13th Aug 2014 07:55
LONDON (Alliance News) - Energy-efficient technology firm Flowgroup PLC got a boost to its share price early Wednesday after the company said it has signed a heads of agreement with Mears Group PLC for Mears to provide installation and after-care services for Flowgroup's microCHP boiler.
Under the terms of the agreement, Mears will provide nationwide coverage for the installation of the boiler, along with servicing and maintenance.
Flowgroup said the inclusion of servicing and installation in the agreement could have the potential to deliver a strong, ongoing revenue stream for the company from the servicing market.
Flowgroup Chief Executive Tony Stiff said the agreement "provides a UK-wide installation and servicing infrastructure with the capability to deliver the kind of volume that will allow us to compete in this market at the very highest level."
Shares in Flowgroup were up 5.4% to 36.35 pence on Wednesday, putting it among AIM's top risers. London main market-listed Mears shares were down 1.4% to 471.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
MearsFlowgroup