Domestic energy retrofit specialist Next Energy, which operates from Knowsley and Warrington, reports a fall in revenues to £70.2m but a rise in profits amid strategic shift. Tony McDonough reports

A shift in commercial strategy – prioritising higher margin contracts over volume – sees annual revenues fall at domestic energy retrofit specialist Next Energy.

Working out of local bases in Knowsley and Warrington, Next Energy installs 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.

It has just posted its results for the 12 months to March 31, 2025, on Companies House. They show revenues of £70.2m, down from £79.3m in the previous year. However, there was a 9% rise in pre-tax profits to £12m. No dividends were paid. Dividends in the previous year had totalled £940,000.

During the year the company secured multiple new contracts across the north of England and in the Midlands. To handle the extra work it increased employee numbers from 111 to 144 and opened a new Midlands base.

Writing in the annual report director Eileen Brotherton said: “Turnover for the 12 months ended March 31, 2025 decreased by 11.5% compared to the prior year. This decline reflects the company’s strategic shift towards prioritising higher margin contracts over volume.

“During the year the company secured a number of new direct contracts with social housing providers resulting in a meaningful expansion of its client base.

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“To support the delivery of these contracts a new regional office was established in Sandwell, West Midlands. These developments have enhanced the company’s market presence and support the capacity for future growth.

“Gross margin increased to 26.8% in the 12 months to March 31, 2025, from 21% across the 12 months to March 31, 2024, driven by the successful implementation of margin optimisation initiatives.

“Operating profit as a percentage of turnover increased to 17.1% across the 12 months from 13.9% across the previous 12 months, reflecting both the uplift in gross margin and disciplined control of overhead costs.”