“Group organic growth and acquisition strategy underpins the platform for future development”
2017 HALF-YEAR REPORT FOR THE SIX MONTHSED 30 JUNE 2017
HY2017 HY2016 GROWTH
30.6.17 30.6.16 %
FINANCIAL HIGHLIGHTS UNAUDITED UNAUDITED
================================================= =========== =========== =======
* REVENUE GBP34.173m GBP27.387m 24.8%
* UNDERLYING OPERATING RESULT GBP4.504m GBP4.059m 11.0%
* OPERATING PROFIT GBP3.392m GBP3.290m 3.1%
* HALF-YEAR DIVID 1.93p 1.84p 5.0%
* EARNINGS PER SHARE (basic) (note 1) 5.22p 5.91p
GBP8.4m GBP14.1m
* NET DEBT (note 1)
OPERATIONAL HIGHLIGHTS
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* REVENUE REFLECTS BOTH GOOD ORGANIC AND ACQUISITIVE
GROWTH ACROSS ALL DIVISIONS
* INCREASING TECHNICAL DEPTH ACROSS A GREATER RANGE OF
CUSTOMERS
* GROUP PROCUREMENT STRATEGY BEGINNING TO DELIVER PRICE
AND RANGE BENEFITS
* STRONG LEADERSHIP AND NETWORK DEVELOPED AT PROFIT
CENTRE LEVEL
* ACQUISITION STRATEGY AGAIN DELIVERING EXCELLENT
OPPORTUNITIES:
Ø FIVE COMPLETED IN 2017 AND 11 SINCE BECOMING
A PLC IN 2014
Ø GBP10 MILLION CAPITAL RAISE IN MARCH - GBP8.1M
ALREADY INVESTED
Ø CONFIDENT OF FURTHER ACQUISITIVE PROGRESS
IN HY2 WITH BALANCE SHEET STRENGTH TO SUPPORT
* STRONG START TO SECOND HALF - CONFIDENT OF ACHIEVING
FULL YEAR MARKET EXPECTATIONS
Note 1: On 30 March 2017, the Company completed
a GBP10 million cash placing and issued 8,333,333
shares in consideration
"We are pleased to report an encouraging first half
trading performance with turnover increased year
on year by 24.8%, through a mixture of organic and
acquisitive growth, and this has continued to reinforce
our position as one of the leading players in the
fluid power sector. "
MALCOLM DIAMOND, NON-EXECUTIVE CHAIRMAN
"Flowtech remains confident in its ability to develop
a technically based full service Fluid Power group
in the UK and internationally. The Group is recognised
as a specialist and resilient business operating
in a fragmented market. The development of our multi-channel
strategy creates multiple touch points within the
market increasing our overall penetration. In addition
to organic sales growth our approach will create
further revenue generating opportunities through:
its investment in people and increased sales resource,
the ongoing development of Exclusive Brand and OEM
product offering, as well as through further earnings
enhancing acquisitions."
SEAN FENNON, CEO
"The Group's current underlying performance will
deliver another year of solid progress. As a business,
we are confident in our strategy, commercial opportunities
and prospects, and with a strong start to the second
half are on track to meet current market expectations
for the year ending 31 December 2017."
BRYCE BROOKS, CFO
