Flowgroup plc AGM Statement (5673L)
20 July 2017 - 4:00PM
UK Regulatory
TIDMFLOW
RNS Number : 5673L
Flowgroup plc
20 July 2017
Flowgroup plc
("Flowgroup" or the "Group" or "Company")
AGM Statement
Flowgroup plc (AIM: FLOW), Flowgroup plc (AIM: FLOW), which
provides residential gas and electricity supply and other energy
services to over 250,000 customer fuel accounts, will hold its
Annual General Meeting today at 10.00 a.m. at Flow Energy, North
Kiln, Felaw Maltings, 46 Felaw Street, Ipswich, IP2 8PN.
Following the formal proceedings of the meeting the Chief
Executive, Tony Stiff, will issue the following statement:
Flowgroup completed a successful fundraise in June 2017, raising
net proceeds of over GBP25 million, which has recapitalised the
Group's balance sheet and positions the Flow Energy business for
growth. In addition, on 20 June 2017, we were pleased to welcome
Bradley Tirpak, Brian Carroll and Jamie Brooke to the Board, whose
experience we believe will be of great benefit to the Group.
Flow Energy update
Flow Energy grew rapidly in 2016, increasing customer fuel
account numbers from approximately 100,000 fuel accounts to over
250,000 fuel accounts and increased revenues 145 per cent. from
GBP40.4 million in 2015 to GBP98.8 million in 2016. Our medium-term
target is to grow to 1m customer fuel accounts and make the
business a viable challenger to the 'Big Six' energy suppliers in
the UK market. Whilst the market is competitive, we believe we can
continue to grow by offering lower prices and better customer
service than the 'Big Six' suppliers. We have started to open a
range of new, direct acquisition channels, bypassing the price
comparison sites to target customers directly.
While we grow the business, we will seek to ensure that we
control costs whilst continuing to deliver the levels of service
that our customers have come to expect, which have historically won
us a Which? energy provider award. We will also continue to enhance
our digital, self-service account management offer and improve
other parts of our digital infrastructure to efficiently service
our customers.
Our focus on price and service has helped us grow Flow Energy to
over 250,000 customer fuel accounts and the retention of customers
is key to our success. We believe that our direct acquisition
campaigns will control customer acquisition costs, reduce churn and
increase gross margins. As we grow, we aim to reduce the cost to
serve each customer and offer other services to build the lifetime
value of our customers and build shareholder value. We look forward
to providing a further update in our interim results.
Flow Products update
During our strategic review process, we announced that our
microCHP technology was no longer economic in the UK market due to
a reduction in UK government feed-in-tariff, Brexit and an increase
in VAT. We have significantly reduced the Flow Products team from
58 to 17 employees and have reduced other ongoing costs
accordingly. The Flow Products team is now focused on working with
European partners on commercialisation of the microCHP technology.
We are also investigating a sale of the microCHP technology in
order to allow the Group to concentrate its resource on its core
Flow Energy supply business.
Outlook
Flowgroup is now focused on growing Flow Energy and increasing
shareholder value. We believe that the UK energy supply opportunity
is around 50 million customer fuel accounts and is rapidly
changing. We also believe that the number of customers switching
from the 'Big 6' energy suppliers to 'challenger' suppliers, such
as ourselves, will continue as customers begin to understand the
savings and better service available in the market. We will
continue to position Flow Energy to attract these customers.
Flowgroup plc www.flowgroup.uk.com
Tony Stiff, Group Chief Executive Tel: +44 (0)20 3137
Officer 4525
Nigel Canham, Chief Financial
Officer
Cenkos Securities plc (NOMAD Tel: +44 (0)20 7397
and Broker) 8900
Stephen Keys / Mark Connelly
/ Callum Davidson (Corporate
Finance)
Julian Morse (Sales)
Walbrook PR Ltd (Media Tel: +44 (0)20 7933 8780
Relations) or flowgroup@walbrookpr.com
Paul McManus Mob: +44 (0)7980 541
893
Nick Rome Mob: +44 (0)7748 325
236
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGMDGGDRRDBBGRC
(END) Dow Jones Newswires
July 20, 2017 02:00 ET (06:00 GMT)
Flowgroup Plc (LSE:FLOW)
Historical Stock Chart
From Apr 2024 to May 2024
Flowgroup Plc (LSE:FLOW)
Historical Stock Chart
From May 2023 to May 2024