Flowtech Fluidpower 2016 Annual Report
Flowtech Fluidpower plc ("Flowtech" or "the Group") is the leading distributor of technical fluid power products to over 6,000 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 three operating divisions:
The Power Motion Control division specialises in the design and assembly of engineering components and hydraulic systems, and further enhanced by component supply and a service and repair function. It is formed from Primary Fluid Power, Nelson Fluid Power, Albroco, Triplesix (TSL) and Hydraulics and Transmissions (HTL). Primary Fluid Power is a technically based hydraulics business and holds a strong market position, focusing on the delivery of components and power packs to the OEM marketplace. Nelson Fluid Power is a distributor of hydraulic equipment, components and hose assemblies. Albroco supplies hydraulic components and electro-mechanical products to the on and off highway markets. TSL is a specialist designer and distributor of hydraulic cylinders and semi rotary actuators. Acquired in January 2017, HTL distributes hydraulic equipment and components predominantly to the mobile market.
The Flowtechnology division is formed from Flowtechnology UK, Flowtechnology Benelux and Indequip. All have the same business model and focus on supplying technical fluid power distributors and resellers, primarily serving urgent orders rather than bulk offerings. Flowtechnology offers an unrivalled range of OEM and Exclusive Brand products. Indequip is a UK distributor of pneumatic and hydraulic components and a leading catalogue brand.
The Process division focuses on the distribution of valves and industrial components to the process sectors. This is the newest division in the Group, formed as a result of the acquisition of Hydravalve. This business specialises in the distribution of a wide range of products from pneumatics and hydraulics to electric and pneumatic actuated valves to process industries, including original equipment manufacturers in paint production, paint spraying, mixing, foundry, food and beverage, industrial washing and environmental.
The Group has three operating divisions: Flowtechnology; Power Motion Control ("PMC"); and Process. Flowtechnology operates the same business model in the UK and Northern Europe and focuses on supplying technical distributors and resellers, 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 Flowtechnology which offers 99% service levels for next day delivery and ensures facility usage is optimised across the Group. With an overlapping product group, Process also benefits from Flowtechnology fulfilment and improved purchasing synergies.
The divisions are supported by a centralised back office team at the Skelmersdale site and a procurement and quality control team in Shanghai.
'One stop shop' for fluid power products via easy to use web trading systems
Our mix of generic, tbranded and our exclusive own brand products is unmatched in the market.
High service levels and rapid response times deliver the right products at the right time.
Over 50 years' experience of engineering design and assembly in the hydraulic markets.
Provide site service engineers, scheduled maintenance plans and on site refurbishment.
Our additional services make us integral to our customers' marketing strategies.
Flowtech has a unique position in the market and a diverse customer base.
Our customer centric approach ensures we understand their needs.
Our presence in the Far East and supplier relationships there are highly accomplished.
Fully integrated IT systems and highly-automated distribution centres.
Our team are highly motivated with training and development to grow their crucial knowledge and expertise.
Our strong acquisition pipeline and strategy offer potential for significant further expansion.
of orders despatched in full same day
Sq ft modern distribution centre
Average picks per day with an error rate of less than 0.23%
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. 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. Indequip, a UK distributor of pneumatic and hydraulic components and a leading catalogue brand was acquired in February 2016 by the Flowtechnology division. Indequip continues to operate as an independent brand under local management, whilst benefiting from the synergies created by sharing warehousing and procurement at the Skelmersdale site.
The Group's 80,000 sq.ft. Shared Logistics Centre 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.
FTB services approximately 1,000 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 also provided from the UK.
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 centre point for quality control and container load optimisation.
Flowtechnology offers an unrivalled range of both Original Equipment Manufacturer ("OEM") products, as well as our own ranges sourced exclusively to the Group ("Exclusive Brands"). This gives end users the benefits of purchasing from a one-stop shop supplier compared to buying from multiple OEMs.
Delivery targets achieved
Sq ft operating facility
The PMC division incorporates Primary Fluid Power ("PFP") acquired 2014, Albroco and Nelson Fluid Power ("NFP") acquired 2015 and this year's acquisition TSL Fluid Power ("TSL"). HTL was added January 2017.
PFP's 25,000 sq.ft. facility in Knowsley, Merseyside, houses our main engineering centre 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.
NFP has three sites in Lisburn and Dungannon totalling 27,000 sq.ft. housing six hose assembly lines, power pack assembly facilities and warehousing.
TSL has one site in Mytholmroyd, West Yorkshire, totalling 4,500 sq.ft. housing assembly, test and inspection facilities. HTL is based in Ludlow, Shropshire, totalling 10,000 sq.ft.
NFP has one site in Dublin of 10,000 sq.ft. accommodating one hose assembly line, small power pack assembly and distribution of OEM branded product.
Orders delivered by own fleet
The Process division was established in 2016 following the acquisition of Hydravalve. Established in 1988, it is a second generation family business and a leading stockist and distributor of valves, pneumatic and electric actuators, hose and fittings. Hydravalve continues to operate independently under local management.
Hydravalve's 12,000 sq.ft. facility in Willenhall, West Midlands houses its warehousing and commercial staff. Prior to acquisition Hydravalve made a significant investment in warehousing capacity through the purchase of five Kadex machines for the efficient storage and retrieval of smaller stock items. Hydravalve supplies 22% of its deliveries through its own fleet ensuring same day service when required covering approximately a 50km radius delivery area in the West Midlands.
Reasons to invest