News

28-Oct-2011

2010-2011 Performance Highlights

• The Group invested heavily in implementing a lean and nimble product-driven business model to produce Greenlane™ Biogas standardised solutions for its world leading renewable energy plants
• Greenlane™ Biogas overtook the compression business as the key revenue earner with strong European, North American and Asian sales of its suite of five patented biogas upgrading units. The different capacity units produce high quality biomethane to fuel vehicle fleets, communities, power grids and pipeline gas
• Greenlane™ made inroads in the newly opened market in North America, won its first sale in China where further opportunities are being explored, and commissioned the first biogas upgrading plant in Denmark for DONG Energy
• Service and sales support experts were located close to customers in France and Germany and the European HQ in Sweden was expanded while the North American operation continued to grow from its Vancouver base
• Consolidated its Auckland premises into a campus-style development and innovation headquarters as a base for the company’s research, product development, prototyping, support services and software development
• Nine giant high tech compressors, designed and built by Flotech to operate under extreme pressure, travelled across the world to the heart of the Amazon for use at three oil burning power plants to convert these to run on clean natural gas. The project won Flotech Deal of the Year in the Air New Zealand Export Awards

Flotech Group, founded 25 years ago, is today a world leading innovator in renewable energy solutions as well as an internationally competitive player in the compression and heat exchange sectors, where it initially started.
The company is active worldwide with operations in North America, New Zealand, Singapore and Europe, and has earned a global reputation for innovation, reliability, technological excellence, quality assurance and service. The business model supports a world class culture for not only designing disruptive technologies to present new IP to the energy sector, but also for providing solutions that work practically and commercially.
To date, the company has sold and successfully implemented more than 50 Greenlane™ Biogas upgrading systems, hundreds of gas compressors and thousands of KALLT heat exchangers worldwide.
Flotech has won numerous national and international innovation and technology awards, including the Deloitte Fast Fifty 2007 and 2008, Exporter of the Year 2008, Export Deal of the Year 2010 and was a finalist in 2010 for the New Zealand high-tech exporter award.

Driven by strong market demand, the company expects revenues to more than triple over the coming few years while increasing profitability through economies of scale and its unique offer of standardised Greenlane™ Biogas modular solutions.
Greenlane™ now dominates the Flotech Group with its revenue contribution outstripping the compression business. Based on international surveys of projected growth in the biogas sector, our business plan indicates that Group turnover will increase to around $300 million by 2015-16, with Greenlane™ generating around 80 per cent of revenues. Greenlane™ already commands a market share of approximately 32 per cent in the biomethane sector and is the acknowledged leader in biogas upgrading, internationally.

The financial year to 31 March 2011 was a momentous period of change reflecting planned heavy investment in building a platform for growth for the Group. Results reflect the process of change to shift the company from a projects-driven compressor dominated business to marketing standard Greenlane™ solutions.
This change, focussing on growing the potential of the proprietary Greenlane™ Biogas business was more difficult, more costly and took longer than expected. Thanks to the efforts of our dedicated staff - and buoyant demand from the rapidly growing renewable energy sector - we now see evidence that the expansion strategy devised over the past four years is coming to fruition.

Our growth strategy is focused on technology and innovation leadership through targeted Research and Development to make both incremental and disruptive step changes to products to improve efficiency, reliability and simplicity.
Flotech is a vertically integrated business which provides substantial competitive advantages in key markets, particularly biogas upgrading.
We have in-depth design and manufacturing knowledge of compression, heat exchange and gas processing enabling us to offer tightly integrated solutions which eliminate wastage, minimise cost and are built for performance.
The innovative new standardised Greenlane™ units are examples of our pioneering philosophy and competency in upgrading raw gas from biomass to biomethane.

Huge demand for renewable energy, especially in Europe and North America, is the driver for increasing sales of Greenlane™ Biogas upgrading solutions. Germany is leading the way with Sweden, France, Finland, Spain, UK, Switzerland, Austria, the Netherlands, Denmark, Belgium, USA, Canada, Japan and China following suit.
Greenlane™ is well positioned to seize these opportunities with simple, robust plant solutions that appeal to thousands of communities worldwide which aspire to produce their own renewable fuel.
As one of the very few companies to have emerged with proven technologies for biomethane, it is extending dominance in that sector. Reputation is now such that no serious developer would contemplate a biomethane project without at least including Greenlane™ for consideration on the supplier list.

While the global financial outlook remains uncertain, the Flotech Group, through development of its Greenlane™ business, is in a strong position to achieve growth and extend sector leadership as recovery gets underway.
We have adapted our gas compression offering for long term customers and the oil sector’s current demand, in order to be well placed for the expected recovery. Our approach is to be flexible. We provide standardised packages that can be rapidly and efficiently delivered by manufacturing components in regional hubs or via outsourcing partnerships while staying current with new innovations that will add value to the customer like our patented water flooded screw compressors.
While the outlook for the KALLT Heat Exchange business remains stable, the AfterCare service offering is an increasingly valuable and growing revenue stream.
We are poised for a period of huge growth and profitability, most markedly in the biogas upgrading sector, where we seek to solidify our global market share and leadership. We look forward to our next 25 years of growth.