SSE profits plummet as 430,000 customers are lost
Published: 24 May 2018 By Grace Kimberley
Energy giant SSE recorded a loss in profit last year, widely due to the household supply side of the business losing 430,000 customers, a new report reveals.
SSE reported a 6% decrease (to £1.45bn) in pre-tax profits from January to March this year, and bottom-line profits were down by 39% at £1.09bn. However, revenue generated increased by 8% at £31.23bn.
“As expected, 2017-18 presented a number of complex challenges to manage, but SSE’s operational performance was generally very robust,” says Chairman Richard Gillingwater.
“The challenges will continue in 2018-19, which is also expected to be a year of major transition for SSE. For investors, by giving clarity on the dividend for the five years to March 2023, SSE is demonstrating that remunerating them for their investment is and will remain its first financial objective.”
Even the ‘Best from the East’ didn’t impact supply, as business remained stale at £260.4m, although energy consumption did spike in March due to strong need for heat.
SSE recently struck a deal with Npower, which was followed by more than £60m in IT costs. According to the Competition and Markets Authority, this merger could reduce competition and bump up energy prices for consumers.
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