assistant Director, Investment Banking

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

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 across the UK, Ireland, and Benelux. As a
specialist with over 40 years of experience working across a wide range of
industries, 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.

 

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.

To read more about:

Flowtech Group, please visit: www.flowtechfluidpower.com
(http://www.flowtechfluidpower.com)

 

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