Profits nudging towards £10m for fluid power specialist

WEST Lancashire-based technical fluid power products supplier Flowtech Fluidpower is reporting a strong first half year, bolstered by a string of acquisitions.

Revenue to June 30 climbed 28% to £27.387m (H1 2015: £21.423m) and gross profit grew 33% to £9.551m (H1 2015: £7.203m).

The listed Skelmersdale company’s underlying operating profit rose 19% to £4.059m (H1 2015: £3.404m).

Flowtech announced a heal-year dividend of 1.84p up 5% on 2015’s figure of 1.75p.
Earnings per share were 5.91p, compared to 5.62 in H1 2015.

The company’s net rose from £7.1m in H1 2015 to the current level of £14.1m.

Flowtech said it had enjoyed a solid performance in challenging market conditions with strong momentum within its recently established PMC and process divisions.

Its acquisition strategy was delivering excellent opportunities to acquire niche businesses with specialist sector focus, it said.

Meanwhile, it was expanding into new markets, including agriculture, railway, environmental, water, and pharmaceutical.

Chief executive Sean Fennon said: “Flowtech remains confident in its ability to execute its proven strategy to develop in its technically specialised sectors in the UK and internationally. 

“The company is recognised as a skilled and resilient business operating in a fragmented fluid power distribution market.

“In addition to organic sales growth there remains a number of opportunities to further enhance Flowtech’s multi-channel approach through; its investment in people and increased sales resource, the ongoing development of exclusive brand and OEM product offering, as well as through earnings enhancing acquisitions.”