Flow Group has announced it will “actively pursue” the sale of its energy supply arm.
It said while Flow Energy has “progressed well and is delivering growth”, its growth margins have come under pressure as new rival suppliers offer cheaper tariffs.
Flow Energy supplies gas and electricity to around 270,000 customers.
The group’s trading update said it has already received “a number of approaches expressing interest” in the buyout.
A statement from Flow Group states: “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.”
The company adds the disposal of Flow Energy “could, if completed, provide sufficient funding for the microCHP business through to the point at which the technology is commercialised in Europe”.