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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Flowtech Fluidpower Plc | LSE:FLO | London | Ordinary Share | GB00BM4NR742 | ORD 50P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -4.00 | -3.48% | 111.00 | 110.00 | 112.00 | 114.50 | 110.00 | 110.50 | 43,087 | 16:35:21 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Fluid Powr Cylindrs,actuatrs | 112.1M | -12.13M | -0.1973 | -5.58 | 67.64M |
TIDMFLO
RNS Number : 7865U
Flowtech Fluidpower PLC
23 January 2017
Hot Features
Premium
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", "Company" or "Group")
2016 Trading Update, Acquisition, Strategy Update
and
Notice of Full-Year Results
London: Monday, 23 January 2017: Specialist technical
fluid power products supplier Flowtech Fluidpower plc
(AIM: FLO), is pleased to announce the following update
on its performance for the year ended 31 December 2016,
together with details of acquisition and strategy update:-
2016 PERFORMANCE: Revenue 2016 2015
Year ended 31 (Unaudited) (Audited) % Change
December
GBP000 GBP000
----------------------- ------------- ----------- ---------
Flowtechnology 35.0 33.2 +5.4%
Power Motion Control 15.9 11.6 +37.1%
Process 2.8 -
----------------------- ------------- ----------- ---------
Group revenue 53.7 44.8 +19.9%
----------------------- ------------- ----------- ---------
The 2016 performance can be summarised as follows:
* Against difficult trading conditions the Group has
delivered a solid performance
* Group revenue was c.19.9% up on 2015 at approximately
c.GBP53.7 million (c.19.3% in constant currency)
* British Fluid Power Distributors Association Market
Survey indicates 2016 fluid power overall distributor
sales growth was negative 3.9% (hydraulics -5.9%,
pneumatics +0.2%)
* Post Brexit currency movements with resultant impact
on input prices have to date been successfully passed
on to customers due to our flexible pricing model,
with 2016 exit margins maintained. However, some
margin contraction was experienced in H2 while prices
were managed upwards on products sourced in Euro and
USD and sold in GBP markets
* Three acquisitions successfully integrated into the
Group, each delivering benefits, and a third
"Process" division established focused on process
industries, including Pharma, Environmental, and
Steam
* Net debt at year end was c.GBP13.0 million
* Significant investment in central and sales resources
aimed at optimising cross channel opportunities, and
future acquisition integration programme underpinning
long term growth
* As a result of these investments and the gross margin
contraction in H2, the Board expects underlying* PBT
will be in the range GBP7.0m to GBP7.2m.
DIVID
The Directors remain confident in the Group's overall
performance and future. As such the Board intends to
propose to shareholders a final dividend which will
deliver a 5% increase over 2015 and in line with current
market expectations. In addition, the Board is committed
to ensuring a continued focus on cash generation as
part of our model and believe that when appropriate
to do so, the Group will have the capacity to improve
on its current distribution policy and trend.
ACQUISITION OF HYDRAULICS & TRANSMISSIONS LIMITED ("HTL")
The Group is pleased to announce the further strengthening
of its Power Motion Control ("PMC") division through
the acquisition of HTL which completed on 20 January
2017. The consideration comprises GBP0.75 million on
completion and additional payments expected to be c.GBP1.0
million subject to an earn-out over the two-year period
to 31 December 2018. In addition, the Group will assume
a further GBP0.9 million being the net debt position
held at completion giving a total of GBP2.65 million.
The consideration is being funded from the Company's
own resources.
HTL (www.htluk.co.uk) was established in 1973, and
has been managed by the current ownership team since
an MBO in 2007. It currently employs 25 staff and distributes
hydraulic equipment and components from its location
in Ludlow, Shropshire. HTL provides fluid power solutions
predominantly to the mobile market segment and supplies
some of the market leaders such as JCB, McConnell and
Alamo. The acquisition provides incremental revenue
to the Group that we could not previously address,
strengthens our position with key global suppliers
including Eaton, Walvoil and Casappa, and complements
our previous acquisitions of Primary Fluid Power and
Nelson Hydraulics.
HTL will operate as an independent sister company within
PMC. Managing Director, Ian Teece and Commercial Director,
Richard Salisbury, who have led the business for over
10 years will also join the Group's Operational Board.
For the year ended 31 December 2015, HTL's turnover
was GBP5.2 million producing EBIT of GBP0.3 million.
Net assets at the same date were GBP0.5 million. As
well as some immediate back office savings, the Group
expects to deliver synergy opportunities over the medium
term through coordinated procurement and operational
activities.
STRATEGY UPDATE
The Group has a clear view of its growth objectives
- to create a specialist fluid power organisation that
remains focused on its core competencies through its
delivery of 'class-leading' service and support. Our
long-term growth model is based on both organic growth,
coupled with complementary acquisitions in the UK and
Europe in a very fragmented marketplace.
The successful integration of new businesses into the
Group is critical, maintaining momentum and ensuring
an ability to continue to trade with their customers
seamlessly. To support this an experienced integration
team has been created tasked with delivering a smooth
and speedy transitions process. During 2016, Indequip,
Hydravalve & TSL, were acquired and successfully integrated
into the Group - these acquisitions fit within the
defined strategy previously outlined of developing
a Focused Fluid Power Group.
As a result of the negative trends experienced by many
businesses in our marketplace during the second half
of 2016, the Group was more cautious in its pursuit
of opportunities, particularly in Q4. However, the
acquisition pipeline remains strong and continues to
develop; we have several acquisition and product opportunities
being actively pursued and, we are pleased to announce
our most recent acquisition detailed above.
LOOKING AHEAD
The Flowtech Group now operates three divisions: Flowtechnology,
Power Motion Control & Process. This structure has
delivered greater opportunity to focus on fluid power
solutions while at the same time, developing a deeper
technical expertise within our complementary businesses;
specialising our offering in the fluid power sector
and, delivering high service levels to all our customers
across our business. This formulation gives us a solid
platform for growth as well as opening and creating
new opportunities in new and exciting sectors.
SUMMARY
Our business has shown resilience in a difficult market,
with our most recent acquisitions beginning to deliver
growth. The Board remains confident in the strategy,
commercial opportunities and the prospects of the Group
as a whole, and expects to deliver further solid growth
over the coming years building on the resilient performance
seen in 2016.
NOTICE OF RESULTS
The Directors look forward to updating shareholders
further on the Group's performance and the outlook
for 2017 at the time of the 2016 full year results,
scheduled to be released on Tuesday, 4 April 2017.
Source: British Fluid Power Distributors Association
Monthly Survey January to November 2016 v 2015 (www.bfpa.co.uk/show_statistics.asp?id=19)
*Excludes acquisition costs, restructuring costs, share-based
payment costs, amortisation of acquired intangibles
and notional interest on deferred consideration
Enquiries:
Flowtech Fluidpower plc
AIM: FLO
Sean Fennon, Chief Executive Officer
Bryce Brooks, Chief Financial Officer
Tel: +44 (0) 1695 52796
Email: info@flowtechfluidpower.com
Zeus Capital Limited
(Nominated Adviser and Joint Broker)
Andrew Jones, Jonathan Sharp (corporate finance)
Dominic King, John Goold (sales and broking)
Tel: +44 (0) 20 3829 5000
FinnCap Ltd
(Joint Broker)
Ed Frisby, Kate Bannatyne (corporate finance)
Rhys Williams, Emily Morris (sales and broking)
Tel: +44 (0) 20 7220 0500
TooleyStreet Communications
(IR and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
Email: fiona@tooleystreet.com
Editors' note:
Flowtech Fluidpower plc, founded as Flowtech in 1983,
is the UK's leading specialist supplier of technical
fluid power products. The Group has three divisions:
Flowtechnology, Power Motion Control and Process. All
three of the Group's divisions have overlapping product
sets, allowing procurement synergies to be maximised.
The Flowtechnology division focuses on supplying distributors
and resellers of industrial MRO (maintenance, repair
and operation) products, primarily serving urgent orders
rather than bulk offerings. It is formed from Flowtechnology
UK, Flowtechnology Benelux and Indequip. It offers an
unrivalled range of Original Equipment Manufacturer
(OEM) and Exclusive Brand products to over 3,400 distributors
and resellers and the catalogues are recognised as the
definitive source for fluid power products, containing
100,000 individual product lines and are distributed
to more than 80,000 industrial Maintenance, Repair and
Overhaul end users (MRO). The Power Motion Control division
specialises in the design, assembly and supply of engineering
components and hydraulic systems and is further enhanced
by a service and repair function. The division is formed
from Primary Fluid Power, Nelson Hydraulics and TSL
Fluidpower. The Process division focuses on the supply
of industrial components to the process sectors.
The Group's main distribution centre is in Skelmersdale,
Lancashire with further distribution centres in the
Netherlands and China. The Power Motion Control division
(PMC) has operations in Merseyside, Northern Ireland,
the Republic of Ireland, and Yorkshire; Process operates
from the West Midlands. In total the business employs
349 people.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTEAEFAAFXXEAF
(END) Dow Jones Newswires
January 23, 2017 02:00 ET (07:00 GMT)
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