Flowgroup reassures after VAT setback

THE boss of efficient energy products specialist Flowgroup says the company will not to allow a European Court of Justice ruling increasing VAT on the Flow boiler from 5% top 20% affect its long term expansion plans.

Speaking at the AIM-listed company’s annual meeting, chief executive Tony Stiff Stiff said the Capenhurst, Cheshire-based firm was on course for annualised revenue of £40m and currently had 77,000 gas and electricity customer accounts.

The company is aiming to install a limited number of boilders over the summer into pilot and new customer homes.

However, the volume installation targets in the light of the Euro ruling have been delayed until later in the year.

“This delay in no way impacts on the validity of our ground-breaking technology nor does it impact our long-term business model,” he said.

“We still aim to capture a significant part of the UK heating market over the coming years.

“The development of our combination boiler remains on schedule for the fourth quarter of 2016, and we continue to work with major partners to explore the potential of launching our technology in the US and mainland Europe.

“Most importantly we remain well funded to deliver on all of these and to bring the business to cash generation and profitability using our current resources.”

Meanwhile, Stiff said the company issued a new competitive growth tariff in April and Flowgroup had seen its customer base grow steadily since.

It currently has about 77,000 gas and electricity customer accounts and this equates to an annualised revenue figure of £40m, he added.