The Board of Flowtech Fluidpower plc LON:FLO has told DirectorsTalk about the following unaudited Trading Update covering the period from 1 January 2017 to the date of this announcement. The financial reporting period covers the first quarter to 31 March 2017.
Group revenue for the first quarter increased by approximately 31.8%. This performance was driven by positive momentum in all business divisions, enhanced by the contribution from our new subsidiaries.
Q1 2017 Q1 2016 Growth
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Revenue GBP'000 GBP'000 %
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Flowtechnology 10,079 9,082 11.0
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Power Motion Control 6,279 4,069 54.3
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Process 1,120 107 947.2
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Group revenue 17,478 13,258 31.8
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Net debt 5,500 13,290
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Our Flowtechnology division increased revenues by 11.1%. This has been driven by year on year organic growth in the base business and by the acquisition of Indequip on 19 February 2016. Despite significant increases in input price for product, gross margins have been maintained due to our flexible pricing model.
Power Motion Control division also increased revenues by 54.3%. Whilst this was substantially driven by the acquisition of HTL in January 2017, which has made a very encouraging start under our ownership, the remaining operations have also performed well in the period.
Our first Process division acquisition was made on 18 March 2016, therefore Q1 revenue for 2016 represents only two weeks trading. Performance in this division also remains very encouraging.
Group gross margin achieved remains in line with market expectations.
