Flowtech Fluidpower PLC Revenue up 24.8%, Profit up and good organic growth

“Group organic growth and acquisition strategy underpins the platform for future development”

2017 HALF-YEAR REPORT FOR THE SIX MONTHSED 30 JUNE 2017

 
                                                        HY2017       HY2016   GROWTH 
                                                       30.6.17      30.6.16      % 
  FINANCIAL HIGHLIGHTS                               UNAUDITED    UNAUDITED 
=================================================  ===========  ===========  ======= 
 
        *    REVENUE                                GBP34.173m   GBP27.387m   24.8% 
 
        *    UNDERLYING OPERATING RESULT             GBP4.504m    GBP4.059m   11.0% 
 
        *    OPERATING PROFIT                        GBP3.392m    GBP3.290m    3.1% 
 
        *    HALF-YEAR DIVID                          1.93p        1.84p    5.0% 
 
        *    EARNINGS PER SHARE (basic) (note 1)         5.22p        5.91p 
                                                       GBP8.4m     GBP14.1m 
        *    NET DEBT (note 1) 
 
 
 OPERATIONAL HIGHLIGHTS 
====================================================================== 
 
        *    REVENUE REFLECTS BOTH GOOD ORGANIC AND ACQUISITIVE 
             GROWTH ACROSS ALL DIVISIONS 
 
        *    INCREASING TECHNICAL DEPTH ACROSS A GREATER RANGE OF 
             CUSTOMERS 
 
        *    GROUP PROCUREMENT STRATEGY BEGINNING TO DELIVER PRICE 
             AND RANGE BENEFITS 
 
        *    STRONG LEADERSHIP AND NETWORK DEVELOPED AT PROFIT 
             CENTRE LEVEL 
 
                  *    ACQUISITION STRATEGY AGAIN DELIVERING EXCELLENT 
                       OPPORTUNITIES: 
 
 
                 Ø FIVE COMPLETED IN 2017 AND 11 SINCE BECOMING 
                 A PLC IN 2014 
                 Ø GBP10 MILLION CAPITAL RAISE IN MARCH - GBP8.1M 
                 ALREADY INVESTED 
                 Ø CONFIDENT OF FURTHER ACQUISITIVE PROGRESS 
                 IN HY2 WITH BALANCE SHEET STRENGTH TO SUPPORT 
 
        *    STRONG START TO SECOND HALF - CONFIDENT OF ACHIEVING 
             FULL YEAR MARKET EXPECTATIONS 
 
                       Note 1: On 30 March 2017, the Company completed 
                     a GBP10 million cash placing and issued 8,333,333 
                                               shares in consideration 
 
                   "We are pleased to report an encouraging first half 
                      trading performance with turnover increased year 
                    on year by 24.8%, through a mixture of organic and 
               acquisitive growth, and this has continued to reinforce 
                     our position as one of the leading players in the 
                                                 fluid power sector. " 
                               MALCOLM DIAMOND, NON-EXECUTIVE CHAIRMAN 
 
                 "Flowtech remains confident in its ability to develop 
                    a technically based full service Fluid Power group 
                in the UK and internationally. The Group is recognised 
                      as a specialist and resilient business operating 
          in a fragmented market. The development of our multi-channel 
                     strategy creates multiple touch points within the 
                market increasing our overall penetration. In addition 
                      to organic sales growth our approach will create 
                     further revenue generating opportunities through: 
                its investment in people and increased sales resource, 
                    the ongoing development of Exclusive Brand and OEM 
                 product offering, as well as through further earnings 
                                              enhancing acquisitions." 
                                                      SEAN FENNON, CEO 
 
                      "The Group's current underlying performance will 
                deliver another year of solid progress. As a business, 
            we are confident in our strategy, commercial opportunities 
                  and prospects, and with a strong start to the second 
                 half are on track to meet current market expectations 
                                for the year ending 31 December 2017." 
                                                     BRYCE BROOKS, CFO
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