06 January 2016

Flowgroup plc

("Flowgroup" or the "Company")

Flow Energy update

Flowgroup plc (AIM: FLOW), which provides a range of innovative energy technologies, energy supply and energy services, provides an update on its Flow Energy business.  As previously announced on 28 September 2015 in the Company's interim results for the six months ended 30 June 2015, the Company was targeting 100,000 energy customer accounts by the end of 2015. The Company is pleased to announce that this target was exceeded.

The Company expects its preliminary results for the year ended 31 December 2015 to be released in April 2016 and that these results are expected to be in line with market expectations. On 9 December 2015, the Company was pleased to announce a contract with Shell for the provision of wholesale energy. As a result, the Company was able to conclude its previous energy supply agreement and release cash previously restricted and held as collateral for energy customers. The resulting closing cash balance as at 31 December 2015 was £18.8 million.

The Company also notes that its Flow boiler was launched for sale earlier this month with customers being able to place orders, subject to survey, through its Flow Energy website at www.flowenergy.uk.com. The Company will provide further updates on its Flow boiler business in due course.