8th Sep 2015 09:26
LONDON (Alliance News) - Flowtech Fluidpower PLC Tuesday reported a huge drop in profit in the first half of 2015, despite revenue rising, as the comparative period benefited from a financial gain which did not repeat in the current year.
The fluid power products distributor said its pretax profit in the six months ended June 30 fell to GBP2.9 million from GBP28.1 million in the first half of 2014, even though revenue grew to GBP21.4 million from GBP17.2 million, as the first half of the prior year benefited from a GBP29 million gain on the settlement of debt.
Excluding expenses and gains, the group's operating profit grew to GBP3.0 million from GBP1.1 million.
Flowtech will pay an interim dividend of 1.75 pence, a 5% increase on the 1.67p it paid the year before.
"We are pleased to report a solid underlying first half performance which has seen our portfolio businesses trading well in their individual market places. We are fortunate at this time to have both strength and depth across our product portfolio and extensive customer exposure. Management remain optimistic about both the commercial opportunities and the prospects of the group as a whole. The board is confident that the company can deliver another year of solid progress," Chief Executive Sean Fennon said in a statement.
Separately, Flowtech said that it has signed a master trading agreement with the Hydraulics Group of the Eaton Corp for the distribution of power motion control products and the sole distribution of Eaton Winner hose, hose fitting and adapters.
Shares in Flowtech were trading down 4.4% at 149.14 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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