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The Group

Flowtech Fluidpower plc ("Flowtech" or "the Group") is the leading distributor of technical fluid power products to over 3,600 customers in the UK and Northern Europe. With modern distribution facilities in the UK, ROI and Benelux we offer an unrivalled range of both Original Equipment Manufacturer ("OEM") products, as well as our own ranges sourced exclusively to the Group ("Exclusive Brands").

During the year the Group had two operating divisions:

  • Flowtechnology operating in the UK ("FTUK") Northern Europe ("FTB")
  • Power Motion Control ("PMC")

FTUK and FTB operate the same business model in the UK and Northern Europe respectively and focus on supplying distributors and resellers of industrial MRO (maintenance, repair and operation) products, primarily serving urgent orders rather than bulk offerings. The PMC division specialises in the design and assembly of engineering components and hydraulic systems, which are further enhanced by component supply along with a service and repair function. Since the year end a third division, "Process", has been established which will focus on distribution of industrial components to the process sectors. All three divisions have overlapping product sets allowing procurement synergies to be exploited.

The Group has established a key position in the fluid power supply chain. The focus on core competencies within the fluid power market has been central to our continued success and this focus will support our long term strategy. In addition, Flowtech continues to deliver and develop its added value services to support its customers through organic development of its product ranges and acquisition of complementary businesses.

FTUK is based in Skelmersdale, Lancashire, where all Group functions are also located. In Europe, FTB operates from a single site in Deventer in the eastern region of Holland and services customers principally in Holland and Belgium. PMC operates from four sites. Originally established in Knowsley, Merseyside, sites in Lisburn and Dungannon, Northern Ireland and Dublin, ROI were added following the acquisition of the Nelson Fluid Power group ("NFP") in July.

The Group's business is directed by the Board and managed by the Executive Directors, led by the Chief Executive. To support the development and alignment of the Group's business objectives, an Operational Board has been introduced to control and deliver the strategic goals as defined by the plc Board. This Operational Board includes the Managing Director from each business unit as well as the Group's CEO and CFO. This team will maintain a clear focus on developing the business in line with market requirements.

FLOWTECH FLUIDPOWER PLC

FLOWTECHNOLOGY

FLOWTECHNOLOGY UK

FLOWTECHNOLOGY BENELUX

DISTRIBUTION CHANNEL

Technical, catalogue based through 3,000 customers

FTUK distributors

FTB full market including end-users

POWER MOTION CONTROL

PRIMARY

NELSON

OEM & END USER CHANNEL

Hydraulic components, design, power pack build, purifiers, hose assembly and tube manipulation

800 customers

CUSTOMER SUPPORT SERVICES

Our complementary divisions

The Group has two operating divisions: Flowtechnology, geographically split into Flowtechnology UK ("FTUK") and Flowtechnology Benelux ("FTB"); and Power Motion Control ("PMC"). FTUK and FTB operate the same business model in the UK and Northern Europe respectively and focus on supplying distributors and resellers of industrial MRO (maintenance, repair and operation) products, primarily serving urgent orders rather than bulk offerings. The PMC division specialises in the design and assembly of engineering components and hydraulic systems, which are further enhanced by component supply along with a service and repair function. The PMC division's aftersales supplies can be fulfilled by FTUK which offers 99% service levels for next day delivery and ensures facility usage is optimised across the Group. Since the year end a third division, "Process", has been established which will focus on distribution of industrial components to the process sectors.

The divisions are supported by a centralised back office team at the Skelmersdale headquarters and a procurement and quality control team in Shanghai.

Group offering

Convenient systems

'One stop shop' for fluid power products via easy to use web trading systems

Unrivalled range

Our mix of generic, branded and our exclusive own brand products is unmatched in the market.

Quality distribution

High service levels and rapid response times deliver the right products at the right time.

Engineering expertise

Over 50 years' experience of engineering design and assembly in the hydraulic markets.

After Sales support

Provide site service engineers, scheduled maintenance plans and on site refurbishment.

Customer integration

Our additional services make us integral to our customers' marketing strategies.

Group offering

Flowtech Value Valve 2015

We're able to generate this value through our key enablers:

Trusted brand

Flowtech has a unique position in the market and a diverse customer base.

Customer knowledge

Our customer centric approach ensures we understand their needs.

Established sourcing

Our presence in the Far East and supplier relationships there are accomplished.

Modern facilities

Fully integrated IT systems and highly-automated distribution centres.

Committed people

Our team are highly motivated, with training and development to grow their crucial knowledge and expertise.

Astute acquisitions

Our strong acquisition pipeline and strategy offer potential for further expansion.

Flowtechnology UK

Key Facts

119

Employees

80,000

SQ FT MODERN DISTRIBUTION CENTRE

99%

Of orders dispatched in full same day

3,900

AVERAGE PICKS PER DAY WITH AN ERROR RATE OF LESS THAN 0.25%

Flowtechnology UK was founded in 1983. It is a highly efficient business unit with a fully integrated end-to-end process delivering high service levels to its marketplace, and a deep stockholding to support its wide and varied customer base.

  • Highly motivated staff and management are committed to delivering excellence to the customer base
  • Continues to implement systems aimed at creating an 'ease of transaction' for its customers allowing a one-stop shop for fluid power products
  • Innovative marketing programmes are in place to support customer growth
  • Over 64% of orders are placed online, through a fully integrated web trading system
  • Orders taken up until 10.00 pm can be delivered next day
  • Extensive stockholding of over 37,000 product lines supports a class-leading service offering
  • First in industry to offer a mobile app for orders, introduced May 2015

UK Revenue

 

£000

UK Underlying Operating Result*

£000

Flowtechnology Benelux

Key Facts

23

Employees

20,000

SQ FT MODERN DISTRIBUTION CENTRE

98%

Of orders dispatched in full same day

502

AVERAGE PICKS PER DAY WITH AN ERROR RATE OF LESS THAN 0.25%

Flowtechnology Benelux was acquired in 2007. Since 2010 significant restructuring has been undertaken and by 2014 it was fully integrated into the Group's operating systems. The change process has delivered a business with solid foundations which is now establishing a strong reputation in its marketplace.

  • Single purpose-built unit, with integrated links to the UK business
  • Over 55% of orders are placed online, through a fully integrated web trading system
  • Orders taken up until 8.00 pm can be delivered next day
  • The ongoing focus on sales development, service levels and increased customer support has seen the business increase its market penetration
  • Customer development programmes are in place aimed at matching the regional requirements of each of the key sectors we serve
  • Stockholding of over 12,000 product lines

Benelux Revenue

 

€000

Benelux Underlying Operating Result*

€000

* Before separately disclosed items and central costs which are shown in the financial statements note 3.

Our locations

UK

The Group's 80,000 sq.ft. UK distribution hub in Skelmersdale, Lancashire, houses its modern, highly automated distribution, operations centre and support functions. FTUK has a sales and technical support team responsible for order receipt and processing, marketing and business development, procurement, contract services and technical support.

Netherlands

FTB services approximately 900 distributors, resellers and end user customers in Northern Europe. FTB operates from a 20,000 sq.ft. warehouse in Deventer and uses the same integrated IT platform as the UK business, with back office functions provided from the UK.

China

The Group's Chinese operations consist of a procurement team in Shanghai and a 18,000 sq.ft. logistics centre in Guangzhou. The operation was established in 2014 and is used as a centrepoint for quality control and container load optimisation.

Our products

Global OME brands

Our exclusive brands

Power Motion Control ("PMC")

Key Facts

98

Employees

62,000

SQ FT MODERN DISTRIBUTION CENTRE

97%

Delivery targets achieved

79%

Tenders won

 

The PMC division incorporates Primary Fluid Power ("PFP") acquired in 2014 and this year's acquisitions: Albroco and Nelson Fluid Power ("NFP"). The trade of Albroco has been smoothly integrated into the Primary operations whilst Nelson continues to operate independently under local management. All three acquisitions benefit from the synergies created within the Group for procurement and shared support costs.

  • Technically-based hydraulics business and holds a strong market position, focusing on the delivery of components, hydraulic equipment, hose assemblies and power packs to the OEM marketplace
  • Long-standing reputation for assembly and service excellence, servicing a wide range of industrial sectors including: mobile, oil and gas, environmental, industrial and life sciences
  • Acquisition of NFP adds a customer base in Ireland with emphasis in the crushing and screening, agricultural and marine and fishing sectors
  • Acquisition of NFP adds substantial strength to the Group's procurement position in hydraulic components, hose and couplings
  • Successfully retained Albroco's customers bringing significant opportunities to sell existing PFP products

PMC Revenue

 

£000

PMC Revenue

PMC Underlying Operating Result*

£000

PMC Underlying Operating Result

* Before separately disclosed items which are shown in the financial statements.

Our locations

UK

PFP's 25,000 sq.ft. facility in Knowsley, Merseyside, houses our 'Centre of Engineering Excellence' as well as sales, technical design, procurement and business development teams. PFP design, manufacture and assemble their own brand products including manifold blocks, valves, tube couplings and adaptors. Quality assurance is controlled with modern CNC technology and product application and testing capability.

NFP has two sites in Lisburn and Dungannon totalling 27,000 sq.ft. housing six hose assembly lines, power pack assembly facilities and warehousing.

Republic of Ireland

NFP has one site in Dublin of 10,000 sq.ft. accommodating one hose assembly line, warehousing and support staff.

Our products

  • Hydraulic rubber and thermoplastic hose assembly kits
  • Design and supply of bespoke power units and power packs
  • Electrical control panels
  • Transmission, steering and electrical control for mobile hydraulic equipment
  • Purification and filtration systems
  • Manipulated pipe and individual machined components

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