TIDMFLO
RNS Number : 8904V
Flowtech Fluidpower PLC
12 April 2023
NEWS RELEASE
Immediate Release
Wednesday,12 April 2023
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as amended by the Market
Abuse (Amendment) (EU Exit) Regulations 2019. Upon the publication
of this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
FLOWTECH FLUIDPOWER PLC
("Flowtech", the "Group" or "the Company")
Specialist full-service supplier of technical fluid power
products and services
Unaudited Preliminary Results
For the year ended 31 December 2022
FY2022 Financial & Operational Highlights
* Revenue of GBP114.8m (2021: GBP109.1m), GBP5.7m
(5.2%) up on 2021
* GBP8.6m underlying operating profit * (2021: GBP5.7m),
an improvement of GBP2.9m as the business continued
its recovery from the COVID-19 pandemic
* GBP11.6m underlying EBITDA (+) (2021: GBP8.4m), an
improvement of GBP3.2m
* Measures taken to manage the cost base, in particular
a significant reduction in headcount by the end of
the year, has reduced underlying operating
overheads** by GBP0.4m (1.3%) in an environment of
significant inflationary pressures
* Significantly improved performance by the Services
segment with underlying operating profit of GBP1.8m
(2021: -GBP0.1m)
* Managed inventory levels (GBP1.0m increase in 2022)
to mitigate the impact of supply chain uncertainties
and satisfy customer demand for core products. Now
reducing (GBP3.2m decrease in H2 2022) with more
predictable supply chains
* Separately disclosed items of GBP13.0m includes
GBP10.1m impairment of goodwill (see note 8), GBP1.4m
restructuring costs largely relating to the exit from
the Leicester Logistics Centre and GBP0.9m
amortisation of intangibles
* After taking account of the separately disclosed
items the loss before tax was GBP5.6m
* Looking forward to 2023 being a year of further
improvements, with particular focus on inventory
management, debt reduction and cash generation.
(*) Underlying operating profit is used as an alternative performance
measure to assess the trading performance of the business and is operating
profit before separately disclosed items which are amortisation and
impairment of acquired intangibles, impairment of goodwill, share based
payments, and restructuring costs.
(+) Underlying EBITDA is underlying operating profit prior to depreciation
charges and website amortisation.
(**) Underlying operating overheads is the total of distribution costs
and administrative expenses before separately disclosed items.
"We have entered 2023 with much of the strategic building blocks
in place after an array of challenges over the past three years,
and we will remain focused on completing the remaining actions of
our strategic plan. With global supply chains now more consistent,
we can reduce inventories to match our needs and return to
generating strong cashflows to support our investment activities,
whilst exploiting our new digital capabilities".
Roger McDowell, Non-Executive Chair
" 2022 saw the completion of many of the key changes that we
defined in our 2020 strategy review and in 2023 we will continue to
pursue all remaining elements with vigour. With supply chains now
more predictable, and at both sector and geographical level demand
remaining broadly stable, we are confident that all the major
strategy decisions we have made will create additional shareholder
value, and will quickly feed through into strong cash generation
available for further investment to drive shareholder value".
Bryce Brooks, CEO
The Company will be holding a 'live' presentation which will be
hosted by CEO Bryce Brooks, and CFO Russell Cash via the Investor
Meet Company platform at 10.00am on Monday,17 April 2023:
https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor
ENQUIRIES :
-----------------------------------------------------
Flowtech Fluidpower plc
Roger McDowell, Chair
Bryce Brooks, Chief Executive
Russell Cash, Chief Financial Officer
Tel: +44 (0) 1695 52759
Email: info@flowtechfluidpower.com
Liberum (Nominated adviser and Sole Broker)
Richard Lindley / Ben Cryer / Will King
Tel: +44 (0) 20 3100 2000
TooleyStreet Communications (IR and media relations)
Fiona Tooley
Tel: +44 (0) 7785 703523
or email : fiona@tooleystreet.com
Statement from the Chair
Introduction
2022 presented certain challenges, with the uppermost being the
significant inflationary pressures impacting all aspects of our
economy and exacerbated by impacts of the conflict in Ukraine. We
have therefore maintained our focus on improving gross margins with
the 42bps increase achieved in the year pleasing to note, and
driving productivity wherever we can. At the same time, we are
continuing to reinforce overall business resilience to ensure we
can adapt more quickly to the changing demands of our marketplace
and manage the Group's response to our risk environment with
growing maturity.
Review of 2022
In each of our operating segments, we have responded to the
inflationary pressures on our cost base whilst benefiting through
the effect on inventory values. Group gross margin has been
slightly enhanced and underlying costs reduced through structural
change in facilities and productivity. That said, at segment level
we have seen differing outcomes compared to our initial
expectations.
Implemented at the very start of 2022, the main objectives of
the consolidation work in the Flowtech division were achieved, both
commercially and operationally. Nevertheless, whilst accepting that
there may be short term risk to the customer experience whilst
managing an extensive change process, it was disappointing that
financial performance took a step back. External assessment has
indicated that the general markets in which the division operates
have not been helpful, but our analysis accepts that improvements
can be made. With the ability to now ensure all aspects of the
change become the "new normal", our focus is on ensuring this
clearly significant group asset returns to growth, particularly
with the enhancements from our digital investment.
In a different vein, for the Fluidpower Group - covering our
Solutions and Services segments - we have been able to take
advantage of some of the tailwinds in the hydraulics sector and
give early proof of the benefits from our structural work
undertaken in 2020 and 2021. For example, in Ireland the Nelson
Hi-Power operation formed in 2021 from the combination of two
acquired businesses, Nelson and Hi-Power, have used their
complementary strengths to create a single market approach with
financial performance ahead of our initial expectations. Also,
after its creation in 2019, our Services operation has turned its
opening losses into the profitable position more in line with the
Board's expectations. Whilst it remains a "work in progress", it
gives confidence that our belief in its value to the Group as a
coordinated entity can translate into financial gain.
We have continued to make good progress with the main framework
of both our ESG and risk management agenda, with particular focus
on employee related issues. I am particularly proud our new
Learning & Development plan has been established, with
technical training via enhanced apprenticeship initiatives and our
next generation of leaders accessing "The Accelerate Programme" for
the first time. Investing in our people will bring benefits in the
medium and long-term, and ensure we retain and reward our most
progressive employees. Across the Group we are engendering an
approach to Health & Safety management, including mental
wellbeing, that encompasses all the positive aspects of modern
ideals to this important task, with building culture at its heart.
This is both the right thing to do but is increasingly an essential
part of our relationship with major customers and suppliers and is
also therefore creating an edge over our traditional
competitors.
It is disappointing to report a non-cash GBP10.1m impairment
against the carrying value of goodwill which has been significantly
influenced by the sizeable increase in discount rates. Within the
Flowtech UK business this was also due to the reduced performance,
albeit correlated to trends as reported by the British Fluid Power
Distributors Association. If last year's discount rates had been
applied this year the impairment would have reduced to GBP2.0m and
relate solely to one business unit, Orange County.
Strategic progress
Since my last report, it has been another year of solid progress
with many of the key elements of our strategic plan, with detail
provided in the reports of the Executive team. Whilst it has been
disappointing that the introduction of our new web capabilities was
delayed, the lessons we have learned through the process will be
invaluable and will help guide our next steps as we seek to enhance
functionality to drive up conversion rates, and take advantage as
SEO rankings gradually improve. We are confident we will have a
class leading offering, with a growing influence on our
profitability, also backed up by a more progressive "data-driven"
approach than we have historically been able to use in business
development.
With regard to the simplification of our commercial structure,
Flowtech is now complete and Solutions and Services are
implementing the next steps to create a single "Fluidpower Group"
trading style that will further unlock synergies to add to the
strong financial performance already seen in both segments. After
the lengthy change process undertaken, we see it as essential that
the customer centric agenda is now reinforced.
We have been able to gradually reduce headcount by approaching
10% over recent months, with the continued consolidation of
warehouse activities into our Skelmersdale campus a highlight, now
added to by our new Engineering Modification Centre, with both
providing a sound base for managing future growth.
Dividend
It has been pleasing to note that cash generation has improved,
particularly in the second half of the year in a more stable supply
chain environment, and my expectation is that this will continue in
the first half of 2023, the Board will be recommending a dividend
of 2.1p per ordinary share in respect of 2022 at the AGM in June
2023. Subject to shareholder approval the dividend will be paid on
21 July 2023 to Members on the register as at 23 June 2023 with an
ex-dividend date of 22 June 2023.
Board changes
In January 2023, we announced that Nigel Richens would be
retiring as a Non-Executive Director of the Company having served
on the Board since May 2014; this will be effective following the
release of the Group's fully audited Annual report. I would like to
thank him for his sterling service over the nine-year period and
wish him a long and happy retirement. Having joined us at the start
of the year, Stuart Watson will then become chair of the Audit
Committee, and I am delighted we have been able to attract a
candidate of Stuart's calibre.
Furthermore, today, with the announcement of these results, I am
delighted to welcome Mike England, previously Group COO of RS Group
plc, as the new Group CEO. On behalf of all his colleagues the
Board would like to acknowledge and thank Bryce Brooks for his
significant commitment, skill and dedication to the business during
his 13-year tenure with the Group.
http://www.rns-pdf.londonstockexchange.com/rns/8904V_1-2023-4-11.pdf
Outlook
A year ago we believed that by the end of 2022 most of the key
components of our strategic plan would be in place and providing
solid foundations to move forward and unlock our undoubted growth
potential. Whilst we again face macro-economic challenges that may
suppress growth in the short term, we continue to focus on reducing
costs where sensible to do so, and now seek to consolidate the
commercial and operational changes we have made to improve customer
service, and grow market share. We have entered 2023 with much of
the strategic building blocks in place after an array of challenges
over the past three years, and we will remain focused on completing
the remaining actions of our strategic plan. With global supply
chains now more consistent, we can reduce inventories to match our
needs and return to generating strong cashflows to support our
investment activities, whilst exploiting our new digital
capabilities.
I would like to thank all my colleagues for all their efforts
during 2022, which was another year of significant change within
the Group. It is again of great credit to them that profitability
has been maintained and, in several areas, significantly improved
whilst at the same time managing an extensive change programme.
The Board is of the view that the broad medium term outlook for
the business is positive and is well underpinned our recent change
programme.
Roger McDowell
Non-Executive Chair
12 April 2023
CEO's Year in Review
Business Review
A multitude of macro-economic factors have impacted our core
markets in recent years, and 2022 again did not see a return to the
stable outlook that we have all enjoyed for the majority of recent
times. Whilst dealing with such change is part of the skills we
have, the pace with which events have unfolded in the past few
years has certainly been more pronounced. Whilst necessary to do
so, we have added to these external factors by transforming the
commercial and operational structure of our Group at the same
time.
We therefore entered the year with certain external
challenges:-product and cost inflation, lengthy and inconsistent
supply chains, delivery issues both domestically and across the
Irish Sea. Stock levels had been built to defend against some of
these risks, with the commensurate impact on net debt that was
still recovering from the impacts of lockdown. All these issues had
differing effects on the sectors that we serve, most notably
affecting pneumatics into MRO markets and hydraulics into Mobile
OEM markets.
I believe it is of great credit therefore that my colleagues
right across the Group have been up to meeting all the challenges
faced, with significant progress being made, both in financial
returns, profitability and margins, and in our wider focus on
strengthening our resilience against the risks we face as a
business.
In 2022 revenue grew by 5.2% to GBP114.8m and gross margin
improved from 35.3% to 35.7%. Underlying operating profit*
increased to GBP8.6m (2021: GBP5.7m), an improvement of GBP2.9m as
the business continued its recovery from the COVID-19 pandemic.
However, after a goodwill impairment charge of GBP10.1m, operating
loss was at GBP4.4m (2021: GBP3.7m profit). Further details
relating to this goodwill impairment are provided in the Financial
Review section of this announcement and Note 8.
My review below will focus on the underlying operating results
of our three segments, which excludes central costs, financing
charges, separately disclosed items and tax.
2022 (GBP000) (Unaudited) Flowtech Solutions Services Total
------------------------------ --------- ---------- --------- --------
Total revenue 55,565 38,076 21,125 114,766
Underlying Segment Operating
Profit (*) 6,887 4,405 1,804 13,096
Contribution % 12.4% 11.6% 8.5% 11.4%
2021 (GBP000) (Audited)
------------------------------ --------- ---------- --------- --------
Total revenue 57,552 34,158 17,397 109,107
Underlying Segment Operating
Profit (*) 7,543 2,689 (122) 10,110
Contribution % 13.1% 7.9% -0.7% 9.3%
(*) Underlying Segment Operating Profit is continuing
operations' operating profit before central costs and separately
disclosed items detailed in note 3.
($) FY 2021 Segment results are re-stated to show results for
Primary Components (PFC) within the Flowtech Segment. Some
overheads costs relating to divisional management have been
re-categorised as segment operating overheads to present a more
comparable segment result. Refer to note 3 for reconciliation to
prior year reporting.
In two out of our three segments we have been able to enhance
contribution rates significantly and have achieved our short term
objective of exceeding 10% as a Group. This is before our central
costs, which are primarily required to implement change management
and governance, as well as operate the plc.
In Flowtech a contribution rate of 12.4% was achieved (2021:
13.1%), which was lower than our targets at the start of the year.
As detailed in our commentary on strategy development below, the
segment undertook the most wide ranging change programme in its
history, and shortly afterwards replaced its multiple web offerings
with a single website. Whilst we are now happy with the changes
implemented, the difficulties of the change had a negative
commercial effect which impacted results.
As we ended 2021, being the immediate post COVID-19 year, a
sense that sales volumes had returned to pre-pandemic levels was
misplaced. The markets that Flowtech predominantly deal in
declined, with the British Fluidpower Distributors Association
("BFPDA") estimating that year on year pneumatic distributor sales
reduced by 5.1% (hydraulics increased by 5.3%).
We now believe that 2022 is more representative of the base
market and we expect to see gradual but steady growth from this
base. Furthermore, having continued to review analysis of negative
growth areas, we have used the information gathered to ensure our
focus over recent months has been on ensuring that the detailed
execution areas for all our change programme - commercial,
operational and digital - are bedded down and give us the right
platform for growth. With the majority of this change period behind
us, we remain of the view that this segment should target a
contribution rate of at least 15% in the medium-term.
In Solutions, with the majority of product supply being
furnished from European sources, whilst there have been
inflationary pressures, supply chains have been consistent for most
of the year, and on top of the uplift in buffer stock that we
instigated to support our customers, this has allowed us to take
advantage of the positive market conditions seen, particularly in
mobile hydraulics where many of our largest customers are heavily
involved in export markets. This segment is currently implementing
an amalgamation of its sales resources in England, under the banner
of Fluidpower Group Mobile, with the cost reduction work done in
2021 and 2022 bearing fruit, producing contribution margins now
well over our initial 10% target at 11.6% (2021: 7.9%). Whilst we
are aware that we have benefited from strong market growth that may
not continue, we have started 2023 well.
Of particular note is the 8.5% contribution from our Services
segment, where the result achieved is a significant step forward
and gives an indication of the potential that this part of our
business has to drive profitability. As we have previously stated,
over the past 12 months we had built a profitable order book of
deliverables scheduled for 2022, for both assembled products and
installations, and were therefore able to produce a much stronger
contribution in the second half of the year. I am pleased to say
that this position has carried over into 2023, and we are expecting
to report further progress in the first half of 2023. By its nature
the financial return from this segment may have more volatility
than the more predictable Solutions and Flowtech income streams,
but we continue to view the segment's value positively, as does the
wider market. A highlight has been our involvement in the Thames
Tideway project in central London where hydraulic power units and
cylinders, manufactured and fitted by our cross functional team,
are powering many of the sluice gates controlling this major
upgrade to the sewer system.
In all our operating segments, we have responded to the
inflationary pressures that all businesses have faced, with gross
margins maintained, and in some cases improved, and the upward
pressures on our transactional cost base capped with careful
management. Product pricing in our sector is well informed with
major manufacturer price changes widely flagged; we work in
partnership with our customers to pass these through as quickly as
practicable after their implementation, and this has helped to
support some of our enhancement in gross margins. Whilst we believe
we have managed this process well, if inflation recedes, gross
margins may trend towards prior norms.
The improvements in operational cost we identified in our
strategic plan, detailed below, have also allowed us to reduce our
footprint in terms of property, energy and, personnel costs and
this has added to the tools we have used to manage this inflation
risk. We do not operate a fixed approach to salary and benefits
across the Group, and this flexibility has allowed us to manage
employee requirements in the different sectors and geographies that
we operate. For example, in Northern Ireland where customer demand
has been particularly strong in a tight employment market, we have
redesigned our bonus structures to improve staff retention.
With regard to other infrastructure costs we have moved through
rent review points over the past 24 months for the majority of our
mixed-use facilities, warehousing and office space. These have seen
steeper increases than previous periods, for example rent per annum
for our main Pimbo Road site in Skelmersdale increased by 17.5%
with effect from November 2021. With distribution forming the
majority of our operational activities, we have not experienced
some of the more acute impacts from the current energy market
issues, and have also been able to cover our increased spend within
our overall product pricing strategies.
With regard to the supply chain issues that the Group faced in
2021, these dissipated during the course of the year, and although
not as yet returning to long term norms, volatility has reduced and
we are now able to plan more efficiently. We have continued to work
closely with our key suppliers, and in the majority of cases the
lengthy lead times seen in 2021 and 2022 are now reducing. In line
with this the buffer stock holdings that we created to manage this
risk is being reduced; our view remains that by the end of 2023
this will have completely rebalanced, and will allow us to again
target a full year Turn & Earn KPI of 130% by 2025 and much
reduced working capital and net debt.
Developments in Group strategy and progress in 2022
From the beginning of 2020, we have undertaken a wide ranging
redesign of many aspects of our Group's business approach, and in
the past 12 months we have made considerable progress with many of
the key projects:
Operational cost savings
In 2022 we focused on completing the key elements of our
targeted reductions with further productivity improvements in both
warehousing and back-office functions. The creation of the Flowtech
entity (detailed below) brought benefits in cost control. Of
particular note is the closure of our Leicester warehouse facility
with effect from 31 December 2022. Our legal and property advisors
are working with a prospective new tenant who will allow us to exit
from our remaining lease liability in full in the first half of
2023. The Leicester site employed 21 staff in warehousing roles,
and covers c . 40,000 square feet. All stock was moved to our
largest unit in Skelmersdale, with picking activities fully
integrated. Whilst this change has introduced an element of
increased operational risk, we have sought to mitigate this by
modest changes in internal design, with further developments
expected over time, and have also taken on additional space at our
second location nearby.
A key development target for the Group has been to consolidate
engineering skills into a hub and spoke structure with a main
facility also in Skelmersdale. This "Engineering Modification
Centre" ("EMC") will be able to perform all aspects of the product
refinement required by many of our customers and represents an
important aspect of authorised distributor status from our key
suppliers. This approach is allowing us to build improvements in
technical training, quality control and cost management, which we
see as an important element of our future growth platform. Fully
completed in March 2023, the EMC is now embedded into our Pimbo
Road operation running alongside our pick and ship operation.
After the work undertaken since the start of 2020, we have
reduced costs across all segments, most sharply illustrated with
the reduction in headcount since late 2021 and shown in the graph.
These reductions have been made by a mixture of natural wastage and
voluntary redundancies to match the productivity improvements we
have now built and have contributed significantly to our defence
against inflationary pressures. We believe the newly formed
operational structures will allow further improvements to be made
over time.
Branding and organisation
On 4 January 2022 we completed a plan to integrate those
businesses that were operating as part of our Flowtech segment -
namely Flowtechnology UK, Indequip, Beaumanor Fluidpower, and
Hydravalve to come together into a single commercial entity, badged
as Flowtech with new livery and organisational structure. This
wide-ranging project achieved all our objectives with regard to
coordinating a single market position to support our e-business
aspirations, as well as allowing us to achieve our cost management
goals. Solutions and Services are also now consolidating under the
single Fluidpower Group banner, with regional variations such as
the NHP brand in Ireland, and we will therefore have also achieved
our objective in creating an integrated business that can service
all addressable markets in the UK and Ireland. After this period of
significant change, prolonged by the COVID-19 pandemic, in 2023 our
management teams are now returning to the customer centric agenda
that we are confident will use our redesigned capabilities to
exploit the growth potential available to us.
Digital
After an investment of GBP212,000 in the year, GBP973,000 in
total to date, our rebuilt web platform went 'live' in May 2022,
with full functionality completed in October 2022. During this
period we transitioned our long-term customers from a variety of
legacy web platforms to this single site and, although the project
took significantly longer than originally planned, we have learnt
lessons and are now pleased with the capabilities that have been
created.
In parallel, we have also built an infrastructure for modern
digital marketing techniques, which will enhance the value of our
web investment, and we expect the impact of this to also build over
time.
In early 2023, as our SEO rankings rise, we will continue to
develop functionality to improve conversion rates, as well as react
to customer feedback from the first few months' trading on the new
architecture. Overall, we remain of the view that marginal sales
from search driven enquiries will be a good source of new revenue,
enhancing our "offline" growth potential, which is now embellished
with more insightful "data-driven" knowledge.
People
Our focus is now on building a long term framework that will
allow all our employees a clear line of sight for career
progression and look to meet their own aspirations. Again, this is
an area in which we believe our sector has been behind more
progressive attitudes in competing industries, and our maturing
position will create an economic edge to attract and retain the
best people. The investment we instigated in our HR resources,
starting in 2021, has been enhanced with specialist recruitment to
lead a newly formed Learning & Development function, with
traineeships enhanced to make full use of the Apprenticeship Levy,
and a new cornerstone initiative, "The Accelerate Programme",
providing broad based management training for potential managers
and directors of the future. Our first courses have now been held
with 23 delegates selected for a full year series of events,
representing our commitment to ensuring staff development is to the
fore in our ESG plan.
Whilst a strong culture in our approach to Health & Safety
management is clearly an essential, we also believe that we need to
take a leading role in a modernisation process across our industry.
In this regard in the past two years we have invested in
recruitment and training for all employees involved in our Health
& Safety framework. Whilst the inherent risks in our large
distribution centres are clear, and therefore assessments can be
focused and continuously refined, in the activities of our Services
segment the risk profile is more varied, and therefore we have also
chosen to invest further in specialist skills to reinforce employee
safety. Alongside our strategy to align ourselves with world class
suppliers we believe this approach creates a comprehensive package
of risk management practices.
The skill sets put together in 2021 in our Management Board are
now firmly established and able to lead further change, and, in
time, fast paced M&A integration. Members of our team have also
been playing a leading role when it comes to shaping the priorities
for the next decade for our sector, with Group employees continuing
to hold directorships of our industry body, the British Fluid Power
Association (BFPA).
Market
Much of the expansion of the Group through acquisition activity
in the period 2014 to 2018, created a strong market position in our
key markets of the UK & Ireland. Around us we have seen further
consolidation to continue the move towards a smaller number of key
players, and evermore away from the "owner-managed" structures that
were prevalent in much of our sector's history. The acquisition
activity undertaken over recent decades by the global manufacturers
such as Parker Hannifin and Eaton Corporation, and most recently
evidenced by the absorption of Eaton Hydraulics into Danfoss Power
Solutions, has forced the distributor sector to consolidate and
simplify to match with these changes. We therefore believe that the
strategy changes we have implemented are effectively managing the
inherent competition risk that we face every day.
Current trading and outlook
2022 saw the completion of many of the key changes that we
defined in our 2020 strategy review and in 2023 we will continue to
pursue all remaining elements with vigour. Much of what has been
completed is now part of "business as usual" for our divisional
management teams; in 2022, and now carried forward into the early
part of 2023, we have seen the potential for returns coming through
in both our Fluidpower Group segments - Solutions & Services -
where many key changes were made in 2020 and 2021. Flowtech has
some way to go after its own fundamental changes in 2022, whilst
introducing new technologies, and it will look to regain momentum
in 2023.
We have been successful to date at passing through upward
pricing pressures, albeit some of this has been covered by our cost
reduction activities, most notably the closure of our Leicester
distribution centre. With supply chains now more predictable, and
at both sector and geographical level demand remaining broadly
good, we are confident that all the major strategy decisions we
have made will create additional shareholder value and will quickly
feed through into strong cash generation available for further
investment.
Bryce Brooks
Chief Executive Officer
12 April 2023
Financial Review
" In a period in which the business has experienced extreme
inflationary pressures it is pleasing to report a significant
increase in underlying profitability. This has been achieved by
focusing on maintaining the quality of our gross margin and our
continued efforts to extract cost from the business, most notably
by a reduction in our headcount ".
Russell Cash, CFO
Overview
The CEO Year in Review section provides commentary on the
results from each of our three reporting segments . Without wishing
to repeat what has been said elsewhere I believe the following
points are worthy of emphasis:
Ø The improvement in the gross profit percentage
is, at least in part, due to our ability to pass on
price increases to our customers. The quality of our
gross margin remains integral to the way we operate
the business
Ø The costs we have taken out of the business,
notably as a result of the reduction in headcount, has
enabled us to report a reduction in underlying operating
overheads notwithstanding the significant inflationary
pressures which we have faced, and
Ø The improved performance within the Services
segment is particularly pleasing.
2022 2021 Change
GBPm GBPm GBPm
Unaudited Audited / %
======================================== ----------- ========= =======
Group revenue 114.8 109.1 5.2%
Gross profit 41.0 38.5 6.4%
Gross profit % 35.7% 35.3% 42bps
Distribution expenses (4.4) (4.7) 0.3
Administrative expenses before central
costs and separately disclosed items (23.5) (23.7) 0.2
----------- --------- -------
Underlying segment operating profit 13.1 10.1 3.0
Central costs (4.5) (4.4) (0.1)
--------- -------
Underlying operating profit * 8.6 5.7 2.9
Less Separately disclosed items (13.0) (2.0) (11.0)
----------- --------- -------
Operating (loss)/profit (4.4) 3.7 (8.1)
Financing costs (1.2) (0.8) (0.4)
----------- --------- -------
(Loss)/profit before tax (5.6) 2.9 (8.5)
Tax (0.7) (0.7) 0.1
----------------------------------------- ----------- --------- -------
(Loss)/Profit after tax (6.3) 2.1 (8.4)
----------------------------------------- ----------- --------- -------
Underlying EBITDA* 11.6 8.4 3.2
----------------------------------------- ----------- --------- -------
(*) Underlying operating profit is used as an alternative
performance measure to assess the trading performance of the
business and is operating profit before separately disclosed items
which are amortisation and impairment of acquired intangibles,
impairment of goodwill, share based payments, and restructuring
costs. Underlying EBITDA is underlying operating profit prior to
depreciation charges and website amortisation.
Central costs
A summary of central costs is provided below:
2022 2021
GBP000 GBP000
Unaudited Audited
------------------------------------------ ----------- ---------
Management 2,084 2,118
PLC costs 523 536
Finance & Internal Audit 864 732
Project Management/Health & Safety/other 1,039 1,034
------------------------------------------ ----------- ---------
Total 4,510 4,420
------------------------------------------ ----------- ---------
Management costs include the employment costs of the Executive
Officers, Management Board members excluding those that have
specific segment responsibilities, and the cost of the Head Office
function. It absorbs Group wide costs in a number of areas, notably
professional fees and insurance costs. Overall savings made in
certain areas, notably a reduction in professional costs have been
offset by the full year impact of senior recruits who now form part
of a mature central management team.
PLC costs capture the salaries of Non-Executive Directors and
professional fees associated with our PLC status. The impact of an
increased number of Non-Executive Directors has offset reductions
achieved in other areas of cost.
Finance & Internal Audit covers the salary costs of the
central finance and internal audit function. The increase in the
year reflects a slightly increased headcount and the impact of pay
increases.
Other areas of cost primarily relate to our project management
and central health and safety teams.
Separately disclosed items
2022 2021
GBP000 GBP000
-------------------------------------- -------- --------
Share option costs 372 166
Amortisation of acquired intangibles 943 1,054
Impairment of acquired intangibles 168 673
Impairment of goodwill 10,072 -
Restructuring costs 1,411 74
Acquisition costs - 11
-------------------------------------- -------- --------
Total 12,966 1,978
-------------------------------------- -------- --------
Impairment of goodwill
The impairment of goodwill charge relates to three cash
generating units: Flowtechnology UK ("FTUK") (GBP7.1m), Orange
County (GBP2.8m) and Hi-Power Transport (GBP0.2m).
The cash generating units subject to impairment have been, and
are expected to remain, profitable parts of our business. However,
the net present value of future cash flows have been particularly
impacted by changes to discount rates related to external factors.
The table below sets out the pre-tax discount rates used this year
and last year, the degree of impairment necessarily taken this year
and the impact that using last year's, less onerous, rates would
have had on the calculations.
Pre-tax discount rate Impairment position
-------------------- ------------------------ -------------------------------------------
2022 2021 2022 deficit Impact of 2022 deficit
GBPm change in based on
discount 2021 discount
rate GBPm rates
-------------------- ----------- ----------- ------------- ----------- ---------------
FTUK 13.1% 10.4% -7.1 23.0 Nil
Orange County 15.4% 10.7% -2.8 0.8 2.0
Hi-Power Transport 13.6% 6.9% -0.2 2.4 Nil
-------------------- ----------- ----------- ------------- ----------- ---------------
In summary had the discount rates been the same as last year
there would have been no requirement to impair FTUK or Hi-Power
Transport and the impairment against Orange County would have
reduced by GBP0.8m.
Restructuring costs
Restructuring includes GBP1.1m costs relating to our exit from
the distribution centre at Leicester, write off of the net book
value of old websites GBP0.1m, and other costs GBP0.2m relating to
the amalgamation of business units implemented under the Group's
development strategy as detailed in the CEO's Year in Review
section.
Taxation
The tax charge for the year was GBP680K (2021: GBP741k). If the
impact of impairment entries and prior period adjustments is
removed the effective rate is 21.5% (2021: 20.6%).
Net Debt
Our Net Debt position (excluding lease liabilities) increased by
GBP0.6m from GBP15.4m to GBP16.0m, with a summary of the key
drivers summarised in the chart below:
Cash generated from operations of GBP10.6m compares favourably
to a prior year figure of GBP8.0m; this was to be expected given
2021 was a year in which certain of our business were still
recovering from the impact of the COVID-19 pandemic. The investment
we chose to make in increasing stock levels, combined with the
impact of improved revenue on our debtor position, contributed to
an overall GBP5.4m increase in working capital (2021:GBP8.7m), and
it is the carrying cost of this additional working capital that, as
expected, has increased net financing costs to GBP1.2m
(2021:GBP0.8m) Our investment in capital expenditure totalled
GBP1.7m.
Lease liabilities, which are not included in the graph below,
decreased by GBP0.4m to GBP6.7m (2021: GBP7.1m).
In H2 2022 bank debt reduced by GBP3.7m (from GBP19.7m to
GBP16.0m) and lease liabilities by GBP0.3m (from GBP7.0m to
GBP6.7m).
(*) Opening and closing figures exclude IFRS 16 related
liabilities. IFRS16 debt reduced by GBP0.4m in 2022.
Banking facilities
Our year end balance sheet shows net GBP16.0m current liability
in respect of our net bank debt position. This was classified in
this way as the revolving credit facility was due to expire in
November 2023, within a year from the year end balance sheet
date.
Under terms agreed in February 2023 our GBP20m revolving credit
facility provided by Barclays Bank was extended for a 3 year term
to February 2026. Covenant terms under the new agreement are
consistent with those previously enjoyed, and the base charge for
credit facilities for the period of the arrangement are SONIA+2.40%
and are subject to a non-utilisation fee of 0.84%. Under the terms
of the Agreement it is possible for a further extension of one year
to be granted subject to certain conditions being satisfied. The
Group also has a GBP5m overdraft facility which was reviewed in
February 2023 and on-going support was approved.
Summary
In a period in which the business has experienced inflationary
pressures it is pleasing to report a significant increase in
underlying profitability. This has been achieved by focusing on
maintaining the quality of our gross margin and our continued
efforts to extract cost from the business, most notably by a
reduction in our headcount. The pressures on our cost base continue
into 2023; we remain alert to this and will continue to take all
possible and appropriate steps to mitigate the impact.
Whilst our supply chain has become less volatile, we are still
experiencing lead times for certain products which are materially
in excess of what we would view as normal and what we became
familiar with prior to the impact of COVID-19. This has manifested
itself in an increase in inventory levels in each of the last two
financial years (total GBP10m). We have plans in place to manage
this down through 2023 and beyond, at the same time remaining
mindful of balancing this with the need to ensure we have ongoing
availability of products to satisfy customer demand.
Russell Cash
Chief Financial Officer
12 April 2023
Consolidated Income Statement
For the year ended 31 December
2022
GBP000 2021
Note Unaudited GBP000
----------------------------------------------------- ----- ----------- ---------
Continuing operations
----- ----------- ---------
Revenue 114,766 109,107
----- ----------- ---------
Cost of sales (73,792) (70,609)
----------------------------------------------------- ----- ----------- ---------
Gross profit 40,974 38,498
----- ----------- ---------
Distribution expenses (4,428) (4,683)
----------------------------------------------------- ----- ----------- ---------
Administrative expenses before separately disclosed
items: (27,960) (28,125)
----- ----------- ---------
- Separately disclosed items 3 (12,966) (1,978)
----------------------------------------------------- ----- ----------- ---------
Total administrative expenses (40,926) (30,103)
----------------------------------------------------- ----- ----------- ---------
Operating (loss)/profit 4 (4,380) 3,712
----- ----------- ---------
Financial expenses (1,192) (833)
----------------------------------------------------- ----- ----------- ---------
(Loss)/profit from continuing operations before
tax (5,572) 2,879
----- ----------- ---------
Taxation 5 (680) (741)
----------------------------------------------------- ----- ----------- ---------
(Loss)/profit from continuing operations (6,252) 2,138
----------------------------------------------------- ----- ----------- ---------
(Loss)/Profit for the year attributable to:
----- ----------- ---------
Owners of the parent (6,252) 2,138
----------------------------------------------------- ----- ----------- ---------
Earnings per share
----- ----------- ---------
Basic earnings per share - continuing operations 7 (10.17p) 3.48p
----- ----------- ---------
Diluted earnings per share - continuing operations 7 (10.17p) 3.45p
----------------------------------------------------- ----- ----------- ---------
Consolidated Statement of Comprehensive Income
2022
GBP000 2021
Unaudited GBP000
---------------------------------------------------------- ----------- -------
(Loss)/Profit for the year (6,252) 2,138
---------------------------------------------------------- ----------- ---------
Other comprehensive income
----------- -------
Items that will be reclassified subsequently to profit
or loss
----------- -------
- Exchange differences on translating foreign operations 318 (342)
---------------------------------------------------------- ----------- -------
Total comprehensive income for the year (5,934) 1,796
---------------------------------------------------------- ----------- -------
Total comprehensive income for the year attributable
to:
----------- -------
Owners of the parent (5,934) 1,796
---------------------------------------------------------- ----------- -------
Consolidated Statement of Financial Position
2022
GBP000 2021
Note Unaudited GBP000
-------------------------------------------- ----- ----------- --------
Assets
----- ----------- --------
Non-current assets
----- ----------- --------
Goodwill 8 53,092 63,164
----- ----------- --------
Other intangible assets 9 3,523 4,517
----- ----------- --------
Right-of-use assets 6,091 6,925
----- ----------- --------
Property, plant and equipment 7,234 6,891
-------------------------------------------- ----- ----------- --------
Total non-current assets 69,940 81,497
-------------------------------------------- ----- ----------- --------
Current assets
----- ----------- --------
Inventories 31,580 30,531
----- ----------- --------
Trade and other receivables 24,526 21,566
----- ----------- --------
Prepayments 387 472
----- ----------- --------
Cash and cash equivalents 3,972 4,562
-------------------------------------------- ----- ----------- --------
Total current assets 60,465 57,131
-------------------------------------------- ----- ----------- --------
Liabilities
----- ----------- --------
Current liabilities
----- ----------- --------
Interest-bearing borrowings 19,967 -
----- ----------- --------
Lease liability 1,705 1,561
----- ----------- --------
Trade and other payables 19,569 21,111
----- ----------- --------
Tax payable 1,219 604
-------------------------------------------- ----- ----------- --------
Total current liabilities 42,460 23,276
-------------------------------------------- ----- ----------- --------
Net current assets 18,005 33,855
-------------------------------------------- ----- ----------- --------
Non-current liabilities
----- ----------- --------
Interest-bearing borrowings - 19,927
----- ----------- --------
Lease liability 5,008 5,586
----- ----------- --------
Provisions 317 309
----- ----------- --------
Deferred tax liabilities 1,281 1,528
----- ----------- --------
Total non-current liabilities 6,606 27,350
-------------------------------------------- ----- ----------- --------
Net assets 81,339 88,002
-------------------------------------------- ----- ----------- --------
Equity directly attributable to owners of
the Parent
----- ----------- --------
Share capital 30,746 30,746
----- ----------- --------
Share premium 60,959 60,959
----- ----------- --------
Other reserves 187 187
----- ----------- --------
Shares owned by the Employee Benefit Trust (124) (276)
----- ----------- --------
Merger reserve 293 293
----- ----------- --------
Merger relief reserve 3,646 3,646
----- ----------- --------
Currency translation reserve 159 (286)
----- ----------- --------
Retained losses (14,527) (7,267)
-------------------------------------------- ----- ----------- --------
Total equity attributable to the owners of
the Parent 81,339 88,002
-------------------------------------------- ----- ----------- --------
Consolidated Statement of Changes in Equity
Shares
owned Merger Currency
Share Share Other by the Merger relief translation Retained Total
capital premium reserve EBT reserve reserve reserve losses equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------- -------- -------- -------- ------- -------- -------- ------------ --------- --------
Balance at
1 January 2021 30,746 60,959 187 (372) 293 3,646 343 (9,795) 86,007
-------- -------- -------- ------- -------- -------- ------------ --------- --------
Profit for the
year - - - - - - - 2,138 2,138
-------- -------- -------- ------- -------- -------- ------------ --------- --------
Other comprehensive
income - - - - - - (535) 193 (342)
-------------------- -------- -------- -------- ------- -------- -------- ------------ --------- --------
Total comprehensive
income for the
year - - - - - - (535) 2,331 1,796
-------------------- -------- -------- -------- ------- -------- -------- ------------ --------- --------
Transactions
with owners
-------- -------- -------- ------- -------- -------- ------------ --------- --------
Share options
settled - - - 96 - - - (14) 82
-------- -------- -------- ------- -------- -------- ------------ --------- --------
Share-based
payment charge - - - - - - - 166 166
-------- -------- -------- ------- -------- -------- ------------ --------- --------
Other movements - - - - - - (94) 45 (49)
-------------------- -------- -------- -------- ------- -------- -------- ------------ --------- --------
Total transactions
with owners - - - 96 - - (94) 197 199
-------------------- -------- -------- -------- ------- -------- -------- ------------ --------- --------
Balance at
31 December
2021 30,746 60,959 187 (276) 293 3,646 (286) (7,267) 88,002
-------------------- -------- -------- -------- ------- -------- -------- ------------ --------- --------
Balance at
1 January 2022 30,746 60,959 187 (276) 293 3,646 (286) (7,267) 88,002
-------- -------- ----- ------- ----- ------- ------- --------- --------
Loss for the
year - - - - - - - (6,252) (6,252)
-------- -------- ----- ------- ----- ------- ------- --------- --------
Other comprehensive
income - - - - - - 318 - 318
--------------------- -------- -------- ----- ------- ----- ------- ------- --------- --------
Total comprehensive
income for the
year - - - - - - 318 (6,252) (5,934)
--------------------- -------- -------- ----- ------- ----- ------- ------- --------- --------
Transactions
with owners
-------- -------- ----- ------- ----- ------- ------- --------- --------
Share options
settled - - - 152 - - - (25) 127
===================== ======== ======== ===== ======= ===== ======= ======= ========= ========
Share-based
payment charge - - - - - - - 372 372
======== ======== ===== ======= ===== ======= ======= ========= ========
Dividends paid - - - - - - - (1,228) (1,228)
======== ======== ===== ======= ===== ======= ======= ========= ========
Transfers between
reserves - - - - - - 127 (127) -
--------------------- -------- -------- ----- ------- ----- ------- ------- --------- --------
Total transactions
with owners - - - 152 - - 127 (1,008) (729)
--------------------- -------- -------- ----- ------- ----- ------- ------- --------- --------
Balance at
31 December
2022 30,746 60,959 187 (124) 293 3,646 159 (14,527) 81,339
--------------------- -------- -------- ----- ------- ----- ------- ------- --------- --------
Consolidated Statement of Cash Flows
2022
GBP000 2021
Note Unaudited GBP000
----------------------------------------------------- ----- ----------- --------
Cash flow from operating activities
----- ----------- --------
Net cash from operating activities 10 5,014 (441)
----------------------------------------------------- ----- ----------- --------
Cash flow from investing activities
----- ----------- --------
Acquisition of property, plant and equipment (1,645) (1,342)
----- ----------- --------
Acquisition of intangible assets (212) (761)
----- ----------- --------
Proceeds from sale of property, plant and equipment 65 525
----- ----------- --------
Net cash used in investing activities (1,792) (1,578)
----------------------------------------------------- ----- ----------- --------
Cash flows from financing activities
----- ----------- --------
Repayment of lease liabilities (1,673) (1,882)
----- ----------- --------
Interest on lease liabilities (227) (246)
----- ----------- --------
Other interest (925) (547)
----- ----------- --------
Proceeds from sale of shares held by the EBT 172 108
----- ----------- --------
Dividends paid 6 (1,228) -
----- ----------- --------
Net cash used in financing activities (3,881) (2,567)
----------------------------------------------------- ----- ----------- --------
Net change in cash and cash equivalents (659) (4,586)
----- ----------- --------
Cash and cash equivalents at start of year 4,562 9,235
----- ----------- --------
Exchange differences on cash and cash equivalents 69 (87)
----------------------------------------------------- ----- ----------- --------
Cash and cash equivalents at end of year 3,972 4,562
----------------------------------------------------- ----- ----------- --------
Consolidated Statement of Cash Flows
Reconciliation of liabilities arising from financing
activities
The changes in the Group's liabilities arising from financing
activities can be classified as follows:
Long-term Short-term Lease Total
borrowings borrowings liabilities GBP000
GBP000 GBP000 GBP000 Unaudited
------------ ------------ ------------- -----------
At 1 January 2021 19,887 - 7,737 27,624
----------------------------- ------------ ------------ ------------- -----------
Cash flows:
------------ ------------ ------------- -----------
Repayment - - (1,882) (1,882)
------------ ------------ ------------- -----------
Other movements 40 - (59) (19)
----------------------------- ------------ ------------ ------------- -----------
Non cash:
Additions - - 1,424 1,424
============ ============ ============= ===========
Foreign exchange difference - - (73) (73)
----------------------------- ------------ ------------ ------------- -----------
At 31 December 2021 19,927 - 7,147 27,074
----------------------------- ------------ ------------ ------------- -----------
At 1 January 2022 19,927 - 7,147 27,074
--------- ------- -------- --------
Cash flows:
--------- ------- -------- --------
Repayment - - (1,673) (1,673)
--------- ------- -------- --------
Other movements 40 - - 40
--------- ------- -------- --------
Non cash:
================================= ========= ======= ======== ========
Additions - - 1,369 1,369
========= ======= ======== ========
Reclassification of liabilities (19,967) 19,967 - -
========= ======= ======== ========
Other lease movements (190) (190)
========= ======= ======== ========
Foreign exchange difference - - 60 60
--------------------------------- --------- ------- -------- --------
At 31 December 2022 - 19,967 6,713 26,680
--------------------------------- --------- ------- -------- --------
Other lease movements are adjustments for the reduction in value
of the lease liabilities following either the exercise of an early
termination clause or an agreement with the landlord.
Extract of Notes to the Consolidated Financial Information
1. General information
The principal activity of Flowtech Fluidpower plc (the
'Company') and its subsidiaries (together, the 'Group') is the
distribution of engineering components and assemblies,
concentrating on the fluid power industry. The Company is a public
limited company, incorporated and domiciled in the United Kingdom.
The address of its registered office is Bollin House, Bollin Walk,
Wilmslow, SK9 1DP. The registered number is 09010518.
News updates, regulatory news, and financial statements can be
viewed and downloaded from the Group's website,
www.flowtechfluidpower.com . Copies can also be requested from: The
Company Secretary, Flowtech Fluidpower plc, Bollin House, Bollin
Walk, Wilmslow, SK9 1DP. Email: info@flowtechfluidpower.com .
2. Accounting Policies
2.1 Basis of preparation
These condensed unaudited consolidated financial statements have
been prepared in accordance with the accounting policies set out in
the annual report for the year ended 31 December 2021 except for
new standards adopted for the year.
While the financial information included in this preliminary
announcement has been prepared in accordance with UK-adopted
international accounting standards in conformity with the
requirements of the Companies Act 2006, this announcement does not
in itself contain sufficient information to comply with UK-adopted
international accounting standards.
The financial information set out in this preliminary
announcement does not constitute the Group's statutory financial
statements for the years ended 31 December 2022 or 2021 as defined
in section 435 of the Companies Act 2006 (CA 2006). The financial
information for the year ended 31 December 2022 has been extracted
from the Group's unaudited financial statements. Statutory
financial statements for 2021 have been delivered to the Registrar
of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under either
Section 498(2) or Section 498(3) of the Companies Act 2006.
2.2 Going concern
The financial statements are prepared on a going concern basis
which the Directors believe to be appropriate for the following
reasons:
* The Group generated an underlying operating profit of
GBP8.6m, a GBP2.9m increase over GBP5.7m achieved in
2021.
* The Group is expecting to trade profitably in 2023
and beyond
* The Group is financed by revolving credit facilities
totalling GBP20m and a GBP5m overdraft facility,
repayable on demand. These facilities were renewed in
February 2023 with the terms of the revolving credit
facility extended until February 2026, with an option
to extend by a further year to February 2027
* The Group remains compliant with all covenants
contained in the Banking Agreement
* At the end of 2022 the Group's Net Debt was GBP16.0
million (GBP9.0 million within the aggregate banking
facilities which include a GBP5.0 million overdraft
facility).
The Directors have prepared forecasts covering the period to
December 2024. Naturally, these forecasts include a number of key
assumptions notably relating, inter alia, to revenue, margins,
costs and working capital balances.
In any set of forecasts there are inherent risks relating to
each of these assumptions. If future trading performance
significantly underperformed expectations, management believe there
would be the ability to mitigate the impact of this by careful
management of the Group's cost base and working capital and that
this would assist in seeking to ensure all bank covenants were
complied with and the business continued to operate well within its
banking facilities.
The Directors have considered reverse stress testing, based on
revenue reductions, to determine scenarios in which the Group
banking covenants could be breached. The Directors view the set of
circumstances required for such a situation to crystallise as
highly unlikely and as such not reasonably plausible scenarios.
The Directors believe the business will continue to operate
within its agreed banking facilities and comply with all banking
covenants. As such the Group therefore continues to adopt the going
concern basis is preparing its financial statements.
3. Segment reporting
From the beginning of 2021, Management reviews the operations of
the business based on three segments - Flowtech, Fluidpower Group
Solutions and Fluidpower Group Services. These operating segments
are monitored by the Group's Chief Operating Decision Maker and
strategic decisions are made on the basis of adjusted segment
operating results. Inter-segment revenue arises on the sale of
goods between Group undertakings.
The Directors believe that the Underlying Operating Profit
provides additional useful information on underlying trends to
Shareholders. The term 'underlying' is not a defined term under
IFRS and may not be comparable with similarly titled profit
measurements reported by other companies. A reconciliation of the
underlying operating result to operating result from continuing
operations is shown below. The principal adjustments made are in
respect of the separately disclosed items as detailed later in this
note; the Directors consider that these should be reported
separately as they do not relate to the performance of the
segments.
Segment information for the reporting periods are as
follows:
Fluidpower Fluidpower Total
For the year ended 31 Group Group Inter-segmental Central continuing
December 2022 Flowtech Solutions Services transactions costs operations
Unaudited GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Income statement - continuing
operations:
--------- ----------- ---------- ---------------- -------- ------------
Revenue from external customers 55,565 38,076 21,125 - - 114,766
--------- ----------- ---------- ---------------- -------- ------------
Inter-segment revenue 1,706 1,008 868 (3,582) - -
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
Total revenue 57,271 39,084 21,993 (3,582) - 114,766
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
Underlying operating result
(*) 6,887 4,405 1,804 - (4,510) 8,586
--------- ----------- ---------- ---------------- -------- ------------
Net financing costs (141) (68) (5) - (978) (1,192)
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
Underlying segment result 6,746 4,337 1,799 - (5,488) 7,394
--------- ----------- ---------- ---------------- -------- ------------
Separately disclosed items (8,240) (785) (3,329) - (612) (12,966)
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
(Loss)/profit before tax (1,494) 3,552 (1,530) - (6,100) (5,572)
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
Specific disclosure items
--------- ----------- ---------- ---------------- -------- ------------
Depreciation and impairment
on owned plant, property
and equipment 867 157 179 - 2 1,205
--------- ----------- ---------- ---------------- -------- ------------
Depreciation on right of
use assets 707 695 73 - 195 1,670
--------- ----------- ---------- ---------------- -------- ------------
Impairment of goodwill 7,105 - 2,967 - - 10,072
--------- ----------- ---------- ---------------- -------- ------------
Impairment of acquired
intangibles - - 168 - - 168
--------- ----------- ---------- ---------------- -------- ------------
Amortisation 230 683 124 - - 1,037
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
Reconciliation of underlying
operating result
--------- ----------- ---------- ---------------- -------- ------------
Underlying operating result
(*) 6,887 4,405 1,804 - (4,510) 8,586
--------- ----------- ---------- ---------------- -------- ------------
Separately disclosed items (8,240) (785) (3,329) - (612) (12,966)
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
Operating (loss)/profit (1,353) 3,620 (1,525) - (5,122) (4,380)
--------------------------------- --------- ----------- ---------- ---------------- -------- ------------
(*) Underlying operating result is continuing operations'
operating profit before separately disclosed items detailed later
in this note.
Segment information for 2021 has been re-stated following the
movement of Primary Components from Fluidpower Group Solutions to
Flowtech segment, as this reflects the information reported to the
chief operating decision maker. Some overheads costs relating to
Divisional management have been re-categorised as segment operating
overheads to present a more comparable segment result.
A reconciliation of the re-stated values to prior year is
provided below this table.
Fluidpower Fluidpower
Group Group
For the year ended 31 Services Inter-segmental Central Total continuing
December 2021 Flowtech Solutions transactions costs operations
(re-stated) GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Income statement - continuing
operations:
--------- ----------- ----------- --------------- --------- -----------------
Revenue from external
customers 57,552 34,158 17,397 - 109,107
--------- ----------- ----------- --------------- --------- -----------------
Inter-segment revenue 5,164 970 833 (6,967) -
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
Total revenue 62,716 35,128 18,230 (6,967) 109,107
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
Underlying operating
result (*) 7,543 2,689 (122) (4,420) 5,690
--------- ----------- ----------- --------------- --------- -----------------
Net financing costs (141) (72) (20) - (600) (833)
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
Underlying segment result 7,402 2,617 (142) - (5,020) 4,857
--------- ----------- ----------- --------------- --------- -----------------
Separately disclosed items (925) (723) (124) (206) (1,978)
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
Profit/(loss) before
tax 6,477 1,894 (266) - (5,226) 2,879
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
Specific disclosure items
--------- ----------- ----------- --------------- --------- -----------------
Depreciation and impairment
on owned plant, property
and equipment 773 137 175 - 1,085
--------- ----------- ----------- --------------- --------- -----------------
Depreciation on right
of use assets 656 615 192 - 180 1,643
=============================== ========= =========== =========== =============== ========= =================
Impairment of acquired
intangibles 673 - - - - 673
========= =========== =========== =============== ========= =================
Amortisation 247 683 124 - 1,054
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
Reconciliation of underlying
operating result
--------- ----------- ----------- --------------- --------- -----------------
Underlying operating result
(*) 7,543 2,689 (122) - (4,420) 5,690
--------- ----------- ----------- --------------- --------- -----------------
Separately disclosed items (925) (723) (124) - (206) (1,978)
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
Operating profit/(loss) 6,618 1,966 (246) - (4,626) 3,712
------------------------------- --------- ----------- ----------- --------------- --------- -----------------
(*) Underlying operating result is continuing operations'
operating profit before separately disclosed items detailed
below.
Reconciliation of re-stated Fluidpower Fluidpower
segment information for Group Group Inter-segmental Central Total continuing
FY 2021 to prior year Flowtech Solutions Services transactions costs operations
report GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue as per prior
year report 57,299 40,545 18,230 (6,967) - 109,107
--------- ----------- ----------- --------------- -------- -----------------
Revenue for Primary Components
categorised to Flowtech
segment 5,417 (5,417) - - - -
--------- ----------- ----------- --------------- -------- -----------------
Total re-stated revenue 62,716 35,128 18,230 (6,967) - 109,107
-------------------------------- --------- ----------- ----------- --------------- -------- -----------------
Underlying operating
result in prior year report 7,101 3,505 140 - (5,056) 5,690
------ ------ ------- -------- -------
Underlying operating result
for Primary Components
categorised to Flowtech
segment 492 (492) - - - -
------ ------ ------- -------- -------
Allocation of costs to
Segments (50) (324) (262) 636 -
------ ------ ------- -------- -------
Underlying operating
result, re-stated 7,543 2,689 (122) - (4,420) 5,690
------------------------------ ------ ------ ------- -------- -------
A breakdown of central costs can be found in the Financial
Review
2022 2021
GBP000 GBP000
Unaudited Audited
----------- --------
Separately disclosed items
----------- --------
Separately disclosed items within administration
expenses:
----------- --------
- Acquisition costs - 11
----------- --------
- Amortisation of acquired intangibles (note 9) 943 1,054
----------- --------
- Impairment of acquired intangibles (note 9) 168 673
----------- --------
- Impairment of goodwill (note 8) 10,072 -
----------- --------
- Share-based payment costs 372 166
----------- --------
- Restructuring 1,411 74
----------- --------
Total separately disclosed items 12,966 1,978
-------------------------------------------------- ----------- --------
Acquisition costs relate to stamp duty, due diligence, legal
fees, finance fees and other professional costs incurred in the
acquisition of businesses.
Share-based payment costs relate to charges made in accordance
with IFRS 2 'Share-based payment' following the issue of share
options to employees.
Restructuring costs relate to restructuring activities of an
operational nature following acquisition of business units and
other restructuring activities in established businesses. In 2022
restructuring costs included GBP627K (including GBP337K of
redundancy costs) relating to the de-commissioning of the
distribution centre at, GBP106K for the write off of the old
website and other costs relating to amalgamation of business units
currently underway.
4. Operating profit
The following items have been included in arriving at the
operating profit for continuing operations:
2022 2021
GBP000 GBP000
Unaudited Audited
------------------------------------------------------------ ----------- --------
Depreciation of property, plant and equipment under
right-of-use assets 1,670 1,643
----------- --------
Depreciation of tangible assets 1,205 1,084
----------- --------
Amortisation of intangible assets - website 94 -
----------- --------
Amortisation of intangible assets - customer relationships
and brands 943 1,054
----------- --------
Impairment of intangible assets 168 673
----------- --------
Impairment of goodwill 10,072 -
----------- --------
Impairment loss/(gain) on trade receivables and
prepayments 29 (1)
----------- --------
Loss on foreign currency transactions 23 24
----------- --------
Repairs and maintenance expenditure on plant and
equipment 113 95
------------------------------------------------------------ ----------- --------
Services provided by the Group's Auditor
2022 2021
GBP000 GBP000
Unaudited Audited
------------------------------------------------- ----------- --------
Audit of the statutory consolidated and Company
financial statements of
Flowtech Fluidpower plc 78 88
----------- --------
Amounts receivable by the Company's Auditor and
its associates in respect of:
Audit of financial statements of subsidiaries
of the Company 182 172
------------------------------------------------- ----------- --------
No other services were provided to the Company and its
subsidiaries by the Group's auditor. Services are provided by other
professional advisers as deemed appropriate by the Board.
5. Taxation
Recognised in the income statement
2022 2021
Unaudited Audited
Continuing operations: GBP000 GBP000
--------------------------------------------------- ----------- --------
Current tax expense
=========== ========
UK Corporation tax 734 493
=========== ========
Overseas tax 185 241
=========== ========
Adjustment in respect of prior periods 9 (60)
--------------------------------------------------- ----------- --------
Current tax expense 928 674
--------------------------------------------------- ----------- --------
Deferred tax
=========== ========
Origination and reversal of temporary differences 21 106
=========== ========
Adjustment in respect of prior periods (183) (112)
=========== ========
Change in tax rate (86) 73
--------------------------------------------------- ----------- --------
Deferred tax (credit)/charge (248) 67
--------------------------------------------------- ----------- --------
Total tax charge - continuing operations 680 741
--------------------------------------------------- ----------- --------
Reconciliation of effective tax rate 2022 2021
GBP000 GBP000
Unaudited Audited
-------------------------------------------------------- ----------- ---------
(Loss)/Profit for the year (6,252) 2,138
----------- =========
Total tax (expense) (680) (741)
-------------------------------------------------------- ----------- ---------
Loss/(Profit) excluding taxation (5,572) 2,879
-------------------------------------------------------- ----------- ---------
Tax using the UK corporation tax rate of 19.00% (2021:
19.00%) (1,058) 547
----------- =========
Amounts not deductible 2,045 61
----------- =========
Adjustment in respect of prior periods (174) (172)
======================================================== =========== =========
Other adjustments (133) 305
=========== =========
Total tax expense in the income statement - continuing
operations 680 741
-------------------------------------------------------- ----------- ---------
Change in corporation tax rate.
An increase in the UK corporation tax rate from 19% to 25%
(effective 1 April 2023) was substantively enacted on 24 May 2021,
and the UK deferred tax position for the group as at 31 December
2022 has been calculated based on this rate.
6. Dividends
2022 2021
GBP000 GBP000
Unaudited Audited
-------------------------------------------------- ----------- ----------
Final dividend of 2.0p (2021: GBPnil) per share 1,228 -
=========== ==========
Total dividends 1,228 -
-------------------------------------------------- ----------- ----------
7. Earnings per share
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary Shareholders by the weighted average
number of ordinary shares during the year.
For diluted earnings per share the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The dilutive shares are those
share options granted to employees where the exercise price is less
than the average market price of the Company's ordinary shares
during the year. For diluted loss per share the weighted average
number of ordinary shares in issue is not adjusted since its impact
would be anti-dilutive.
Year ended 31 December Year ended 31 December 2021
2022 Audited
Unaudited
----------------------- ---------------------------------- ----------------------------------
Loss Weighted Profit Weighted
after average Loss after average Earnings
tax number per share tax number of per share
GBP000 of shares Pence GBP000 shares Pence
----------------------- -------- ----------- ----------- -------- ----------- -----------
Basic earnings
per share
-------- ----------- ----------- ======== =========== ===========
Continuing operations (6,252) 61,493 (10.17p) 2,138 61,493 3.48p
----------------------- -------- ----------- ----------- -------- ----------- -----------
Diluted earnings
per share
-------- ----------- ----------- ======== =========== ===========
Continuing operations (6,252) 61,770 (10.17p) 2,138 61,894 3.45p
----------------------- -------- ----------- ----------- -------- ----------- -----------
2022 2021
GBP000 GBP000
Unaudited Audited
-------------------------------------------------------- ----------- --------
Weighted average number of ordinary shares for basic
and diluted earnings per share 61,493 61,493
=========== ========
Impact of share options 277 401
-------------------------------------------------------- ----------- --------
Weighted average number of ordinary shares for diluted
earnings per share 61,770 61,894
-------------------------------------------------------- ----------- --------
8.
Goodwill
2022 2021
GBP000 GBP000
Unaudited
--------------------------------- ----------- ---------
Cost
=========== =========
Balance at 1 January 63,164 63,164
=========== =========
Balance at 31 December 63,164 63,164
--------------------------------- ----------- ---------
Impairment
=========== =========
At 1 January - -
=========== =========
Impairment charge 10,072 -
--------------------------------- ----------- ---------
At 31 December 10,072 -
--------------------------------- ----------- ---------
Carrying amount at 31 December 53,092 63,164
--------------------------------- ----------- ---------
Background
The Group uses trading activity as the basis for determining
reporting segments. The Group's reporting segments are Flowtech,
Fluidpower Group Solutions and Fluidpower Group Services. Goodwill
has been allocated for impairment testing purposes to 10
cash-generating units ("CGU") across these 3 segments (2021 - 14
CGUs). These CGUs represent the lowest level within the Group at
which goodwill is monitored for internal management purposes.
Various changes have been made in the current period in the
identification of CGUs and the allocation of goodwill to those
units since the prior period. The main changes are:
1. FTUK, Beaumanor, Hydravalve, and Indequip businesses were integrated
into a single brand called Flowtech (represented by the CGU referred
to as "FTUK"). The combined business operates as a single commercial
entity with a single online presence; thus the businesses have been
combined into one CGU
2. OEM customers in Primary Components business were transitioned into
the HTL brand
3. The remaining Primary Components business was merged into the FTUK
platform.
(Note Primary Components was formerly a CGU in its own right but
has now been transitioned partly into FTUK and partly onto HTL
)
With the above changes, and after taking into account the
impairment of FTUK, Orange County and Hi-Power Transport, the
carrying amounts of goodwill allocated now stands as at 31 December
2022 are:
Cash generating unit GBP000
------------------------ -------
FTUK 42,041
Primary Systems 751
HTL 3,938
HES 1,204
Hydroflex-Hydraulics
Oud 2,050
Flowtechnology Benelux
BV 1,015
Nelson Hi-Power 1,869
Derek Lane 224
Orange County -
Hi-Power Transport -
------------------------ -------
Total 53,092
------------------------ -------
Impairment tests
The carrying amount of each CGU was determined by calculating
the sum of the carrying amounts of all intangible assets (including
goodwill) and tangible assets attributable to that unit. These were
then compared with the value in use calculations for each CGU based
on discounted cash flows of future period forecasts. Management
prepared forecasts for each CGU for a two year period, (extending
to five years where appropriate). All forecasts have been approved
by the Board.
Cash flows beyond the period forecast by management for each CGU
were extrapolated at an expected long-term growth rate of 2%. This
growth rate does not exceed the long-term average growth rate for
the market in which the Group operates.
Goodwill impairment charges in 2022
In total an impairment charge of GBP10,072k has been taken in
2022 across the following CGUs:
Ø FTUK - GBP7,105k
Ø Orange County - GBP2,793k
Ø Hi-Power Transport - GBP174k
FTUK
An impairment charge of GBP7,105k has been taken leaving a
balance of goodwill of GBP42,041k. As with other CGUs the value in
use calculation is sensitive to a number of assumptions. In
arriving at the impairment charge the forecasts assumed a pre tax
discount rate of 13.1% and a revenue growth rate of 4% in each of
2024, 2025, 2026 & 2027. It should be noted that each 1%
movement in the discount rate has an impact of approximately GBP7m
on the calculation and each 1% movement in revenue an impact of
approximately GBP6m. Movements in revenue and discount rates are
considered the factors to which the value in use calculation is
most sensitive.
FTUK is the principal component of the Flowtech segment. As
alluded to in the Chair's report and CEO year in review sections of
the report 2022 was a period in which the business underwent a
significant degree of change and suffered from challenging market
conditions; nevertheless, the business generated a 11.9% return on
revenue. Our ambition remains to see the segment as a whole (FTUK
plus Flowtechnology Benelux) deliver a return on revenue of at
least 15%. The investment we have made in operational changes and
in particular the impact we expect our investment in our
E-Business/Digital agenda provides us with confidence that the
assumptions used in deriving the value in use figures are
appropriate. We would hope that discount rates return to more
traditional, i.e. lower, levels and that this combined with an
improved performance in 2023, will provide headroom within the
calculation when next performed.
Orange County
The Orange County CGU was written down to its recoverable amount
(GBP1,631k) by recognising an impairment charge of GBP2,793k to the
goodwill. This leaves GBP472k in intangible assets (customer
relationships) and a GBP85k deferred tax liability at the end of
the year. Management believes the forecast assumptions underpinning
the value in use of Orange County are sufficiently cautious. It
should be noted that each 1% movement in the discount rate has an
impact of approximately GBP120k on the calculation and each 1%
movement in revenue an impact of approximately GBP120k. Movements
in revenue and discount rates are considered the factors to which
the value in use calculation is most sensitive.
Notwithstanding this necessary accounting treatment, Management
remains confident that the business will continue to generate a
positive contribution.
Hi-Power Transport
An impairment charge of GBP342k has been taken to eliminate the
carrying value of goodwill (GBP174k) and other intangible assets
(GBP168k - see note 9). Management believes the forecast
assumptions underpinning the value in use of Hi-Power Transport are
sufficiently cautious. It should be noted that each 1% movement in
the discount rate has an impact of approximately GBP150k on the
calculation and each 1% movement in revenue an impact of
approximately GBP180k. Movements in revenue and discount rates are
considered the factors to which the value in use calculation is
most sensitive.
Notwithstanding this necessary accounting treatment, Management
remains confident that the business will continue to generate a
positive contribution.
Key assumptions used in value in use calculations
The Group has determined that the recoverable amount
calculations are most sensitive to changes in revenue growth rates,
gross margins and discount rates.
Discount rates have increased substantially over prior year due
to increase in cost of borrowing and risk-free rates. This has had
a significant impact on the VIU calculations for all CGUs and was a
key factor in the need to impair the goodwill of FTUK, Orange
County and Hi-Power Transport. Comments in this regard are provided
in the Financial Review section.
Sensitivity to changes in key assumptions
The calculations to assess the value in use of each CGU are
naturally based on a series of assumptions; of particular note are
those relating to revenue, EBITDA margins and discount rates. The
calculations are obviously sensitive to deviations, in either
direction, to these assumptions; the comments below seek to provide
some analysis and commentary around the most sensitive areas.
With regards to discount rates this is clearly driven by factors
outside of the control of the business; it is worthy of note that
the discount rates used to underpin the 2022 calculations are
significantly higher than those used in 2021. It is of course hoped
that economic/political factors return transition to a less
volatile position which would lead to discount rates returning to
more typical/traditional levels.
Two of our CGUs are showing marginal positions based on the
calculations performed, they are:
Primary Systems
1.
Primary Systems - a GBP59k surplus with value in use of
GBP6,121k compared with a carrying value of GBP6,062k. The carrying
value of goodwill is GBP751k and other intangibles (net of
associated deferred tax) GBP76k. It should be noted that each 1%
movement in the discount rate has an impact of approximately
GBP400k on the calculation and each 1% movement in revenue an
impact of approximately GBP280k. Movements in revenue and discount
rates are considered the factors to which the value in use
calculation is most sensitive.
Primary Systems has undergone significant change in 2022 with a
much-improved trading performance as a result, particularly evident
in the second half of the year. 2023 should benefit from the impact
of the majority of income/profit from the Thames Tideway project;
with the actions taken we are confident the business can
consistently deliver acceptable levels of profit beyond this
period. These factors underpin the assumptions used in the value in
use calculations.
Hydroflex
2.
Hydroflex - a GBP279k surplus with value in use of GBP5,004k
compared with a carrying value of GBP4,725k. The carrying value of
goodwill is GBP2,050k and other intangibles (net of associated
deferred tax) GBP388k. It should be noted that each 1% movement in
the discount rate has an impact of approximately GBP500k on the
calculation and each 1% movement in revenue an impact of
approximately GBP300k. Movements in revenue and discount rates are
considered the factors to which the value in use calculation is
most sensitive.
Hydroflex Hydraulics has produced an improved trading
performance in 2022 and we expect this to be at least maintained in
2023 and beyond.
Other intangible assets
9.
========
2022 Unaudited Acquired Acquired Asset under Website Total
2021 Audited Customer relationships Brands construction
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- ---------- ------------ -------- -------- ------- ------- ------- ------- -------- --------
Balance at 1
January 9,371 9,371 1,173 1,173 761 - - - 11,305 10,544
========== ============ ======== ======== ======= ======= ======= ======= ======== ========
Transfer
between
asset
categories - - - - (761) - 761 - - -
========== ============ ======== ======== ======= ======= ======= ======= ======== ========
Additions - - - - - 761 212 - 212 761
---------- ============ -------- ======== ------- ======= ------- ------- -------- ========
Balance at
31December 9,371 9,371 1,173 1,173 - 761 973 - 11,517 11,305
---------- ============ -------- ======== ------- ======= ------- ------- -------- ========
Amortisation
and impairment
---------- ============ -------- ======== ------- ======= ------- ------- -------- ========
Balance at 1
January 5,657 4,711 1,131 350 - - - - 6,788 5,061
=============== ========== ============ ======== ======== ======= ======= ======= ======= ======== ========
Amortisation 901 946 42 108 - - 94 - 1,037 1,054
========== ============ ======== ======== ======= ======= ======= ======= ======== ========
Impairment 168 - - 673 - - - - 168 673
--------------- ---------- ------------ -------- -------- ------- ------- ------- ------- -------- --------
Balance at
31December 6,726 5,657 1,173 1,131 - - 94 - 7,993 6,788
--------------- ---------- ------------ -------- -------- ------- ------- ------- ------- -------- --------
Carrying
amount
at
31 December 2,645 3,714 - 42 - 761 879 - 3,523 4,517
--------------- ---------- ------------ -------- -------- ------- ------- ------- ------- -------- --------
The impairment charge in 2022 relates to the intangible assets
associated with the Hi-Power Transport business. Amortisation is
charged to administration costs in the Consolidated Income
Statement. The amortisation of customer relationships and brands of
GBP943K (2021; GBP1,054K) is a separately disclosed item and is
referred to as the amortisation of acquired intangibles.
10.
Net
cash
from
operating
activities
2022 2021
GBP000 GBP000
Unaudited Audited
---------------------------------------------------------- ----------- -----------
Reconciliation of profit before taxation to net cash
flows from operations
---------------------------------------------------------- ----------- -----------
Loss/(profit) from continuing operations before tax (5,572) 2,879
----------- ===========
Depreciation and impairment of property, plant and
equipment 1,205 1,084
----------- ===========
Depreciation on right-of-use assets (IFRS 16) 1,670 1,643
----------- ===========
Impairment of right-of-use assets (IFRS 16) 388 -
----------- ===========
Finance costs 1,192 833
----------- ===========
Loss/(gain) on sale of plant and equipment 57 (209)
----------- ===========
Other movements - (95)
----------- ===========
Amortisation of intangible assets 1,037 1,054
----------- ===========
Impairment of intangible assets 168 673
----------- ===========
Impairment of goodwill (note 8) 10,072 -
----------- ===========
Cash settled share options (42) (26)
----------- ===========
Equity-settled share-based payment charge 372 166
----------- ===========
Exchange differences on non-cash balances 65 -
----------- ===========
Operating cash inflow before changes in working capital
and provisions 10,612 8,002
----------- ===========
Change in trade and other receivables (2,851) (3,325)
----------- ===========
Change in stocks (832) (8,764)
----------- ===========
Change in trade and other payables (1,702) 3,496
----------- ===========
Change in provisions 7 (59)
---------------------------------------------------------- ----------- -----------
Cash generated from operations 5,234 (650)
----------- ===========
Tax (paid)/reclaimed (220) 209
---------------------------------------------------------- ----------- -----------
Net cash generated/(used) from operating activities 5,014 (441)
---------------------------------------------------------- ----------- -----------
Annual General Meeting (AGM)
The AGM is to be held at 10 am on 15 June 2023 at the Group's
Headquarters , Flowtech Fluidpower plc, Bollin House, Bollin Walk,
Wilmslow SK9 1DP . The Notice convening the Company's 2023 Annual
General Meeting shall be published on the Company's website and
posted to shareholders who have elected postal copies in due
course.
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking statements which
reflect the knowledge and information available to the Company
during the preparation and up to the publication of this document.
By their very nature, these statements depend upon circumstances
and relate to events that may occur in the future thereby involving
a degree of uncertainty. Therefore, nothing in this document should
be construed as a profit forecast by the Company.
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END
FR EAELFFASDEAA
(END) Dow Jones Newswires
April 12, 2023 02:00 ET (06:00 GMT)
Flowtech Fluidpower (LSE:FLO)
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Flowtech Fluidpower (LSE:FLO)
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