Flowgroup eyes 'significant' customer growth after Morgan Stanley deal

16th Apr 2014 11:53

Domestic boiler developer and energy supplier Flowgroup said its acquisition of new customers would be significantly improved thanks to a deal with Morgan Stanley's energy trading arm. The deal requiring less collateral to be lodged when buying energy in the wholesale markets, allowing the return of more than £1m in lodged collateral to AIM-listed company's energy business, Flow Energy. Chief Executive Tony Stiff said: "No longer needing to lodge such significant collateral when buying energy also means taking on new energy customers is a less cash intensive proposition."The removal of one of the biggest barriers to growing an energy customer base, just after Flow released its new home energy tariff, allows it the opportunity for "significant energy customer growth".Stiff said the new arrangements "put us in an excellent position to expand our energy-only customer base, with the advantages in terms of additional revenue and increased exposure for our brand that this brings".Shares in Flow were up 3.8% to 34p at 11:37 on Wednesday.OH