12th Jul 2019 11:22
(Alliance News) - Shares in engineering firm Flowtech Fluidpower PLC jumped Friday after interim revenue was reported to have risen strongly despite tough market conditions, helped by healthy organic growth and acquisitions.
Shares in Flowtech were 4.8% higher at 132.00 pence in London on Friday.
For the six months ended June, revenue grew 5.7% to GBP59.6 million from GBP56.4 million the year prior. Revenue growth was driven by a 6.5% jump in revenue from its core Components unit to GBP50.0 million, meanwhile Services revenue also edged 1.4% higher to GBP9.6 million.
On an organic basis - excluding the impact of acquisitions - revenue was 2.9% higher. Flowtech explained, however, that second quarter organic revenue fell relative to the first quarter as a result of the "wider economic conditions."
Net debt levels rose to GBP18.8 million from GBP18.0 million the year prior. Flowtech added that net debt levels have fallen since the end of 2018 when they stood at GBP19.9 million and the firm expects further falls in net debt by the end of 2019.
"Overall, our trading in the first half is in line with full year market expectations and we continue to expect to deliver another year of solid progress despite less buoyant market conditions," Flowtech explained in a statement. "The directors remain confident about the future for the group and look forward to updating shareholders on its cost reduction and working capital initiatives at the time of the half-year results."
Flowtech will deliver its interim result in September 24.
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