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NEWS RELEASE
Issued on behalf of Flowtech
Fluidpower plc
Immediate Release
Thursday 30 January 2025
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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.
FLOWTECH
FLUIDPOWER PLC
("Flowtech", the "Group" or "the Company")
Our aim is to provide our
customers with power, motion & control solutions, from a single
component to integrated engineering systems, in the most
cost-effective way, harnessing the best global brands &
products, services and engineers in the market.
FULL YEAR TRADING
UPDATE
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"Underlying EBITDA is broadly in line with expectations in a
year focused on controlling the controllables in a difficult
market.
Strong progress has been made implementing our strategic plan
with further operational improvements delivering enhancements to
gross margins, working capital optimisation, service levels, and
operational efficiencies. Group rebranding and restructuring are
complete, and the successful integration of Thorite is well ahead
of our expectations. With much of the business transformation
concluded we have a firm, stable and scalable platform from which
to deliver profitable growth into 2025 and
beyond.
We
are well on track with the development of our new digital platform
to be launched to market in H125 and there is confidence that the
broader strategy and actions taken to improve operational
efficiency within the business will drive strong returns and
improved shareholder value."
Mike England,
CEO
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The Board of Flowtech issues the
following unaudited Trading Update ahead of the Group's 2024 annual
results.
2024 TRADING UPDATE
The Board is reporting that
underlying EBITDA for the year ended 31 December 2024 is expected
to be broadly in line with market expectations. We have also
achieved a significant one-off profit , which will be separately
disclosed, in relation to the Thorite acquisition due to having
purchased assets below fair market value and therefore is not
included in underlying EBITDA.
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Segment revenue:
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FY
2024
Unaudited
£m
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FY
2023
Audited
*
£m
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Change
2024
v
2023
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Great Britain excluding
Thorite
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71.5
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77.4
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-7.6%
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Thorite***
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4.7
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-
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N/A
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Island of Ireland
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21.0
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24.1
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-12.9%
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Benelux
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10.0
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10.6
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-5.5%
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Total Group revenue for the
period
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107.3
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112.1
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-4.3%
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Net debt**
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15.1
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14.7
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0.4
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Notes
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* Approximately £2m of revenue
has been reallocated from GB to Island of Ireland to better reflect
the manner in which revenue streams are now being reported within
the business
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** Excludes IFRS16 related
debt
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***
18-week
period
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Consensus forecasts FY24 prior to this announcement were:
revenue £109m, underlying EBITDA
£6.5m
and underlying operating profit £3.0m
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The well-documented market headwinds
persisted throughout the year, and as a result the Group
experienced a revenue decline of 4.3%. The Thorite acquisition has
been a great success: it is operating profitably, with the initial
capital cost already repaid, and integration has exceeded
expectations providing strong confidence in the stability and
growth of this channel into 2025. Like for like revenue decline was
8.6% as customers reduced volumes, destocked, and delayed project
timelines.
The British Fluid Power Association
(BFPA) has consistently cited market decline of around 10% in
Hydraulics and Pneumatics. As a result, we are pleased with our
relative performance and confident that we have gained market share
in an otherwise difficult year. Our sales pipeline and order book
have continued to strengthen throughout the year, growing with a
number of new exciting orders secured for execution in
2025.
Net debt** increased by £0.4m to
£15.1m at year end (2023: £14.7m). As a board, we remain very
focused on the management of working capital and are comfortable
with the current debt profile of the
business.
The team has worked tirelessly to
improve the operational performance of the business, driving
improved margins through commercial pricing and cost control,
delivering enhanced service levels and on-time deliveries,
strengthening the senior leadership team and optimising all aspects
of the business. With the rebranding and restructuring now
complete, and the new website launch expected in H1, we expect the
improvements made across 2024 to bear fruit this year. We believe
we have a strong, stable, and scalable platform for improved growth
into 2025 and beyond.
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ENQUIRIES:
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Flowtech Fluidpower
plc
Roger McDowell, Chair
Mike England, Chief Executive
Officer
Russell Cash, Chief Financial
Officer
Tel: +44 (0) 1695 52759
Email: info@flowtechfluidpower.com
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Panmure Liberum
(Nominated
Adviser and Joint Broker)
Richard Lindley / Will
King
Tel: +44 (0) 20 3100 2000
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Singer Capital Markets
(Joint broker)
Tom Salvesen, Head of Investment
Banking
James Todd, Associate, Investment
Banking
Tel: +44 (0) 207 496 3000
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TooleyStreet Communications (IR and media
relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
or email: fiona@tooleystreet.com
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EDITORS NOTE:
Flowtech Fluidpower plc
(AIM:FLO), is
the largest supplier of fluid power products, systems and solutions
in the UK, Ireland, and Benelux. As a specialist we have the
expertise and experience our customers need to help them minimise
downtime, optimise performance and maximise the lifespan of
operations. Today, the Company is a strong market leader in a
highly fragmented £30bn European market. We work across virtually
all industry sectors, serving the needs of our customers who are
designing, building, maintaining, and improving industrial plant,
equipment, and operations. To read more about the Group, please
visit: www.flowtechfluidpower.com.
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