Small energy supplier Flow up for sale

Fri, 10 Feb 2017 | BUSINESS SALE

UK small energy supplier Flow Energy has been put up for sale after its owner warned that competition from new suppliers offering cheap tariffs threatens to block its growth.

AIM-listed Flow Group confirmed in a statement it would “actively pursue” the sale of its energy arm after receiving “a number of approaches expressing interest”.

Established in 2006, Flow Energy is Flow Group’s household gas and electricity supply business with around 270,000 customers. It is one of the main challengers to the so-called Big Six suppliers.

Flow Group said while its energy business had “progressed well” and is “delivering growth”, its gross margins have come under pressure as it was forced to compete with new rival suppliers offering cheap tariffs.

“Recently, gross margins have come under pressure as we have priced to compete with a range of new entrants offering reduced tariffs to customers to gain market share,” the company said.

“We are investigating several new routes to market to reduce our reliance on the price comparison sites and we regularly review our pricing strategy as the market continues to move and evolve.

“However, if the trend of new entrants offering reduced tariffs persists, we would expect our growth outlook for 2017 to be more challenging.”

Flow Group said it would try and use funds from a sale of Flow Energy to launch its micro combined heat and boiler power business in Europe.

Analysts at Cantor Fitzgerald told the Times that Flow Energy could pique interest “from both new entrants and existing players”, valuing the business at £73 million.

Find energy businesses for sale.


Share this article



Latest Businesses for Sale

Print & Embroidery Business
Cambridgeshire, East of England, UK

Operating in excess of 30 years print and embroidery specialists. This is a retirement sale. Offers invited.

Asking Price: £750,000
Turnover: £1,500,000

LEASEHOLD


Large Property Portfolio Business
East Riding of Yorkshire, Yorkshire and the Humber, UK

Large property portfolio. All properties are residential. All properties are in good order. Situated in a compact geographical area. Offers invited.

Asking Price: £6,000,000
Turnover: £480,000

Showhome Interior Designers & Furnishers
Cambridgeshire, UK Wide

Established 1981. Enviable reputation. Fantastic trading location. Semi-retirement sale. Offers invited.

Asking Price: £775,000
Turnover: £1,269,946

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

 
16
 
Jul
 

Farsound Aviation sold to AGIC for £115 million | BUSINESS SALE

A supply chain management company operating in the aviation ...

 
15
 
Jul
 

Specialist engineering firm forced to appoint administrators | ADMINISTRATION

Rail contracting company Aspin Group Limited has been forced...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
21
 
Jun
 

Property business merger creates £400 million company | MERGER

A housing specialist that works on new and refurbished premi...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources