CE certification & Jabil manufacturing update

28 March 2014

Flowgroup plc

("Flowgroup" or the "Group")

CE certification & Jabil manufacturing update

Flowgroup plc (AIM: FLOW), which develops and commercialises alternative and efficient energy products, announces that its microCHP Flow boiler has been awarded CE certification from the British Standards Institution (BSI). The CE mark indicates that the Flow boiler has passed all safety regulations and has been certified for volume production and home installation. This allows the Group to instruct its partner, Jabil to proceed with volume manufacturing.

In addition, Flowgroup announces that Jabil is making significant progress in preparing its manufacturing facility in Livingstone, Scotland, to begin manufacturing of up to 390,000 Flow boilers from H2 2014. Jabil has purchased and commissioned test equipment, designed production line layouts and employed key staff with specialist skills. Flowgroup's supply chain has been connected to the manufacturing facility and Jabil is now placing orders directly with the Group's suppliers. 

Tony Stiff, CEO of Flowgroup, comments:

"CE certification is one of the most important of our milestones. It allows us to make a simple but crucial statement - that we have a safe, working product that can be manufactured and sold. That is exactly what we intend to do in the second half of this year via an extensive multi-channel sales and marketing campaign. Creating an affordable domestic electricity-generating gas boiler has long been a sought after prize in the global heating industry. That the Group has achieved this, allowing the commercialisation of this game-changing technology for the mass market for the very first time, means that we open up the possibility of generating significant returns for our shareholders as well as supplying a range of benefits for consumers, society and the UK economy."

David Kipling, Senior Director Corporate Investment for Jabil, adds:

"Since the senior team at Flowgroup have a solid understanding of the contract manufacturing market and our expectation of the information and support needed, we have avoided many of the issues common in developing a strong working relationship. Jabil and Flowgroup continue to build upon their strong partnership with the focus now moving to production line layouts, ordering of test equipment, supplier transfer and design for manufacturing to ensure a smooth transition to full production of the Flow Boiler. Personnel from both companies are constantly in communication on project development and both teams share the excitement as this unique project nears scale production."