Flowgroup gets emergency funding of £5m
Chester-based Flowgroup, which provides residential gas and electricity supplies to customers across the UK, has received an emergency cash injection of £5m.
The facility, which runs until August, is being provided to Flow Energy Limited (FEL) by the group’s loan note holders, Palm Ventures and Lombard Odier Asset Management.
The first £2m will be drawn down immediately.
An aggregate arrangement fee of £75,000 is payable in cash to the loan note holders on maturity of the 2018 Loan Notes.
AIM-listed Flowgroup, also the pioneer of environmentally friendly boilers, announced in November it was restructuring its business and looking to reduce costs when its chief executive Tony Stiff also resigned.
Its statement released today said: “Further to the Company’s announcement on November 30, 2017, the company confirms that it is meeting its cost reduction targets and continues to trade in line with the board’s expectations.
“However, the highly competitive market in which the company operates is continuing to evolve rapidly and new entrants with new business models continue to join the domestic energy supply market, while some businesses have exited.
“The board continues to work with its advisers, and in consultation with its loan note providers, to closely evaluate the company’s strategic positioning including its longer-term financing requirements.”
