Avro Energy used by boss to pump cash into family firms – CityAM : CityAM

The boss of Avro Energy reportedly used the recently collapsed energy firm to pump more than £3m into his family’s other businesses and accounts.

The firm’s collapse has led to around 580,000 families fearing higher bills this winter and is the biggest failure of a household supplier so far amid the UK’s gas crisis.

Also Read:

Kwarteng: No grants to energy big boys to take on more customers

Jake Brown, who began the company in 2014 and his father Andrew, who joined the business in 2017, have reportedly not invested any of their own money into the company, which has instead been financed by the advance fees paid by customers, according to The Times.

Avro Energy handed an £830,000 unsecured, interest-free loan to a construction company controlled by Brown and his father – Berkeley Swiss Limited – accounts for associated companies reportedly showed.

Another £2.25m in management charges for an advertising agency called Sendito Marketing, owned by the Browns was also recorded. While an additional £163,656 worth of loans to the father and son have also been recorded in the most recent accounts, The Times alleged.

Brown, 27, and his father own half of the shares in Avro Group each, which has reportedly acted as a holding company for other family firms.

After expanding rapidly as an energy challenger in a market dominated by giants, its turnover swelled from £80m in 2017 to £390m in the 18 months to June 2019. Though the company still recorded a £28m profit loss.

City A.M. has requested Jake Brown for comment.

Also Read:

Energy firms plead for ‘bad bank’ as whole prices climb 70 per cent since last month