Flowtech Fluidpower Share Discussion Threads

[red ninja] 19/11/2024 10:20

Yes, I've traded this one, but have been accumulating on a medium term view.

The new management look capable.

The e-commerce system only scheduled for launch in Q1 2025.

The acquisition of Thorite Group out of administration was a steal.

[shaker45] 19/11/2024 09:59

One to lock away until actual results visible from new management, I feel.

[red ninja] 19/11/2024 09:27

From Rockwood Strategic interims :-

Flowtech Fluidpower Plc (Fluidpower component distribution and manufacture): Interim results were released in September which highlighted underlying progress under the new management team offset by challenging trading conditions. Sales fell by 5.7%, however gross margins have started improving due to pricing and sourcing initiatives. Net debt also fell as inventories were reduced. There has been huge (60%) change of senior management under the new CEO, the disparate brands were only unified under Flowtech in June and the much needed new e-commerce system only scheduled for launch in Q1 2025. Service complaints have halved, operational headcount cut by 25%. External factors thus distracted from an emergent, highly motivated team. A sign of the entrepreneurship we were eventually anticipating emerged in the announcement of an opportunistic acquisition of Thorite Group out of administration for almost no cash outlay. The business has been generating more than £20m in sales and has clear synergies with the rest of Flowtech. We expect a positive impact in 2025 as the business and its assets are integrated with the potential to enhance shareholder value considerably. We commenced buying Flowtech Fluidpower for the strategy in May 2020 at 70p. It closed the period at 90p and has an extended length investment thesis due to the need for a management reset, which was achieved in April 2023. On current market expectations, the shares were valued on an EV/Ebitda of 7x for their financial year 2025, at period end.

[red ninja] 26/9/2024 15:16

Estimates going in the right direction.

However, it is one for the patient.

[simon gordon] 26/9/2024 08:21

Panmure - 26/9/24:

EPS
-24: 2.2p
-25: 6.5p
-26: 9.3p

Net Debt
-24: 14m
-25: 11.5m
-26: 7.9m

[boadicea] 26/9/2024 08:05

Market reaction looks overdone to me. The question I would have is whether they are losing out to competitors (serious) or merely a turn-down in the industry (destocking etc) which is likely to be temporary.

[shaker45] 26/9/2024 07:46

Looks massively oversold on disappointing results surely?

[jellypbean] 27/8/2024 16:19

Odyssean did not reduce to 16.5%. It was reduced to 16.5% due to the exercise of options by Zeus capital.

[cerrito] 27/8/2024 07:53

Yes appears prima facie to be good news but too bad they have to emphasize once again the continued strong market headwinds and indeed I wonder if the situation is the same in the UK(£79m of sales in 2023) as in Ireland-£22m and Benelux-£10m 2023 sales respectively.
Featured at the end of the Paul Hill interview with Odyessean,who a couple of months back reduced to 16.5%, a few weeks ago.

[value hound] 27/8/2024 07:36

It looks like a very sensible deal overall given the turnover, debtor book and potential for cost savings etc. But I guess we won't really know how it's even beginning playing out until next year's finals (end March) - and (more realistically) next year's interims.

I guess they'll shed a little more light on the rationale with the interims two weeks today.

[edmundshaw] 27/8/2024 07:06

Thorite was struggling with its debt, as op profit was essentially zero (negligible) with current trading headwinds.

Assuming the acquird debt servicing is outweighed by the opportunities for synergies (management reduction and geographical overlaps for an easy start) plus future better trading conditions, this ought to be a useful acquisition. I have no idea how cross selling opportunities will work, though...

[simon gordon] 27/8/2024 06:25

Looks like a bargain, if they can turn it around.

"Under the terms of the Acquisition, Flowtech will acquire all the plant and machinery, vehicles, stocks, and intangible assets of Thorite for a total cash consideration of £350,000 which will be funded from the Group's existing bank facilities.

Flowtech has also repaid Thorite's outstanding debtor finance facility of c.£1.7m in return for an assignment to the Group of a debtor book totalling c.£2.6m; this has also been funded from the Group's bank facilities. A sharing arrangement relating to the excess of debtor book recoveries over and above the c.£1.7m paid has been agreed with the Administrator of Thorite.

In the audited accounts for the year ended 31 March 2023, Thorite generated revenue of £21.2m and delivered an operating profit of £79,000. The gross value of asset classes being acquired at the same date was £8.8m, inclusive of £3.8m in respect of the debtor book at that point in time. Thorite has since experienced cash flow challenges and incurred operating losses due to a combination of internal issues and market headwinds. Thorite's operating losses in the year to 31 March 2024 are estimated at £1.2m.

Through a combination of the strategic benefits and synergies already identified, the Board expects profitability to be restored in the first full year of ownership with the associated benefits to Group earnings."

[red ninja] 02/6/2024 21:59

Picnic

Agreed my mistake, misread it.

[picnic] 02/6/2024 21:04

Do not think OIT have sold.just the dilution effect of those 1.2m shares issued to
Zeus capital for those warrants.

[picnic] 21/5/2024 14:12

Some more meaty trades, this time @1.06.
Just had a closer look at the OIT tender, should not be a overhang of shares as
"matching facility....any shares tendered to be matched with buying interest to
ameliorate a shrinking of OIT"

[picnic] 21/5/2024 11:27

There was around 1m traded at the end of last week at £1.10.sounds as it could be the end of the Downing holding.
I note today that Odyssean IT has announced a tender offer.They hold 17.08% of FLO.
potential overhang ?

[camerongd53] 01/5/2024 18:43

I would have hoped anybody wanting to buy Flotech would have made a move by now for the downing shares
I was hopeful that there would be a bid, but that is looking more remote now

[fillipe] 24/4/2024 15:10

boadicea
24 Apr '24 - 15:48 - 864 of 864

Agreed!

f

[boadicea] 24/4/2024 14:48

One wouldn't expect the share price to increase by 40% over a month without good reason. While the reults provided some optimistic noises (when don't they!) this is virtually the only share I hold where the FLOw of optimism has not ebbed beyong recall within days under current market conditions unless backed by hard figures.

So my odds on conclusion has to be that something is afoot.

[red ninja] 24/4/2024 13:45

This board has already speculated that, but in reality hard to say for sure without a bid RNS.

[camerongd53] 24/4/2024 13:16

Very strong Sp over the last month or so
Wonder if there is a takeover or bid in the offing?