Love Energy Savings aiming to double profits
Utility price comparison service Love Energy Savings expects to quadruple its customer base and double annual profit to £10 million by 2021.
The fast-growing Bolton-based business predicts it will serve 160,000 clients within three years, based on current growth.
Led by founder Phil Foster, 45, Love Energy Savings aims to change the way households and businesses pick their energy supplier and save money.
Launched just six years ago, turnover touched £6 million – with £400,000 of profit – by 2015.
Further rapid sales growth followed significant external investment which allowed the company to invest in new technology and expand into untapped markets, including bigger corporates.
By end of this year, Foster expects annual turnover to have topped £25 million, signalling a profit of £4.5 million, from a customer base of 45,000.
He believes the company’s healthy financial position puts it in the driving seat to even further substantial growth.
The firm’s CEO said: “Love Energy Savings is at the forefront of the transformation in the way that businesses buy their energy.
“Where once their choice was limited to telesales, field sales and even signing up when walking through a shopping centre, they now choose to go online.
“This company has enjoyed very fast growth because we take away the complications that buyers can feel around purchasing their gas and electricity.
“We have invested in the right technologies, and will continue to do so. All the elements are in place for continued customer growth and profit predictions.”
He added: “It is fair to say that probably 99 per cent of people now use a price comparison site to select an energy supplier.
“We have enjoyed success by helping to drive this change and by leading the way in what has been an almost total transformation of this sector in little more than a decade.
“Love Energy Savings has been a leading player in bringing transparency to the energy buying market, which is something I know that customers appreciate.
“They like to feel that they are in the driving seat and are getting good value for money. Love Energy Savings ensure that they do.
“We have put brand, product, product spec, price and simplicity in front of every customer so they can make that acquisition online – we’ve removed of being a consumer.”
Success in the first three years of the business allowed Mr Foster to welcome outside investment to meet his growth ambitions.
In 2015 NVM Private Equity brought its backing to the table, investing £4.5m for a 38 per cent stake.
Foster says it was the best move his business made, allowing it to seek other investment and building confidence in its service.
Though it allowed Love Energy Savings to grow its technology and expand untapped markets, other investors were sought.
In September mid-market private equity investor LDC invested more than £25m in a secondary buyout.
The investment will allow Love Energy Savings to expand its corporate services division, LES Solutions, invest in its proprietary tech platforms and diversify into the water telecoms and insurance markets.
As part of the deal, Steve Weller, former CEO of energy switching service uSwitch, joined the board as non-executive chairman.
Love Energy Savings, which employs around 300 people, soon expects to occupy a third building at its headquarters in Bolton.