NOTTINGHAM City Council’s energy company has revealed a significant loss of £23.1m for the period April 2018 to March 2019.
The accounts, which were sent to Companies House yesterday, had been due to be published at the end of last year.
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.
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.
The company referred to challenging conditions of the energy market, pointing out that 10 energy suppliers went bust and two Energy Price Caps were introduced during the period the accounts refer to.
Mr Whittingham continued: “–Customers don’t need to worry. The results that we have announced are almost 12 months old and we continue to operate in this marketplace.
“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 key objectives now are to find further efficiencies in our processes, ensuring we continue to provide a great customer experience, rebuild confidence in your business, and deliver for our shareholder and most importantly the people of Nottingham.”
The new senior team at Robin Hood Energy have only been in role for a few months after Gail Scholes – the former chief executive – and Robert Bains – the former managing director – were both terminated as directors on 16 December, days before the company was due to publish its annual accounts.
The company states its new team have worked closely with Nottingham City Council to reduce the financial exposure of the council.
In October the Council gave Robin Hood Energy an emergency loan of £9.5m for its Renewable Obligations Certificate payments to Ofgem.
As well as having customers in Nottingham, the firm also provides energy to people across the UK through what are essentially shell companies, including Leccy in Liverpool, Ram Energy in Derby and Angel Energy in Islington – of which Jeremy Corbyn is a customer.
The company states that a number of cost-saving initiatives have already been deployed, including the ending or renegotiation of a number of 3rd party contracts and a recruitment freeze.
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 the supplier and will be complete by the summer.