Do you REALLY mean it is better to have excess stock ?. Excess is defined as too much. Optimum to have CORRECT i.e. nil excess stock but adequate level of the correct stock. Excess stock, by its very definition, requires a business to make a stock provision. |
I thought the results were as good as could be expected with the current turmoil created by Brexit, the pandemic, and the absolutely evident shortages these major changes exacerbated.
Before the pandemic, the company's focus was on integrating the many acquisitions they had made in the preceding three years, with one of the objectives of that exercise being to reduce stock, and of course working capital, by eliminating overstocking of identical products in different subsidiaries.
The pandemic, brexit, etc, has changed the situation and the company has reacted to that in a well managed way, imo, by increasing stocks. So consider that Millie. |
reason for building stock was clearly explained. Obv poster didn't read results rns. |
I assumed that the increase in stock was their way of dealing with the supply problems which are global at present, but exacerbated in the UK by Brexit. It is better to have excess stock than to lose sales because you run out. |
Price has never flown in the 7 + yrs trading !! |
If they have increased stock (a) why has that not already manifested itself in higher sales ? (b) earlier Flo said they had reduced stock (albeit to reduce working capital). Which was the right decision ? reduce it before or increase it now ?. Or were both decisions wrong at the specific times. Sounds like fire-fighting. |
Interesting slide in the Presentation this morning showing the stock build - the key point is that it was needed to increase availability on the core lines. So stock will be reflected in increased sales - they seem very confident in that. |
Good results and a management team with a strategy. |
Given all the headwinds the underlying EPS of around 5.5p for H1 seems pretty good.
Accept no dividend as cash used to bump up inventory is understandable with restocking and supply issues. If the business grows and gets more efficient, dividends can wait.
I like a management with a longer view as long as it is realistic and has a high chance of being delivered. And it makes investing easier: a good growing company with reliable management and a business that one understands is much easier to keep track of than endless short term "opportunities" and the research and pitfalls that entails... |
Bit slow today considering the results.
This is one of those great companies that no one knows about, price will fly once it gets noticed |
Downing Strategic Micro Cap I.T. Quarterly Newsletter Update :-
hXXps://assets-us-01.kc-usercontent.com/8c961317-6aee-00a7-e4b6-ae38cd847d2d/28cbb15e-1c16-4777-9292-7d9a2f8148ba/DSM3064_Downing%20Strategic%20Micro-Cap%20Investment%20Trust_Investor%20Letter_Aug%202021.pdf
FLOWTECH announced a positive half year trading update, which showed a strong recovery in trading in the period with group revenues of £55.3 million versus £59.6 million from the 2019 pre‐Covid period. The first part of our thesis is based around a post‐Covid recovery, so we are encouraged to see the strong revenue performance. There was some caution around cost pressures in H2, particularly through supply chain and logistics, but we are confident that recovering demand, particularly in the OEM sector, can offset headwinds. Overall, we continue to think that the company is guiding market estimates conservatively and there ought to be upside to current consensus over the course of the year. |
Goodly volume today and a kick back up to 130p. I didn't think the trading update warranted the drop. I think Bryce and Russell will just be quietly getting on with the transformation and we will hear more of it at each subsequent TU. Plenty of II positioning at this price. Fils |
Stuart Widdowson mentions Flowtech Fluidpower at 13:09 in the latest PIWORLD interview
Watch the video here:
Or listen to the podcast here: |
Video detailing Flowtech brands coming together :- |
Chelverton UK Dividend Trust PLC's aim is to invest in equities in order to achieve its investment objectives, which are to provide both income and capital growth. So the fund managers may be thinking FLO is going to provide both in the medium term. Fils |
Chelverton UK Dividend Trust PLC declare a position of 2.94 million shares in an issued RNS today. Although just looking at the 30th April 2021 fact sheet from Chelverton UK Dividend Trust PLC - back then Flowtech Fluidpower was 2.02% of their portfolio. They crossed a notifiable threshold on the 25th June. Friday just gone. Fils |
1.3 million share volume recorded on Friday. Sort of feel a line is being drawn at the 130p price. Fils |
 Comment from ODYSSEAN INVESTMENT TRUST PLC annual report :-
FLOWTECH FLUIDPOWER
Leading UK distributor of hydraulic and pneumatic components.
% NAV: 7%
Sector: Services
Performance in period
Flowtech is one of the more cyclically-exposed companies in our portfolio and as a result saw a material drop off in demand as COVID struck. Pleasingly, the business managed to trade through the worst of the pandemic whilst maintaining a full service to its customers and remaining cash generative in all months. We believe this strong performance allowed the group to marginally gain share through the period.
The group managed to continue to deliver on its operational improvement programme through the crisis with significant cost savings delivered and further cash recovered from working capital, this supported the group in driving down debt through the period despite the lock down headwinds.
Outlook
Flowtech has gone through significant change in recent periods, with a strengthening of the board, increased focus on delivering cost benefits from legacy M&A, improved investor disclosure and the identification of significant digital channel revenue opportunities.
Although COVID has been a serious headwind, we see these issues now receding and the group is well placed to bounce back should the UK stage a strong recovery. In this instance the stronger operational platform the group is building stands it in good stead to deliver improved profitability, and opportunities in digital channels offer the opportunity to accelerate growth and build share. |
Flowtech Fluidpower Rated New Buy at Panmure Gordon |
Next news is on the 3rd of June, next Thursday! |
What a shambles - no need for any of them because they reported 6.2% on 27/1/21. |
Yes Boadicea what a mess. I was sorry I posted about Downing's holding when I did. In other news did anyone else note that things are happening at Gresham House - another big holder! Fils. |
Four RNS's now about the same holdings situation in company - What a mess!
Are they Upping or Downing? |
Thanks.Interesting listen, they certainly have a good list of reasons for investing! |
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