9 February 2017 – Feed-in Tariff
The Department for Business, Energy and Industrial Strategy has published its response to a key Consultation regarding the Feed-in Tariff. The proposed budget cap for microCHP of £1m has been changed to £9.8m of the overall £100m Feed-in Tariff cap, with this and other changes coming into effect on 1 April 2017. This has a limited impact on Flowgroup given its recent confirmation that it will concentrate on Europe rather than the UK with its key boiler product. The shares remain a SPECULATIVE BUY.