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(Alliance News) - Flowtech Fluidpower PLC said on Wednesday it swung to a loss amid impairments, and announced the appointment of a new chief executive officer, following the resignation of incumbent Bryce Brooks.
The Wilmslow, England-based supplier of technical fluid power products reported a pretax loss of GBP5.6 million for 2022, swinging from profit of GBP2.9 million the year prior.
Profit was hurt by a GBP10.1 million impairment of goodwill. Underlying operating profit increased to GBP8.6 million from GBP5.7 million.
Revenue rose 5.2% to GBP114.8 million from GBP109.1 million the year before.
Flowtech said it will recommend a dividend of 2.1 pence per share for 2022 at the annual general meeting in June this year, a 5.0% increase from last year's recommended dividend of 2p per share
Looking ahead, Flowtech said it has continued its focus on reducing costs and completing the remaining actions of its strategic plan. Flowtech added that with more consistent supply chains, it will reduce inventories to match the company's needs and return to generating strong cashflows to support its investment activities.
Flowtech also announced on Wednesday that its CEO Brooks, resigned with immediate effect after 13 years at the firm.
Former RS Group PLC chief operating officer Mike England will replace Brooks as CEO with immediate effect.
Flowtech said former CEO Brooks will stay with the firm throughout April as an advisor.
Commenting on his decision, Brooks said: "I am very proud to have led a team that has helped make the group the success it is today, which has set the business up to take advantage of the many future prospects that are ahead. I have enjoyed the last 13 years immensely. I thank all my colleagues around the group for their support and friendship over the years. It is the right time for me to hand over the mantle, so I welcome Mike to Flowtech."
Shares were down 6.3% at 103.55 pence in London on Wednesday morning.
By Sabrina Penty; Alliance News reporter
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