Specialist manufacturer prepares for exciting future after successful year
Profits rose at specialist manufacturing firm Flowtech Fluidpower in the face of tough market conditions and the continuing uncertainty surrounding Brexit.
The Skelmersdale based firm published its final results this morning and announced profits had increased from £6.14m to £6.61m over the last 12 months. During the same period group revenue has increased from £53.8m to £78.3m.
Meanwhile, underlying operating profit increased from £7.45m to £9.08m largely as a result of the increase in revenue of 46%.
Founded as Flowtech in 1983, the Flowtech Group is the UK’s leading specialist supplier of technical fluid power products. The business joined AIM in 2014.
Chairman Malcom Diamond said: “Our 2017 result reaffirms the board’s confidence in our strategy as we continue to expand and develop our capabilities both within the UK and internationally.
“Despite a challenging outlook for the UK economy, in 2017 the fluid power market experienced a significant turnaround following two years of soft trading; presenting a period of opportunity, strengthened by European demand.
“The group achieved 46% growth in total revenue to £78.3m, 8% of which came from organic growth, 38% from acquisitions.
“This year there was a major refurbishment and redesign at the Skelmersdale site expanding capacity and streamlining the logistics operation will provide considerable scope for the profitable integration of future acquisitions.”
He added: “The benefits of our acquisition strategy are apparent in the financial performance of the group, with six new companies acquired throughout the year, supported by the successful capital raising in March 2017.
“This acquisition activity has strengthened our position with important pan-European and global branded suppliers, enhanced our technical strength, and reinforced our position in our current core geographies of UK, Ireland, and Benelux.
“In addition to expanding our process division, we have significantly expanded our power motion control operations, offering additional design, build and component supply into new market sectors including; mobile, rail, and aerospace.
“It is clear that the group is now entering an exciting stage of development as its ambitions for growth increasingly improve its market share within the UK and the Republic of Ireland, whilst being vigilant for opportunities to spread further into Europe, having managed the Benelux business into a healthy level of consistent performance.
“Brexit consequences remain a relative unknown at this time, whilst forex movements and UK import prices have been well managed to date by our highly experienced and focused commercial management teams.
“Finally, it was very pleasing to be given such valuable and widespread support for both the Board and the Executive Management team during the recent successful process to raise £11 million (before costs) in new capital for the Group in March and April of this current 2018 period.
“This has enabled us to complete the acquisition of our largest UK catalogue-based competitor Beaumanor, along with its sister business Derek Lane & Co.”
