30th Sep 2014 12:50
LONDON (Alliance News) - Flowgroup PLC Tuesday said it expects to see further progress in its second half, and remains on track for commercial launch of its new boiler in 2015, as it posted a narrowed pretax loss for the half year to end-June.
The company posted a pretax loss of GBP4.7 million, narrowed from a loss of GBP7.2 million in the previous year. Revenue leapt to GBP16.0 million from GBP466,000, although this was partly offset by a similar ramp up in cost of sales, to GBP14.8 million from just GBP375,000. In the previous year the company also posted a one-off impairment from its investment in VPhase PLC.
Revenue growth came from the company's Flow Energy business, which increased its customer base to around 64,000 accounts. After a delay, its Flow Battery saw its first orders under a framework agreement with National Grid, and an initial order from Trane Canada, part of Dublin-based Ingersoll-Rand PLC.
The company's Flow boiler received CE certification during the half year, and the company is working with partner Jabil Circuit Inc with the aim of beginning initial production by the end of the year ahead of a commercial launch.
Flowgroup said its targets for its three business units remain unchanged, and once achieved will position it well for further progress in 2015 and beyond.
"Most importantly however, we have sufficient financial resources and remain on track to execute our plan to begin volume production of our boiler with our manufacturing partner, Jabil, at the end of the current year and expect full commercial launch in 2015, which we expect to be a significant value driver for our shareholders," said Chief Executive Officer Tony Stiff in a statement.
Shares in Flowgroup were trading down 6.7% at 41.30 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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