Flowgroup focuses on profitability after £25m recapitalisation

Listed Chester company Flowgroup which recently completed a £25.3m recapitalisation is reporting a positive outcome to its strategy switch to creating a profitable and sustainable energy supply business.

Year-on-year turnover for the six months to June 30 shows a 71.6% increase to £71.8m, although its operating loss before exceptional items has increased to £10.8m (H1 2016: £8m).

The company is the pioneer of environmentally friendly microCHP boilers for domestic use.

Group chief esecutive Tony Stiff said: “We believe that we have created a firm foundation from which to drive growth and acquire customers moving into the winter period.

“Our strategy is clear and we have the resources and people in place to deliver it. Our market is large and valuable and undergoing significant change as challengers like Flow Energy attract customers by offering better value and better service.

“By balancing growth with sustainable prices and a tight control of costs, we believe we can build a profitable energy business and deliver significant value to shareholders.”

Since he period end the company has launched a solar PV and boiler installation offering while its microchipCHP business has been significantly downsized.