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Ovo Energy began facing financial trouble as early as 2024, when it reported a £167 million underlying pre-tax loss compared to profits of £1.1 billion in 2023. This decline in profitability, along with Ofgem’s new financial stress test rules, of which the supplier failed to meet has raised concerns about the company’s ability to continue as a going concern.
30th September, Ovo Group warned of material uncertainty surrounding its ability to continue as a going concern, raising questions over the future of one of the largest household energy suppliers in the UK. The company said in its latest accounts that, while it is forecast to have sufficient liquidity in the period to September 2026. The week before, Ovo confirmed it was one of three energy companies that are not yet meeting new capital buffer targets set by Ofgem, the industry regulator. Octopus Energy, now Britain’s largest household energy supplier, is also not hitting the targets, together with another company that has not been identified. This als see’s plans to sell it’s 80% stake in Kazula, whiles’t Australian energy firm AGL owns the remaining 20%. Reports suggest the deal could value Kaluza at more than one billion dollars, making it a potential “unicorn” in the energy tech world.
Norwegian investment group Verdane abandoned investment talks with Ovo about injecting a substantial sum into Ovo in return for a large stake in the business in October this year. Ovo owner Fitzpatrick also severed corporate ties between Ovo Energy and its controversial parent firm Imagination Industries July 2023, which up untill spring that year was owned by Imagination, Fitzpatrick’s investment vehicle. Imagination controlled Ovo alongside his other ventures, including glitzy West London party venue Kensington Roof Gardens.
It was revealed the year before (2022), that Imagination made £27 million in loans to its directors. It also handed nearly £10 million in loans to Fitzpatrick’s US-listed flying taxi firm Vertical Aerospace, which has warned of ‘material uncertainty’ in its future as a going concern without new capital. Ovo is now held by a standalone entity called Energy Transition Holdings. This restructuring was part of a broader effort to enhance financial resilience and redude scrutiny.
A further announcement by Sky news yesterday (22nd November) revealed struggling energy supplier Ovo to axe hundreds of jobs Wednesday this week,which could place restrictions on taking new customers, whils’t the company tries to get on a sustainable footing….
https://uk.finance.yahoo.com/news/struggling-energy-supplier-ovo-axe-153700673.html
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Oh dear! Maybe time to be jumping ship. But to where.
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.Oh dear! Maybe time to be jumping ship. But to where.
Perhaps, it the wrong time of year to jump, but with prices expected to jump 2% in January and are expected to fall in April, it’s probably neither here or there when you do.
I’m with Octopus (can share code for £100 split between us) so perhaps look at there 12 month fixed rates, as they are pretty decent. You also get free hot drinks at gregs and cinema,pub meal discounts etc, along winning plushie Octopus’s 😂 wmc could also share a code, but I got in first😉
@Jojoe is with BG and could share a similar code.
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