Flowtech Fluidpower 2014 Annual Report
Flowtech Fluidpower plc ("Flowtech" or "the Group") is the leading distributor of technical fluid power products to over 3,000 customers in the UK and Northern Europe. With modern distribution facilities in the UK and Benelux we offer an unrivalled range of both Original Equipment Manufacturer ("OEM") products, as well as our own ranges sourced exclusively to the Group ("Exclusive Brands").
The Group focuses on supplying distributors and resellers of industrial MRO (maintenance, repair and operation) products, primarily serving urgent orders rather than bulk offerings. In addition, following the acquisition of Primary Fluid Power Limited in August 2014, the Group has added capabilities in the design and manufacture of hydraulic systems and purifiers, which are further complemented by a service and repair function.
The Group has established a key position in the fluid power supply chain. The focus on core competencies within the fluid power market has been central to our continued success and this focus will support our long term strategy. In addition Flowtech continues to deliver and develop its added value services to support its customers through organic development of its product ranges and acquisition of complementary businesses.
The main operating entity is Flowtech Limited, which trades as Flowtechnology UK and is based in Skelmersdale, Lancashire, where all Group functions are also located. Primary operates from a second site eight miles away in Knowsley, Merseyside. In Europe, Flowtechnology Benelux BV operates from a single site in Deventer in the eastern region of Holland and services customers principally in Holland and Belgium.
The Group's business is directed by the Board and managed by the Executive Directors, led by the Chief Executive. To support the development and alignment of the Group's business objectives an Operational Board has been set up to control and deliver the strategic goals as defined by the plc Board. This Operational Board includes the Managing Director from each business unit as well as the Group's CEO and CFO. This team will maintain a clear focus on developing the business in line with market requirements.
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* Before separately disclosed items and central costs which are shown in the financial statements note 3.
Pictured: Operational Board:Sean Fennon (CEO), Mark Richardson (Flowtechnology Benelux), Stephen Merrie (Primary), Bryce Brooks (CFO), Paul Watson (Flowtechnology UK)
The main operating entity is Flowtech Limited, which trades as Flowtechnology UK and is based in Skelmersdale, Lancashire. Primary operates from a second site eight miles away in Knowsley, Merseyside. In Europe, Flowtechnology Benelux BV, operates from a single site in Deventer in the eastern region of Holland
Far East procurement and sourcing is one of the cornerstones of Flowtech's strategy.
The ability to develop and extend the range of Exclusive Brands in line with industry requirements has been accomplished by developing stronger relationships and working closely with the Far East supply base to ensure targets in consistency of quality, high technical specification and product performance are achieved.
With the ongoing recruitment of locally based employees, coupled with the quickening pace of the sourcing programme, it was important that the Group moved quickly to create a more efficient stockholding strategy; a policy that will in time reduce the UK footprint, cost base and streamline the overall Far East supply chain. The establishment of a logistics facility in Guangdong province in southern China is the first step in a long term plan to extend resources in the region and support future growth across the Group.
Sq ft operating facility
Delivery targets achieved
Primary Fluid Power, our first acquisition as a plc, added a significant distribution operation and new technical capabilities in design and assembly of hydraulic systems and purifiers. The business was acquired on the 5 August 2014 and has been smoothly integrated into the Group. The acquisition was in line with the strategy outlined in the admission document to develop separate sales channels within the fluid power market and benefit from the synergies created within the Group.
Sq ft modern distribution centre
Of orders despatched in full same day
Average picks per day with an error rate of less than 0.2%
Flowtechnology UK was founded in 1983. It is a highly efficient business unit with a fully integrated end-to-end process delivering high service levels to its marketplace, and a deep stockholding to support its wide and varied customer base.
Flowtechnology Benelux was acquired in 2007. Since 2010 significant restructuring has been undertaken and by 2013 it was fully integrated into the Group's operating systems. The change process has delivered a business with solid foundations which is now establishing a strong reputation in its marketplace.
Non-Executive Chairman's Letter
Creating Value for Shareholders