10th Mar 2015 10:28
LONDON (Alliance News) - Flowgroup PLC Tuesday said it has experienced growth in both its energy business and its backup power division during the last financial year, whilst making progress with its new electricity generating Flow boiler since it launched in January.
The alternative energy products developer said it has made "significant operational and financial progress in 2014" alongside launching the Flow boiler in January 2015.
The company's energy business, Flow Energy, "grew steadily through the year as planned", generating GBP33 million in revenue in 2014 and attracting an additional 66,000 customer accounts since April. Flowgroup said it believes it will be able to "rapidly grow" as the energy market does.
The company's compressed-air backup power business, Flow Battery, also has completed the first installations under the three-year framework agreement it signed with the National Grid PLC in 2013. Flowgroup said it has now replaced conventional lead-acid backup power units in 29 National Grid substations.
"We believe that the UK market may present opportunities for significant growth for Flow Energy with regard to home energy supply alone," said Chief Executive Tony Stiff.
The Flow boiler, which was launched in January, is being manufactured in Scotland by Jabil Circuit Inc, which has developed an assembly line for the boilers with a capacity of 50,000 units per year, with the ability to increase capacity up to 100,000 boilers per year.
Under its agreement with Jabil, Flowgroup said it will receive 500,000 boilers from Jabil after amending the agreement from its original terms, where Jabil would have only made 390,000 boilers.
"The group and Jabil also agreed to collaborate on the company's future Flow mCHP product developments for the UK and international markets, both in terms of introducing new versions of the Flow boiler more quickly and to accelerate the manufacturing cost reduction programme," said Flowgroup.
"Flow boilers are being manufactured, now, in the UK, and we have a clear strategy and initial agreements in place for international expansion based on the group's patented technology platform," said Stiff.
At the end of December, the company reported net cash of GBP8.4 million.
Flowgroup said it will release its full-year results on May 26.
Shares were down 6.4% at 29.50 pence Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Flowgroup