Flowtech Fluidpower (LSE:FLO) delivered a solid first-half performance, with revenue increasing 23.7% year-on-year to £70.4 million. Organic revenue growth reached 13.2%, reflecting continued market share gains across all operating regions, while recently completed acquisitions also contributed to the stronger result. Despite supply chain disruption and inflationary pressures linked to events in the Middle East, the company maintained resilient margins and customer service standards. Two major bridge projects experienced delays, with their expected contribution now anticipated in the second half of the year.
The integration of five recently acquired businesses is progressing faster than originally planned. Collectively, these acquisitions are expected to contribute around £30 million in annualised revenue and more than £3 million in EBITDA, having been completed for a combined consideration of approximately £6 million. Net debt was reduced to £16.5 million, leaving the group with substantial headroom under its banking facilities. Management expects stronger cash generation in the second half, supported by continued investment in its digital platform, a healthy order book and ongoing operational improvements, providing confidence in further growth in revenue, profitability and leverage reduction before the end of the year.
The company’s overall outlook reflects a balanced picture. Operational performance and cash generation have improved, but profitability remains inconsistent, with net income still negative. Technical indicators remain supportive, as the share price continues to trade above key moving averages, although overbought conditions could increase the likelihood of short-term volatility. Valuation also remains constrained, with a negative price-to-earnings ratio highlighting that the business has yet to establish sustained profitability.
About Flowtech Fluidpower
Flowtech Fluidpower is a specialist supplier of hydraulic, pneumatic and process engineering products and services across the UK, Ireland and the Benelux region. The group provides industrial components, engineering expertise and large-scale project support to businesses involved in designing, building and maintaining industrial facilities. Operating in a fragmented European market valued at around £30 billion, Flowtech employs approximately 600 people and owns a portfolio of established brands including Flowtech, Thorite, Allswage, Thomas Group, Q Plus and Helipebs Controls.
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