23 June 2016 – AGM statement

A trading update has been released to coincide with the AGM.  Trading for the full year is set to be in line with expectations.  The number of new boilers installed is modest, with 20 so far versus a target at the end of June of 100 but there have been no technical issues so far.  Promisingly, Flow Energy has grown significantly since the start of the year and from 100,000 customer fuel accounts on 1 January 2016 it now has over 214,000 customer fuel accounts either on supply or being processed through the switching cycle by 23 June 2016.  This will deliver annualised revenues of over £106m.  On balance we feel that the share price has fallen too far.  Flowgroup has always been a risky proposition but if it gets things right can deliver substantial capital growth.  LONG TERM BUY.