Flowtech Fluidpower 2016 Annual Report
A wide range of fluid power products, which can be ordered at any time, day or night.
With delivery of those fluid power products on short lead times, these items must be held, as ordering from other suppliers may take too long.
Specialist, technical advice and knowledge to help identify bespoke solutions that the Group can realise.
Established sourcing in the Far East provides us with access to over half a million products.
Our state-of-the-art facilities allow us to store, design and manufacture items in the most efficient way.
Our committed people and knowledge of te customer enable us to understand the customer's needs, and either supply or manufacture the solution.
Our acquisitive nature enables us to bring new talent into the Group, and offer specialist technical advice and products to our customers
The continual adding of capabilities enables us to solve broader problems for our customers
Our strong supplier relationships, enable us to source bespoke products that generalists cannot.
Fully integrated IT systems and automated distribution centres ensure operational efficiency, as well as special relationships with couriers enable us to deliver products to our customers on shorter lead-times.
We continually add capabilities to the business, our acquisitions increase our value proposition through the inclusion of more capabilities.
As a result, we are able to provide a wider range of solutions within the market, either sourced or specifically designed and manufactured.
Our position as specialists enables us to maintain margins for products sourced or manufactured and delivered quickly. From this we deliver strong cash and dividend flow.
We keep our customers' businesses going, providing vital parts within the manufacturing process, helping them solve problems quicker, minimising disruption.
Working for a progressive organisation that retains its roots at local level whilst using all the benefits of being part of a larger group of companies - securing long term jobs with a share in the wealth they create.
Access to a widening network of technical distributors, specialists that they can rely on to professionally manage their product and pay them on time.
Managing our activities responsibly, both at home and overseas, and delivering wealth creation for the long term.
Investing in acquisitions to further consolidate our fragmented market; and
Increasing our capabilities and furthering trust in our branded businesses to deliver
Which we add to our key enablers, making us bigger and better at what we do
Read more in Our strategy
See more about our acquisitions atwww.flowtechfluidpower.com/acquisitions
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.
Operational Board 1 pictured left to right: John Farmer, Managing Director, Flowtechnology UK, Ian Simpson, Managing Director, Indequip, Sean Fennon, CEO, Mark Richardson, Managing Director, Flowtechnology Benelux, Andy Newham, Managing Director, Hydravalve
Operational Board 2 pictured left to right: Mark Nelson, Managing Director, Nelson Hydraulics, Paul McGrady, Managing Director, Primary Fluid power, Nick Fossey, Group Managing Director PMC, Steve Rushworth, Managing Director, TSL Fluidpower
Overlapping product groups across the business units mean that many orders can be fulfilled achieving 99% service levels for next day delivery and ensures facility usage is optimised across the Group. Currently 10% of the distribution centre's orders relate to the rest of the Group, including 2% to mainland Europe.
The Group Strategic Buying Team includes representatives from each division and is supported by a small team based in Shanghai. This team visits the Far East twice a year with additional visits by individual buyers in specific product areas as and when required. The aim of these visits is to set and monitor a programme of continuous improvement with existing suppliers and to seek out new suppliers that will fit the Group purchasing requirements.
Read more about strategic procurement in Our marketplace
We acquire established, specialist businesses that extend our Group capability, but we believe in maintaining their heritage, individuality and specialism. Ensuring consistency for their customers is important to us, so we simply improve these businesses with our Group central services.
Based in Skelmersdale, Lancashire, the Service Centre team covers the disciplines of finance, human resources and IT for the Group. As Group IT systems and working practices are introduced into new acquisitions with standardised methods of working, we believe growth can be successfully supported by the existing small team.
Sean Fennon, Bryce Brooks and Nick Fossey are responsible for target identification and lead negotiation, supported by Chris Kershaw who has previously worked in a series of M&A roles, including Group M&A Director at Spice plc.
The typical criteria our experienced strategic Acquisitions team look for include:
Acquisitions team pictured left to right: Anne Fogg, Head of Business Process, Chris Kershaw, M&A Consultant, Jon Burke, Group Financial Controller, Bryce Brooks, Chief Financial Officer, Helen Barratt, Head of Corporate Governance
During the due diligence process Bryce and Chris are supported by professionals from the following organisations:
The immediate post integration team covers Business Process, IT and Financial Control, with follow on work undertaken in Corporate Governance, Risk Management and Business Continuity Planning. This entire process is structured under a '100 Day' project management philosophy led by the CFO.