Flowtech Fluidpower (LON: FLO) reported group revenue up 23.8% to £70.4m for the six months to 30 June, in an unaudited half-year report released via RNS before the market opened today. The shares were little changed in early trading, close to yesterday’s closing level, as the market weighed the mixed detail beneath the headline growth figure.
Flowtech shares have traded within a 52-week range of 41p to 77p heading into the results.
Like-for-like revenue, which strips out acquisitions, grew 13.3%, with the rest of the gain coming from five bolt-on deals completed since August 2024, including Q Plus B.V. in the Netherlands and UK hydraulic cylinder maker Helipebs Controls, bought for £410,000 in June. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £4.5m from £3.5m a year earlier, and the sales order book was more than 20% higher than at the start of the year.
Gross margin fell 220 basis points to 37.0% from 39.2% in H1 2025, as the lower-margin Q Plus business and inflationary pressure offset the extra volume. Cash generation also weakened: the group used £0.263m in operating activities, against £0.888m generated a year earlier, largely because trade and other receivables rose by £5.5m. Net debt stood at £16.4m, down from £18.5m at H1 2025 but up from £15.2m at the last year-end, leaving £8.6m of headroom on its £25m banking facilities.
Chief executive Mike England said the group’s “self-help growth initiatives have strengthened the H2 sales pipeline and order book, with significant profit and cash contribution expected from the two major bridge contracts,” referring to two Irish bridge infrastructure projects worth roughly €9.0m combined. He said this supported the board’s confidence that full-year performance would remain in line with market expectations, previously set at revenue of £138.1m and adjusted EBITDA of £10.2m.
Whether the shares hold near the top of their 52-week range or drift lower now rests on management delivering that promised second-half swing in profitability and cash generation.