Business
Update
Update.
About this update from Flowtech Fluidpower Plc
[{"type":"text","content":"\n Flomerics Group PLC\n27 March 2008\n\n\n\n Flomerics Group PLC\n (\"Flomerics\" or \"the Company\")\n\n\n\nUpdate\n\n\n\nFlomerics, the global supplier of specialist simulation software for electronics\nand fluid flow simulation, is today providing an update on its operational plans\nand outlook for 2008 and beyond in the light of the recent changes in\nshareholdings in the Company.\n\n\n\nFlomerics' strategy remains to be a leading provider of software simulation\nsolutions to the worldwide engineering design market. Flomerics' software\nsolutions are targeted at the world electronic thermal management and fluid flow\nsoftware markets.\n\n\n\nThese markets are growing strongly and the Company believes it has significant\nopportunities for growth. For example, data published by Global Industry\nAnalysts, Inc.(1) indicates that the world electronic thermal management\nsoftware market will continue to grow by 10% per year over the next five years.\nThe Company's electronics cooling business is well positioned to benefit from\nthis growth, particularly in Asia and the Far-East, which has seen strong growth\nin recent years.\n\n\n\nSimilarly, the computer-aided engineering industry is expected to grow at a\ncompound annual growth rate of 12% through 2009(2). The Board believes\nFlomerics' products can outperform this average market growth rate due to the\ncompetitive advantages offered by its products. Strong growth has already been\nseen for the Engineering Fluid Dynamics (EFD) product range in 2007 and into\n2008.\n\n\n\nThe investment in sales and marketing in 2007, aimed at accelerating revenue\ngrowth particularly from the EFD product range (acquired as part of the\nacquisition of Nika GmbH in 2006) is beginning to show positive results. This\nreinforces the Board's confidence that 2008 revenues will show considerable\nimprovement over 2007.\n\n\n\nFlomerics has cash balances of approximately £5.0m compared to £2.7m as at 31\nDecember 2007, and the Company is well funded to undertake the investment needed\nto deliver its strategy. Following on from the acquisitions of MicReD in 2005\nand Nika GmbH in 2006, additional growth through targeted acquisition remains an\nimportant focus for the Company. The board continues to review potential\ncandidates against its strategic and financial targets.\n\n\n\nThe Company expects to a...