Liverpool city region energy retrofit specialist Next Energy shifts business model after ending of a Government scheme leads to revenues plummeting 33% to £47.1m and profit turning to loss. Tony McDonough reports
Energy retrofit specialist Next Energy has had to pivot to new sources of revenue after the ending of a Government scheme led to a sharp fall in turnover.
Next, which operates out of Knowsley and Warrington, has prospered by installing energy-efficient measures in homes for social landlords and local authorities such as insulation, air source heat pumps and solar PV panels through Government-backed schemes.
Two years ago the company, which employs around 150 people, saw annual revenues pass £80m and, in the year to March 31, 2025, saw pre-tax profits hit £12m.
However, accounts filed on Companies House for the 12 months to March 31, 2026, show a dip in fortunes for Next which has seen revenues plummet 33% to £47.1m and that £12m pre-tax profit turned into a £132,162 pre-tax loss.
Main reason for the downturn is the end of the UK Government’s Energy Company Obligation (ECO) scheme. This required medium and large energy suppliers to install energy efficiency measures in “fuel-poor” households.
Next did anticipate this change and has pivoted towards growing demand in the private market during what it called a “transitional period for the company”.
Writing in the annual report, director Eileen Brotherton struck an upbeat tone despite the fall in revenues and profits. She said: “The ECO scheme had formed a principal source of revenue for the company.
“In anticipation of the scheme’s closure, the business proactively entered the growing private market, launching a new domestic offering focused on solar photovoltaic installations and battery energy storage systems.
“The social housing division maintained strong performance throughout the year, securing a number of new direct contract awards under other UK Government schemes including Warm Homes and the Social Housing Fund.”
In March 2026 Nex was Next Energy was appointed as a delivery partner on the £350m Procurement Hub National Decarbonisation Framework. This is a major initiative focused on improving and decarbonising housing across England.
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“Looking ahead, the UK Government’s £15bn Warm Homes plan, announced in January 2026, presents a material growth opportunity for the business,” added Eileen.
“Combined with a launch of the new private offering and the company’s deep operational expertise and established reputation in the delivery of Government-backed energy efficiency programmes, the business as well position to deliver a sustainable long-term growth.”