Market's view on Flowtech Fluid.

Published on April 2024

  • There is speculation that the significant increase in share price (40%) might be indicating a potential takeover or bid possibility.
  • Some stock watchers believe that the company’s debt reduction of £1.7 million and change in management could signal a recovery phase, potentially making it an attractive takeover target.
  • Concerns are raised about the company’s inability to significantly reduce net debt despite declaring large adjusted profits annually.
  • The recent share price rise might be influenced by rumours or expectations of a takeover or by optimism regarding the new management’s capability to turn the company around.
  • Observations suggest that the beginning of the share price rise coincided with the blocking of the wind down of Downing micro strategic.
  • The new CEO’s introduction is viewed positively, with expectations of business confidence and recovery in the medium term, and a possible takeover attempt.
  • There is discussion on Downing Strategic Micro Cap I.T. selling down their holdings, which could provide an acquisition opportunity for potential buyers.
  • The market has shown a positive reaction to the company maintaining its underlying profit expectations, with hopes pinned on the new management team for future progress.
  • Liberum maintains an optimistic buy recommendation with a target price of 150p.
  • The recent interim report by Odyssean Investment Trust notes that despite market challenges, there are positive developments under the new CEO, such as a refreshed group strategy and performance improvement plan.
  • DSM’s interim report also reflects on the strategic changes and operational improvements initiated by the new CEO, highlighting a shift towards a larger addressable market and the potential for substantial future growth.
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