Stuart Burnett will become Utility Warehouse’s sole chief executive next summer, with co-chief Andrew Lindsay intending to step down from his role after 16 years with the company.
The multi-utility provider made the announcement as part of its 2023 half year results which showed adjusted revenue increased by almost 60%, while adjusted profit before tax increased by more than 35%.
Burnett joined the company as legal and compliance director at the start of 2016. He became co-chief alongside Lindsay in November 2021.
Although he is stepping down as co-chief and from the board, Lindsay will remain with Utility Warehouse part-time “for at least the next three years” where he will focus on supporting the company’s network of “partners” – customers who actively seek to recruit others into the business for financial rewards.
Burnett has previously spoken about the benefits of his company’s co-chief executive model and was asked by Utility Week whether there were plans to recruit another to work alongside him.
In response he said that what happens beyond him assuming the role of sole chief executive will be something he and the board decides over time, “but there aren’t any immediate plans to add another co-chief executive”.
“It’s been something that’s been a real success and a real positive because the way in which we manage this business is all about for the long term…the strategy that we are delivering on at the moment that’s taking us to one million customers later this year and then onto two million customers over the medium term is a strategy that we designed and delivered on together and I’ll keep delivering on as sole chief executive and therefore we have that real continuity which is really important for our customers, partners and obviously really important for our investors.”
In the six months ended 30 September, Utility Warehouse saw its revenue up more than 57% to £883.6 million from £562.4 million in 2022. Adjusted profit before tax meanwhile was up 36% to £43.7 million (from £32.1 million).
The company is currently the 7th largest energy supplier in the UK and serves almost 950,000 customers, with ambitions to hit two million.
Its results show that its smart meter rollout “continues at pace”, with almost 50,000 installations in the period and smart penetration exceeding 69% of its customer base vs an industry average of 59%.
Meanwhile the company recently updated its 20-year energy supply contract which it secured with Npower in 2013 before it was absorbed into Eon. Burnett explained that the agreement was updated to ensure his supplier is able to make new tariff offerings, such as electric vehicle (EV) tariffs from next year.
Commenting on the results, he said: “We have consistently offered the lowest-priced energy tariffs in the UK for over two years. Our unique multiservice model means we can continue to sustainably beat the competition, and is the primary driver of our continued rapid growth.
“We are fast approaching the one million customer milestone, and our current rate of growth places us firmly on track to double the size of the business by welcoming a further million customers to UW over the medium term.”
Lindsay added: “With no obvious end in sight for hard-pressed families across the country, demand for our income opportunity remains high, and we are committed to supporting all of our Partners to achieve their personal goals through UW.
“Over the past 24 months, the business has consistently delivered double-digit growth in customers and profit: this ongoing strong performance reflects a business that has never been in such good health in terms of its customer proposition, its competitive position and the levels of engagement within its Partner community.”
You can read Utility Week’s recent interview with Stuart Burnett in our digital weekly.