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Hometree’s Expansion to Revolutionise UK Home Energy

Illustration of an Oak tree in Oxford

James Stothard

At Oxford Capital, we are proud to back UK start-ups that can make an impact on their sector and the environment.  Today, we are proud to spotlight a significant milestone achieved by Hometree, a cornerstone of our portfolio, which exemplifies our commitment to steering the UK towards a greener, more sustainable future. 

Strategic Expansion and Proven Impact 

Under the leadership of its founder, Simon Phelan, Hometree has recently announced the acquisition and integration of two specialised renewable energy firms into its operations: The Little Green Energy Company (TLGEC) and Geowarmth Heat Pumps Ltd. This expansion is not merely growth for growth’s sake but a calculated step in their mission to decarbonise one million homes by 2030. Both companies bring expertise in the installation and maintenance of heat pumps and solar panels, expanding Hometree’s capabilities and reach. 

The acquisition of these companies is backed by robust financial support, with a debt facility secured from BlackRock, dedicated to financing a series of acquisitions. This move is strategic, aimed at maximising the potential of renewable energy installations across the UK. 

Economic and Environmental Gains 

Transitioning to renewable energy systems is a financially sound decision for UK households, potentially saving up to £300 annually. These savings underscore the economic viability and environmental benefits of adopting green technologies. This shift is not just about cost savings—it’s about making a long-term investment in the health of our planet and our communities. 

Backing Founders as they Grow 

Our mission at Oxford Capital extends beyond immediate financial returns; it’s about creating sustainable value that resonates across generations. With Hometree, we have backed the company at every stage from its first seed financing to its Series B round in 2023 alongside a growing group of great institutions and individuals that share a common belief in the business. 

A Vision for the Future  

Hometree’s latest initiatives are a testament to a proactive approach in a market poised for significant growth amid global shifts towards sustainability. Hometree is offering finance solutions for the installation of low carbon solutions. By December 2023, Hometree had already secured £1.5 million worth of signed agreements under its innovative Solar Plan, showcasing strong market demand and confidence in financial products tailored to green retrofit measures. 

Commitment to Excellence and Innovation 

At Oxford Capital, our investments are aligned with our values while also delivering substantial economic benefits to our investors. By investing in companies like Hometree, we are paving the way for a cleaner, more resilient energy landscape. 

For more information on our portfolio and how you can be a part of this journey, visit our Oxford Capital website. 

Estimated reading time: 2 min

 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    1. If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
  2. You are unlikely to be protected if something goes wrong
    1. Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    2. Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
  3. You won’t get your money back quickly
    1. Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    2. The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    3. If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    1. Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    2. These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

 

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.