Flowtech Fluidpower PLC, a specialist technical provider of fluid power and motion control products and engineering services, has released a trading update for the first half of 2024. The company reported a profit performance in line with expectations, with improvements in gross margins, cost control, and overall service levels. However, the challenging market conditions led to a 5.5% reduction in revenue compared to the same period in 2023. Despite this, there was a 4.9% growth compared to the second half of the previous year, driven by the continued progress in executing the Performance Improvement Plan.
The company's net debt as of June 30, 2024, was £13.5 million, a reduction of £1.9 million from the previous year. Flowtech Fluidpower PLC continues to focus on working capital efficiency, and further debt reduction is expected in the second half of the year. The market conditions proved to be more challenging than anticipated across all segments, leading to extended project cycles and reduced project-based expenditure. However, the company remains confident in its Performance Improvement Plan and growth strategy.
The new leadership team has implemented brand and organizational changes, with operational basics now embedded and a significant improvement in service levels and commercial excellence. The Group's sales pipeline and forward order book have begun to strengthen, aided by the refocusing of sales and marketing efforts around the 'one Flowtech' value proposition. Flowtech Fluidpower PLC plans to announce its unaudited interim results for the six months ended June 30, 2024, on September 10, 2024. The company will also hold a live presentation hosted by CEO Mike England and CFO Russell Cash on the Investor Meet Company platform.
Market expectations compiled by the company prior to this announcement for the year ending December 31, 2024, were Group revenue of £115 million, underlying EBITDA of £11.0 million, and net debt of £11.0 million (excluding IFRS16 lease liabilities). For further information, the company's website will provide access to the results, and registration for the live presentation is available through the provided link.