16th Apr 2019 09:57
LONDON (Alliance News) - Flowtech Fluidpower PLC hiked its dividend Tuesday after its 2018 profit and revenue surged through a combination or organic and acquisitive growth, meanwhile first quarter performance remained in line with expectations.
In 2018, pretax profit widened 15% to GBP6.9 million from GBP6.0 million the year prior. This was after revenue rose 42% to GBP111.1 million from GBP78.3 million the year before.
During the year, the engineering firm explained its Flowtechnology unit saw revenue grow 21% to GBP47.2 million. Meanwhile, Power Motion Control expanded 66% to GBP58.3 million and its Process unit up 33% to GBP8.5 million.
A lot of the revenue growth was derived from acquisition activity. Excluding this impact, Flowtechnology saw 4.0% organic revenue growth, Power Motion Control 6.7% organic growth and Process 8.3% organic growth.
Flowtech proposed a 4.04 pence per share final dividend, up 4.9% from 3.85p the year prior. For the full year, the dividend rose 5.0% to 6.07p from 5.78p the year before.
Flowtech also reported its first quarter trading update with revenue 14% higher at GBP30.1 million from GBP26.5 million the year prior. This was helped by a 23% rise in revenue for its Flowtechnology unit to GBP13.2 million and a 10% jump in revenue within its Power Motion Control segment to GBP15.3 million.
In contrast, the Process unit saw revenue fall 16% to GBP1.6 million.
"Group trading remains in line with expectations," Flowtech explained in a statement. "Revenue during the first three months of the current year increased by 14%, of which 4% was organic, with the balance representing acquisitive growth from a full period of trading for Beaumanor Engineering and Derek Lane & Co which were acquired on 18 March 2018."
"Both the Flowtechnology and PMC divisions traded well and have continued to do so in early April," Flowtech added. "The smaller Process division, which is involved in larger order activities, saw a reduction in sales against the comparative quarter, however a return to growth in the second quarter is expected."
Shares in Flowtech were 3.9% lower at 117.50 pence on Tuesday.
Related Shares:
Flowtech Fluid.