Flowtech Fluidpower sustains strong gross margin

Flowtech Fluidpower plc (LON:FLO), a leading specialist supplier of technical fluid power components and services has announced its 2021 half-year report for the six months ended 30 June 2021.

“We are pleased that current trading continues to support our ‘return to growth’ agenda and we have made meaningful progress with each of our strategic goals. Volumes are recovering, margins are stable, and we are proactively addressing the short-term headwinds associated with problematic global supply chains.”

Bryce Brooks, Chief Executive Officer

  • Revenue much improved against comparative period but 7% down on a more representative H1 2019.
  • Sustained strong gross margin.
  • Overheads broadly flat, with savings achieved from restructuring activities funding new growth initiatives, such as digital agenda.
  • Operating profit improvement directly linked to revenue recovery (H1 2020 result of £0.9m benefitted from £0.9m of furlough support).
  • Working Capital increased by £4.7m in H1 2021, with Net Debt** up £1.6m from 2020 year-end position. This is in line with our planning and expectations and linked to increased activity levels, as well as our investment in inventory to combat global supply chain challenges.
  • Results now reported on a 3-segment basis.

FINANCIAL HIGHLIGHTS

 Half year ended30 June 2021unauditedHalf year ended30 June 2020unauditedYear ended31 December 2020Audited
·      Revenue£55.3m£46.6m£95.1m
·      Gross profit %35.4%35.1%34.3%
·      Operating profit / (loss)£2.7m£(0.5m)£(1.4)m
·      Underlying operating profit*£3.4m£0.9m£1.1m
·      Profit / (loss) before tax£2.3m£(0.9)m£(2.1)m
·      Earnings / (loss) per share (basic)3.02p(1.37) p(3.54) p
·      Net debt**£13.2m£14.5m£11.6m

*Underlying operating result is continuing operations’ operating profit before separately disclosed items (note 3).

**Net Debt includes VAT linked to Government COVID-19 related support schemes – H1 2021 figure of £0.8m; H1 2020 figure of £1.6m. Net Debt excludes  IFRS16 related debt

RESULTS PRESENTATIONS:

The Company is to hold a presentation of results for financial analysts at 9.00am (BST) today (7 September 2021), details of which can be obtained by contacting either the Company or advisers as detailed below.

In addition, tomorrow (8 September 2021) at 08.30am (BST) , CEO Bryce Brooks and CFO Russell Cash will provide a live presentation via the Investor Meet Company platform (IMC).  This presentation is open to all existing and potential shareholders.  Investors who already follow Flowtech Fluidpower plc on the IMC platform will automatically be invited.  Questions can be submitted pre-event via your Investor Meet Company dashboard up until 3.00pm the day before the meeting or at any time during the live presentation.  Investors can sign up to Investor Meet Company for free and add to meet Flowtech Fluidpower plc via:

https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor
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