Supply chain disruption and infrastructure delays hit Flowtech Fluidpower
Supply chain disruption from the Middle East conflict and delays to major bridge infrastructure projects have squeezed margins at Flowtech Fluidpower despite strong revenue growth in the first half.
The Wilmslow-based hydraulics and pneumatics distributor reported revenue up 23.8% to £70.4m for the six months to 30 June, with like-for-like sales rising 13.3%. But gross margin fell 220 basis points to 37% as the company absorbed inflationary pressure and lower-margin sales mix from recent acquisitions.
Underlying EBITDA rose £1m year-on-year to £4.5m.
Mike England, chief executive, said: “We have acted quickly to mitigate supply-chain disruption and inflationary pressure from the Middle East conflict, protecting product availability, customer service and managing gross margins. Our self-help growth initiatives have strengthened the H2 sales pipeline and order book, with significant profit and cash contribution expected from the two major bridge contracts.”
The company’s two Irish bridge infrastructure projects, with a combined contract value of approximately €9m, are now weighted more heavily towards the second half after changes to a local authority’s timetable delayed first-half activity.
Recent acquisitions are performing ahead of plan. Q Plus, acquired in February for €5.6m, has doubled the scale of Flowtech’s Benelux operations and posted record monthly performances in March and June. Helipebs, whose business and assets were acquired in June for £0.4m, has secured more than £2.5m of new orders since completion.
The sales order book at 30 June was more than 20% higher than at the start of 2026.
The UK eCommerce platform launched in August 2025 has driven new customer acquisition, with active customers up 7% and new accounts opened in 2026 running 41% above the prior year. The platform was launched in Ireland in August, with Benelux rollout planned for September.
Net debt stood at £16.4m at the half year, down from £18.5m a year earlier, leaving £8.6m of headroom within the group’s £25m banking facilities.
The board said it expects a stronger second-half performance with higher profitability and significant cash generation from the bridge projects and seasonal working capital unwind.
