Octopus out turns at a loss with suppressed Gross Margins
Updated: Dec 15, 2020
With Gross Margins of less than 1% for the 18/19 financial year, Octopus has outturned a loss of £37.4m.
Customer numbers in the period increased from ~200k to ~700k, with the acquisition of Coop in late 19 adding a further 300k, and the Engie portfolio adding a further 70k, with an estimated 1.1m-1.2m customers on supply today.
The operation remains lean, with strong FTE to Customer ratios, and low OPEX per account, however the impact of Bad Debt is now being felt - with BDC as % Revenue now at 2% and Debt Book as a % Revenue at 10% (comparable with a number of under-performing peers).
The outstanding loan balance owed to the Parent Company stands at £58m, driven by both a lack of Gross Margin and spending £28.5m on customer acquisition, with additional funding of £33.5m provided in the year.
For a more detailed analysis please contact Ben Bugg.