Group Trading Update & Notice of Interim Results

NEWS RELEASE

Issued on behalf of Flowtech Fluidpower plc

Immediate Release

Flowtech Fluidpower plc

(the "Group")

Group Trading Update

and

Notice of Interim Results

London: Tuesday, 29 July 2025: AIM listed Flowtech Fluidpower plc (LSE: FLO), the specialist technical provider of hydraulic, pneumatic and process products, engineering services and projects provides a trading update for the six months ended 30 June 2025 (H1 2025).

GROUP Trading Update

The Group delivered a profit performance for H1 2025 in line with the Board's expectations with further improvements in gross margins and continued focus on cost control and overall customer service levels. Combined, the positive impact of these initiatives has served to offset ongoing challenging industrial market headwinds which have continued to impact top line growth, in particular through March and April.

Group revenue increased by 2.1% compared with H1 2024. On a like-for-like basis, removing the contribution from acquisitions, revenue reduced by 11.8% compared with H1 2024, with similar levels of decline in each of our three geographical segments. However, H1 2025 delivered revenue growth of 5% on a like for like basis against H2 2024, highlighting more positive momentum gains in the period with June representing the strongest month of revenue, gross margin, and EBITDA contribution for over 12 months. The sales pipeline and order book continue to strengthen with new higher value contracts secured which, together with continued self-help initiatives, provide a foundation for H2 2025 performance.

We are pleased with the progress within each of the recently acquired businesses, all of which are now trading strongly and generating positive contributions as we capitalise on the opportunities which each present. Thorite is now firmly established as a Flowtech business and good progress has been made with both Allswage and Thomas Group, both more recent acquisitions. We are confident that the three businesses combined, which currently deliver annualised revenue of approximately £18m, will be a key component of driving our future organic growth and earnings.

Note:

* Net debt is bank debt; this excludes lease liabilities under IFRS 16.

Pre IFRS 16 net debt was £18.5m as at 30 June 2025 (H1 2024: £13.5m), leaving headroom of £6.5m in the Group's £25m banking facilities. The £5.0m movement over the 12-month period to June 2025 reflects the fact that EBITDA generated has been insufficient to fully absorb interest and lease costs and the favourable movement in working capital has been more than offset by the combination of selective capital investment and the dividend paid in H2 2024. The Company remains comfortable with its level of debt; it is expected that improved levels of profitability combined with careful assessment of capital projects and ongoing control of costs and working capital will lead to debt reduction in the second half of the year and beyond. Whilst there will be continued investment in the digital agenda, as we move into a maintenance/continuous improvement phase, spend will be materially lower than that incurred over recent years.

SUMMARY & OUTLOOK

The Group continues to trade in line with the Board's expectations for the full year ending 31 December 2025.

Well documented market headwinds have persisted during the first half, with increased uncertainty across industrial markets from March resulting from US trade policy and development of global conflicts. As a result, end customers are continuing to be prudent on expenditure, holding lower inventory levels, and delaying projects. However, in June, there were small signs of markets beginning to stabilise supported by improved economic indicators and corresponding market confidence across our three regions.

The continued focus on improving gross margins and controlling costs has delivered an effective and efficient operating structure. This, combined with some well-executed acquisitions alongside targeted sales focus on industry sectors and gaining Government investment in projects within infrastructure, defence and transportation, has led to improving momentum towards the end of the second quarter, and a strengthened sales pipeline and forward order book for H2 2025, 2026 and beyond. We have also secured new, incremental strategic supplier agreements during the first half which will also contribute to H2 2025 growth.

More information on the recently key projects secured can be read here:

We have made solid progress on our digital investment with the new Group website and e-commerce platforms being introduced to the market in the UK in July, with further roll out of the platform into our Ireland and Benelux markets expected during H2 2025. This will enhance digital growth which we will build upon as we move into 2026 and beyond. Our vision for Flowtech is to be the leading specialist in digitally enabled product and engineering solutions across hydraulics, pneumatics, and process (a world of motion).

Despite the expected continuation of challenging industrial markets, we continue to deliver our self-help programme which has protected margins and profitability. Looking to H2 2025, we have an improved sales pipeline and order book, the launch of a new website and e-commerce platforms together with the recent acquisitions performing ahead of our expectations.

NOTICE OF RESULTS

The Group is planning to announce its unaudited interim results for the six months ended 30 June 2025 on Tuesday, 9 September 2025; the results will be available to view and download from the Company's website www.flowtechfluidpower.com.

The Group will also be holding a 'live' presentation which will be hosted by CEO Mike England and CFO Russell Cash on the Investor Meet Company platform at 10.00am on Tuesday, 9 September 2025. Registration to join the event can be made following this link:

https://www.investormeetcompany.com/flowtech-fluidpower-plc/register-investor

Further information regarding the above HY programme of events can be obtained by contacting the advisers detailed below.

Note:

Market expectations compiled by the Company prior to this announcement for the year ending 31 December 2025 were Group revenue of £120.2m; underlying EBITDA of £8.4m; and Net debt of £12.2m (excluding IFRS16 lease liabilities).

ENQUIRIES:

Flowtech Fluidpower plc

Mike England, Chief Executive Officer

Russell Cash, Chief Financial Officer

Tel: +44 (0) 1695 52759

Email: [email protected]

Panmure Liberum (Nominated Adviser and Joint Broker)

Nicholas How, Managing Director, Head of Business Services and Industrials

William King, Assistant Director, Investment Banking

Tel: +44 (0) 20 3100 2000 

Singer Capital Markets (Joint Broker)

Tom Salvesen, Head of Investment Banking

James Todd, Associate, Investment Banking

Tel: +44 (0) 207 496 3000

TooleyStreet Communications (IR and media relations)

Fiona Tooley

Tel: +44 (0) 7785 703523

Email: [email protected]

EDITORS NOTE:

Flowtech Fluidpower plc (AIM:FLO), is the largest supplier of fluid power products, systems and solutions across the UK, Ireland, and Benelux. As a specialist with over 40 years of experience working across a wide range of industries, we have the expertise and experience our customers need to help them minimise downtime, optimise performance and maximise the lifespan of operations. Today, the Company is a strong market leader in a highly fragmented £30bn European market. We work across virtually all industry sectors, serving the needs of our customers who are designing, building, maintaining, and improving industrial plant, equipment, and operations.

Our aim: is to provide our customers with power, motion & control solutions, from a single component to integrated engineering systems, in the most cost-effective way, harnessing the best global brands & products, services and engineers in the market.

To read more about:

Flowtech Group, please visit: www.flowtechfluidpower.com