Energy Group Ovo assumed turnover of one billion pounds before the SSE agreement | Business News

The challenger energy company, which is about to become Britain's second largest domestic gas and electricity supplier, has seen revenues exceeding £ 1 billion for the first time.

Sky News understands that Ovo Energy's 2018 annual results, which will be published at Companies House this week, will show a 25% increase in sales to £ 1,042bn.

The increase, driven by customer growth on the home energy business and a diversification of its energy storage and technology activities will be formally revealed just weeks after Ovo unveiled the transformation acquisition of SSE's UK retail business.

When completed, the £ 500 million Ovo acquisition will create a company that serves nearly five million homes across the UK, and will strengthen founder Stephen Fitzpatrick's ambition to use industry-leading technology to drive large numbers of customers in the UK and abroad.

  Stephen Fitzpatrick
Stephe n Fitzpatrick founded Ovo a decade ago

Sources said that Ovo's 2018 results would show that the company had a £ 51 million operating deficit last year after three consecutive years in the black, some insiders attributed the company's significant investment in new technology.

Ovo owns Kaluza, an intelligent grid company that aims to digitally transform electricity distribution.

Mr Fitzpatrick, who founded Ovo a decade ago and had a brief vote as the owner of the Formula One team, has set a number of ambitious goals that reflect the growing environmental pressure on the energy industry.

Earlier this year, he sold a 20% stake in Ovo to Mitsubishi, the Japanese industrial titan, for £ 220 million, while Mayfair Equity Partners also owns a minority stake. [19659002] In a talk with Sky News, the Ovo founder said: "The energy industry is undergoing huge changes, driven by new technology, digitalization and the falling cost of renewable energy and storage.

" We have invested in market-leading technology to support the future energy system, both in the UK and internationally, with the 2018 results in line with our financial plan. "

Mr. Fitzpatrick has said of his desire to create an energy business. That can last for decades, and his expectation of comprehensive and rapid consolidation across the industry.

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