23rd Jun 2016 08:50
LONDON (Alliance News) - Flowgroup PLC said it expects to deliver results in line with analyst expectations in 2016, ahead of its annual general meeting on Thursday.
The energy technology and services supplier said its Flow Energy business has grown to over 214,000 customer fuel accounts to date from 100,000 on January 1, with annualised revenue of over GBP106 million. Flowgroup said it believes it can continue to deliver accelerated growth as the Big Six energy suppliers continue to lose customers.
It noted that the market share of the Big Six has fallen to 84% from 98% in 2013, and said it thinks this will fall further as suppliers like Flowgroup continue to attract customers.
"We believe that the reputation we have built for excellent customer service combined with the wholesale energy agreement we have in place with Shell and our experienced management team, will enable us to deliver a large energy supply business over the coming years, providing a range of important value-enhancing benefits to the group, including increased revenue and brand awareness," Chief Executive Tony Stiff said in a statement.
Meanwhile in the boiler business, Flowgroup said it has continued to install Flow mCHP boilers in new customer homes since commercial installations commenced in April. The current number of installed units stands at 20.
Flowgroup said processes will be in place shortly to allow finance to be offered at the point of sale in customer homes, as it allows time to ensure its internal compliance with FCA processes is rigorously implemented. Once the finance offer is in place, Flowgroup will accelerate its installation programme, targeting a 10,000 sales pipeline.
Flowgroup said it has sent production units to Italy and another European client for testing, while also being in discussions with a potential German partner.
"We believe that the European market, where customer incentives for the adoption of microCHP technology are higher than in the UK, represents significant opportunity for the Flow boiler," Stiff said.
"While we are still a relatively small company whose plans can be unexpectedly affected by outside events, we also believe we are a business with significant potential to drive value for our shareholders," Stiff added.
"We expect to deliver results in line with analyst expectations for year ending 2016," he concluded.
Shares in Flowgroup were trading up 0.8% at 12.10 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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