Clydebank energy firm on track to break even for the first time
TOGETHER Energy, the Clydebankbased energy challenger business, has declared it is on course to break even for the first time in its history, as its meteoric rise continued in its most recent financial year.
The company, established by former British Gas executive Paul Richards in 2016, will record the milestone in its latest accounts, which cover the year to the end of October.
The accounts will show Together broke even after a pre-tax loss of £12.3m in the period to October 31, 2019, which the firm said reflected its focus on investing for growth.
Turnover to October 31 this year is expected to have risen to £100 million from £88m, which came as customer numbers increased to 320,000. Headcount at the business has climbed to 370 from 112.
The figures were announced shortly after the company clinched its biggest acquisition to date in September, with the £14m deal to take over the residential customer base of Bristol Energy significantly expanding its customer numbers, headcount and presence south of the Border.
Around 155,000 customers were added with the Bristol acquisition, which Together said had secured the jobs of 110 frontline workers by keeping the office open.
That followed a major deal struck by Together in September last year, under which Warrington Council invested £17.3m to secure a 50 per cent stake in the Scottish firm.
At the time, the Warrington deal was hailed for preparing the ground for Together to become an all-renewable energy supplier, based on the local authority’s £59m investment in two solar farm projects in Yorkshire.
Warrington, which has a reputation as one of the greenest councils in England, made the renewables investment in a bid to cut energy costs for council residents, and to help alleviate fuel poverty.
Mr Richards said yesterday: “We’re extremely proud of our performance which has even surpassed our predictions for this year, and this is despite a continuing challenging back
drop for the energy sector.
“Our investment into the business in 2019 has paid off. We were experiencing an upward growth prior to seeking an investor, and our partnership with Warrington Borough Council has enabled us to spearhead this further and our recent acquisition of Bristol Energy’s residential customers is testament to this.
“We’ve experienced a consistent yearon-year growth in turnover and gross profit margin, and to move from an £11m loss to break even is exactly as predicted and a significant achievement.
“Despite the global pandemic and its impact, we are optimistic about our plans for diversification and future growth.”
Together Energy has been focused on giving opportunities to young people from challenged backgrounds since its inception. In an interview with The Herald in 2018, Mr Richards outlined his determination to deliver more opportunities for young people in his hometown of Clydebank, having seen a different side to life after securing an assisted place to attend the prestigious Kelvinside Academy in Glasgow.
In a statement yesterday, he said that commitment had not changed.
“Our commitment to social change also continues,” Mr Richards said. “Our support of people who are from the most vulnerable backgrounds remains unprecedented and we are already extending this policy into the northwest of England.
“We have created more jobs and I’m extremely proud that two members of staff have entered their university honours year, both of whom have overcome huge challenges to get there, and more than 30 members of staff have successfully participated in a modern apprenticeship programme.
“We firmly believe that given the opportunity and with the right support and training in essential skills, positive change can happen, and we have demonstrated that.
“We sometimes have to remember that we are only four years into our journey and I think the team’s performance has been commendable, but we’re not complacent and are aware that we can always do better and that will remain our focus.”
Despite the global pandemic and its impact, we are optimistic about our plans