thehog2
05 Dec 2016
RNS Hedging Stratergy Flowgroup plcRNS Number : 8881QFlowgroup plc05 December 2016 Flowgroup plc("Flow" or the "Company"
Reiteration of hedging strategy for energy prices Flowgroup plc (AIM: FLOW), which provides a range of innovative energy technologies, energy supply and energy services, provides a further update to its Flow Energy business, which as stated on 16 November 2016 continues to perform well and in line with management expectations. As stated, management has insulated the business from external issues that have affected smaller suppliers with the Flow Energy Business benefitting from hedging provisions which protect it from fluctuations in the price of wholesale energy for its customers. Since that update, the Directors have noted that a competing energy supplier has ceased trading, citing the increase in wholesale energy prices and its inability to hedge forward as the reason. The Directors also note the recent fall in the Company's share price and would emphasise that the Company's hedging agreements with Shell Energy Europe Ltd, its energy trading partner, remain in place and are robust. As well as the hedging of wholesale energy prices, the Company also has arrangements in place to hedge against fluctuations in gas costs over the winter months when customers' consumption can be more volatile. The Directors believe that these arrangements, which have been in place since December 2015, enable the Flow Energy business to remain secure and continue to perform well. The Directors maintain that current market conditions favour more established providers, like Flow, which have robust energy trading strategies, systems and processes, and believe that the Company can continue to grow this part of the business in 2017. Flowgroup plcwww.flowgroup.uk.comTony Stiff, Group Chief Executive OfficerTel: +44 (0)20 3137 4525Nigel Canham, Chief Financial Officer Cenkos Securities plc (NOMAD and Broker)Tel: +44 (0)20 7397 8900Stephen Keys (Corporate Finance) Julian Morse (Sales) Walbrook PR Ltd (Media Relations)Tel: +44 (0)20 7933 8780 or [email protected] McManusMob: +44 (0)7980 541 893Nick Rome
PIE-EATER
01 Dec 2016
Re: News at last! Oh, and lets not forget that in the 2 days since my ONLY sell call after having sold, FLOW isDOWN ...... ABOUT 17.5%which I am sure you will agree is ample justification,As for the current position - I really don't know. We could have a dead cat bounce, it could stabilise, there could be some massively unexpected fantastic news, the price of oil could go up more - I for one really don't know what happens now, but if only for the uncertainty, it isn't likely to be a raging BUY.PEPE
PIE-EATER
01 Dec 2016
Re: News at last! TH2You say that you are tired of people posting SELL when they don't actually hold the shares. Guilty as charged (on the one occasion since my sell posting 5.10.16) but not ashamed or regretting it.However, what you fail to acknowledge is that the whole point of buy/sell ranges is for people to express what is hopefully their honest opinion on the current and future situation. Lets be clear, the opinions of a few "amateurs" on a site like this isn't going to affect the likes of Gervais Williams, David Horner or the people at the likes of Hargreaves Hale who trade in 100,000s or even millions of shares.....and so isn't going to affect the price.The second point is that despite your dislike of my SELL point, the bottom line is that since I posted it when I sold, FLOW has unfortunately fallen from just over 10p to 7.00p...in round figures DOWN 30% It is a sad fact that at the moment this share is unloved and insecure because of what happened to GBES, the price of oil looking like it will go up (and other fuels with it) and also the uncertainty re the pricing of the boiler and VAT. I genuinely hope that your boiler is a success and look forward to hearing so. You may recall that I stated that the reason for my initial investment in FLOW was the boiler and not the energy side per se. (I sold out of GOOD energy as soon as the price of oil started to slip a couple of years ago as I did NOT believe it was a suitable environment for small energy providers). Should the situation re the availability and more importantly the pricing / VAT on the boilers improve then I should certainly review my position on FLOW - that is why I am still on this board, to stay in touch. As I stated earlier this week, I can see it hitting 6 - 6.5p, but let me be clear - if it falls to 3p and there is no positive news on boiler pricing / VAT then I will not be buying. My sole interest is via the boiler and I have, I believe consistently stated so.Also, please note there has been NO recent buying by directors with a view to displaying their confidence in the company - a poor signal to the market.I would ask that you post instead as No View or Hold if you don't wish to offer investment thoughts. I would also ask that you let others offer their views fully, including buy / sell, provided they are prepared to explain their reasoning.GLA PE
thehog2
01 Dec 2016
News at last! The Strong Buy Rec is not investment advice, but due to my tiredness will people who hold no stock posting SELL Recs.Received this today:Hello Mr XWe’re happy to let you know that your Flow Brand Ambassador has now been appointed for your microCHP Boiler survey.Your Flow Brand Ambassador and contact details are;FBA Name: PlumbproFBA Contact Number: XXXXXXXXXXFBA Email Address: [email protected] Brand Ambassador will be in touch with you in the next few days to confirm an appointment with you to conduct your full survey. The survey takes around 2 hours to complete. If you wish to proceed then your Brand Ambassador will send your quote through to us for final confirmation and we will be in touch with a Full Quote and Information Pack.As you are aware you can pay for your Flow Boiler on either our Flow Freedom or Flow Finance package. Once you have received your Full Quote our partner Tradehelp Ltd* will be in touch with you to discuss your preferred options.The contact details that the Flow Brand Ambassador has on record for yourself are below. If there’s anything wrong, please contact your FBA directly.So something has stirred since my email to the company. Iwill report any progress as it happens.TH2
46Gillingham
29 Nov 2016
Re: Small Energy Suppliers PESadly the AGM is not flows but QFI on Friday.I agree with all your comments. Additionally there cash burn is very fast and I think they will either have a cash call at a big discount to whatever the price is at the time or merge with another challenger brand.The management need to do something soon to get interest back into the company.
PIE-EATER
29 Nov 2016
Re: Small Energy Suppliers 46GillinghamWhile I don't hold at the moment, I hope you come back from the AGM with good news. This company deserves to survive and thrive given the challenges it has faced and dealt with. However, there is no doubt that the GBES situation will not have helped sentiment and I believe that it is only the link up with Shell that is really offering some kind of floor for FLOW at the moment. I WANT FLOW to thrive and grow, (which is the reason I am keeping an eye on it with a view to finding a reason for re-entering) but as I said when I sold out, there isn't massive cause for optimism in my view. Unfortunately without some ACTUAL positive news (of which there was a fairly constant stream 12-18 months ago), I can see this touching 6 - 6.5p in the next couple of months. GLAPE (hoping I am proven wrong!)
46Gillingham
28 Nov 2016
Re: Small Energy Suppliers TH2Yes all being good I'll be at the AGM Friday.For the record I've calculated GBES annual T/O run rate £135m. Plus as a customer I had my annual cost increase from £950 to £1200 couple of months back. On price comparison sites the average annual charge was just over £1k approx. £200 more expensive than the cheapest currently on offer. So for the last 2 months GBES has not been competitive.
thehog2
28 Nov 2016
Re: Small Energy Suppliers Thanks 46G,I wrote too quickly, but I think in both percentage, industry partners and product terms Flow are considerably larger. GB could for all I know, have been operating from a small office. The heating division is currently eating the profits but it may well pay off. And as you correctly remind readers they are hedged with Shell. GB seem to have been unable to hedge supplies. They will, I presume, also pick up a share of GB's clients at higher prices than they were paying. One or two smaller suppliers leaving the market may not be a bad thing, provided Flow are not one of them.Hope to make your aquaintenc on Friday TH2
46Gillingham
28 Nov 2016
Re: Small Energy Suppliers TH2I think flow and GBES were about the same size 160k customer = approx. 300k fuels in supply. However I think Flow energy hedges its fuels so through Shell so is de-risk against wholesale price movement & improved cashflow
thehog2
28 Nov 2016
Re: Small Energy Suppliers "Prospects for Flow Flow have far more customers. Personally I have never heard of GB Energy. TH2
bertie20
27 Nov 2016
Small Energy Suppliers GB Energy Supply is no longer trading.Prospects for Flow?Bertie.
thehog2
24 Nov 2016
Re: Eating Grass post Agree Bertie,Based on the number of radiators, but no other information other than Scotland is generally colder than England, I would expect to use at least the 428 or, alternatively two Flow 14kwh boilers.This is not as daft as it may sound. I have been in several large houses where more than one boiler is used keping different zones heated.TH2
bertie20
23 Nov 2016
Re: Eating Grass post I think the 428 would be adequate for a four bed house. Vaillant eco tech plus 415 = 15 kW Vaillant eco tech plus 418 = 18 kWVaillant eco tech plus 428 = 28 kWVaillant eco tech plus 438 = 38 kWHope that helps.Bertie.
thehog2
23 Nov 2016
Re: Eating Grass post I took this up with the company and this was the reply I received:"The Flow boiler is a 14kW device and has to be sized appropriately to meet the heat loss from the home being surveyed. It will not be right for all homes but should cover a wide range as per our installation experience to date. The number of radiators is not limited to 8, so I am unsure of where this information came from."I checked the website and it is correctly listed as 14.1kwh (condensing). May I ask what size is your existing boiler?Perhaps you would like to contact the company with further information? It is, after all in all investors interest to de-bug the system.I also registered my own complaint (see my post 12/10/16) I had hoped to be in the early birds for this, but have heard nothing further, and I would like a Hybrid boiler if possible.TH2
shadow22
20 Nov 2016
Re: So we are looking for high usage households with the radiator count of a small flat. No wonder it's not viable!
