16th Apr 2014 10:06
LONDON (Alliance News) - Flowgroup PLC said Wednesday that it had negotiated improved trading arrangements with Morgan Stanley Commodities so that less collateral has to be lodged when buying energy in wholesale markets.
This will allow more than GBP1 million in lodged collateral to be paid back to its energy business Flow Energy, Flowgroup said. The alternative, efficient energy technology company said that it can now invest these funds into growing its business.
"The lodging of significant collateral when taking on a new energy customer is one of the biggest barriers to growing an energy customer base," the company said in a statement. "These new trading arrangements reduce that barrier and allow Flow Energy the opportunity for significant energy customer growth, within the parameters of the current business plan."
Shares in Flowgroup were trading up 4.6% at 34.25 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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