8th May 2014 12:10
LONDON (Alliance News) - Flowgroup PLC Thursday said its losses widened in the full-year, after booking impairment charges but remained upbeat for 2014 as it prepares to launch its energy-saving boiler.
The company which develops and commercialises alternative and efficient energy technology products, posted a pretax loss of GBP10.2 million for 2013, compared with a GBP5.0 million loss a year earlier, after booking impairment charges of GBP2.6 million during the period after VPhase PLC entered into administration. Flowgroup holds a 25.6% stake in green technology group VPhase.
Administration expenses also doubled to GBP9.5 million compared with GBP4.8 million.
Revenue, however rose to GBP13.8 million, from GBP11,000 boosted by the launch of its energy business, Flow Energy, and a partnership with boiler manufacture Jabil Circuit, Inc. The company launched the business last year and it now has around 50,000 customers and is expected to generate GBP30 million in annualised revenue.
During the period the company entered into a manufacturing agreement with Florida-based Jabil Circuit. Under the terms of the deal Jabil will manufacture both the boiler and power module at a plant in Livingston, Scotland. The company expects around 390,00 flow boilers to be manufactured through the deal.
The company said its air battery business, Flow Battery, also did well during the year, wining a three-year National Grid framework agreement to replace conventional lead-acid backup power units as they reach the end of their service life in Grid's network of substations in England and Wales. Flow group said the National Grid agreement has the potential to provide a strong revenue stream going forward.
Looking ahead, the company said it hopes to launch its Flow boiler and develop a product roadmap to increase the potential market size for the Flow boiler, both in the UK and internationally.
"With an agreement in place with a world-renowned manufacturer for the production of the Flow boiler, a pilot scheme successfully initiated, CE certification achieved, our energy business launched and orders booked for Flow Battery, the group can be considered to have made significant progress in 2013," Executive Chairman Clare Spottiswoode said in a statement.
"Our success in 2013 will be carried through to 2014, with the all-important launch of the Flow boiler. We believe that we are now firmly on track for commercialisation of the group's unique technology platform, with all the benefits that will bring, to consumers, the energy industry, wider society and shareholders."
The stock was trading at 35.37 pence Thursday morning, down 2.13 pence or 5.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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