Growth of energy business

RNS REACH

31 March 2015

Flowgroup plc

("Flowgroup" or the "Company")

Growth of energy business

Flowgroup plc (AIM: FLOW), which develops and commercialises alternative and efficient energy technology products, announces that its home energy business, Flow Energy, will re-enter the UK energy market on 7 April 2015 with a competitive tariff, with the aim of growing its customer base.

Flow Energy originally entered the energy market in 2013. It has attracted 66,000 customer accounts since launch and its current customer base generated £33m revenue in 2014.

Flow Energy will re-enter the market with the Connect Tariff, which will offer fixed prices until 31st March 2016. It is designed to be one of the most competitive tariffs on the market and is priced to attract customers to Flow Energy, as well as to retain existing customers.

Tony Stiff, CEO of Flowgroup, commented: "Changing consumer behaviour around energy, with higher switching rates and a move away from the Big 6, as well as governmental focus on encouraging switching, means the energy market presents an opportunity for our business in 2015. Our new tariff will, we believe, allow us to grow Flow Energy's customer base. This would bring significant benefits to the Group, as it did in 2013 and 2014. As well as generating additional revenue, our larger customer base would provide a perfect opportunity to cross-sell the Flow microCHP boiler, as well as other energy efficient products. We are therefore extremely pleased to be announcing this news today."