All Flowtech divisions see revenue growth as acquisitions set to 'bear fruit'

Specialist technical fluid power products supplier Flowtech Fluidpower on Tuesday reported unaudited revenue growth driven by a strong performance from its Power Motion Control (PMC) division.

For the six months leading to 30 June, the company saw total group revenue grow 66% compared with the same period the previous year, up to £56.5m, while PMC revenues grew 129% to £29m over the same period.

The company’s Flowtechnology and Process divisions also recorded growth of 21% and 91% to £23.5m and £4m respectively.

“General conditions in our main market of the UK remain positive with recent reported growth from our industry body, BFPA of 6.7%, most of this advance being driven by product price increases across the sector. Similar conditions are being experienced in our European operations,” Flowtech said.

It added that commercial benefit had been created by the interaction of the wider industry offer created via a Profit Centre network in the UK and Ireland, with gross margins remaining in line with expectations.

The company is also set to benefit from a wider market share in the maintenance, repair and operation market after the acquisition of Beaumanor which will begin to “bear fruit” in 2019.

Net debt of £17.5m at 30 June was “slightly higher” than envisaged and was primarily due to higher stocking levels and longer lead times.

Moving forward, the company will use 2018 as an opportunity to consolidate the processes and systems in place from new acquisitions and start to exploit synergy opportunities as well as continue to target organic growth.

Flowtech Fluidpower’s shares were up 7.14% at 187.49p at 1006 BST.