Flowtech Fluidpower PLC has issued a trading update for the year ended 31 December 2023. The company's focus is on providing power, motion, and control solutions, from single components to integrated engineering systems, in a cost-effective manner, utilizing global brands, products, services, and engineers. The Board reported that the underlying profit for 2023 is expected to be in line with market expectations. The Group experienced a modest decline in revenue of 2.2%, with weaker performance in Great Britain, particularly in product distribution and engineering services. However, the business in Ireland showed strong growth. The company's net debt reduced to £14.7m by year-end, exceeding market expectations.
The company welcomed Mike England as the new CEO in 2023, and the Board expressed confidence in the actions taken by him and his team to drive strong returns in shareholder value. Despite the subdued market, the company has continued to invest in the performance improvement plan and is cautious about current year growth. The Board is pleased with the advancements made against the performance improvement plan and refreshed strategy introduced by the new CEO and his strengthened leadership team. The company's intention is to build on the success in Ireland and aim for similar growth in other regions in 2024.
The company's net debt reduced to £14.7m by year-end, exceeding market expectations. This reduction largely resulted from an investment in fast-moving inventory towards the year-end. The company continues to focus on inventory reduction and improving inventory turnover. Including IFRS16, year-end net debt was £20.3m, representing a £2.4m reduction over FY23. The company operates across three regions in Great Britain, the Island of Ireland, and The Benelux, as well as serving customers around the world. Flowtech joined the AIM market in 2014. The company's purpose is to provide power and motion solutions, keeping the industry moving and creating a more sustainable world. Their vision is to be the trusted adviser and solutions partner in a world of motion. They add value by being a technical specialist and trusted adviser to Maintenance, Repair & Operations (MRO) customers, Original Equipment Manufacturers (OEMs), and through their long-standing Distributor Partner channels. They provide essential technical products combined with a broad range of specialist engineering services across the world of Power, Motion & Control.