Sean Fennon CEO Flowtech Fluidpower plc LON:FLO on results “2015 and early 2016 has been an exciting period of positive development around the Group encompassing the launching of over 6,300 new products along with broadened categories, four important acquisitions, strategic structural refinements for improved operating efficiencies and new data processing resources – all of which support and enhance market leading customer service levels going forward.”
FINANCIAL HIGHLIGHTS 2015 2014
GBP44.8m GBP37.79m
* 19% GROWTH IN GROUP REVENUE*
GBP5.49m GBP3.33m
* 65% UPLIFT IN GROUP OPERATING PROFIT*
* EARNINGS PER SHARE* 9.85p 0.44p
* 5% INCREASE IN DIVIDEND: 1.75p 1.67p
3.50p 3.33p
5.25p 5.00p
Ø Half year paid
Ø Proposed final dividend
Ø Total for the year
GBP7.25m GBP3.5m
* STRONG CASH GENERATION
GBP9.0m GBP6.7m
* NET DEBT
* ACQUISITIONS:
Ø Two during the year forming a 'Power Motion Control' division
Ø Post year end, two further acquisitions and the creation
of the 'Process' division
* There continues to be significant opportunity to
achieve organic growth through a wide range of
revenue enhancing development programmes linked to
our focused acquisition strategy.
---------------------------------------------------------------------------------------
Adjusted for the gain on settlement of debt (GBP29.0m) and calculated using the proforma weighted average share capital of 41,178,451, calculated on the basis that the shares issued at IPO had been in existence for the entire year
* All results relate to continuing operations
“The original strategy presented at IPO in 2014, was to deliver profitable growth while maintaining consistent high levels of service to our diverse customer base – this remains our core philosophy. There continues to be significant opportunity to achieve organic growth through a wide range of revenue enhancing development programmes linked to our focused acquisition strategy.”
“Our strategy has assisted us to further increase market penetration and positioning. In 2014 when we acquired Primary Fluid Power we were able to establish a firm footing in the distribution of technically advanced hydraulic components and power packs. During 2015, by adding Albroco and Nelson Hydraulics, we had the critical mass to form a ‘Power Motion Control’ division (PMC) thus giving us an overall advantage in the marketplace through the creation of an OEM-focused hydraulic specialist, backed by a strong technical offering, across a wide and varied customer base.”
“Following the year end, we were very pleased to add Indequip in February and Hydravalve in March to our portfolio, the latter establishing a new “Process” division. Both will remain commercially independent, but now as part of the Flowtech Group they will be able to take advantage of the wider product offer, technical backup and marketing resources available.”
“When our 2015 results are coupled with the more challenging conditions experienced across the majority of industrial sectors, we believe they give further evidence of the resilience of our technical distribution model, both in underlying profitability and crucially in cash generation. The past twelve months have seen us continue to develop our multi-channel strategy with four acquisitions expanding our product and infrastructure resources. In addition we also have confidence that the ground work in identifying further targets, as well as building the team capable of successfully integrating them, will continue to bear fruit over 2016 and beyond. From the core Flowtechnology operation that we brought to market in 2014, we are now able to use each addition to our “family” of companies by exploiting the synergy gains achieved, both commercially and operationally, and this underpins everything that we do. A live example of this is our Data Repository project. We therefore enter our third year as a public company with expanding confidence about what the Group can achieve for its staff and shareholders.”
Sean Fennon, CEO
Flowtech Fluidpower plc
