Robin Hood Energy posts huge losses after ‘tough’ year
Robin Hood Energy (RHE), the not-for-profit, Nottingham City Council-backed energy supplier, has posted huge losses of £23.1m in its 2018/19 results.
The performance has slumped dramatically from a loss of £1.6m over the 2017/18 period after a 12 months that bosses at the firm called “tough”. Revenue improved from £69m to £97.9m over the same period.
Jeff Whittingham, interim chief executive officer for Robin Hood Energy, said: “Clearly this is a very disappointing set of results. It was an incredibly difficult year for the energy industry as a whole. We know there will be focus on our financial health locally and we understand this. We’re listening and we need to ensure we’re providing real value back to Nottingham and the people of Nottingham. We are working together with Nottingham City Council to address the issues and ensure we put the business back on a firmer financial footing.”
The results mark a tumultuous year for Robon Hood Energy. Last year the firm had to ask Nottingham City Council for a £9.5m from Nottingham City Council to cover its green tax bill when it hit the headlines after entering into a dispute with industry regulator Ofgem about its Renewable Obligation Certificates (ROCS) payment
The new accounts show that the City Council will make a further £12.5m loan available to Robin Hood Energy if they need it.
In January the company, which employs around 160 people, delayed publishing its accounts after two members of its leadership team resigned as directors.
CEO Gail Scholes and finance director Robert Bain stepped down from their roles in December and have been replaced by three new bosses.
The publication of the accounts also confirmed the cash loan position of Robin Hood Energy at £20.2m as of March 2019, with an additional £7.5m of share capital.
A statement from the firm said: “Although the new senior team at Robin Hood Energy have only been in role for a few months they have worked closely with Nottingham City Council to reduce the financial exposure of the council. A number of cost saving initiatives have already been deployed including the ending or renegotiation of a number of third party contracts and a recruitment freeze.
“The key objectives for the business now are to find further efficiencies in processes, ensure we continue to provide a great customer experience, rebuild confidence in our business, deliver for our shareholder and most importantly the people of Nottingham.
“At the same time a strategic review of the business started mid-January and Robin Hood Energy is in the process of appointing a professional services company to support the review. This will consider all options for Robin Hood Energy and will be complete by the summer.”
