Last checked at 29 Mar 2022 07:00
NEWS RELEASE Issued on behalf of Flowtech Fluidpower plc Immediate Release Tuesday 29 March 2022
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FLOWTECH FLUIDPOWER PLC
("Flowtech", the "Group" or "the Company")
A Vital Partner in the Fluid Power Supply Chain
Flowtech Fluidpower is a Group of specialist fluid power businesses. Working in partnership with customers and suppliers, we deliver essential components, custom solutions and high-quality servicing support to keep global industry moving
FY2021 RESULTS
PUBLICATION OF THE 2021 ANNUAL REPORT
FY2021 Financial & Operational Highlights |
· As anticipated 2021 was a year in which the business recovered strongly from the impact of the COVID-19 pandemic |
· Revenue was 15% up on 2020 but remained marginally below levels achieved in 2018 and 2019 |
· Underlying operating profit (*) of £5.7m (2020: £1.1m) |
· Operating profit of £3.7m was £5.1m in excess of 2020, however, remains below that achieved in 2019 (£5.7m). |
· The benefits of cost base restructuring activities undertaken over the last two years limited the impact of inflationary and supply chain related pressures |
· Investment in inventory levels (£8.5m increase) to ensure we managed the availability of our core products |
· Strong progress was made with our plans to develop our e-business platform and we successfully aggregated the Flowtech businesses at the start of 2022 |
· 2022 expected to be the year in which the business demonstrates a full recovery and delivers growth compared to pre COVID-19. Encouraging start to the year, with revenue and gross margin ahead of expectations |
(*) Underlying operating profit is used as an alternative performance measure by management to assess the trading performance of the business and is operating profit before amortisation and impairment of acquired intangibles and share based payment, and restructuring costs.
"I would like to thank all my colleagues across the Group for all their efforts during the COVID-19 pandemic; it is a great credit to them that despite the obvious difficulties in managing a multi-site organisation across four countries, the Group exits the pandemic having made significant progress against its strategic goals"
"By the end of the year we believe that most of the key components of our strategic plan will be in place with the business benefiting from solid foundations enabling us to move forward aggressively to unlock our undoubted growth potential in both offline and, increasingly, online markets"
Roger McDowell, Chair
2021 Annual report
The majority of Shareholders now elect to receive key information in an electronic format. Given the availability of other information via our website, we have chosen to limit the number of graphics within the document, enabling us to release the full document in real time via the Regulatory News Service and upload to the website. We believe this approach is more efficient, cost effective and environmentally friendly.
To view and download the Report please follow this link
http://www.rns-pdf.londonstockexchange.com/rns/3221G_1-2022-3-29.pdf
Presentation webcast via the Investor Meet Company Platform
The Company is holding a 'live' presentation which will be hosted by CEO Bryce Brooks, and CFO Russell Cash via the Investor Meet Company platform today at 9.00am. To register please follow this link
https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor
Investors who already follow Flowtech Fluidpower plc on the IMC platform will automatically be able to join the event.
Extracts from the 2021 Annual Report
To read statements and reports in full, please follow the pdf link on page 1 of this announcement or, visit the Company's website at https://www.flowtechfluidpower.com/
FY2021 financial highlights
| 2021 | 2020 | 2019 | Change | |
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| 2021 v 2020 | 2021 v 2019 |
Group revenue (±) | £109.1m | £95.1m | £112.4m | 14.7% | -2.9% |
Gross profit (±) | £38.5m | £32.6m | £40.2m | 18.1% | -4.2% |
Gross profit % | 35.3% | 34.3% | 35.7% | 100bps | -42bps |
Group operating profit / (loss) | £3.7m | £(1.4)m | £5.7m | £5.1m | £(2.0)m |
Group underlying operating profit / (loss) | £5.7m | £1.1m | £9.6m | £4.6m | £(3.9)m |
Net Debt (**) | £15.4m | £11.6m | £16.6m | £3.8m | £(1.2)m |
(±)All results relate to continuing operations
** Net debt at 31 December 2020 comprised £10.7m Bank Debt and £0.9m of COVID-19 related HMRC support. All figures exclude lease liabilities under IFRS16
Results by Division
2021 £000 | Flowtech | Solutions | Services | Total |
Total revenue | 52,135 | 39,575 | 17,397 | 109,107 |
Underlying segment operating profit (*) | 7,101 | 3,505 | 140 | 10,746 |
Contribution % | 13.6% | 8.9% | 0.8% | 9.8% |
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2020 (£000) |
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Total revenue | 46,060 | 33,578 | 15,443 | 95,081 |
Underlying segment operating profit / (loss) (*) | 5,038 | 1,790 | (1,236) | 5,592 |
Contribution % | 10.9% | 5.3% | -8.0% | 5.9% |
(*) Underlying Segment operating profit is continuing operations' operating profit before central costs and separately disclosed items detailed in note 3 of the Annual Report
Basis of Preparation
The financial information contained within this Announcement has been prepared on a going concern basis in accordance with UK adopted international accounting standards.
The financial information has been prepared using accounting policies consistent with those set out in the 2021 Annual Report refer to the link attached in the RNS.
The financial information set out within this Preliminary Announcement does not constitute the Company's statutory accounts for the years ended 31 December 2021 or 31 December 2020 within the meaning of Section 434 of the Companies Act 2006, but is derived from those accounts.
Statutory accounts for 2020 have been delivered to the Registrar of Companies, and those for 2021 are available via the link included above. The auditor has reported on those accounts; the reports were unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
To read the financial statements in full, please refer to pages 66-107 in the Annual Report
Dividend
As already stated, our ambition to return to dividend payments, albeit at levels commensurate with the needs of the business. I The Board will be recommending a dividend of 2p per ordinary share in respect of 2021 at the Annual General Meeting on 1 June 2022, Subject to Shareholder approval, the dividend will be paid on 22 July 2022 to Members on the Register as at 1 July 2022. Moving forward we will maintain a balanced approach to dividend distribution.
Outlook
We entered 2021 with significant work to do and, despite the array of challenges, it is pleasing to report that much has been achieved. For 2022, we have clear prioritised actions, notably exploiting our new digital capability, creating the Fluidpower Group to sit alongside the now aggregated Flowtech business and, re-focusing on improving all our important KPIs. The start to the year has been encouraging, with revenue and gross margin ahead of expectations.
By the end of the year we believe that most of the key components of our strategic plan will be in place with the business benefiting from solid foundations enabling us to move forward aggressively to unlock our undoubted growth potential in both offline and, increasingly, online markets. The Board therefore believes that the outlook for the business remains positive over both the near and long-term.
To read more about |
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· our strategy for growth - see page15 | · Corporate social responsibility - Section 172 statement - see page 28 |
· our KPIs - see page 16 | · The Board - see pages 38-40 |
· Sustainability report - see page 21 | · Independent Auditor's report - seepages 55-65 |
The full index of content for the 2021 Annual Report can be found on page 3 of the Annual Report
ENQUIRIES: |
Flowtech Fluidpower plc Bryce Brooks, Chief Executive Russell Cash, Chief Financial Officer Tel: +44 (0) 1695 52759 Email: info@flowtechfluidpower.com www.flowtechfluidpower.com |
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Liberum (Nominated adviser and Sole Broker) Richard Lindley / Ben Cryer / William Hall / Will King Tel: +44 (0) 20 3100 2000 |
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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. Since the start of 2021, the Group has been operating under three distinct branded segments: with Flowtech and Fluidpower Group Solutions forming what was 'Components', and Fluidpower Group Services the remainder. To read more about the Group please visit www.flowtechfluidpower.com.
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Segment: | What we do: | Locations: |
Flowtech
| Supply of both hydraulic and pneumatic consumables, predominantly through distribution for maintenance and repair operations across all industry markets and supported by supply agreements direct to a broad range of original equipment manufacturers. Channels to market: E-commerce websites, customer white label e-commerce websites, catalogues, own and customer trade counters.
| Flowtechnology Benelux (Deventer) Flowtech - Skelmersdale, Leicester & Oldbury
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Fluidpower Group Solutions | Supply specialist technical hydraulic components & systems predominantly into OEMs and end-user channels to all industry markets and supported by supply agreements direct to a broad range of manufacturer brands.
Channels to market: Engineering collaboration, e-commerce. | Primary Fluid Power Components (Skelmersdale) Nelson Hi-Power Hydraulics (Dublin, Dungannon, UK) HTL (Ludlow) Hi-Power Hydraulics (Cork, Dublin, Belfast ) Hydroflex (Brussels, Rotterdam and OudBeijerland) Hydraulic Equipment Supermarkets (Gloucester, Leeds) Derek Lane & Co (Newton Abbot, Devon) HES Tractec (Gloucester)
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Fluidpower Group Services
| 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 and HES Automatec (Gloucester) HES Lubemec (Gloucester) HES Onsite (Leeds, Gloucester) Flow Connect (Gloucester) Orange County (Spennymoor)
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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 team based in Wilmslow, Cheshire. In total, the business employed 612 people during the year. For more information please visit, Our business | Flowtech Fluidpower plc
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Flowtech Fluidpower plc
Registered Office,
Bollin House,
Bollin Walk
Wilmslow, Cheshire, SK9 1DP