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

Flowtech FluidpowerAnnouncement

30/07/2024 07:00

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RNS Number : 2775Y  Flowtech Fluidpower PLC  30 July 2024

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, 30 July 2024: AIM listed Flowtech Fluidpower plc (LSE: FLO),
the specialist technical provider of fluid power and motion control products
and engineering services provides a trading update for the six months ended 30
June 2024 (H1 2024).

 

GROUP Trading Update

The first half delivered profit performance in line with expectations with
further improvements made to gross margins, cost control and overall service
levels, offsetting more challenging market headwinds which have impacted top
line growth. Revenue reduced by 5.5% compared with H1 2023 but with more
positive momentum of 4.9% growth against the second half of last year,
underpinned by continued progress in executing the Performance Improvement
Plan. Further progress is anticipated during the second half as we see
benefits of these improvement actions together with an expectation of a slow
market recovery.

 

                                                                                              Change                        Change

                                    H1 2024     H1 2023 Unaudited       FY 2023* Audited      H1 2024   H2 2023 Unaudited   H1 2024

                                    Unaudited   £m                  £m                        v         £m                  v

                                    £m                                                        H1 2023                       H2 2023
 Segment revenue:
 Great Britain                      38.3        40.7                77.4                      -5.9%     36.7                4.4%
 Ireland                            11.8        12.5                24.1                      -5.5%     11.6                1.4%
 Benelux                            5.6         5.8                 10.6                      -2.9%     4.8                 16.8%
 Total Group revenue or the period  55.7        59.0                112.1                     -5.5%     53.1                4.9%

 Net debt **                        13.5        15.4                14.7                      -1.9                          -1.2

 

Notes:

*.To show like for like comparisons, the split of revenue by segment in the
FY23 figures has been adjusted to reflect that certain elements of Irish
revenues are now being controlled by Irish management

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

 

 

Pre IFRS 16 net debt was £13.5m as at 30 June 2024 (H1 2023: £15.4m), a
reduction of £1.9m in the past year, leaving an unutilised £11.5m on the
Group's £25m banking facilities. Management continues to focus on working
capital efficiency and further debt reduction is expected in the second half
of the year.

 

SUMMARY & OUTLOOK

Market conditions proved more challenging than anticipated across all segments
as a slowdown in many industrial verticals has led to extended project cycles,
reduced component basket size and a reduction of project-based expenditure.
There has been continued progress executing all areas of self-help in the
Performance Improvement Plan with many improving data points indicating that
Flowtech is now in a far stronger position in commercial, operational and
service performance capability.  We remain on track with our plans to fully
re-platform the Flowtech website to a scalable and improved customer
experience during the second half of the year.

 

The new leadership team has nine months of learned experience, with the
majority of brand and organisational changes implemented. Operational basics
are now embedded with a step change in service levels and commercial
excellence. The Group sales pipeline and forward order book have begun to
strengthen through the period aided by the refocusing of our sales and
marketing efforts around the 'one Flowtech' value proposition.

 

We remain confident that the Performance Improvement Plan and Strategy for
growth is on track and that we are setting ourselves up well to deliver the
mid-term value creation goals outlined in our recent annual report.

 

NOTICE OF RESULTS

The Group is planning to announce its unaudited interim results for the six
months ended 30 June 2024 on Tuesday,10 September 2024; 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 10 September 2024. 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)

 

 

Note:

Market expectations compiled by the Company prior to this announcement for the
year ending 31 December 2024 were Group revenue of £115m, underlying EBITDA
of £11.0m, and Net debt of £11.0m (excluding IFRS16 lease liabilities).

 ENQUIRIES:

 Flowtech Fluidpower plc

 Mike England, Chief Executive Officer

 Russell Cash, Chief Financial Officer

 Tel: +44 (0) 1695 52759

 Email: info@flowtechfluidpower.com (mailto:info@flowtechfluidpower.com)

 Panmure Liberum Limited (Nominated adviser and broker)

 Richard Lindley 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)

 EDITORS NOTE:

 Flowtech Fluidpower plc, is the largest supplier of fluid power products,
 systems and solutions in the UK, Ireland and Benelux. As a specialist 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. To read more about the Group,
 please visit: www.flowtechfluidpower.com (http://www.flowtechfluidpower.com) .

 

 

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