Flowgroup plc Expansion of Jabil manufacturing deal (7692X)
November 24 2014 - 1:00AM
UK Regulatory
TIDMFLOW
RNS Number : 7692X
Flowgroup plc
24 November 2014
Flowgroup plc
(the "Company")
Expansion and improvement of Jabil manufacturing deal
Flowgroup plc (AIM: FLOW), which develops and commercialises
alternative and efficient energy technology products, announces
that it has expanded its manufacturing deal with Jabil Circuit Inc
("Jabil").
The number of electricity-generating Flow boilers to be
manufactured under the agreement will increase from 390,000 to
500,000. In addition, Flowgroup and Jabil have agreed to
collaborate on the Company's future Flow mCHP product developments.
As well as this closer collaboration around product development,
the amended agreement also includes an extension of the drawdown
period of the previously announced loan facility, which now expires
on 31 December 2015, and improvements to the credit terms for a
period of time to support the initial launch of the Flow boiler in
the UK.
Tony Stiff, Group CEO of Flowgroup, commented: "We are delighted
that Jabil will now manufacture 500,000 game-changing Flow boilers,
rather than the original 390,000. As our two companies have worked
together in the run up to the recent initiation of production of
the Flow boiler, it has become clear that a closer relationship and
greater collaboration could bring real benefits. It will allow
Flowgroup to accelerate current product development, which
potentially allows us to grow our boiler business more quickly,
both in the UK and abroad, and the reduction of manufacturing
costs. As with our original deal with Jabil, this represents an
excellent opportunity for the Company."
David Kipling, Senior Director Corporate Investment at Jabil,
added: "We are pleased that the relationship with Flowgroup
continues to develop and we remain enthusiastic about Flowgroup's
products and its business model. Jabil looks forward to continuing
to provide support to Flowgroup in the pursuit of its business
plans and production requirements."
Flowgroup plc www.flowgroup.uk.com
Tony Stiff, Group Chief Executive Officer Tel: +44 (0)151 348 2100
Investec Bank plc (NOMAD, joint Financial Tel: +44 (0)20 7597 4000
Adviser and joint Broker)
Christopher Baird / Daniel Adams / Ben Williams
Cenkos Securities plc (joint Financial Adviser Tel: +44 (0)20 7397 8900
and joint Broker)
Stephen Keys / Christopher Golden (Corporate
Finance)
Julian Morse (Sales)
Walbrook PR Ltd Tel: +44 (0)20 7933 8780 or flowgroup@walbrookpr.com
Paul McManus (Media Relations) Mob: 07980 541 893
This information is provided by RNS
The company news service from the London Stock Exchange
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