Shares primed for possible break-out in 2016
​Flowgroup had an excellent end to 2015. As well as the crucial deal, announced on 9th December with Shell, in which Shell will provide Flow's energy supply division with wholesale gas/electricity on extended credit terms for the next 5 years (with an option for a further 3 dependent on volumes), today's "Flow Energy update", also contains positive news. In the announcement, Flowgroup said that "(As previously announced on 28 September 2015 in the Company's interim results for the six months ended 30 June 2015), the Company was targeting 100,000 energy customer accounts by the end of 2015. The Company is pleased to announce that this target was exceeded". The company also announced closing net cash of £18.8m, well ahead of expectations, boosted by the signing of the wholesale energy agreement announced with Shell.
The firm's revolutionary new mCHP boiler was successfully launched on 4th January with customers now being able to place orders, subject to survey, through the Flow Energy website at www.flowenergy.uk.com. More details concerning customer demand will be provided at the prelims in April.
It is clear that in recent months the momentum is accelerating in the business. With the higher cash figure released today, we nudge up our price target from 40p to 41p/share. At the current share price of 16p, there is 150%+ potential upside to this price target.
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