Flowtech Fluidpower PLC Trading Update & Notice of Full Year Results (6077O)
January 31 2019 - 1:00AM
UK Regulatory
TIDMFLO
RNS Number : 6077O
Flowtech Fluidpower PLC
31 January 2019
NEWS RELEASE
Issued on behalf of Flowtech Fluidpower plc
Immediate Release
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. 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 Fluidpower", the "Group" or "Company")
2018 Q4 Trading Update
and
Notice of Full Year Results
London: Thursday, 31January 2019: AIM listed specialist
technical fluid power products supplier Flowtech Fluidpower (LSE:
symbol FLO), is pleased to announce the following unaudited update
on its performance for the year ended 31 December 2018 and to the
period up to this announcement:
GROUP Trading Update AND FINANCIALS
Revenue for the year ended 31 December 2018
Divisions: 2018 2017 Growth
Unaudited Audited
GBPm GBPm
----------------------------- ----------- --------- -------
Flowtechnology 45.2 37.2 22%
Power Motion Control (PMC) 57.6 34.8 66%
Process 8.3 6.3 32%
----------------------------- ----------- --------- -------
Total Group revenue for the
period 111.1 78.3 42%
----------------------------- ----------- --------- -------
Net debt 19.9 14.9
----------------------------- ----------- --------- -------
Group revenue for the year ended 31 December 2018 increased by
c.42% over 2017. After removing the effects of acquisitions,
organic sales growth in the year was c.6%. Divisional gross margins
again remain in line with prior periods. The Board expects
underlying* profit before tax for the year ended 31 December 2018
to be in the range of GBP10.6m to GBP10.8m.
Strong sales in Q4 resulted in increased debtor levels whilst
collection periods were held at c.75 days. Market conditions
generally across Europe remain positive, resulting in increased
supplier lead times. This, combined with our high service offer and
some sector nervousness around post Brexit supply chains, has
resulted in stock levels being above long-term averages.
Consequently, net debt at GBP19.9m is above market expectations. We
continue to monitor stock levels carefully and will take
appropriate action as the Brexit scenario unfolds.
PEOPLE
Following the appointment of Russell Cash as CFO on 1 November
2018, the Board made a further change to the leadership team at
Executive Board level. Nick Fossey, who joined the business in
March 2016 from the Group's largest supplier, Eaton Corporation,
was appointed as Chief Operating Officer for the Group in
December.
ACQUISITIONS
We are pleased to report that Beaumanor Fluidpower and Derek
Lane, the two profit centres acquired as part of the Balu
transaction in March 2018, have performed in line with management
expectations and have added significantly to the skill base of the
Group.
DIVIDEND
The Board remains confident in the Group's performance and
outlook and, it intends to propose a final dividend which will once
again deliver 5% growth over 2017.
OUTLOOK
Within the fluid power market sentiment generally remains
positive, and this is reflected in the order book for our PMC
division businesses which provides some insight on Q1 2019. The
Board is therefore expecting a solid start to 2019 on which we will
report in April. Beyond that our sector shares the general unease
with the potential effects of Brexit, although with a strong
element of Group revenues generated from repair and maintenance,
and refurbishment programmes, coupled with a widely spread sector
base of OEM customers, the Board believes the Group has developed a
sensible defensive position.
Further progress has been made regarding the Thames Tideway
project with work now likely to take place over a three-year
period.
SUMMARY
The new Executive Management team is fully focussed on
extracting synergies and creating a strong platform for future
organic and acquisitive growth. Therefore, the Board remains
confident in both the strategy and long-term outlook for the
Group.
NOTICE OF RESULTS
The Company will update shareholders further on the Group's
performance for Q1 2019 and the prospects for the remainder of the
year at the time of the announcement of the 2018 results, scheduled
to be released on Tuesday, 16 April 2019.
To read more about the Group please visit
www.flowtechfluidpower.com
Note:
*Excludes acquisition costs, restructuring costs, share-based
payment costs, amortisation of acquired intangibles and notional
interest on deferred consideration
ENQUIRIES:
FLOWTECH FLUIDPOWER PLC
Malcolm Diamond MBE, Non-Executive Chairman
Bryce Brooks, Chief Executive Officer
Russell Cash, Chief Financial Officer
Tel: +44 (0) 1695 52796
Email: info@flowtechfluidpower.com
Zeus Capital Limited (Nominated Adviser and Joint Broker)
Andrew Jones, Alistair Donnelly (Corporate Finance)
Dominic King, John Goold (Sales & Broking)
Tel: + 44 (0)20 3829 5000
finnCap Limited (Joint Broker)
Ed Frisby, Kate Bannatyne (Corporate Finance)
Rhys Williams, Andrew Burdis (Sales & Broking)
Tel: + 44 (0) 20 7220 0500
TooleyStreet Communications (IR and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
or email: fiona@tooleystreet.com
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END
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