Flowgroup Plc Share Discussion Threads

[deadly heisenberg] 11/5/2017 08:17

2.0p will get hit now

[pugugly] 11/5/2017 08:08

" In addition, the Company is in advanced discussions concerning a capital injection into the Group of in excess of £20 million, which would be necessary should the proposed disposal of the Flow Energy business not take place.

Should any such fundraising take place, it is likely that the investment will be made in the form of convertible securities and new equity and it is expected that the equity issue and convertible security conversion prices will be at 1.5p and 1.8p respectively. The Directors intend that a material element of any such fundraising will be made available to existing shareholders of the Company on a pre-emptive basis. Any such fundraising would be subject to the approval of shareholders in general meeting."

Best laugh I have had for ages. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[runwaypaul] 11/5/2017 07:19

as is AIM

all big talk

alltheway to 1p

glholders

[1fox1] 10/5/2017 19:52

Flowgroup said to be .........looking to sell the energy business? ha ha ha. Just a thought kooba. All will be revealed one way or another very soon

[kooba] 10/5/2017 16:37

Story out on betaville....I don't subscribe...Flowgroup said to be ....What a teaser...but might explain late buyers??

[quidzinn] 10/5/2017 16:33

Some nice buys towards the end of play today :)

Q

[sooty snipes] 09/5/2017 12:20

I would think Tony Stiff would want to let the boiler story run on into Europe. This way he would hold onto his high salary. It may be a messy story if the sale of the energy business does not materialise. It cannot be much longer now before we have an answer. What is the normal time for due diligence? No longer than seven or eight weeks I should imagine?

[area44] 09/5/2017 11:51

The time this is taking,might be because the large shareholders are not eager,to agree to a continuation of the business at all.

They might not see a future for the mCHP business,and perhaps want administration.

I would prefer this route myself.

[1fox1] 09/5/2017 11:25

Sorry grandwood..........Yes I did!

PS I entirely agree with your last post 958. My thoughts also. I would like to know too where has all the money gone from the last fundraising share issue

[grandwood] 09/5/2017 10:33

cyber, you said "But there's no obvious reason why Flow's energy business should go into administration anyway??"

I'm no expert but I see no reason why FlowGroup can't go into admin even though Flow Energy is profitable. E.g. because sale falls through, other funding not viable and without the cashflow to cover the cost of either continuing or exiting the mCHP business. In which case, flow energy becomes an (attractive) asset for the administrators to dispose of like anything else but without the burden of the ongoing mCHP cash burn, notwithstanding fees for the administration itself of course.

Without any major secured creditors lurking in the wings, IMO shareholders should do pretty well out of administration whereas I'm not particularly confident we'll get a return from the company continuing current levels of spending on the mCHP business.

[grandwood] 09/5/2017 10:21

fox, did you miss posts 947 and 951 by any chance? :-)

[1fox1] 09/5/2017 10:14

I also found this off the government website. Hmmmmmmm it states AEG went into administration after a FAILED attempt to sell the business. See below

SSE has acquired the assets of AEG which went into administrative receivership on 28 April 2004, following a failed attempt to sell the business. In the absence of a buyer AEG's customers would have been allocated to alternative suppliers under the industry's Supplier of Last Resort scheme. The statutory deadline for this case expires on 27 August 2004 and the administrative deadline for the OFT's decision on this case is 30 June 2004.

For the full article click on the link below

[1fox1] 09/5/2017 10:01

area44 8/05/17

Whatever they say about Stiff, he certainly knows how to run an energy supply company??
--------------------------------------------------------------------------------

On 28 April 2004 Scottish and Southern plc (SSE) completed the acquisition of the
assets of Atlantic Electric & Gas Limited (Atlantic) (in administrative receivership) from the receivers, KPMG LLP

Yes he certainly does ha ha ha ha.

[area44] 08/5/2017 21:28

Whatever they say about Stiff,he certainly knows how to run an Energy Supply Co.

This has just been talked down all over the boards.Flow Energy just has to be worth more than a few pence per share - it's going to report an increase in customers shortly I reckon.

What would it cost to exit the boiler business? I think about £15 mln,so we should look,as to how much per customer another company would pay.

[1fox1] 08/5/2017 15:06

cyber you state Stiff was successful at Atlantic? Here is an extract from flowgroup website re our leadership section.
-------------------------------------------------------------------------------------
Tony then oversaw the shareholders’ exit strategy and in conjunction with the administrative receivers of the company the business was sold to Scottish & Southern

----------------------------------------------------------------------------------

Sounds to me like it went into administration?

He also worked at Bglobal. Here is an extract from the same page

-----------------------------------------------------------------------------------

Tony was Commercial Director of Bglobal plc (“Bglobal̶1;), the AIM-listed smart-metering company.

-----------------------------------------------------------------------------------

Now check out what happened to Bglobal. A very sad tale. It ended up being sold for peanuts after loads of imo misleading RNS statements. Ring a bell?

Check the fella out and perhaps you may not be so positive. To say the blame is down to government policy is absolutely ridiculous. The fact is Stiff announced launch of this m'chp/boiler in February 2015. It has only been subject to 5% VAT since then and up to the present day. The VAT was just an excuse and a smokescreen to mask the outright failure to sell only a few or if any boilers since.

[cyberbub] 08/5/2017 14:12

But there's no obvious reason why Flow's energy business should go into administration anyway??It's hard to see how (assuming it is sold) Flow Energy could realise less than £25-30M? It made £3M gross profit in the last half year?! Rationalise the sales side in a larger company, and it should make even more??Is Mr Market being totally irrational with FLOW'S SP, or is there something we don't know?Or is Mr Market basically saying that even with £25-30M added to the coffers, he sees no future for the MicroCHP and so all the money will be burned through with nothing to show and the company will be wound up in 2 years time?

[grandwood] 08/5/2017 13:46

From Stiff's bio on the flowgroup site....

"In 2000 Tony founded Atlantic Electric and Gas Limited, a business backed by US-based Sempra Energy inc. The business quickly became one of the UK’s leading independent energy suppliers, with over 300,000 customers. Tony then oversaw the shareholders’ exit strategy and in conjunction with the administrative receivers of the company the business was sold to Scottish & Southern Energy"

To be honest I would be happy if we can extract c. 90m out of administration rather than a slow death waiting for the mCHP business to come together.

[grandwood] 08/5/2017 13:43

I was being sarcastic....they may even end up only a couple weeks away from matching the dates!

[cyberbub] 08/5/2017 13:40

Grandwood, I don't understand? Looks like you were correct?

[grandwood] 08/5/2017 13:35

"...supplies electricity and gas to around 330,000 customers throughout Great Britain...went into administrative receivership on 28 April 2004, following a failed attempt to sell the business"

My mistake...nothing like the situation with Flow!!!!

[grandwood] 08/5/2017 13:24

Wasn't Atlantic Electric & Gas sold out of administration? Perhaps that is also Stiff's plan here!

[cyberbub] 08/5/2017 13:19

People say that Stiff has failed, but his track record at that earlier power company was pretty good, he built it from scratch and sold it for £90M as I recall?Also is Claire Spottiswoode still on the board here? She wouldn't associate herself with likely failures IMO.I see Stiff not having shafted investors but having been shafted by the UK govt's rapid and cynical change of heart on renewable subsidies, which was unforeseeable and has also shafted solar and all sorts of other renewable investments.To be fair the development of the MicroCHP boilers has taken far too long and is still sucking up capital. Admin expenses are too high. Sales of the Eco RF boiler are minuscule so far.But you would think that if anyone can pull off a sale of the electricity business, it would be Stiff, he's already sold one once before? Analysts have valued it at £72M as per the link in a post above, but even if that is over egged and only £25M was received, that would definitely last 2-3 years at least, and allow a full attempt at entering the massive Europe market with the MicroCHP. They still have a contract with Jabil. Just the IP of the MicroCHP must be worth more than the current cap you would think?It's risky but *if* they sell the electricity business for a tidy sum, *and* they make a successful entry to Europe, you would think it would be a 10-bagger at least, in market cap terms.On the downside, what is there from a £10M cap? If the electricity business sale fails completely and doesn't raise a single penny, they can keep it going for now, as it is profitable at 'gross' levels. They would have to shut down and write off the whole MicroCHP business, or try to sell the IP, and slash the overheads to suit. There would be shutdown costs which might eat up most of their remaining cash. I find it hard to believe that they would go bust, I could see a 50% downside maybe. Unless people think there might be a prepack administration to shaft the shareholders and someone grabs the business and IP for peanuts? But prepacks only usually take place when there are large debts don't they?Discuss. :-)