26th May 2015 08:43
LONDON (Alliance News) - Flowgroup PLC Tuesday reported a widened operating loss in 2014 which it said reflected infrastructure and resource costs to support business growth, despite revenue for the year more than doubling, but said the launch if its Flow boiler in January has presented a "game-changing" situation for the business in 2015.
Flowgroup, which provides alternative and efficient energy products, reported an operating loss of GBP10 million in 2014, wider than the GBP7.7 million loss reported in 2013, even though revenue more than doubled to GBP33.4 million from GBP13.8 million.
Operating losses continued to rise due to increased staffing levels as the business gears up for forecast growth in 2015 and the launch of the new Flow boiler. Revenue growth was largely driven by the energy business, it said.
Flowgroup added that the launch of its electricity-generating Flow boiler in January has presented a "game-changing situation" for the company, and that it has taken customer confirmed reservations for the product in line with its sales plan for April and May, with first installs due to occur in June.
"Following the launch of our electricity-generating Flow boiler we believe we are now in a position to take advantage of the commercial possibilities that this game-changing product presents. We believe we are well set for a year of good progress in 2015," Non-Executive Chairman Clare Spottiswoode said in a statement.
"Available production will increase over the coming months with a corresponding increase in the marketing of the Flow boiler to support projected sales for the late 2015 peak period and beyond. These increased volumes will see the boiler business move to profitability during Q1 2016," Chief Executive Tony Stiff said.
Shares in Flowgroup were trading down 3.6% at 27.11 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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