Can Bulb cope with a 24 MILLION pound LOSS??? — Bulb Community

Can Bulb cope with a 24 MILLION pound LOSS???

I've recently switched to Bulb and love everything about the company!!!!! They put the big six to shame!!!! However they currently have a 24 MILLION pound LOSS on their accounts. What's caused this please??? Is it just start-up costs??? Going forward can the company turn things around??? I hope & pray the company does not go BUST!!!! I want to enjoy its services for a LONG TIME!!

Comments

  • edited February 3
    Yes.

    Customer aquisition is expensive.

    Added 670k members. Potentially £67million in referral costs there..

    See blog post here:
    https://bulb.co.uk/blog/annual-update-for-members-2018

  • edited February 3
    ky326vvb said:

    I've recently switched to Bulb and love everything about the company!!!!! They put the big six to shame!!!! However they currently have a 24 MILLION pound LOSS on their accounts. What's caused this please??? Is it just start-up costs??? Going forward can the company turn things around??? I hope & pray the company does not go BUST!!!! I want to enjoy its services for a LONG TIME!!

    Have you read the Bulb blog "Annual update for members 2018"?
  • I would like a response from a Bulb representative please. You have not yet commented on an important issue. Please answer my questions. As for the other replies I've read the annual update for members but my questions still need answering. I'd be interested if there's any complacency.
  • edited February 5
    @ky326vvb, you're not the first to ask this question.

    Take a look at this previous post, which contains a response from @Eleanor at Bulb
    https://community.bulb.co.uk/discussion/8587/long-term-viability-of-the-company

    Also note that this is primarily a customer forum - Bulb do comment when required but it can take a bit of time to receive a response.
  • They'll just repeat what's said in the annual update as that pretty much covers it..

    "We made a gross profit of £12.1m after we’d paid our generators and the energy network. And after we deduct the costs of paying all our people, for our offices and the costs associated with acquiring new members we ended up with a £23.7m net loss. "
  • You might also find my breakdown on https://community.bulb.co.uk/discussion/comment/26042/#Comment_26042 useful : but they did get a £60m investment which allowed them to clear all other debts they had according to their accounts and give them enough to keep going for a couple of years and I estimated they should be profitable sometime next year.

    Bulb staff members did also comment in that thread which may also answer your questions.
  • Thanks for all your replies. I'm a bit more re-assured now.
  • edited February 5
    Heya @ky326vvb

    Welcome to Bulb :)

    The Community has summed things up quite nicely.

    £24 million does seem alarming at first but this is just a part of being a fast growing business.

    The important thing to note is that the cost of acquiring members is less than the amount of money we make from each member over the whole period they are supplied by Bulb. So we're not in any financial trouble.

    If you have any other questions or concerns, let us know. We'll do our very best to answer.


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