Shares of Flowtech Fluidpower experienced a significant decline of 18% on Monday, as the company revealed that its Ebitda for the first half of the year did not meet the board's expectations. This disappointing performance can be attributed to lower margins in the solutions and services units, as well as underperformance in the flowtech division.
As of 0732 GMT, the shares were down by 20.50 pence, trading at 95.0 pence.
Flowtech Fluidpower, a supplier of fluid power products listed in London, has announced that it is taking immediate action to address the commercial and operational shortcomings that have negatively impacted the flowtech unit.
Despite the challenges faced by the solutions and services businesses due to market headwinds, such as a slowdown in project velocity among original equipment manufacturers and overall cooling in broader industrial markets, the board expressed general satisfaction with their performance.
Group revenue for the first half of the year, ending on June 30, has increased to £59.0 million ($75.8 million) compared to £57.5 million in the previous period. Within this, flowtech unit revenue has seen a decline of 5.7% to £26.6 million, while solutions and services experienced growth of 11% to £22.0 million and 9.5% to £10.4 million, respectively.
Flowtech Fluidpower has provided a group revenue consensus for this year, projecting £119.4 million, along with underlying earnings before interest and taxes of £9.9 million and a pretax profit of £8.8 million.