18th Jan 2016 07:55
LONDON (Alliance News) - Flowtech Fluidpower PLC Monday said it plans to increase its full year dividend by 5% from what it paid out in 2014 after hitting market expectations in 2015.
The UK technical fluid power product distributor said revenue for the year ended December 31, 2015, is expected to total around GBP44.7 million, representing an 18% lift from 2014 when it generated GBP37.8 million in revenue.
Gross margins "remain robust" and in line with internal expectations and Flowtech is anticipating its full year earnings and profitability to be in line with market estimates, giving the company the confidence to increase its dividend for the year.
"As a board, we remain committed to a progressive dividend policy. Based on the year's performance and our confidence as a whole, the board will, barring any unforeseen situation, be intending to propose to shareholders a final dividend for the year ended December 31, 2015 in line with current market expectations, which will deliver a 5% increase over 2014," said Flowtech.
In 2014, Flowtech paid an interim dividend of 1.67 pence and a final dividend of 3.33 pence, giving a total dividend for 2014 of 5.0p per share. That suggests a 5% lift in 2015 would take that dividend up to 5.25p.
Moving forward, Flowtech said it is optimistic it can continue to grow organically and by acquisitions despite a challenging industrial market, with some acquisition opportunities currently being pursued, it said.
"The Flowtech Group now operates in two divisions: specialist Power Motion Control and Distribution; this allows us to showcase our significant technical expertise and high service levels to our customers across the business. This approach gives us a solid platform for growth as well as creating new opportunities particularly for the group's growing interest in the hydraulic equipment and components sector," said the company.
The company said Nick Fossey will take charge of the Power Motion Control division from the start of March, joining the company from Eaton Corp where he was a director of sales and marketing in Europe, the Middle East and Africa.
Paul McGrady was promoted to managing director of Primary Fluid Power at the start of 2016 from his previous role as sales director.
"Management continue to remain optimistic about both the commercial opportunities and the prospects of the group as a whole. The board has a clear strategy to develop the opportunities that will deliver future growth and, despite some headwinds Flowtech is expected to deliver another year of solid progress," said Flowtech.
By Joshua Warner; [email protected]; @JoshAlliance
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