Flowgroup plc Update on Fundraising (4025I)
June 19 2017 - 2:00AM
UK Regulatory
TIDMFLOW
RNS Number : 4025I
Flowgroup plc
19 June 2017
Flowgroup plc
("Flow" or the "Company")
Update on Fundraising
Focus on accelerating Flow Energy growth
Flowgroup plc (AIM: FLOW), which provides residential gas and
electricity supply and other energy services to over 250,000
customer fuel accounts, announces the successful re-capitalisation
of the Company and provides the following shareholder update.
Fundraising completed
On June 14, 2017 the Company completed a financing which raised,
net of expenses, GBP25.34 million.
The gross fundraising consisted of a GBP9.50 million Placing,
GBP0.63 million from the Primary Bid Offer, GBP0.89 million from
the Open Offer, and GBP15.50 million convertible unsecured loan
notes.
The Company has 1,423,583,793 ordinary shares of 0.1p each in
issue and admitted to trading.
Focus on accelerating Flow Energy growth
The Directors' primary focus is now on continuing to develop and
grow Flow Energy, the Group's residential gas and electricity
supply business. The proceeds from the recent fundraising will
enable the Group to pay off existing liabilities, focus on
accelerated growth in Flow Energy, and build a sustainable and
profitable energy business. The Company's goal is to grow Flow
Energy into a leading mid-tier energy supplier from its current
base of over 250,000 customer fuel accounts.
Restructuring Initiated
The restructuring and rightsizing of Flow Products has commenced
necessitating significant cost cutting including a consultation
process with relevant employees. The board has budgeted a small but
defined cash allocation to support this business short term and is
undertaking a strategic review to ensure it ceases to be an ongoing
cash drain on the energy supply business which is now the main
focus of the group. It is the Board's intention to maximise the
value of Flow Products for the benefit of all stakeholders. The
Company will update shareholders as progress is made.
Key Performance Indicators
Whilst customer growth is a key target for the Company, the
Directors intend for that growth to be managed in a way that
delivers long term profitability and shareholder value. To this end
the Company will update shareholders regularly on customer numbers
and certain key performance indicators.
Tony Stiff, Group Chief Executive Officer of Flowgroup plc,
commented:
"Flow Energy is well placed to deliver significant revenue and
customer growth as we build upon the firm foundation of our
substantial retail platform. The newly simplified business
structure and re-capitalisation set the stage for management to
intensely focus on our core energy business where we believe high
returns on invested capital are achievable."
"We are committed to growing Flow Energy and building
shareholder value. We look forward to updating shareholders on our
progress."
Enquiries:
Flowgroup plc www.flowgroup.uk.com
Tony Stiff, Group Chief Executive Tel: +44 (0)20 3137
Officer 4525
Nigel Canham, Chief Financial
Officer
Cenkos Securities plc (NOMAD Tel: +44 (0)20 7397
and Broker) 8900
Stephen Keys/Mark Connelly/Callum
Davidson (Corporate Finance)
Julian Morse (Sales)
Walbrook PR Ltd (Media Tel: +44 (0)20 7933 8780
Relations) or flowgroup@walbrookpr.com
Paul McManus Mob: +44 (0)7980 541
893
Nick Rome Mob: +44 (0)7748 325
236
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLFFELRAITLID
(END) Dow Jones Newswires
June 19, 2017 02:00 ET (06:00 GMT)
Flowgroup Plc (LSE:FLOW)
Historical Stock Chart
From Apr 2024 to May 2024
Flowgroup Plc (LSE:FLOW)
Historical Stock Chart
From May 2023 to May 2024