Hydraulics group anticipates return to profitable trading
Flowtech Fluidpower, the Skelmersdale-based hydraulics specialist, said today that it should return to profitable trading as conditions improve in regard to the coronavirus pandemic.
The business is holding its annual general meeting this morning, and in an update to the stock exchange said the following statement will be read out on behalf of the chairman.
“I am delighted with the manner in which the management team, and all our colleagues within our business, have responded to the challenges presented by COVID-19, particularly in ensuring the safety of our employees and the continuity of supply to our customers.
“It is pleasing to see that our trading and cash performance have proven to be as resilient as we had anticipated.
“Prior to the impact of COVID-19 the business had been performing marginally ahead of our expectations in 2020.
“The last part of March and the whole of April saw our revenues reduce by approximately 40%.
“The impact was approximately 30% in May and we are confident this improving trend will continue.
“The cost reduction measures we had already taken, and those we took due to the outbreak, have led to an approximate adjusted EBITDA breakeven position in April and May.
“We now look forward to a return to profitable trading as conditions improve.
“Our cash position remains good; we continue to operate with significant headroom to our aggregate £25m banking facilities.
“We look forward to providing our next trading update for Q2 in July.”
Last month the company announced a change in its chair, which was trailed at the end of March.
It said non-executive director and executive chairman designate, Bill Wilson, will step down as a director of the company with effect from the conclusion of today’s AGM.
As a result, Roger McDowell will become non-executive chairman from August 1.
