Profits fell at green tech start-up Myenergi ahead of major job losses

Profits were cut at smart home start-up Myenergi ahead of the company slashing more than 100 jobs, it has been confirmed.

The Lincolnshire-based business has posted pre-tax profits of £8.8m for the year to May 31, 2023, down from £14.8m, newly-filed accounts have revealed.

However, the renewable products maker’s revenue increased from £53.8m to £67.5m over the same period.

Myenergi’s headcount surged from 273 to 445 during the financial year but the company put almost a quarter of its workforce at risk of redundancy just weeks before the end of the period.

The green tech business, which was founded by Lee Sutton and Jordan Brompton in 2016, also started a new round of redundancies at the end of January this year.

In October, it was announced that Myenergi had secured a £30m funding boost from Energy Impact Partners, having also agreed a £30m debt finance deal with HSBC earlier in the year.

A statement signed off by the board said: “Myenergi continued to grow significantly in the 12 months… despite some challenging market conditions linked to higher inflation, energy prices and the wider cost-of-living crisis.

“Although Myenerg is arguably best-known for the Zappi electric vehicle charger, our product portfolio also includes a solar power diverter and a smart home battery system, so our business drivers do not only include the electric vehicle market but the domestic solar market as well as wider home electrification and decarbonisation activity.

“This year, we saw significant growth across these key sectors, with consumers continuing to transition to electric vehicles, install their own micro generation and decarbonise their homes..”

It added: “Despite the challenges we faced in the 2022/23 financial year, Myenergi demonstrated strong double-digit revenue growth and profitability, which we continue to invest back into our product offering and customer experience.

“We are confident that Myenergi is in a strong position to support the growing market in renewable energy, electric vehicles and decarbonised heating and we are committed to continuing to develop new propositions to support our purpose of removing barriers to a greener future.”

Myenergi’s UK revenue increased from £23.9m to £41m in the year but fell from £29m to £24.4m in Europe. Its sales rose from £814,000 to £2m in the rest of the world.

Among Myenergi’s board members are Sir Terry Leahy, former CEO of Tesco, and Peter Richardson, former COO of Dyson.