Flowtech Fluidpower Share Discussion Threads

[edmundshaw] 10/7/2017 08:04

Nice trading statement.

[edmundshaw] 26/6/2017 19:43

So far so good. If you listen to management they are saying all the right things... but of course DYOR...

[boonkoh] 26/6/2017 09:52

If you're thinking of investing in FLO, one of the key test is whether you believe in management ability to acquire sensibly and integrate smoothly. That is their core strategy for the next few years to increase shareholder value.

[davebowler] 26/6/2017 09:36

FinnCap;
Last week the group acquired Hi-Power, a complementary bolt on acquisition, for a total consideration of up to a maximum £3.5m. Hi-Power offers additional hydraulic products, wider geographic coverage and medium-term synergies and wider collaboration opportunities. This acquisition is in line with existing strategy and we expect management to achieve further acquisitions over the coming year as it deploys cash raised through its recent placing. This potentially offers future upside to forecasts. We increase our EPS forecasts by 2.4% in 2017 and 4.7% in 2018. The shares remain attractively rated on a P/E of 10x and offer good upside.

[topvest] 25/6/2017 21:36

Good original business. Can't help thinking that the acquisition spending spree will end in the loss of shareholder value as it normally does though. Aren't the acquired businesses inferior to the original business?

[petewy] 23/6/2017 09:31

Flowtech Fluidpower plc is pleased to announce the further strengthening of its Power Motion Control ("PMC") division through the acquisition of Hi-Power Limited a distributor of hydraulic equipment components and, systems design & build predominantly to the mobile and transport sectors.

[pj 1] 25/5/2017 08:12

sharw, thanks for the link, I had missed that report

[edmundshaw] 25/5/2017 08:10

Nice update. Looks like more effective corporate activity is going to transpire imminently...

[sharw] 22/5/2017 14:48

PJ1 - as you say eps growth of around 3% is forecast for 2018. This may be because the company relies on acquisitions for growth and it may be later this year before those in the pipeline that may boost next year's earnings are announced. Until then the forecasters assume a modest organic growth.

Graham N has some comments about this strategy here:



I have a small holding as part of an income portfolio as I consider the yield to be safe and well covered. One of the (few) fund managers I have respect for is Gervais Williams and his Miton funds are the largest holder with 13.53%.

[briangeeee] 22/5/2017 12:31

This is primarily an acquisition play, but organic growth is still key. Negative growth is poor and undermines the acquisition rationale, but low single digit positive growth is good.

[pj 1] 22/5/2017 09:13

Is this BB still 'live'?

Having a good look here following their recent Presentation in Manchester. Any comments regarding the low 3% forecast growth into 2018? (via Stockopedia)

Cheers

PJ

[petewy] 18/4/2017 09:31

74% of shares held by major shareholders. A very high percentage.

[edmundshaw] 18/4/2017 09:10

www.flowtechfluidpower.com/investors/shareholder-analysis

[bb123] 18/4/2017 07:43

Please can you help with a list of the major share holders
Cheers

[edmundshaw] 10/4/2017 18:28

I am grateful to ST. I was getting overweight after recent good results and share price, so have taken the opportunity to scale back my holding - but only to a normal weighting, as I still rate this company as having great future prospects...

[sharw] 10/4/2017 17:29

or rather re-tipped. He first tipped this on 6/6/14 at 118p.

[x54v] 10/4/2017 12:28

Simon T. just tipped the shares



He reckons the all time high is likely to be broken.

[woodcutter] 06/4/2017 11:05

Petewy I tend to lean as much to the TA as to the FA when I'm analysisng stocks so it would depend how the chart reacted over the coming months as to where i thought a good entry point might be.

Edmund the other issue for me is it appears to operate to some extent as an engineering jobbing shop so recurring revenue isn't so easy to predict despite the fact they may have a very dependable client base so it could be a very cyclical business. Something to think about if we enter a general economic downturn.

woody

[petewy] 05/4/2017 22:49

Decent pullback is how much?

[edmundshaw] 05/4/2017 20:26

Woodcutter I think the basic analysis is spot on. You have obviously also got some experience of consolidation businesses, and four of the risks are that the organic growth gets sidelined, the balance sheet gets forgotten, that the management does not give itself time to bed in acquisitions, or management overpays.

I see some organic growth continuing, of course whether that is the new management or the old, or the general economy, is as yet unclear: early days. The balance sheet was looked after OK in the recent oversubscribed placing. I don't get the feeling that we have overpaid up to now. So yes, the bedding in is important.

I can think of a couple of consolidation businesses of comparable size that failed, and a couple that have done very well (off the top of my head). At the moment the jury is still not unanimous on this one, but the potential for stripping out duplicated costs is obviously high, and the service to customers seems to be a core value which is also good to see. So far so good, and on a decent pullback I would add to my solid holding here.

[woodcutter] 05/4/2017 17:13

whilst it looks good value it appears to me there's still quite a lot of cost to take out of the business. Revenue growth looks impressive at 20% but the issue with acquisitional growth is you also take on the overhead costs which grew at almost 47% i guess that's why the percentage revenue growth isn't reflected in profit growth.

The danger here is too many acquisitions too quickly. They need to bed in what they've acquired and strip out more over head costs over the coming year. Price looks up with events after the recent rise. notwithstanding it looks a good management team and solid business.

The Q1 update refers to revenue growth and gross margin, would have been nice to hear something on operating margins i.e overhead reduction.

A decent pull back would get me interested

woody

[meijiman] 05/4/2017 08:56

Just taken a few here(yesterday).It ticks alot of boxes. Sold some Trifast to part fund but have had a good run there from below 100p.As edmund says it is a nice mix of organic and acquisition growth. They seem to acquire and slot in the new companies without too much disruption.

[petewy] 04/4/2017 09:37

Yes results look good. Dividend up. Never lost faith.

[edmundshaw] 04/4/2017 08:00

A lot to read through this morning!

Overall solid progress and a positive outlook. And a useful war chest for further acquisitions.

Forex fluctuations being well managed, obvious synergy potentials being realised, and some organic growth is great as acquisition by growth, however appealing, can only ever be a part of the story.

[edmundshaw] 09/3/2017 18:53

Surprise placing!