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

2022

Unaudited

£'m

FY

2021

Audited**

£'m

Change

2022

v

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

 

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

 

 

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.

Segment:

What we do:

Locations:

Flowtech

 

Our focus

Supply of both hydraulic and pneumatic consumables, predominantly through distribution for maintenance and repair operations across all industry markets but supported by supply agreements direct to a broad range of original equipment manufacturers (OEMs)

 

Channels to market:

E-commerce websites, customer white label e-commerce websites, 70,000+catalogues, own and customer trade counters

 

 

 

Flowtech

(Skelmersdale, Leicester, Birmingham)

Flowtechnology Benelux

(Deventer)

 

Fluidpower

Group Solutions

 

Our focus

Supply specialist technical hydraulic components & systems, predominantly into OEMs and end-user channels to all industry markets, supported by supply agreements with a broad range of manufacturer brands

 

Channels to market:

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

 

 

 

Primary Fluid Power Components (Skelmersdale)

Nelson Hi-Power

(Dublin, Cork, Dungannon)

HTL

(Ludlow)

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 systems to manufacturers of specialised industrial and mobile hydraulic OEMs, and additionally a wide range of industrial end users.  Capital project-based revenue.

 

Channels to market:

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

 

 

 

Primary Fluid Power Systems

(Knowsley)

Branch Hydraulic Systems

(Gloucester)

HES Onsite

(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

 

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTVELFLXFLBBBB