Flowtech Fluidpower Share Discussion Threads

[topvest] 02/8/2016 14:47

Been looking at this one today. Paul Scott has drawn attention to it. Looks a solid company to me and its core business has not made a loss as far back as 2000 (Flowtech Limited) which is as far as I could be bothered to go. Think there will be an opportunity to get in below a £1 so will not buy today, but have now put on my watchlist. Short-term there has to be more downside risk in a post brexit environment, but looks a good long term buy at some point. Looks like they lost about 20% of their sales (2008-09) in the worst recession for several generations, so revenue shouldn't be hit too badly.

[twirl] 12/7/2016 08:02

trade payables 2015 are 4.3m. Assuming all bought with $ which would cost an extra 12% (1.763/1.682)this will cost FLO an extra £500k pa. I have not included the cost of the benelux operation ie property and staff costs.

Alternative calculations/info welcome

[twirl] 11/7/2016 14:27

Yes sterling will aaffect profits. However drop is an over reaction IMHO.

Bought back in today.

[frankwhite] 11/7/2016 11:06

They buy a lot of goods in dollars from the Far East so Sterling weakness will make purchases more expensive. I still think it's great value at these levels and sterling will bounce back, this is temporary.

[farmsted] 11/7/2016 10:31

It 92 and not many buyers, is this company being effected by the drop in sterling. I hope not.

[frankwhite] 30/6/2016 11:48

A solid growth company with a PE in single digits. This has got to be a buying opportunity at these levels. I have been topping up on the way down the last one will be if it gets to ~96p. Hargreave Hale and Miton Group are both top holders in this company which reassures.

[petewy] 29/6/2016 17:53

droppin again. ex div yes but it's a huge drop.
Any answers.

[battyliveson] 13/5/2016 14:02

Nice to see some solid director purchases here. Will hold a while longer.

B

[edmundshaw] 14/4/2016 17:37

Hmm,,, "the benefit of what is a fairly fixed overhead base should really drop through to the bottom" sounds painful!

Still, the read is good, thanks. He mentions Diploma, which is on A PER of over 20 based on historic earnings, way above that of FLO, and with a yield under 2.5%, again well short of the 3.7% (and likely rising) on offer here.

BTW I hope twirl who took some profit also kept hold of a few. I am not expecting falls from here, as I feel there is a good chance the market is waking up to this company, its value and its potential, and wishing to invest.

[hastings] 14/4/2016 07:19

A few thoughts that may be of interest to others taking a look or holding.

[edmundshaw] 12/4/2016 16:46

Hopefully not :-) Onwards and upwards, please.

[twirl] 12/4/2016 11:24

I agree a good set of results with underlying operational profit raised by 11%.

The oil headwind and general economic slowdown remain a concern going forward although seem to have coped well last yr with the main business reporting 4% underlying profit growth.

The IT project to rationalise inventory for all the the various parts of the business would also have been a cost last year and will drop out and enhance effective use of working capital.

I agree with edmundshaw that consolidating a fragmented sector can be profitable if done well and I have previously benefitted from Northern Leisure and Ashted in that respect.

IMHO this business will thrive but share price wise could fall back as economic worries and potential placing for aquisitions drag on what has recently been a good return from £1.

I have taken profit to hopefully buy back lower.

[edmundshaw] 12/4/2016 09:37

Results OK. Market seems happy enough. A commendable result given the oil price collapse and the number of acquisitions to be made and integrated. Management has been busy...

One bugbear, though. They need to learn how to write an outlook statement. A rehash of the spiel about the past year does not constitute outlook, and management view of the future prospects is one of the most important parts of the results for an investor.

Additionally, it is April and these results are for the year ending December. What has been happening in the last 3 months? Under "People" we read Paul McGrady has been promoted to allow an unbroken transition which has already created a strong start to 2016. Seems an odd place to put a comment about a positive start to the year.

I have seen this model of consolidation in an industry sector many times before. It is a lot of hard work for management, and can be very rewarding where it is done well (and with honest hard graft). This has the potential to be a very good example of effective consolidation. Happy to remain long.

[petewy] 12/4/2016 09:36

Good set of results. Divi up. Thought it would have moved higher.
Flowtech Fluidpower posts operating profits of GBP5.49m for the year to the end of December - 65% up on last time. Revenues rose by 19% to GBP44.8m and the proposed final dividend of 3.50p per share is up from 3.33p last time and takes the total to 5.25p - up from 5.00p in 2014.

[petewy] 11/4/2016 16:51

I'm optimistic...

[edmundshaw] 11/4/2016 10:05

A bit off the radar? Results tomorrow...

[blueball] 07/3/2016 19:47

Think we rose 2p today on which note I'm very bullish .