Last checked at 30 Jan 2024 07:00
NEWS RELEASE
Issued on behalf of Flowtech Fluidpower plc Immediate Release
Tuesday, 30 January 2024
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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")
Our aim is to provide our customers with power, motion & control solutions, from a single component to integrated engineering systems, in the most cost-effective way, harnessing the best global brands & products, services and engineers in the market.
TRADING UPDATE
"In 2023, we welcomed Mike England as our new CEO. With some significant team changes, he has focussed on implementing the near term performance improvement plan and the refreshed strategy to enable the firm platform from which the business can grow over the medium term. Whilst 2023 has been a more difficult year, I am confident that the actions Mike and his team are taking will drive strong returns in shareholder value."
Roger McDowell, Non-Executive Chair
The Board of Flowtech issues the following unaudited Trading Update ahead of the Group's 2023 annual results.
2023 Trading update
The Board is pleased to report that the underlying profit* for the year ended 31 December 2023 is expected to be in line with market expectations.^
Segment revenue: | FY 2023 Unaudited £m | FY 2022 Audited** £m | Change 2023 v 2022 |
Great Britain ("GB") | 79.3 | 84.5 | -6.2% |
Island of Ireland ("Ireland") | 22.0 | 19.5 | 13.1% |
The Benelux | 10.8 | 10.8 | 0.5% |
Total Group revenue for the period | 112.1 | 114.8 | -2.2% |
Net debt** | 14.7 | 16.0 | 1.3 |
Notes
* Underlying profit (EBIT) 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. |
** Excludes IFRS16 related debt. |
In a subdued market, the Group experienced a modest decline in revenue of 2.2% with weaker performance in GB specifically in product distribution and in Engineering Services where a small number of larger original equipment manufacturer customers (OEMs) experienced market headwinds and resulting volume reduction. Despite this, the Board is pleased with the advancements made against the performance improvement plan and refreshed strategy introduced by our new CEO, Mike England, and his strengthened leadership team. Our business in Ireland showed particularly strong growth and our intention to build on this success aiming for similar growth in other regions is a key priority in 2024.
The industry market forecasts remain subdued. We have continued to invest in the performance improvement plan and, whilst we see much self-help which will start to drive benefits in 2024 and beyond, we are more cautious about current year growth.
Net debt
Net debt** reduced to £14.7m by year-end (2022: £16.0m). This is in excess of market expectations and largely results from an investment in fast moving inventory towards the year-end; notwithstanding this, we continue to focus on inventory reduction and improving inventory turnover.
Including IFRS16, year-end net debt was £20.3m, representing a £2.4m reduction over FY23.
^Market forecasts for FY23 prior to the release of this announcement were:
revenue of £115m, underlying EBIT £6.0m, and underlying PBT £4.6m
Enquiries: |
Flowtech Fluidpower plc Roger McDowell, Non-Executive Chair Mike England, Chief Executive Officer Russell Cash, Chief Financial Officer Tel: +44 (0) 1695 52759 Email: info@flowtechfluidpower.com |
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Liberum (Nominated adviser and Sole Broker) Richard Lindley / Ben Cryer / 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, we provide customers with power, motion & control solutions, from a single component to integrated engineering systems, in the most cost-effective way, harnessing the best global brands & products, services and engineers in the market. We operate across three regions in Great Britain, Island of Ireland, and The Benelux as well as serving customers around the world. Flowtech joined the AIM market in 2014. To read more about the Group please visit: www.flowtechfluidpower.com.
OUR PURPOSE | To provide power and motion solutions, keeping industry moving and creating a more sustainable world. OUR VISION | To be the trusted adviser and solutions partner in a world of motion.
The value we create for our customers Flowtech works across all industry sectors serving the needs of customers who are designing, building, maintaining and improving industrial plant, equipment and operations.
We add value by being a technical specialist and trusted adviser to Maintenance, Repair & Operations (MRO) customers, Original Equipment Manufacturers (OEMs) and through our long-standing Distributor Partner channels. We provide essential technical products combined with a broad range of specialist engineering services across the world of Power, Motion & Control.
Easy access to the widest Technical Product range We stock over 75,000 Power, Motion & Control products including hydraulic and pneumatic consumables and trade through our channels including E-commerce Websites, Central Sales, Technical and Customer Support teams and through our localised Engineering Centres across GB, Ireland and Benelux. We partner and distribute for the world's largest power, motion and control brands and have access to over 0.5 million technical products through over 2,000 leading suppliers. We provide a market leading quality own brand offering complementing our branded supplier portfolio.
Market Leading Distributor Partner Programme We operate a leading Distributor Partners Programme supplying our wide range of Products and Engineering Services through our strategic network of Distributors and Service Providers giving them the support they need to service their end-customers. This is enabled by our tried and tested white label catalogue, E-commerce and fulfilment business model.
Engineered Systems and Solutions We supply specialist technical Power, Motion & Control components & systems with our core being centred around pneumatics and hydraulic industrial and mobile applications. This includes bespoke design, manufacturing, commissioning, installation, and servicing of systems to manufacturers of specialised industrial and mobile OEMs, and additionally a wide range of industrial end users. From a simple technical system build such as a Hydraulic Power Pack to the repair of pumps, values and cylinders through to site-based diagnostics and services to fully integrated turn-key solutions, we have a strong engineering pedigree at our core making us the trusted adviser and solutions partner for our customers.
For more information please visit: Our business | Flowtech Fluidpower plc. |
