29th Apr 2016 09:27
LONDON (Alliance News) - Flowgroup PLC on Friday reported a wider pretax loss in 2015 due to increased investments it is making in order to grow the business, but said revenue grew on the back of its Flow Energy business.
The energy services and technologies provider said its pretax loss in 2015 widened to GBP17.1 million from GBP10.1 million the year before, even though revenue grew to GBP40.4 million from GBP33.4 million.
Flowgroup said its loss widened as a result of increased investment in staffing levels and infrastructure as it plans for further growth across the business, while revenue arose primarily from the group's home energy business Flow Energy.
Flow Energy has grown to 180,000 customers, growing by 80,000 since the year end.
"We believe that both the UK energy market and the global heating market represent significant opportunity for the group. With our disruptive products and approach, strong partnerships and leadership in place and growing brand awareness, we believe that we can deliver growth in 2016 and beyond," Chief Executive Tony Stiff said in a statement.
In a separate statement, Flowgroup said its subsidiary Flow Products Ltd has signed two agreements with Daikin Europe NV and its UK subsidiary.
The agreements give Flow Products access to an expanded heating product range, supplementing its core microCHP technology, which will allow it to target all of the gas-fired heating market more quickly and potentially result in accelerated profitability, Flowgroup said.
Daikin provides heating and cooling technology. Under the first agreement, Daikin will supply Flow Products with a range of mass market combination and system boilers under the Flow brand.
The second agreement is a distribution deal with Daikin Air-Conditioning UK to market its range of Daikin Hybrid boilers. Flow Products will bundle the product with a energy supply contract from Flow Energy.
"These deals represent an exciting step forward for Flowgroup. While we establish our core microCHP technology platform in the marketplace - a platform which remains the cornerstone of our product strategy - we can now potentially accelerate growth and profitability in our Products division by leveraging our Brand Ambassador network to deliver more innovative heating products to the whole of the market more quickly," Stiff said.
Shares in Flowgroup were trading down 9.9% at 22.75 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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