Flowtech Fluidpower PLC on Wednesday said profit in the first half of 2023 fell, despite rising revenue, as this was offset by rising cost of sales and total administrative expenses.

In the six months that ended June 30, the Wilmslow, England-based supplier of technical fluid power products said pretax profit fell 48% to £1.6 million from £3.1 million a year earlier.

This was despite revenue rising 2.8% to £59.1 million from £57.5 million.

However, costs of sales rose 4.1% to £38.1 million from £36.6 million, while total administrative expenses rose 7.9% £16.3 million from £15.1 million.

‘Despite increasingly challenging economic conditions, overall group revenue increased...with a more positive performance in our solutions and services segments and a weaker performance in the product distribution segment, as previously reported. We have continued to make positive progress on working capital management, continuing to improve our debt position whilst maintaining tight cost controls,’ said Chief Executive Officer Mike England.

‘We expect these market headwinds to continue through [the first half of] 2023 and into 2024 but I am pleased to report good progress is being made in deploying an immediate performance improvement plan and the refreshed strategy, strengthening the leadership team and simplifying the operating model building the capabilities to deliver mid-term scalable growth in a highly fragmented market.’

Shares in Flowtech Fluidpower were down 1.9% to 82.31 pence each in London on Wednesday morning.

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