Flowtech Fluidpower (FLO)

Flowtech Fluidpower FLO Logo

Distributor of technical fluid power products which operates through two divisions: Flowtechnology, which is geographically split into Flowtechnology UK (FTUK) and Flowtechnology Benelux (FTB), and Power Motion Control (PMC).

17-Oct-2017 – 166.88p – £87m

Q3 Trading Update For The 9 Months To End September 2017 – Revenue up 34.4% and trading in-line with market expectations.

Recently broken above 150p and on a PER of 12.5, I’m tempted here.

23-Jan-2018 – 183p – £96.7m – PER 11.3

Trading Update For The 12 Months To End December 2017 – Revenue up 43% CC, to £77.9m (£53.8m last time). PBT to be in the range £8.6m to £8.8m (in line with market expectations). Dividend up 5%. Based on progress made this year, expects to meet market expectations for 2018 and 2019.

This is going on my Watchlist, 170p, may even snap some up this morning!

17-Apr-2018 – 173.25p – £97.8m – PER 10.9

Q1 2018 Trading Update – Revenue up to £26.5m from £17.5, +51.4%. Gross Margin in-line.

Still looks good, just missed out on my 150p Watchlist Entry last month. Remains on my Watchlist but could even be worth paying up here.

Subsequent Note: I bought in here today.

6-Jun-2018 – 170.75p – £90.2m – PER 10.3

AGM Statement – First 3 months Revenue up 49.7% (as per recent Trading Update) and momentum continues into the following 2 months. All seems in-line.

I hold here and on a PER of 10 with EPS forecasts at +39.3% in 2018 and +9.06% in 2019, I will continue to do so.

Subsequent Note: Sold out here on the 12th July after reading a broker note on Research Tree which showed EPS of 14.0 2018A, 16.0 2019E and 17.6 2020E – OK enough on a PER of 10.3 but with the market being negative since the AGM statement I decided to move on.

18-Sep-2018 – 169p – £89.3m – PER 9.92

Interim Results For The 6 Months To End June 2018 – Great Revenue increase at 65.1% (to £56.4m) with Operating Profit up 22.4% but EPS is up just 10% and Net Debt is up114% (to £18m). Cautious on the short term outlook (demand softening).

I sold out in July 2018 here after price action was non-inspiring following the AGM statement – I remain Neutral for now as it seems reasonably priced considering a cautious short term outlook.

23-Oct-2018 – 114p – £69.4m – PER 7.13

Q3 Trading Update For The 9 Months To End September 2018 – Revenue up 54% and it seems the FY, without actually stating it, will be in-line. Or perhaps this is the fly in the ointment “Regarding the order for c.£1.5m to design, manufacture and supply hydraulic cylinders and power units to an appointed sub-contractor on the Thames Tideway project, reported last month, the Board is pleased to confirm that a return to positive progress has been made. A further update will be given in the full year trading update in January 2019”?

I remain Neutral having previously sold out around the 170p level (I believe). I would perhaps have been interested here again if the FY in-line was explicit.

31-Jan-2019 – 121p – £74m – PER 7.4

Trading Update For The 12 Months To End December 2018 – Revenue up 42% (organic 6%), Net Debt £19.9m (up from £14.9m). Expecting Underlying PBT of £10.6m – £10.8m. Dividend to be up 5% and expects a solid start to 2019.

An ex-holding of mine and not yet tempted to get back in.

16-Apr-2019 – 122p – £73m – PER 7.4

Results For The 12 Months To End December 2018 – Revenue up 42%, Underlying PBT in-line with market expectations (up from £8.68m to £10.68m) with EPS down from 9.69p to 8.34p. The Dividend is up 5% and Net Debt is up from £14.9m to £19.9m.

An ex-holding of mine and not yet tempted to get back in – Will however be interested to see those 2019E and 2020E estimates following this update.

24-Sep-2019 – 125p – £76m – PER 8

Interim Results For The 6 Months To End June 2019 – Revenue up 5.7%, Underlying PBT up 3.3% with EPS down -10.7% and the Interim Dividend is up 5%. Brexit impacts and FY PBT to be circa £11m.

Looks to be a potential miss of circa 10% or so, as an ex-holding I will keep a lookout for updated Broker notes.

22-Oct-2019 – 109p – £66m – PER 7

Q3 Trading Update – Revenue up 5.8%, Net Debt up even more, from £17.6m to £19.1m (they omitted that percentage!).

Still quite like this old holding of mine but, there’s not enough for me just yet, to be become a holder once again.

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