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Flowtech Fluidpower issues no FY guidance
21st Apr 2020 09:32
(Sharecast News) - Flowtech Fluidpower pulled full year guidance as the coronavirus pandemic led to shutdowns in the manufacturing and construction sectors it services.
Flowtech said suppliers and customers had suspended operations, although there were indications that some had either already reopened or are planning to reopen in May, "albeit with reduced capacity".
"A significant part of our sales depends on the manufacturing and construction sectors, both of which have seen large scale shutdowns," said Flowtech.
"Overall we remain confident that despite the disruption, our business should generate positive cashflow through 2020 and 2021, helping to further reduce net debt and create a solid platform for growth when things return to a more normal situation," concluded Flowtech.
First-quarter trading prior to the lockdown had been in line with expectations - down on the "buoyant conditions" seen in early 2019, but with a return to growth in customer order patterns and outlook.
As of 0930 BST, Flowtech shares were up 4.20% to 62p.
Flowtech said suppliers and customers had suspended operations, although there were indications that some had either already reopened or are planning to reopen in May, "albeit with reduced capacity".
"A significant part of our sales depends on the manufacturing and construction sectors, both of which have seen large scale shutdowns," said Flowtech.
"Overall we remain confident that despite the disruption, our business should generate positive cashflow through 2020 and 2021, helping to further reduce net debt and create a solid platform for growth when things return to a more normal situation," concluded Flowtech.
First-quarter trading prior to the lockdown had been in line with expectations - down on the "buoyant conditions" seen in early 2019, but with a return to growth in customer order patterns and outlook.
As of 0930 BST, Flowtech shares were up 4.20% to 62p.