# Flowtech Fluidpower Plc A busy period of acquisitions and business enhancements

- Link: https://www.directorstalkinterviews.com/flowtech-fluidpower-plc-busy-period-acquisitions-business-enhancements/412752292
- Published: 2018-06-06T07:26:55+01:00
- Author: Giles Arbor

**Flowtech Fluidpower Plc** (LON:FLO) announced today that at today’s (6 June 2018)
Annual General Meeting of the Company the Chairman, Malcolm Diamond MBE, will make
the following statement:

“A busy period of acquisitions and business enhancements, the activities of 2017
and the early part of 2018 have been the most demonstrative to date of the Group’s
strategy to create a full-service fluid power provider, strengthening its market
position across the UK, Ireland and northern Europe and delivering strong financial
performance.

In our Q1 trading update we reported that Group revenue during the first three months
of the current year increased by 49.7%, of which 6.3% was organic. In the two months
since that report I can confirm that we have continued to see this positive trading
momentum.

Our acquisition programme, which includes seven completed deals in the last seventeen
months, has created new complementary services, brands, products and customer sectors.
Having made these significant enhancements, the Group will use 2018 as an opportunity
to consolidate the processes and systems in place and start to exploit synergy opportunities
in procurement, operations and back office, as well as continue to target organic
growth.

Following significant refurbishment at the Skelmersdale site, which was largely 
complete towards the end of 2017, the Group created a Shared Logistics Centre to
support all subsidiaries, streamline logistics operations and identify greater product
synergies for the Group. In addition, the acquisition of Beaumanor in March of this
year immediately increased the Group’s market share within the maintenance, repair
and operation (MRO) market and gave access to a second warehouse based in the Midlands.
This acquisition will allow us to both realise greater procurement synergies and
additionally de-risk operations at the flagship distribution centre based in Lancashire.
I can also confirm that trading at Beaumanor, and its sister business, Derek Lane,
has been strong since purchase in March, and in line with our expectations.

Starting with our 2017 acquisition of Hydroflex in the Benelux, the Board has placed
greater attention on our European businesses, investigating the c€12.6bn European
market, and setting firm foundations to expand into Western Europe, which the Group
will look to do in 2019 and beyond.

In summary, the Directors remain confident about the future; we fully expect our
underlying performance to deliver another year of solid progress and we look forward
to providing our next Trading Update for Q2 in early July.”

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