Flowtech Fluidpower 2014 Annual Report
On behalf of the Board and our colleagues around the business, we welcome you as a Shareholder in joining us on the next stage of our development.
From my point of view, having joined the Flowtech Board in May 2014, I am delighted to have the opportunity to give an overview on the Company's progress in its inaugural year as a public company.
The Executive team set a growth strategy back in 2013 that realistically could only be delivered by gaining financial independence from their then private equity shareholders. This was mutually agreed by both parties, with Zeus Capital being appointed as Nomad and Broker. We were encouraged by the successful conclusion of the Initial Public Offering ("IPO") in late May 2014, even more so as it was over-subscribed and secured strong support from a substantial group of highly respected institutional fund managers.
The team's objective is to deliver consistent growth by blending organic growth with carefully selected acquisitions, well within their business model parameters.
We were therefore delighted when we got off to a prompt start in August with the addition of the Primary Fluid Power brand to our portfolio. "Primary" is a long established,
profitable and debt free, sourcing and bespoke assembly business that mainly serves OEMs. Apart from the attributable earnings, its addition gives the Group a much broader technical support base, and will allow us to consolidate the Vitassem custom hose assembly into the Primary operation, thus separating distribution and assembly activities and improving our focus and plant utilisation.
I am extremely enthused by the Management team's knowledge of their industry sectors and their determination and energy in revealing profitable growth opportunities within. This is further enhanced by their grasp of strong brand management, the margin opportunities afforded by selected sourcing of high quality generic products from lower cost manufacturers and their overall commitment to maintaining lean and efficient indirect costs such as administration, with "need to haves" eclipsing "nice to haves."
Finally, 21 May 2015 is the first anniversary since we were admitted to AIM and the date of our first AGM as a plc; we extend an invitation to you as a shareholder to join us in Skelmersdale and take the opportunity to look around the operations and meet more of the team.
Flowtech is a market leader in its field; we have demonstrated that we can profitably deliver consistent levels of service to our diverse customer base. We remain optimistic that there are significant opportunities for further growth, both organic and through acquisition, product development and international expansion.
If you have any points to discuss please feel free to contact us, and in the meantime, I look forward to keeping you updated with our progress during this second year of activity as a plc.
Malcolm Diamond MBE
14 April 2015
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We remain optimistic that there are significant opportunities for further growth, both organic and through acquisition, product development and international expansion
Group at a Glance