Flowgroup hit by delay to full production of boilers

1st Jul 2014 09:05

AIM-listed Flowgroup was a notable faller on Tuesday morning after it announced a delay to the start of full production of the Flow microCHP boiler on the production line at its facility in Scotland. The firm, which develops and commercialises alternative and efficient energy technology products, said it felt it would be "prudent to allow more time to install the production facility" based on indications from the planning phase. It said "significant" orders have already been placed with a range of new European suppliers, which have been sourced to improve component quality and secure volume capacity. Chief Executive Tony Stiff said: "The Flow boiler is a game-changing product for the UK heating market. We are also involved in a number of discussions with potential partners to exploit the opportunity of the Flow boiler internationally. "We are delighted with the level of interest that our low cost Flow mCHP boiler is generating and considering the scale of the opportunity it represents, it is essential to customers, and indeed shareholders, to produce the very highest quality product when we move into volume production." He added: "Placing orders with our suppliers, as well as Jabil ordering production line equipment, shows that our plans are firmly in place for delivery of this unique product to the UK market and then beyond."Shares had fallen 12.72% to 24.88p by 09:11.NR