Flowgroup Plc Share Discussion Threads

[meganxmas] 16/11/2016 09:28

well once again i am out .... like the energy business but too much uncertainty re exit costs for boiler business in my opinion. not sure i trust them either. if was betting person would say another fund raise in next 12 months ... i think they would have said something about sufficiency of resources otherwise. all imo / nai

[paleje] 16/11/2016 08:38

They do seem to be preparing for that possibility and actively seeking to mitigate any adverse effect. Edison will probably issue an update later.

In Sept they valued the shares at 21p without the mCHP boiler but... "excluding, of course, any additional costs that may be incurred in the event of a negative
verdict.
Equally, though, an incredible amount of time, effort and know-how has been invested
developing this game-changing appliance, not only by Flow but also by Jabil and many other third parties.
Consequently, we would be surprised if firstly DECC decided to kill this sector stonedead and secondly if all the hard work and IPR does not at least have some residual worth on the open market."

[mesquida] 16/11/2016 07:47

Sounds like total withdrawal from the micro market could be very painful.

[paleje] 12/11/2016 10:24

Anecdotal - been with Flow over 2 years now and happy with customer service best I've had, also recently got a 300+ quid rebate off them which they initiated not me. But more interestingly for the first time since I've been with them I got an unsolicited email today offering me £500 discount off the 'best boiler in the world' with 10 yr guarantee and ongoing energy savings, of course not exclusive to me although they do make it seem personal. I don't need one now but are they embarking on a marketing campaign perhaps.

[johnwise] 08/11/2016 19:29

Mistaken,Wrong thread

[kooba] 08/11/2016 13:02

Would still like an update on the boiler...if it is to be shuttered would be real shame on the government but the company cannot keep a chunky overhead with no clarity on end market financials...either way future or no the uncertainty and cash burn is holding things back as the energy distribution business should start showing its value through positive cash generation any time soon.

[kooba] 08/11/2016 12:56

A number of small independent energy supply companies are getting mullered at the moment as fixed price contracts with customers that weren't hedged are biting....leaving them nursing big losses in the wholesale market ....gb energy for one I understand.This makes Flow's model even more attractive as although they may produce slightly smaller margins the risk on price movement is absorbed by partner shell...so new fixed price contracts from flow will obviously reflect underlying energy prices as with the rest of the industry but they are totally insulated from these price jumps that could finish off some of the small independent competition.Cantor alighted on this today.Sector Note – The Market Tightens As Winter ApproachesHigher power prices have taken the market by surprise with flexible generators such as Plutus PowerGen and well hedged supply companies such as Flowgroup and Good Energy likely to be key beneficiaries in our view. We think the coming months are likely to create both problems and opportunities for various market participants, and we see financial stress at some of the smaller energy suppliers during the turbulence ahead as being to the advantage of better hedged supply companies.Flowgroup (BUY, TP 21p), Good Energy (HOLD, TP 250p), Plutus PowerGen (BUY, TP 3.8p)

[kooba] 27/10/2016 17:37

WaggleLooking at the share price and volume it appears likely that we will get some clarity soon on that front.there are always front runners on news with this share ...as with many in the Cenkos stable from what I see....so expecting news confirming mothballing flow-boiler in the absence of any DECC about turn on fit and a full focus on energy distribution and third party boiler sales.If the case it's a real shame ...10's of m's spent on developing British innovation in essential energy saving product with manufacturing in Britain and stymied by goalpost moving bureaucrats ... where's the incentive to invest??Hopefully if a clear picture emerges with strong focus on further self funded energy expansion then the recent buyers are indeed pointing the way to a re-rating as the building positive cashflow from distribution without the 'liability' of the flow boiler uncertainty will most likely show value.All imho dyor.

[lazarus2010] 06/10/2016 14:39

fwiw I am just in the process of getting a new boiler and have chosen the Intergas Eco RF36. In speaking to most of the installation companies they all offered Worcester Bosch, with Vaillant as an alternative. I turned them down and told them I wanted the I/G boiler and they all checked and said they are in discussions with Flow to be their installation ambassador (as they call them at Flow). More and more heating engineers are undergoing training by I/G and will be heading out into the fields. Also the prices I have been quoted are more competitive than Worcester Bosch for what I believe is a far superior product. If Flow become the UK manufacturer and the current independent heating installation companies are being persuaded to go with I/G boilers then there should be a huge ramp up in future sales.

With the current emphasis on increasing the gas supply side of things, the current losses could be turned around quite quickly, excluding any costs of setting up the new manufacturing plant.

Might be dipping my toe in here in the future...

[waggle] 09/9/2016 17:25

forget chp and concentrate on energy business as the potentila cash generator, I think you will find the the board has the strength to kill chp if necessary rather than pour good money after bad. The baord cannot be blamed for the intransigence and inconsistency of gov't and vote catching politicians energy policy (if you can call the "make it up as you go along" efforts a policy!!??).

[1fox1] 05/9/2016 10:59

I lost faith some time ago. I did well out of these buying and selling over a two year period but my last purchase at 40p was a big mistake. Should have sold recently when the price hit 25p

[meganxmas] 05/9/2016 10:30

well might well regret this but just sold my 90000 remaining shares in two 45k tranches. still like the energy provision business backed by shell financing but too many uncertainties and excuses re the flow boiler. the narrative is clearly marginalising the chp boiler in favour of the other arrangements which to my eyes are basically reseller type arrangements. could of course all come good ... but looking at creditors, cash and debtors suspect more funds needed in year or so. all guesswork and no advice intended. like i said at beginning maybe i have made mistake but have lost enough here.

[batham1] 05/9/2016 09:46

Nice, heading north...I thought this morning's report justified a better response than we saw first thing

[brummy_git] 05/9/2016 09:05

New research out this morning from Equity Development

hxxps://www.equitydevelopment.co.uk/doc/1525.pdf

[paleje] 05/9/2016 08:43

ED quick off the mark with a supportive (paid for) note, bit naughty of them to say maintaining 42p target on email but when you link to the full note it's heavily qualified:-



...Stock at 12p offers possible 250% upside
With regards to valuation, our sum-of-the-parts price target (PT) has been held at 42p per share (see below) - offering 250% upside compared to current levels. Nonetheless, we appreciate that the PT will need to be revisited once the DECC findings are published, conscious that 50% (or 21p/share) of the value has been ascribed to the mCHP boiler; excluding, of course, any additional costs that may be incurred in the event of a negative verdict.
Equally, though, an incredible amount of time, effort and know-how has been invested developing this game-changing appliance, not only by Flow but also by Jabil and many other third parties.
Consequently, we would be surprised if firstly DECC decided to kill this sector stonedead and secondly if all the hard work and IPR does not at least have some residual worth on the open market.

[johnwise] 05/9/2016 07:14

05/09/2016 7:00am

RNS Number : 8726I

Flowgroup plc Half-year Report

Operating loss of GBP8.0m (H1 2015: GBP6.9m loss)

[grandwood] 31/8/2016 09:57

Opportunity for Clare Spottiswoode to earn her money here....

[grandwood] 31/8/2016 09:48

Latest sheet has revised the June figure to 698:



July figure is 699 so only one additional install although that will probably also be revised next month.

[grandwood] 31/8/2016 09:28

Oldunc, I don't have any further information regarding who is responsible for the extra installs; just assuming Flow is the main player since they are ramping up activity about the same time the official numbers have ceased stagnating (single install in 12 months to March). Also not sure exactly when an installation is included in these "commisioned" stats; perhaps the March numbers include installs "completed" in April? Or perhaps these figures include FIT commissioning of Flows existing trial customers post MCS accreditation of the boiler; the April news releases talked only about "new customer homes". If it ain't Flow then who is it?

[kooba] 30/8/2016 13:38

Bit of buying ahead of results and presentation?Normally a leaky ship this one....bodes well ?

[5070481] 30/8/2016 10:59

BIt of interest here this morning