AIM listed specialist technical fluid power products supplier Flowtech Fluidpower plc (LON:FLO), announced today the following unaudited trading update on its performance for the six-month financial reporting period ended 30 June 2019:
GROUP TRADING UPDATE AND FINANCIALS
| HY1 2019Unaudited£’m | HY1 2018Unaudited£’m | FY 2018Audited£’m | GrowthH1 2019 v H1 2018 | |
| Divisional revenue: | ||||
| Components | 50.0 | 46.9 | 6.5% | |
| Services | 9.6 | 9.5 | 1.4% | |
| Total Group revenue for the period | 59.6 | 56.4 | 111.1 | 5.7% |
| Net debt | 18.8 | 18.0 | 19.9 |
Group revenue during the first six months of the current year increased by 5.7%. On a like-for-like trading days’ basis organic growth was 2.9%, the balance resulting from 2018 acquisitions. Quarter 2 saw a reduction in organic revenue growth, relative to Quarter 1, reflecting the wider economic conditions.
Net debt at 30 June 2019 was £18.8m. This represents a £1.1m reduction from the position as at 31 December 2018 and compares favourably with a net debt increase of £3.0m for the comparative period in 2018. The £1.1m reduction in debt is after making contingent consideration payments of £1.6m relating to prior year acquisition activity.
Our continuing focus on working capital management should lead to further debt reduction by the end of 2019.
SUMMARY
Overall, our trading in the first half is in line with full year market expectations and we continue to expect to deliver another year of solid progress despite less buoyant market conditions. The Directors remain confident about the future for the Group and look forward to updating shareholders on its cost reduction and working capital initiatives at the time of the Half-year results.
NOTICE OF RESULTS
The Group is planning to release its Half-year results on Tuesday, 24 September 2019. The announcement will be available to view and download from the Company’s website www.flowtechfluidpower.com. Further information can be obtained from TooleyStreet Communications, details of which are shown below.
