16 April 2019 – Q1 trading update
Group trading remained in line with expectations in the first quarter of 2019. Revenue during the first three months of the current year increased by 14%, of which 4% was organic. The balance was made up of acquisitive growth from a full period of trading for Beaumanor Engineering and Derek Lane & Co., which were acquired on 18 March 2018. Both the Flowtechnology and PMC divisions traded well and this continued into early April. The smaller Process division, which is involved in larger order activities, saw a reduction in sales against the comparative quarter. A return to growth in Q2 is expected though. Overall gross margin has remained in line with market expectations. Net debt was is in line with management expectations at approximately £20.5m. During the period to 31 March the Group made payments under deferred consideration agreements which totalled £762k and since that date further payments of deferred consideration totalling £316k have also been made. We keep our BUY rating.