Flowtech Fluidpower's revenue jumps 54% after acquisitions

Flowtech Fluidpower’s shares were boosted on Monday after its Power Motion Control division drove a jump in total revenue up to the third quarter.

For the nine months preceding 30 September, the specialist technical fluid power products supplier enjoyed a 54% increase in total revenue to £83.7m, of which 6.7% was organic with the balance coming from operations acquired in the reporting periods, following a 98% jump in PMC revenue.

The company’s other two divisions, Flowtechnology and Process, recorded respective revenue increases of 23% and 33% over the same period.

“Trading from the profit centres acquired as part of the Balu acquisition in March, being Beaumanor Fluidpower and Derek Lane, continues to be in line with the plan outlined at the time of the acquisition and the outlook for both as part of the group's efforts to extract synergy benefits remains good,” said a statement from the AIM traded company.

Of the two Balu subsidiaries, Beaumanor is an importer and distributor of fluid power equipment and Derek Lane is a supplier of fluid power products and engineered solutions.

“Buoyant” trading conditions from the first half of the year have now given way to steadier growth, which is expected to continue into 2019 according to Flowtech.

Net debt at 30 September was at £17.6m, up from £12.1m at the same point last year.

“The group is expected to deliver another year of positive progress. Whilst the scope for significant growth by acquisitive means remains compelling, our short-term focus is firmly on management actions and investment that can deliver sustained operational improvements, procurement benefits and wider group synergies,” said the company.

Flowtech Fluidpower’s shares were up 10.96% at 126.50p at 0829 BST.