NEWS RELEASE

Tuesday, 8 September 2026

FLOWTECH FLUIDPOWER PLC

("Flowtech", the "Group" or "Company")

"a world of motion"

Everything we do at Flowtech is focused on keeping the world moving, whether that is supplying a product or designing and building a complex engineering solution. Our vision is to be the trusted advisor in a world of motion.

2026 HALF-YEAR REPORT

For the six months ended 30 June 2026

"The Group delivered a first-half performance in line with the Board's expectations. Like-for-like revenue grew 13.3%, strongly ahead of H1 25, and total Group revenue rose 23.8% to £70.4m (H1 25: £56.9m), supported by recent acquisitions and market share gains across all three regions. We have acted quickly to mitigate supply-chain disruption and inflationary pressure from the Middle East conflict, protecting product availability, customer service and managing gross margins."

"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. Combined with disciplined gross margin and cost management, this supports the Board's confidence that H2 26 will deliver higher profitability, stronger cash generation and full-year performance in line with the market's expectations."

Mike England, Chief Executive Officer

*Underlying operating profit is operating profit for continuing operations before separately disclosed items (see note 3)

REVENUE

Group revenue increased by 23.7% compared with H1 25. On a like-for-like basis, removing the contribution from acquisitions, revenue increased by 13.3% compared with H1 25 and 10.6% relative to H2 25.  Compared with H2 25, we saw like-for-like growth of 8.7% in GB, 15.5% in Island of Ireland and 13.5% in Benelux, demonstrating top line momentum from the self-help growth initiatives.  As a result of our pro-active Strategy for Growth plan, and despite the challenging market backdrop, our sales pipeline and order book continue to strengthen which provides a foundation for a stronger H2 26 performance.  The sales order book is more than 20% higher at the half year than at the start of 2026.

Gross profit margin

Gross profit margin decreased by 220bps to 37.0%. This is against a background of c500bps increase in the previous five years. This is explained by a combination of factors including the mix effect of Q Plus (acquired in February 2026), which is a lower gross margin business, various initiatives to drive volume growth, reflected in the strong LFL sales growth, and ongoing market price and inflationary pressures.

UNDERLYING OPERATING OVERHEADS

Underlying operating overheads totalled £23.7m in H1 26, £2.9m up on H1 25. £0.3m of the increase relates to distribution costs and of the balance of £2.6m, £1.4m relates to the impact of acquired businesses. The like-for-like increase is therefore £1.2m (7%) and reflects inflationary cost pressures, most notably as it relates to continued increases in National Minimum Wage which impacts the Group as a result of the demographic of our workforce. Like for like headcount has been reduced by 1.2% and other increases carefully controlled which have acted as mitigants.

UNDERLYING OPERATING PROFIT

Underlying operating profit in H1 26 of £2.3m compares with £1.6m in H1 25 and £2.1m in H2 25.  The benefit of the revenue increase has been partly offset by the explained reduction in gross margin percentage and the increase in operating overheads caused by business acquisition costs and inflationary pressures including further National Minimum Wage impact, as explained above.

NET DEBT

Bank debt was £16.4m at 30 June 2026 (30 June 25: £18.5m), leaving £8.6m of headroom within the Group's £25.0m banking facilities.

The Placing completed in February raised c.£9.6m which was used to fund the acquisition of Q Plus and of which, c.£3m was used to support debt reduction and to fund £5.6m growth in working capital supporting the growth in revenues.

The aggregate impact of capex, lease payments and interest costs over the 12-month period to June 26 was c£1.5m in excess of EBITDA. Careful management of working capital led to a £0.6m reduction notwithstanding the 13.3% like for like increase in revenue. The Group expects significant positive cash flow in H2 26, supported by a change in the Major Projects profile, the natural unwind of working capital and anticipated higher profitability.

TRADING REVIEW

The Group has traded in line with the Board's expectations for the financial year to date. While market conditions remain challenging, and wider geopolitical uncertainty remains a risk to the trading environment, the Group's sales pipeline and order book have increased from FY25 and we have made further progress with our self-help growth levers.

Strong H1 revenue growth

Focus on self-help growth levers resulted in strong growth in Group revenue in the first half, with like-for-like sales increasing across all three geographic regions.

In Great Britain, performance benefited from a recovery in sales to some larger customers following reduced activity in the prior period, together with increased sales to smaller customers supported by the new web platform. Ireland benefited from a recovery in the crushing and screening sector, which had declined by more than 20% previously. Trading conditions in Benelux remained more challenging, although Q Plus has performed ahead of expectations since acquisition.

Revenue from the two major bridge infrastructure projects was lower than originally anticipated in H1, in particular, due to changes to a local authority's timetable. Activity on these projects, and related profit and cash contribution, is now expected to be more heavily weighted towards H2.

Gross margin affected by mix and cost inflation

After a sustained period of gross margin improvement, H1 gross margin decreased. This reflected a combination of factors including the lower-margin mix following the acquisition of Q Plus, together with targeted initiatives to increase sales volumes and gross profits across the business. The Group also experienced increased supply chain disruption and inflationary pressure during the period. Management has taken actions to maintain product availability and service levels and mitigate the impact on margins.

Adjusted EBITDA improved, reflecting the benefit of higher revenue, partly offset by lower gross margin and continued cost inflation, including increases in the National Minimum Wage.

Strategic growth levers

Strong growth performance has been driven by the Group's four strategic sales growth levers: its new digital platform, product and service expansion, engineering projects and growth from our recent acquisitions.  This being underpinned by increased exposure to higher-growth sectors.    This has contributed to a much-improved forward order book which at 30 June 2026 was 20% above the start of the year, providing increased revenue visibility for H2.

Digital growth

The UK eCommerce platform, launched in August 2025, continues to support customer acquisition and digital sales. Since launch, active customers have increased by 7%, while new accounts opened in 2026 are 41% above the prior year, with 90% of these new accounts having placed an order. New ordering customers through the website were 4.5 times higher than in the prior year, and the platform generated 64% of new UK product distribution customer accounts.

The platform was launched in Ireland in August 2026, with Benelux rollout planned for September 2026.

The upgraded FT Digital white-label platform is also live and supports the Group's Trade Partner proposition. Ten existing partners have migrated to the platform, and eight new customer adoptions have been secured since launch with a further sales pipeline of opportunity.

Brand and product expansion

FT Pro, the Group's own-brand product range, remains a key growth and margin contributor, with annualised revenue of approximately £20m. The range now comprises more than 17,500 SKUs within a total part-number range exceeding 63,000. Further product extensions planned for H2 26 represent an incremental annualised sales opportunity of more than £0.5m.

The Group is also developing strategic supplier partnerships to expand its product offering and customer reach. Following SMC's appointment of Flowtech as its first UK Wholesale Distributor, a programme is underway to consolidate selected SMC customers through the Flowtech Trade Partner platform. This represents more than 230 customers and approximately £1.5m of incremental annualised revenue.

A further programme with a global fluid power and motion control supplier is expected to commence in H2 26, focused on consolidating and developing its distribution network. The programme is expected to provide an annualised growth opportunity of more than £2.0m for the Group.

Higher growth industry verticals

The Group continues to increase focus on higher growth industry verticals such as Trade, Defence, Infrastructure and Transportation.  Recent acquisitions have complemented this strategy, adding increased capabilities enabling improved growth within existing industrial verticals or opening up new opportunities such as access to Subsea, Oil & Gas, Offshore and Nuclear.

An example is our expanding presence in the Data Centre sector. Through increased sales focus and alignment of our Brand partnerships, product and service offering, revenue from Data Centre customers is 128% ahead year on year, with the current order book and pending orders exceeding £2.0m. The Group continues to develop opportunities across Q4 26 and into 2027.

Engineering projects

The two Irish bridge infrastructure projects secured in 2025, with a combined contract value of approximately €9.0m, remain on track for delivery

in H2 26. The Edmund Rice Rehabilitation Project in Waterford is expected to complete in Q4 26, while Flowtech's installation for the Narrow Water Bridge Project is currently on plan for expected contribution in H2 26 and continuing into 2027.

The Group continues to develop its pipeline of larger turnkey MEICA (Mechanical, Electrical, Instrumentation, Controls & Automation) projects and engineered solutions. Five live opportunities currently represent more than £20m of potential contract value over the next three years, across infrastructure applications including flood defences, bridges, locks, ports and harbours.

Acquisitions

Integration of the Group's recent acquisitions is progressing. Thorite is fully integrated, with further integration activity continuing across Allswage and Thomas Group. Q Plus, acquired in February 2026, is performing ahead of plan, while Helipebs, acquired in June 2026, has secured significant new orders since completion.

The five acquisitions made since August 2024, for aggregate consideration of approximately £6.0m, are providing increased levels of contribution. Collectively we expect the exit run rate from 2026 to see revenue of approximately £35m-£40m and EBITDA in excess of £3m. The Group continues to identify opportunities for cross-selling, customer and regional expansion and procurement synergies.

Q Plus

Q Plus has doubled the scale of the Group's Benelux operations and added capabilities in pneumatics, automation and compressed air. Integration is progressing ahead of plan across systems, operations and organisational functions.

For the first six months, Q Plus revenue and operating profit was ahead of plan, with record monthly performances in March and June. Sales and marketing activity is being aligned across the Group to support further cross-selling and customer development.

Helipebs

Helipebs has added specialist hydraulic cylinder design and manufacturing capabilities, including safety-critical applications, pressure and leak testing and subsea coatings. The acquisition expands the Group's access to nuclear, subsea and oil and gas markets and strengthens its capabilities in existing sectors including aerospace, marine and renewable energy. The acquisition was made on favourable terms and resulted in negative goodwill of c.£1.7m (this is included in separately reported items).

Since acquisition, Helipebs has secured £2.5m in new orders; the order book has increased by more than 300%, with manufacturing capacity committed through to mid-February 2027. Cross-selling activity is also generating new customer enquiries across a range of sectors.

Environmental, Social and Governance

The Group continued to progress its Environmental, Social and Governance priorities during H1 26, with improvements in ESG reporting and accountability, environmental performance, Health & Safety, employee development and governance.

Hazardous recycling volumes increased compared with the equivalent period in each of the previous three years, with a broader range of materials now recycled.

Health & Safety performance remained strong, with no RIDDOR-reportable incidents during the period and an improved accident rate compared with the equivalent period over the previous three years. The Group introduced the Evotix Assure Go+ electronic Health & Safety management system, strengthening reporting and compliance and supporting progress towards ISO 45001. SafeContractor and Constructionline Gold accreditations were retained, with CHAS accreditation also achieved during the period.

The Group continued to invest in employee wellbeing, leadership capability and professional development, including manager development, apprenticeships and early-career programmes. Further initiatives are planned for H2 26, including the introduction of an employee forum and a Group-wide Health Cash Plan.

Governance and controls were further strengthened through the integration of acquired businesses into Group-wide frameworks and closer alignment of Internal Audit, Risk and Compliance. The Group also established a Data Protection Committee to strengthen oversight of data protection and GDPR compliance, alongside continued investment in cyber and information security.

OUTLOOK

The Group continues to trade in line with the market expectations for the year ending 31 December 2026.

Despite the challenging macroeconomic environment, the Board remains confident in the Group's outlook for H2 2026 with a similar H2 EBITDA weighting to the prior year together with a significant reduction in net debt. This is supported by:

·      strength of the sales pipeline and order book;

·      improving H2 growth across the Group's four strategic sales growth levers;

·      weighting of the two bridge projects in H2

·      continued traction from the Group's digital investment programme;

·      integration and performance of recent acquisitions is ahead-of-plan;

·      an expected improvement in H2 gross margin;

·      cash flow profile of Major Projects and the natural reduction in working capital at year end.

The Board remains focused on delivering the Group's Performance Improvement Plan and Strategy for Growth, including the continued rollout of its enhanced eCommerce platform. These initiatives, together with organic growth and disciplined acquisition activity, are expected to support continued operational and financial progress towards the Group's medium-term target of a mid-teens EBITDA margin.

Notes

Prior to this announcement consensus market forecast for FY 26 were revenue £138.1m and adjusted EBITDA £10.2m

By order of the Board

7 September 2026

The operations of the business are reviewed based on three geographical segments - Great Britain, Island of Ireland and Benelux (as explained in note 3 Segment Reporting (page 98) of the Annual report 2025).  These geographical segments are monitored by the Group's Chief Operating Decision Maker and strategic decisions are made on the basis of adjusted segment operating results. Inter-segment revenue arises on the sale of goods between Group undertakings.

Segment information for the reporting periods is as follows:

(*) Underlying operating result is continuing operations' operating profit before separately disclosed items

The Directors believe that the Underlying Operating Profit provides additional useful information on underlying trends to Shareholders. The term 'underlying' is not a defined term under IFRS and may not be comparable with similarly titled profit measurements reported by other companies. A reconciliation of the underlying operating result to operating result from continuing operations is shown below. The principal adjustments made are in respect of the separately disclosed items as detailed later in this note; the Directors consider that these should be reported separately as they do not relate to the performance of the segments.