Group Organic Growth and Acquisition Strategy Underpins the Platform for Future Development

Sep 13, 2016, 03:34 ET from Flowtech Fluidpower plc

LONDON, September 13, 2016 /PRNewswire/ --

Specialist technical fluid power products supplier, FLOWTECH FLUIDPOWER PLC, (AiM Symbol: FLO) releases its 2016 Half-Year Report:

 


   
                               HY2016     HY2015     FY2015

     FINANCIAL HIGHLIGHTS           30.6.16    30.6.15    31.12.15    GROWTH

                                   UNAUDITED  UNAUDITED   AUDITED        %
                       · REVENUE:

    -Flowtechnology               GBP18.093m GBP17.488m GBP33.168m     +3%

    -Power Motion Control (PMC)   GBP8.268m  GBP3.935m  GBP11.680m    +110%

    -Process                      GBP1.026m      -          -           -

              GROUP TOTAL REVENUE GBP27.387m GBP21.423m GBP44.848m    +28%
                   · GROSS PROFIT GBP9.551m  GBP7.203m  GBP15.345m    +33%
    · UNDERLYING OPERATING PROFIT GBP4.059m  GBP3.404m  GBP6.868m     +19%
               · OPERATING PROFIT GBP3.290m  GBP3.012m  GBP5.491m      +9%
             · HALF-YEAR DIVIDEND   1.84p      1.75p                   +5%
     · EARNINGS PER SHARE (basic)   5.91p      5.62p                   +5%
                       · NET DEBT  GBP14.1m   GBP7.5m    GBP9.0m


   
  OPERATIONAL HIGHLIGHTS
    · SOLID FIRST HALF PERFORMANCE IN CHALLENGING MARKET CONDITIONS
    · STRONG MOMENTUM WITHIN THE RECENTLY ESTABLISHED PMC AND PROCESS DIVISIONS
    · GROSS MARGINS REMAIN RESILIENT ACROSS ALL DIVISIONS
    · ACQUISITION STRATEGY DELIVERING EXCELLENT OPPORTUNITIES TO ACQUIRE NICHE BUSINESSES
    WITH SPECIALIST SECTOR FOCUS:

    - THREE COMPLETED IN 2016 AND SIX SINCE BECOMING A PLC

    - ALL INTEGRATIONS ON TARGET

    - CONFIDENT OF FURTHER PROGRESS BEFORE THE END OF THE YEAR
    · EXPANDED CUSTOMER PROFILE INTO NEW END USER MARKETS including:

    - AGRICULTURE, RAILWAY, ENVIRONMENTAL, WATER, PHARMACEUTICAL
    · STRONG FOCUS ON INVESTING IN GROUP RESOURCES FOR THE FUTURE
    · NET DEBT COMFORTABLY WITHIN AVAILABLE FACILITIES AND COVENANTS

"Flowtech remains confident in its ability to execute its proven strategy to develop in its technically specialised sectors in the UK and internationally. The Company is recognised as a skilled and resilient business operating in a fragmented fluid power distribution market. In addition to organic sales growth there remains a number of opportunities to further enhance Flowtech's multi-channel approach through; its investment in people and increased sales resource, the ongoing development of Exclusive Brand and OEM product offering, as well as through earnings enhancing acquisitions." SEAN FENNON, CEO FLOWTECH FLUIDPOWER PLC 

To read the full news release in full please visit http://www.flowtechfluidpower.com


    About Flowtech Fluidpower plc

    Flowtech Fluidpower plc, founded as Flowtech in 1983, is the UK's leading specialist
    supplier of technical fluid power products. The Group has three divisions:
    Flowtechnology, Power Motion Control and Process. All three of the Group's divisions
    have overlapping product sets, allowing procurement synergies to be maximised. The
    Flowtechnology division focuses on supplying distributors and resellers of industrial
    MRO (maintenance, repair and operation) products, primarily serving urgent orders
    rather than bulk offerings. It is formed from Flowtechnology UK, Flowtechnology
    Benelux and Indequip. It offers an unrivalled range of Original Equipment Manufacturer
    (OEM) and Exclusive Brand products to over 3,400 distributors and resellers. Its
    catalogues are recognised as the definitive source for fluid power products,
    containing approximately 106,000 individual product lines and are distributed to more
    than 85,000 industrial Maintenance, Repair and Overhaul end users (MRO). The Power
    Motion Control division specialises in the design, assembly and supply of engineering
    components and hydraulic systems and is further enhanced by a service and repair
    function. The division is formed from Primary Fluid Power, Nelson Hydraulics and TSL
    Fluidpower. The Process division focuses on the supply of industrial components to the
    process sectors. This is the newest division in the Group, formed by the acquisition
    of Hydravalve in March 2016. The Group's main distribution centre is in Skelmersdale,
    Lancashire with further distribution centres in the Netherlands and China. The Power
    Motion Control Division (PMC) has operations in Merseyside, Northern Ireland, the
    Republic of Ireland, and Yorkshire; Process operates from the West Midlands. In total
    the business employs 324 people.

    The Group has a clear view of its growth objectives - to create a specialist fluid
    power organisation that remains focused on its core competencies whilst servicing the
    varied industrial and manufacturing sectors through its delivery of 'class-leading'
    service and support. Our long term growth model is based on both organic growth,
    coupled with complementary acquisitions in a very fragmented marketplace.

SOURCE Flowtech Fluidpower plc