Flowtech Fluidpower Plc (LON:FLO) CEO Sean Fennon talks to DirectorsTalk about its half year report. Sean gives an overview of the half year, explains the strategy developments that have been made so far and talks about future developments and possible acquisition in the pipelines.
Flowtech Fluidpower Plc is developing both strength and depth across its product portfolio, customer reach and, following recent acquisitions, it has been able to widen the geographical areas and the industrial fluid power markets it serves. It continues to develop a theme based on being a “specialist” rather than a “generalist” and the margin opportunities this allows. Low global confidence and economic uncertainty is influencing many industrial sectors, particularly in the UK. We do believe this hiatus to be short term, and remain confident for the future. As we previously indicated, the Group operates in a “live” pricing environment and it is increasingly certain that input prices for many core product lines will increase in HY2 and early 2017 on the back of the sterling downgrade. The Board is confident that we will be able to maintain overall margins by a mixture of selling price increases and supplier support. The fluid power sector as a whole has come to expect a heavy bias towards US Dollar and Euro denominated supply lines and the macro economic situation is well understood by the sector’s decision makers.