Flowtech Fluidpower PLC AGM Statement (4165Q)

TIDMFLO

RNS Number : 4165Q

Flowtech Fluidpower PLC

06 June 2018

 
                                                                      NEWS RELEASE 
                                       Issued on behalf of Flowtech Fluidpower plc 
                                                            Wednesday, 6 June 2018 
                                                                 Immediate Release 
                              FLOWTECH FLUIDPOWER PLC 
                  ("Flowtech Fluidpower" the "Group" or "Company") 
 
                       2018 Annual General Meeting Statement 
 
 
   At today's (6 June 2018) Annual General Meeting of the Company the Chairman, 
   Malcolm Diamond MBE, will make the following statement: 
 
   "A busy period of acquisitions and business enhancements, the activities 
   of 2017 and the early part of 2018 have been the most demonstrative to 
   date of the Group's strategy to create a full-service fluid power provider, 
   strengthening its market position across the UK, Ireland and northern 
   Europe and delivering strong financial performance. 
 
   In our Q1 trading update we reported that Group revenue during the first 
   three months of the current year increased by 49.7%, of which 6.3% was 
   organic. In the two months since that report I can confirm that we have 
   continued to see this positive trading momentum. 
 
   Our acquisition programme, which includes seven completed deals in the 
   last seventeen months, has created new complementary services, brands, 
   products and customer sectors. Having made these significant enhancements, 
   the Group will use 2018 as an opportunity to consolidate the processes 
   and systems in place and start to exploit synergy opportunities in procurement, 
   operations and back office, as well as continue to target organic growth. 
 
   Following significant refurbishment at the Skelmersdale site, which was 
   largely complete towards the end of 2017, the Group created a Shared Logistics 
   Centre to support all subsidiaries, streamline logistics operations and 
   identify greater product synergies for the Group. In addition, the acquisition 
   of Beaumanor in March of this year immediately increased the Group's market 
   share within the maintenance, repair and operation (MRO) market and gave 
   access to a second warehouse based in the Midlands. This acquisition will 
   allow us to both realise greater procurement synergies and additionally 
   de-risk operations at the flagship distribution centre based in Lancashire. 
   I can also confirm that trading at Beaumanor, and its sister business, 
   Derek Lane, has been strong since purchase in March, and in line with 
   our expectations. 
 
   Starting with our 2017 acquisition of Hydroflex in the Benelux, the Board 
   has placed greater attention on our European businesses, investigating 
   the cEUR12.6bn European market, and setting firm foundations to expand 
   into Western Europe, which the Group will look to do in 2019 and beyond. 
 
   In summary, the Directors remain confident about the future; we fully 
   expect our underlying performance to deliver another year of solid progress 
   and we look forward to providing our next Trading Update for Q2 in early 
   July." 
 
 
   Enquiries to: 
   Flowtech Fluidpower plc 
   Malcolm Diamond MBE, Chairman 
   Sean Fennon, Chief Executive Officer 
   Bryce Brooks, Chief Financial Officer & Company Secretary 
   Tel: [phone] 
 
   Zeus Capital Limited (Nominated Adviser and Broker) 
   Andrew Jones, Alistair Donnelly (corporate finance) 
   Dominic King, John Goold (sales & broking) 
   Tel: [phone] 
 
   finnCap Limited (Joint Broker) 
   Ed Frisby, Kate Bannatyne (corporate finance) 
   Rhys Williams, Emily Morris (sales & broking) 
   Tel: [phone] 
 
   TooleyStreet Communications (IR and media relations) 
   Fiona Tooley 
   Tel: [phone] or email: [e-mail] 
 
 
 About Flowtech Fluidpower plc Founded as Flowtech in 1983, the Flowtech Fluidpower Group is the UK's 
    leading specialist supplier of technical fluid power products. The business 
    joined AiM in 2014. Today, the Group has four distinct divisions: 
   Division:         What we do:                         Locations: 
  ----------------  ----------------------------------  ---------------------------------- 
   Flowtechnology    focus on supplying distributors     Flowtechnology Benelux (Deventer) 
                     and resellers of industrial          Flowtechnology China (Guangzhou) 
                     MRO products, primarily serving      Flowtechnology UK (Skelmersdale) 
                     urgent orders rather than bulk       Indequip (Skelmersdale) 
                     offerings. It offers an              Beaumanor (Leicester) 
                     unrivalled 
                     range of OEM and Exclusive 
                     Brand products to over 5,000 
                     distributors and resellers. 
                     The catalogue is recognised 
                     as the definitive source for 
                     fluid power products, containing 
                     100,000 individual product 
                     lines and are distributed to 
                     more than 80,000 industrial 
                     MRO end users. 
  ----------------  ----------------------------------  ---------------------------------- 
   Power Motion      Specialise in the design,           Primary Fluid Power (Knowsley) 
    Control (PMC)    assembly                             Nelson Hydraulics (Dublin, 
                     and supply of engineering            Lisburn, Dungannon, UK) 
                     components                           TSL Fluid Power (West Yorkshire) 
                     and hydraulic systems and is         Albroco (Knowsley) 
                     further enhanced by a service        HTL (Ludlow) 
                     and repair function.                 Hi-Power Hydraulics (Cork, 
                                                          Dublin, Belfast Manchester) 
                                                          Hydroflex (Brussels, Rotterdam 
                                                          and OudBeijerland) 
                                                          Hydraulic Equipment Supermarkets 
                                                          (Gloucester, Leeds, Birmingham, 
                                                          Durham) 
                                                          Branch Hydraulic Systems 
                                                          (Gloucester) 
                                                          HES Tractec (Gloucester) 
                                                          HES Automatec (Gloucester) 
                                                          HES Lubemec (Gloucester) 
                                                          Derek Lane & Co (Newton Abbot, 
                                                          Devon) 
  ----------------  ----------------------------------  ---------------------------------- 
   Process           Focus on the supply of industrial   Hydravalve (Willenhall) 
                      components and solutions to         Orange County (Spennymoor) 
                      the process sectors. 
  ----------------  ----------------------------------  ---------------------------------- 
   Onsite Services   During 2018, the Group is           HES Onsite (Durham, Leeds, 
                     extending                            Birmingham, Gloucester) 
                     its service offering to include 
                     Onsite Technical Maintenance 
                     through highly skilled engineers. 
  ----------------  ----------------------------------  ---------------------------------- 
   All four of the Group's divisions have overlapping product sets, allowing 
    procurement synergies to be maximised. 
   The above divisions are supported by a centralised back office team 
    at the Skelmersdale site and a procurement and quality control team 
    in Shanghai. In total, the business employs over 550 people. For more 
    information please visit, www.flowtechfluidpower.com 
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June 06, 2018 02:00 ET (06:00 GMT)