All systems go for revolutionary new boiler
| Flowgroup is a pioneering energy products/services business, which we think could transform the global boiler market. In an historic shift towards a low-carbon future, Saturday's COP21 climate change agreement in Paris was hailed by US President Barack Obama as "the best chance we have to save the planet". Almost perfectly on cue, Flowgroup this morning announced that its "game-changing", environmentally friendly and energy saving mCHP boiler that generates low carbon electricity, would be launched on 4th January 2016 with first installations scheduled for March. The excellent news today is that Flow's and Jabil's (manufacturing partner with 8.1% stake) R&D staff/engineers have successfully managed to redesign the device, such that there is a "clear path" to reducing the price of the unit by around £400-£500/unit without compromising quality or performance. Customers would effectively only pay for installation, receiving a fixed reduction in their power bills over five years that exceeds the cost of the device - provided of course they switch energy supply to Flow. What's more, the associated home energy tariff would be "one of the most competitive on the market," thus stimulating greater demand. We make no change to our projections or 40p/share price target - but stress that as more major milestones (like today's, together with last week's landmark supply agreement with Shell) are completed, then Flow's business model will become increasingly more attractive to households, potential partners and of course investors. |
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.