Flowtech Fluidpower PLC Trading update & Notice of Half-year results (6422H)
31 Julho 2023 - 3:00AM
UK Regulatory
TIDMFLO
RNS Number : 6422H
Flowtech Fluidpower PLC
31 July 2023
NEWS RELEASE
Issued on behalf of Flowtech Fluidpower
plc
Immediate Release
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as amended by the Market
Abuse (Amendment) (EU Exit) Regulations 2019. Upon the publication
of this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
London: Monday, 31 July 2023
FLOWTECH FLUIDPOWER PLC
(the "Group")
Group Trading Update and Notice of Interim Results
Flowtech Fluidpower plc (LSE: FLO) , the specialist technical
provider of fluid power and motion control products and engineering
services provides a trading update for the six months ended 30 June
2023 (HY1 2023).
GROUP Trading Update
Overall Group revenue has grown by 2.6% in the period with a
mixed performance between the divisions. The Solutions and Services
divisions have continued to operate well, showing strong growth,
however, the performance of the Flowtech division has been
disappointing with a decline in revenue of 5.7%. Given the lower
gross margins in the Solutions and Services divisions and the
underperformance of the Flowtech division, Group EBITDA in HY1 2023
is behind Board expectations.
HY1 2023 HY1 2022 FY2022 cHANGE
Unaudited Unaudited Audited HY1 2023 v HY1 2022
(+) (+)
GBPm GBPm GBPm
---------- ---------- -------- --------------------
Segment revenue:
Flowtech 26.6 28.2 53.3 -5.7%
Fluidpower Group
Solutions 22.0 19.8 40.4 11.2%
Fluidpower Group
Services 10.4 9.5 21.1 9.5%
--------------------- ---------- ---------- -------- --------------------
Total Group revenue
for the period 59.0 57.5 114.8 2.6%
--------------------- ---------- ---------- -------- --------------------
Net debt (*) 15.6 19.7 16.0 GBP4.1 m
(*) Net debt is Bank debt less cash and cash equivalents. It excludes
lease liabilities under IFRS16.
(+) From January 2023 certain business which was previously accounted
for within Flowtech was transferred to Solutions. To ensure meaningful
comparisons are made we have restated the HY1 2022 and FY2022 numbers
to reflect this.
Pre IFRS 16 net debt was GBP15.6m as at 30 June 2023 (HY1 2022:
GBP19.7m), a reduction of GBP4.1m in the past year, leaving an
unutilised GBP9.4m on the Group's GBP25m banking facilities.
Management continues to focus on working capital efficiency and net
debt is expected to reduce in the second half of the year.
Mike England, who took over as CEO in April, said:
"In the Flowtech division, specific actions are in flight to
address commercial and operational shortfalls adversely impacting
performance, some of which require targeted new capital investment
and some to address legacy issues; we intend to comment more on
this at the time of the interim results. We are generally pleased
with the HY1 growth and contribution from our Solutions and
Services divisions. There are however adverse market headwinds into
HY2 with several OEMs citing a slowdown in project velocity and a
more general cooling across the broader industrial markets. For
these reasons the Board now expects the out-turn for FY23 to be
significantly behind previous expectations. **
In my first three months, I have made early decisive decisions
to establish a stronger platform for market share growth and
improved margins in 2024 and beyond. This has included a swift
programme of change in managerial leadership and implementing the
plan to further simplify our operating model to release the full
potential of the Group, improving the overall service and value
proposition for our customers and to deliver greater efficiencies
as we scale. As part of this, we will continue to maintain tight
control of our costs whilst making the right strategic investments
for the future. Our focus on cash management will continue; this
will include a refreshed review of all aspects of inventory
management where we believe there is further progress to be
made.
Despite these current challenges, I am excited by the potential
for the Group given the quality of the brand, knowledge and
technical capability of our people, the depth and breadth of the
product and engineering service offering and the opportunity for
expansion, market share growth and the potential for margin
improvement."
NOTICE OF RESULTS
The Group is planning to announce unaudited interim results for
the period ended 30 June 2023 on Wednesday, 30 August 2023, which
will be available to view and download from the Group's website ,
www.flowtechfluidpower.com . The Group will also be holding a
'live' presentation which will be hosted by CEO Mike England and
CFO Russell Cash via the Investor Meet Company platform at 10.00am
on Wednesday 30 August 2023: Registration to join the event can be
made following this link:
https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor
( ** ) Market expectations compiled by the Company prior to this
announcement for the year ending 31 December 2023 were; Group
revenue c.GBP119.4m; underlying EBIT of c.GBP9.9m, and profit
before tax of c.GBP8.8m.
ENQUIRIES:
Flowtech Fluidpower plc
Mike England, Chief Executive Officer
Russell Cash, Chief Financial Officer
Tel: +44 (0) 1695 52759
Email: info@flowtechfluidpower.com
Liberum Capital Limited (Nominated adviser and Sole Broker)
Richard Lindley / Ben Cryer / Will King
Tel: 44 (0) 20 3100 2000
TooleyStreet Communications (IR and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523 or email : fiona@tooleystreet.com
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END
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