ENTU UK Regulatory News (ENTU)

Flowgroup plc

("Flowgroup" or the "Company")

MOU agreement with entu

Flowgroup plc (AIM: FLOW), which develops and commercialises alternative and efficient energy technology products, announces that it has signed a Memorandum of Understanding ("MOU") with entu (UK) Plc ("entu"), the multi-product and service home improvement group, for entu to sell, install and maintain the Company's electricity-generating Flow boiler and to market the Company's home energy offer.

Founded in 2008 and with annual revenues for the period ending 31 October 2013 of £95m, entu represents a portfolio of 10 successful energy efficiency brands and is engaged in the sale of a broad range of energy and home improvement products. It also offers a repairs and renewals service agreement programme. It supports this activity through 71 sales and marketing offices and 14 repair and installation service centres across England and Scotland. entu has a significant existing customer base to which to market Flowgroup's ground-breaking boiler and home energy offer. It is expected that entu will be able to provide an end-to-end sales process with regard to the Flow boiler and will provide referrals through to Flow for new home energy contracts.

Having already registered significant numbers of independent boiler installers to act as sales agents, signing an MOU with entu is the first agreement with a larger network and will, the Company believes, accelerate sales, both of the Company's boiler and its home energy offer.

Tony Stiff, CEO of Flowgroup, commented:"We're extremely pleased to be announcing this agreement today. entu has extensive experience of selling energy-related products through its national sales network as well as a large existing database of customers who are interested in these products. We believe this partnership has the potential to accelerate significant sales of both our ground-breaking Flow boiler and our home energy offer, supplementing our own direct sales campaign. The scope of this agreement includes our home energy offer, creating a new sales channel that could play an important role in any expansion of our energy business. In addition, under their well-known brand Job Worth Doing, entu offers a branded national installation service, which adds to our existing installation, service and repair capacity."

Ian Blackhurst, CEO of entu, added: "We are pleased to announce our partnership with Flowgroup, which will significantly enhance our fully integrated home improvements and energy efficiency offering. With an increased push from consumers for greater energy self-sufficiency, this partnership allows entu to benefit further from growth in the home improvement and energy efficiency market, as we continue our strategy of growth through the development of innovative product offerings and partnerships."