16th Sep 2014 09:21
LONDON (Alliance News) - Flowtech Fluidpower PLC Tuesday posted a maiden interim dividend following its initial public offering in May, as it posted a higher pretax profit for the half-year to the end of June due to an exceptional gain on a settlement.
The technical fluid power products company proposed a maiden interim dividend of 1.67 pence.
Flowtech Fluidpower posted a pretax profit of GBP28.1 million, up from GBP78,000 in the previous year, as it posted revenue of GBP17.2 million, up from GBP16.2 million, boosted by an exceptional gain of GBP29.0 million.
Alongside the company's initial public offering, it restructured its debt position; after funding the costs of listing, the remainder of funds raised were used to part clear shareholder loans. The remaining GBP29.0 million of shareholder loans were subject to a debt for equity swap, and the resulting gain on settlement was recognised on Flowtech's income statement.
On an underlying basis, excluding share based payment, restructuring and IPO costs and stripping out the exceptional gain, Flowtech posted an operating profit of GBP3.3 million, up from GBP3.1 million in the previous year.
Flowtech sold its loss making subsidiary in April for GBP1 to its management, which the company said has allowed to focus entirely on the fluid power sector.
Revenue growth during the period was driven by the company's UK and Benelux operations, despite challenging economic conditions. The Benelux business underwent significant restructuring in 2012 and 2013, leading to its improved performance in the first-half.
The company noted that it expects its IPO to open up further opportunity for expansion within the fluid power sector, both organically and through strategic acquisitions.
Flowtech said trading continues to be encouraging and in line with expectations, reiterating its confidence in meeting expectations for the full-year.
Shares in Flowtech were trading up 0.5% at 134.50 pence per share Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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