Flowgroup Plc Share Discussion Threads

[chrisdgb] 12/4/2017 09:49

Cannot decide what to do here...............?

[kooba] 08/4/2017 21:05

ContextControversial German energy supplier heads for the UK - The Telegraphhttps://apple.news/AC0IAWLW0Q5qCBmMjwIP7Tw

[1fox1] 04/4/2017 15:12

If the company runs true to form the deal (if there was one) won't happen. Let's hope Stiff and co can finally pull something off. Good luck

[area44] 04/4/2017 13:32

I wonder if any of the big companies will be interested in this.

[area44] 28/3/2017 21:15

You're right,it's only if a deal goes through,but Flow Energy has turned into a well run energy supplier,and has at least 270,000 customers,and it's probably very attractive to quite a few other suppliers.

I was calculating that the buyer would pay about £82 mln.It is expected to be in profit for 2017.

[1fox1] 28/3/2017 17:08

Agree 10-15p absolute max. We are assuming that a deal will actually go through. Bear in mind this companies previous RNS statements. Are we all about to be suckered again? Let's hope not but I wouldn't be surprised.

[jscowi] 28/3/2017 09:33

25-30p....dont think so.

10p max!

[area44] 28/3/2017 02:45

I don't really care what happens here,as long as the Energy Business is sold.This is what is called a special situation,and the reason I bought as soon as the RNS about the sale was released.

There is one bidder,so I reckon it will pay top money for the purchase,and after,I think the stock price will be around 25-30p.

Over on LSE there are many long term holders trying to talk the price down.

AVIVA have over 19% here.

[jscowi] 24/3/2017 14:33

What this needs is:-

Confirmation of sale of FE
Change of directorship
Clear path being set out for

- relocation of manufacturing to Europe
- test data of boiler
- signed agreements with European partners

[1fox1] 24/3/2017 11:35

RNS Number : 2611X

Flowgroup plc

18 November 2014

Flowgroup plc

(the "Company")

Initiation of Flow boiler production

Flowgroup plc (AIM: FLOW), which develops and commercialises alternative and efficient energy technology products, announces that it has initiated volume production of its electricity-generating Flow boiler, with the first boiler rolling off the line on 17 November 2014. The Flow boiler is being manufactured by Jabil Circuit Inc. ("Jabil"), one of the world's leading OEM manufacturing partners.

In December 2013 Flowgroup entered into an exclusive Manufacturing Services Agreement with Jabil to manufacture microCHP Flow boilers. Jabil has now installed the first volume production line in their manufacturing facility in Livingston, Scotland and have commenced the mechanical build of the first production boilers. Volume production will now continue on a pre-arranged schedule throughout 2015.

The Company has been running some small-scale tests of some of the marketing channels it intends to use, the outcomes of which have been encouraging. As a result, over 10,000 new customers have expressed interest in the boiler. This pre-existing pool of potential customers provides a good resource to target in a controlled manner up to and following launch. The full sales, marketing and PR launch is planned for mid-January 2015.

Tony Stiff, Group CEO of Flowgroup, commented: "Initiating production is clearly the most significant achievement to date for the Group. 10 years of development culminates in this moment, where the first production model of the Flow boiler rolls off the production line that we expect to produce hundreds of thousands of Flow boilers over the coming years. We now move into our sales phase, with our full launch planned for mid-January 2015. The response to our test marketing campaigns has been very encouraging and has produced a strong pool of customers to whom to sell the first Flow boilers. I'd like to take this opportunity to thank every member of the Flowgroup team, our suppliers, partners, investors and customers for all their support that has brought us to this defining moment. I look forward with great anticipation to the success I believe 2015 and beyond will bring."
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To anyone new to this company the above RNS is from November 2014. Only two or three months from the so called launch that never was.

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Tony Stiff, Group CEO of Flowgroup, commented: "Initiating production is clearly the most significant achievement to date for the Group. 10 years of development culminates in this moment, where the first production model of the Flow boiler rolls off the production line that we expect to produce hundreds of thousands of Flow boilers over the coming years.
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HUNDREDS OF THOUSANDS OF BOILERS OVER THE COMING YEARS!!!!

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This is just one of many previous RNS statements that never really materialised. I would take whatever Stiff says with a pinch of salt.

[entropy22] 24/3/2017 11:28

Update re Jabil

Flowgroup plc (AIM: FLOW), which provides a range of innovative energy technologies, energy supply and energy services, notes the announcement issued yesterday by its manufacturing partner, Jabil, concerning the future of manufacturing at the Jabil Livingston facility.

Flowgroup holds a manufacturing service agreement with Jabil, which is a global agreement and not tied to any one specific manufacturing location. Whilst the Livingston facility is now anticipated to close at the end of 2017 the Company continues to work with Jabil under the agreement to optimise the production of its microCHP boiler, which is focused on a full entry into the European market.



Flowgroup plc
www.flowgroup.uk.com

Closing the plant in Scotland fits the move to Europe. The successful tests by Engie also support this direction. My guess would be a new factory opened by Jabil on the continent, in due course.

[1fox1] 24/3/2017 10:06

The point is the company came out with an update only three days ago. No mention was made of Jabil closing the manufacturing plant in Livingston. This is pretty significant news don't you think? After all Jabil are responsible for manufacturing this so called game changing boiler. According to Stiff Flow are working closely with Jabil. Now if Jabil are going to move production of this boiler to mainland Europe would you not assume Stiff should have mentioned this at the time of the last RNS? By the way this game changing boiler was launched in February 2015 over two years ago. It's a pure smokescreen to blame VAT changes or the feed in tariff rules. The fact is the current VAT on this boiler (if you can actually buy one) is still only 5%. The company has had over two years to sell this boiler in the UK under those circumstances. Do yourself a favour and check out the RNS statements made by this company before the so called launch of the boiler and after. I believe there may be some short term gain in the share price assuming that there is a genuine buyer for the energy side of the business. Lets wait and see.

[lazarus2010] 24/3/2017 09:36

re the valuation/customer basis, even £100 x 270,000 (assuming they haven't lost too many) would be £27mln cash. Current market cap only £17mln, so 60% upside based on cash value alone is quite possible.

[kooba] 24/3/2017 08:53

Good spot 1fox1

[entropy22] 24/3/2017 08:18

It would fit with them moving production to Europe would it not?

[1fox1] 23/3/2017 19:08

Here is a section of the RNS released on the 8/02/2017

MicroCHP and strategic review update


The next step in achieving this is for a series of microCHP boiler pilots to be rolled out in France, Germany, Italy and Belgium, where we are working with our identified partners. Our strategy for the potential of microCHP regarding market acceptance, price and performance will continue to evolve and be evaluated in these regions and, if these pilots progress as planned, volume sales would be possible during 2018. We continue to work very closely with Jabil and their manufacturing team at Livingston, especially on the European opportunities. Over 1,000 working boilers have been manufactured so far and these will be deployed in Flow microCHP pilots in Europe and will also be used in a limited way in the UK.
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Note the bit where it states: We continue to work very closely with Jabil and their manufacturing team at Livingston

This news has just been announced on the BBC website today



Knowing what I know now about this companies previous RNS statements I have learnt to read them really closely. Now you would have thought if Stiff and co were working that closely with Jabil news like this would have been brought to their attention. So if Jabil are packing it in at Livingston where does that leave the "game changing boiler" Where does it leave Flowgroup with the costs of the boiler so far? They stated in the same earlier RNS that there would be significant costs to be incurred should the Company wish to exit the business at this time. So where does it leave Flowgroup if Jabil go ahead and close the plant?

Like I say read everything very carefully. Even the last RNS came with a little caveat
Whilst there can be no guarantee that the sale of Flow Energy Limited will complete with this party, or that the sale of Flow Energy Limited will complete at all, the Company expects to make a further announcement in the coming weeks.

Hmmmmmmmm We'll see but good luck all

PS: jscowi I had a quick look at the lse flow chat board. Wow some of those fella's make me look like Stiff's biggest fan ha ha ha

[entropy22] 22/3/2017 17:25

An exclusivity clause would come at a cost to the purchaser one would hope. Fingers crossed and everything else for that matter.

[jscowi] 22/3/2017 16:23

Thanks for your thoughts kooba, a change at the top is a must if Flow are to win back some support of the PI.

For sure what ever they do it is the last throw of the dice imo hence very high risk/reward.

[kooba] 22/3/2017 13:51

Obviously just an opinion but I think the idea of £200-£250 per connection would be a very aggressive price in the current market and current circumstance....hope I am being conservative.I think a price of £50m plus would not be unachievable if the market settles and you had time on your side...unfortunately Flow does not have time on its side and has probably exhausted goodwill to raise more money as it stands to try to grow the two businesses.TS is more of an energy supply man than green boilers but rather than shutting down the boiler and running the energy businesses they are going for energy sale and push on with the Flow-boiler...can only presume based on potential upside and knowledge of the ongoing trials.If they do gain some traction with the flow boiler in the international market then it could be a very exciting licence model...with volume might even get the production costs down enough to re-enter UK!

[entropy22] 22/3/2017 13:08

Kooba, do you see 25 to 30 million as a the top achievable price?

[noirua] 22/3/2017 11:08

Buy - BULLISH HARAMI

[kooba] 22/3/2017 11:02

Well if ...if! They sell energy for say £25-£30 m they should have a clear balance sheet with slightly over that sum as cash.Which would equate to about 10p per share.The burn on the micro CHp ...Flowboiler...had been up to £10m per year as they rocketed up for UK launch....now that the aim would be for licensing deals in Europe where the green incentives are more robust then one should expect the burn to come well down...so they should have 4-5 years finance in place.They are obviously some way down the road with Europes largest utility with other partners ongoing so it's not a standing start.I think the product is strong and there is a vast market....but I would like a change at the top to take this forward...different skill set required and it appears few shareholders will take much on trust from TS going forward!