Flowtech Fluidpower makes a splash on AIM debut

21st May 2014 12:50

Hydraulics and pneumatics products distributor Flowtech Fluidpower enjoyed a warm welcome on its first day of trading on AIM, with its shares up 16 per cent in early trading.The Skelmersdale-based company, which has further centres in the Netherlands and China, raised £40m at a placing price of 100p for a market capitalisation of £40m.Chief Executive Sean Fennon said: "We believe there is significant opportunity for organic growth through product development and international expansion; the directors have identified a number of businesses that could be acquired to accelerate complementary channel development and geographic expansion. "We are delighted to join AIM; it offers us the platform to enhance our profile and achieve our future aspirations. We have been bolstered by the strong show of support at the placing from institutional investors which we believe is testament to our future prospects." The company claims to be leading specialist supplier of technical fluid power products in an industry where the British Fluid Power Association (BFPA) has estimated demand for hydraulic and pneumatic fluid power products in the UK stood at £940m in 2012, with hydraulics accounting for £721m and pneumatics £219m. The BFPA forecasts that the market will increase at an annual rate of 3.37% between 2014 and 2016.By 12:50 on Wednesday, shares in the company had tailed off from their initial spurt to 112.88p. OH