Flowtech Fluidpower “Great organic sales growth”

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

 
 FINANCIAL HIGHLIGHTS                     HY2016         HY2015         FY2015      GROWTH 
                                          30.6.16        30.6.15       31.12.15        % 
                                         UNAUDITED      UNAUDITED       AUDITED 
====================================  =============  =============  =============  ======== 
 
         *    REVENUE: 
 
 
        -Flowtechnology                  GBP18.093m     GBP17.488m     GBP33.168m      +3% 
        -Power Motion Control (PMC)      GBP8.268m      GBP3.935m      GBP11.680m     +110% 
        -Process                         GBP1.026m          -              -            - 
        GROUP TOTAL REVENUE              GBP27.387m     GBP21.423m     GBP44.848m     +28% 
------------------------------------  -------------  -------------  -------------  -------- 
 
   *    GROSS PROFIT                    GBP9.551m      GBP7.203m      GBP15.345m     +33% 
 
   *    UNDERLYING OPERATING PROFIT     GBP4.059m      GBP3.404m      GBP6.868m      +19% 
 
   *    OPERATING PROFIT                GBP3.290m      GBP3.012m      GBP5.491m       +9% 
 
   *    HALF-YEAR DIVID                1.84p          1.75p                        +5% 
 
   *    EARNINGS PER SHARE (basic)        5.91p          5.62p                        +5% 
                                         GBP14.1m       GBP7.5m        GBP9.0m 
   *    NET DEBT 
 
 
 OPERATIONAL HIGHLIGHTS 
=========================================================================== 
 
       *    SOLID FIRST HALF PERFORMANCE IN CHALLENGING MARKET 
            CONDITIONS 
 
        *    STRONG MOMENTUM WITHIN THE RECENTLY ESTABLISHED PMC 
             AND PROCESS DIVISIONS 
 *    GROSS MARGINS REMAIN RESILIENT ACROSS ALL DIVISIONS 
 
 
                *    ACQUISITION STRATEGY DELIVERING EXCELLENT 
                     OPPORTUNITIES TO ACQUIRE NICHE BUSINESSES WITH 
                     SPECIALIST SECTOR FOCUS: 
 
 
               - THREE COMPLETED IN 2016 AND SIX SINCE BECOMING A PLC 
               - ALL INTEGRATIONS ON TARGET 
               - CONFIDENT OF FURTHER PROGRESS BEFORE THE OF THE YEAR 
 
                *    EXPANDED CUSTOMER PROFILE INTO NEW USER MARKETS 
                     including: 
 
 
               - AGRICULTURE, RAILWAY, ENVIRONMENTAL, WATER, PHARMACEUTICAL 
 
       *    STRONG FOCUS ON INVESTING IN GROUP RESOURCES FOR THE 
            FUTURE 
 
       *    NET DEBT COMFORTABLY WITHIN AVAILABLE FACILITIES AND 
            COVENANTS 

“Flowtech remains confident in its ability to execute its proven strategy to develop in its technically specialised sectors in the UK and internationally. The Company is recognised as a skilled and resilient business operating in a fragmented fluid power distribution market. In addition to organic sales growth there remains a number of opportunities to further enhance Flowtech’s multi-channel approach through; its investment in people and increased sales resource, the ongoing development of Exclusive Brand and OEM product offering, as well as through earnings enhancing acquisitions.”