Just when things were going swimmingly for Flowgroup (FLOW), on Friday the energy-efficient boiler maker was forced to announce bad news from the Department of Energy and Climate Change. The government body proposed to drastically cut the number of UK micro combined heat and power (mCHP) boiler installations that can benefit from feed-in tariffs - a scheme that provides payments for the use of home-generated green electricity.
While disappointing, the news isn't as bad as investors initially seemed to fear and the share price has rallied this week after dropping 20 per cent following the announcement on Friday. Flowgroup remains on track with the rollout of its boilers both in the UK and overseas, and its energy business is benefiting from partnerships with some big businesses.
