Acquisition boosts revenues for Flowtech Fluidpower
Specialist technical fluid power products supplier Flowtech Fluidpower updated the market on its trading in the third quarter on Tuesday, reporting a 4.3% improvement in total group revenues for the year-to-date to £87.3m.
The AIM-traded firm said revenues in its components division was up 5.8% year-on-year in the nine month period, to £75m, while its services unit saw revenue decline 3.8% to £12.3m.
It said its net debt stood at £19.1m at period end, widening from £17.6m.
“Since reporting our first half results in September, the business has proved resilient in difficult market conditions,” the Flowtech board said in its statement, adding that it saw organic growth of 1.8% for the year to date, with the balance coming from the full period impact of the Balu businesses, which were acquired in March 2018.
Gross margins and costs remained consistent with previous reports, the board added.
“Our short-term focus is firmly on the delivery of sustained operational improvements, procurement benefits and wider group synergies,” the board explained.
“Detailed plans to achieve these savings are currently being finalised with the main phase of implementation beginning in early 2020.”
Flowtech said it was confident that its actions, combined with its continued focus on working capital management, would deliver improved profit and cash performance.
“Notwithstanding the current difficult market conditions, the board remains confident in the group's strategy and the outlook for future growth remains positive.”
As it had previously announced, the company said its half-year dividend of 2.13p per share would be paid on 29 October, to those members on the register at the close of business on 4 October.