Flowtech Fluidpower still performing below pre-pandemic levels

Specialist technical fluid power products supplier Flowtech Fluidpower updated the market on its first-half performance on Tuesday, reporting an 18.9% improvement in revenue year-on-year, to £55.3m, although that was still a 7.2% decline on the 2019 result, pre-pandemic.

The AIM-traded firm said revenue in its Flowtech division was up 17.6% year-on-year in the six months ended 30 June, to £26.7m, and down 2.9% over the pre-Covid-19 figure.

Fluidpower group solutions revenue was up 22.6% on 2020 and down 10.7% from 2019 at £20.1m, and Fluidpower group services revenue rose 14.9% over 2020 and lost 11.5% from 2019 to £8.5m.

Net debt at period end stood at £13.3m, down from £14.6m a year earlier and £18.8m two years prior, but up from the £11.6m figure it reported at the end of December.

Flowtech Fluidpower said its revenue streams hbad increased “significantly”, although were yet to fully recover to pre-pandemic levels.

It said it had implemented price increases across its businesses to reflect both uplifts levied by some of its suppliers, and higher carriage costs following Brexit.

The company had also invested in plans underway to bring its Flowtech business to market under one brand, our e-business and digital agenda, as well as a “refreshed focus” on improving the efficiency of its logistics centres and supply chain management operations.

Those factors combined to a position where at the end of the half-year period, the board said the company’s profitability was “slightly in excess” of its expectations.

Flowtech Fluidpower said it was continuing to focus on all areas of working capital management to ensure its cash position remained well-controlled.

Its current trading remained “encouraging”, but the directors said it was difficult to assess both the likely short-term demand from its customers and any ongoing and widely-experienced disruption to its supply chain.

The firm said it would continue to invest in its key areas, adding that overall, it expected its full-year result to be in line with market expectations.

“We continue to make good progress with all aspects of the implementation of our long-term strategy and remain focussed on addressing the short-term challenges presented by supply chain issues and inflationary pressures,” the board said in its statement.

Flowtech Fluidpower said it would announce its half-year results for the period ended 30 June on 7 September.

At 1114 BST, shares in Flowtech Fluidpower were down 2.35% at 124.75p.