Home Insights & Advice Utility Warehouse announces impressive half-year results and the appointment of co-CEO Stuart Burnett

Utility Warehouse announces impressive half-year results and the appointment of co-CEO Stuart Burnett

by John Saunders
6th Jan 22 3:39 pm

On Nov. 23, 2021, the multiservice provider Utility Warehouse (UW) promoted COO Stuart Burnett to Co-CEO alongside Andrew Lindsay. UW promoted Burnett in line with its promising half-year results (April-September 2021), which reflect the efforts UW has made to protect customers and meet their needs, especially amidst the energy crisis.

Utility Warehouse’s half-year results

Over the past six months, UW has grown its customer base to over 660,000. These customers now take over two million services [CM1] from the company, including energy, broadband, mobile tariffs, home insurance, and boiler care. The more services customers take, the more they save.

As the only genuine multiservice provider in the UK, UW offers customers the opportunity to combine their home services into great value monthly packages. This way, customers can track all their home services in one place, only ever need to contact one customer service team, enjoy a range of discounts, and leave all the hard work to UW.

On top of this, UW offers up to £200 to cover any early termination fees with existing suppliers and guarantees that new customers pay less than they pay current suppliers. Plus, customers have 30 days to change their minds and switch away from UW without penalty.

As a result, UW’s half-year results include:

  • A 6% rise in revenue to £371.3m
  • An adjusted pre-tax profit of £26.2m (following a one-off Ofgem settlement)
  • A statutory profit before tax of £19.9m
  • An interim dividend maintained at 27p per share.

UW now expects to see a growth of approximately 10% over the second half of the business year, with double-digit annual percentage growth thereafter.[CM2]

UW Partner network growth

The rising cost of living, paired with COVID-19-related income cuts, has seen many people join UW’s Partner network over recent months. Authorised Partners earn residual income for signing customers up to the multi-award-winning company, much like artists receiving royalties. These independent distributors run their own UW businesses on their own terms and can earn £250-£400 for every customer they help sign up for UW’s three core bundles: Gold Talk, Gold Energy, and Double Gold.

Utility Warehouse’s energy

Sadly, many of the UK’s energy retail suppliers haven’t been able to stay afloat during the energy crisis. This crisis has left over two million customers [CM3] without an energy supplier. These customers are turning to established, well-capitalised energy suppliers like UW, which offers some of the best energy prices on the market.

All UW energy customers have the option to upgrade to a free smart meter, and the company offers new customers a £50 discount on their energy bills for making this switch. With a smart meter, not only can customers reduce their carbon emissions, but they can also forget about taking their own energy readings. Instead, the smart meters send these readings to UW automatically. Meanwhile, customers can track and adjust their energy usage accordingly. More than 60% of customers currently enjoy the benefits of a smart meter[CM4] , and UW continues to install thousands in its customers’ homes every month.

Meanwhile, UW has also been trialling solar panels, home batteries, and electric vehicle charging points through its Glow Green installation business.

Utility Warehouse’s broadband

The number of people switching broadband providers has declined over recent months, which is unsurprising given that many people made this switch last year when we went into lockdown and many of us spent more time working and socialising from home.[CM5]  At this point, many people took advantage of UW’s fast, reliable broadband services. These customers are now partway through their 18-month contracts.

That said, UW’s competitive fibre proposition and partnership with eero, an Amazon company, allows customers to install discounted eero devices in their homes to fix Wi-Fi dead zones. This partnership has seen the company continue to grow its broadband market share. All UW broadband packages include unlimited data, free connection, a free premium router, free calls to other UW customers, and a whole-home Wi-Fi upgrade option.

Utility Warehouse’s mobile tariffs

UW has also improved its mobile tariffs in line with customer demand and now offers the best value unlimited data tariff in the UK. Customers can choose between:

  • The Unlimited tariff: Unlimited data, minutes, and texts for £18 per month. Customers may add on up to three additional Unlimited SIMs for £12 per month each.
  • The Value tariff: 5GB data, unlimited minutes, and unlimited texts for £12 per month.

Neither tariff comes with speed restrictions and both offer EU roaming, Wi-Fi and 4G calling, and strong UK coverage on a flexible monthly contract. Mobile customers can also enjoy 10% off UW broadband.

Utility Warehouse’s home insurance and boiler cover

UW has grown its five-star-rated insurance policies by 8% over the first half of the business year and has now issued more than 35,000 policies. [CM6] By integrating its market leading Boiler and Home Cover into its main onboarding journey in April, UW has been able to drive these results. The multiservice provider now expects to see further growth in its insurance book in line with its larger customer base, competitive quotes from its home insurance underwriters, and seasonality associated with boiler and home cover policies.

Utility Warehouse’s cashback card

In October 2021, UW launched its third-generation cashback card, which is available to customers who take all home services. Customers can use this cashback card to save up to 7% on their everyday shopping with dozens of retailers and eateries like Sainsbury’s, Marks and Spencer, Halfords, Ann Summers, Toby Carvery, Harvester, and F. Hinds. UW then knocks these savings off customers’ monthly bills. Customers can enjoy instant spend notifications, no-fee FX transactions, and a newly updated customer app. They can also take out additional cashback cards for each household member so everyone can save on the family shopping. Over the past three years, customer spend using the cashback cards has more than doubled, and annual spend is now approaching £400 million.[CM7]

About Utility Warehouse

UW helps customers save time and money on their home services by bundling these into great value monthly packages. Customers don’t need to worry about price comparisons, paperwork, and passwords. They can leave the work to UW while they get on with the things that matter most to them.

Meanwhile, UW funds several green initiatives to help the UK on its way to net zero emissions. The company works with charities like Plastic Oceans UK to spread the word about key environmental efforts and plants a tree in the Brecon Beacons for every customer who takes all services.

UW has won top consumer awards and accolades every year for over a decade, including several Uswitch Energy Awards, Moneywise Home Finances and Customer Service Awards and Recommendations, and five-star ratings from Defaqto and Moneyfacts. In more recent news, Moneyfacts has shortlisted UW for its Energy Provider of the Year 2022 Award (results yet to be announced). UW is also fully regulated by Ofgem, Ofcom, and the Financial Conduct Authority (FCA).

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