Flowtech Fluidpower Share Discussion Threads

[montyville2] 31/1/2019 12:22

Thanks Shaw, thought it looked too good to be true! Still positive though

[sharw] 31/1/2019 12:06

Last year OP was £6.6m, finance costs 575k giving PTP £6.0m. However underlying OP is given as £9.1m implying underlying PTP £8.5m so that is the figure to compare with this morning's £10.6m to £10.8m.

Stocko disregard 'underlying' and do their own adjustments.

[montyville2] 31/1/2019 12:00

Money where my mouth is! I just topped up! Hope I am reading it right!

[montyville2] 31/1/2019 11:50

Camerongd - I looked back at the RNSs to remind myself what the catalyst for the massive drop was from 170p to 120p and the only issue I can find is the change of CEO and CFO and market sentiment generally which was poor at that time.

These changes appear to have made no difference to the performance of the company so I see no reason why we shouldn't return 170p after results, assuming Brexit doesnt change things. I think this is a perfect time to top up ahead of a good rise at Results as the company is under-valued.

If the performance of the company and acquisitions, which are reportedly doing well, continues then like you I can see the share price doubling in 18 months to 2 years.

[mfhmfh] 31/1/2019 11:26

Montyville2 - you're right. my numbers are wrong.

[camerongd53] 31/1/2019 11:15

n September this share was trading @approx 170p. A couple of issues appeared and the price dropped to approx 120p. The issues highlighted do not appear to have affected the profitability as profitability appears relatively unchanged. Expectation of growth in profis may have dropped but should that explain why the share price is still down by a third.
I anticipate that profit growth may return. General market sentiment may improve and if it does together with profit growth, the share price could easily double + over a few years. I know there are ifs in what I said but they are not the most remote. This could be a low risk long term buy at todays price

[montyville2] 31/1/2019 11:02

mfh - where you getting last years profit before tax figures, stockopedia is showing it as 6.91m, with net profit at 4.83m. If stocko is right it would indicate a 56% improvement in PBT. Or am I missing something?

[mfhmfh] 31/1/2019 10:42

solid trading statements with no nasty surprises.

'The Board expects underlying* profit before tax for the year ended 31 December 2018 to be in the range of £10.6m to £10.8m.'

last year's underlying profit was £9.08m from what I can see.

company undervalued at this share price.

All IMHO.

[edmundshaw] 31/1/2019 07:58

Yes, turnover is good, earnings not given directly, but margins are not changed so that can be inferred as up similarly on an underlying basis at least.

Debt going up is a fact of life with growth and WIP, but as debtor days are not climbing it should not become an issue.

Thames Tideway project sound like it is being managed carefully for risk. This is important to me, given the disaster of energy-from-waste that brought Interserve to its knees. So that makes me happy!

Overall a good solid statement with solid if unspectacular progress.

[petewy] 31/1/2019 07:45

Trading update looking good

[mfhmfh] 30/1/2019 18:13

I agree it's undervalued. Positive update tomorrow with no negatives and circa 170p would be good for starters. Might even be a takeover target at this price.

IMHO.

[montyville2] 30/1/2019 17:02

The chart shows a very slow upward rise, and if the results are good this could easily breakout to 150p or even 175p in my view. Lets hope thats the case mfh! Growth at 9mths was 54% so if that momentum has continued I can see a big jump coming. This stock is undervalued at the moment with a PE of only 7.28...Fingers crossed GLA

[mfhmfh] 30/1/2019 16:16

trading update tomorrow according to company website.

[podgyted] 24/1/2019 17:58

Brilliant!!!! So do I, so do I.....

[thorpematt] 22/1/2019 08:08

My thoughts are:-


"Let's hope it will be better than the last one"

[podgyted] 22/1/2019 01:37

TU soon. Any thoughts?

[edmundshaw] 09/1/2019 15:39

Last update included the words "A further update [on the order for c.£1.5m to design, manufacture and supply hydraulic cylinders and power units...on the Thames Tideway project] will be given in the full year trading update in January 2019."

So expecting news fairly soon. It will be good to hear from the new CEO/ex CFO and the new CFO...

[montyville2] 09/1/2019 14:05

Agree RCT but I would say 125p is the crucial level, after that its 150p

[mfhmfh] 09/1/2019 11:14

Pre-close trading update was on 23rd January last year

[rcturner2] 09/1/2019 10:49

Good recovery in the share price here now, 120p looks like a crucial level to break through.

[grosvenor] 21/11/2018 10:58

2 big trades today of 100k each at 115p - says they are sells but as price is in the middle who knows?

[thorpematt] 16/11/2018 20:18

the441,
I'm also considering Redrow, but Flowtech is at such a low price currently, and the fact that insiders are buying tells me they are confident in the future. Should I have any reservations, is there a part of the story I may be missing?


--------------------

Regarding Redrow:Its' very cheap. A value trap maybe. i've been buying it of late because I think that significant profit is still there. But much depends in the whim of the housing market. I am not sure the (finance) market agrees.

FLO:
Are the insiders' buys truly significant in volume or just token gestures?

Should you have any reservations? Yes. Always have reservations and always be synical. My reservations here are that the large number of acquisitions have raised costs and lowered margins. I don't believe that as yet these costs have been under the control as they will need to be.

Is there a part of the story I may be missing?
You did not mention the significantly large number of acquisitions of late so possibly.


You also did not mention that Malcom Diamond is chairman here. I wouldn't necessarily expect you to have done but from my perspective he is the main reason I hold stock in FLO. He has a very strong track record in making acquisitions work for the benefit of shareholders (see TRI) and I have confidence that the strategy here will ultimatly pay off.

In the meantime the yield is very tidy and well-covered provided EPS is met.

[edmundshaw] 13/11/2018 22:25

Fortune favours the bold! Well done RCT, you did better than I.

[rcturner2] 13/11/2018 12:24

Well I am very pleased that I was able to double up below £1. The share price has overshot on the downside as happens many times when there is a rush of sellers without the necessary buyers to soak up the shares. Long term patience will be rewarded I believe.

[welsheagle] 13/11/2018 12:24

the441,
The dividend and strong cash flow could be added to the list of pros.