Flowtech Fluidpower PLC (LON:FLO) has announced today (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 c€12.6bn 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.”
