9th Dec 2015 08:18
LONDON (Alliance News) - Energy services and technologies company Flowgroup PLC on Wednesday said its Flow Energy Ltd subsidiary has signed an exclusive deal with Shell Energy Europe Ltd.
Under the agreement, Shell, a unit of Royal Dutch Shell PLC, will provide Flow Energy access to wholesale gas and electricity on extended credit terms, potentially enabling significant growth in Flowgroup's energy supply business and increasing the customer base for its mCHP Flow Boilers.
The deal is for an initial five years, with the option to be extended by another three.
"We believe that the current domestic energy market is favourable to the growth of smaller suppliers, and that the value ascribed by the market to an energy customer is rising as the potential for the cross-selling of a wider variety of energy related products and services has increased," said Chief Executive Tony Stiff.
In a separate statement on Wednesday, Flowgroup also said it had appointed Andrew Beasley, the managing director of the Flow Energy unit, as an executive director.
Shares in Flowgroup were up 11% to 17.15 pence early Wednesday, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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