Flowtech Fluidpower (AIM:FLO), the fluid power components and engineering services group, reported revenue of £70.4m for the six months to 30 June, up 23.8% from £56.9m a year earlier.
Like-for-like revenue, stripping out recent acquisitions including Thorite, Allswage, Thomas, Q Plus and Helipebs, grew 13.3% against the first half of 2025.
Underlying EBITDA reached £4.5m, £1m ahead of the same period last year and £0.3m higher than the second half of 2025.
Gross profit margin fell 220 basis points to 37.0%, which the company attributed to the lower-margin mix from Q Plus, acquired in February, alongside volume-growth initiatives and market price inflation.
The sales order book stood more than 20% higher than at the start of the year, with each of the group's three regions, Great Britain, the Island of Ireland and Benelux, posting like-for-like growth versus the second half of 2025.
Net debt before lease liabilities was £16.4m, down from £18.5m a year earlier, leaving £8.6m of headroom within the group's £25m banking facilities.
Revenue from two major bridge infrastructure projects came in lower than expected in the first half after a local authority changed its timetable, pushing related profit and cash contribution into the second half.
"Our self-help growth initiatives have strengthened the H2 sales pipeline and order book, with significant profit and cash contribution expected from the two major bridge contracts," said chief executive Mike England.
Flowtech said it continues to trade in line with market expectations for the year ending 31 December, with net debt forecast to reduce significantly in the second half.
News Intelligence what this means for the company
Flowtech reported H1 revenue of £70.4m, up 23.8% year-on-year, with like-for-like growth of 13.3% stripping out five recent acquisitions. Underlying EBITDA rose to £4.5m, but gross margin compressed 220 basis points to 37.0% due to lower-margin Q Plus (acquired February) and volume-growth pricing. The company remains on track for full-year guidance, anchoring expectations on two major bridge infrastructure contracts now weighted to H2 after local authority timetable delays, and a sales order book 20% higher than year-start.
Panmure Liberum left FY26E estimates unchanged, suggesting the H1 beat and margin pressure were already priced in. The H2 profit and cash lift hinges on bridge contract execution and the rollout of the e-commerce platform in Q3; delivery risk remains material given the H1 contract timing slip.
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