UTILITY group Spark Energy grew revenue to a record £159.3 million in its first full financial year since a management buyout, with pre-tax profits lifting five per cent to £4.2m.

The Selkirk-based group, which made its first acquisition in the year to June 30 2017, grew revenue by 26 per cent as customer numbers increased by 34 per cent to 355,000.

Spark, which is aimed at the private and social rental sectors, is one of a number of suppliers taking market share from the Big Six suppliers, and the company increased its firepower last year with the acquisition of Home Telecom, and a contract to supply Sky to its customers.

This means Spark is now able to provide fixed-line telephony, superfast broadband and satellite television packages, in addition to its core gas and electricity offers.

Chief executive Chris Gauld, who led the management buyout with the backing of four institutional investors, said: “It’s been another big year for the company with growth right across the business, constant improvement of our operations and service and the launch of our multi-utility future through the acquisition of Home Telecom. We’ve added Sky TV packages and invested in digital solutions for our current and future customers.”

Since customer numbers passed the 250,000 threshold and triggered obligations to invest in renewable technology and contribute to winter fuel payments, Spark has paid out more than £3m.

And at a time when energy suppliers are under increasing pressure over government plans to introduce an energy price cap, to ensure customers on standard tariffs are not unduly paying more than customers who shop around for cost-effective deals.

Mr Gauld said: “It’s well reported that it’s a difficult environment for some challenger companies but we are in a really strong position.”

Spark Energy also said it had signed an extended five-year wholesale trading agreement to ensure continued protection against wholesale price volatility.

“On the energy side of the business, we’ve extended our hedging and wholesale trading agreement for a further five years meaning our customers can have confidence that they’re protected against wholesale price volatility.”

Mr Gauld said the current financial year was ahead of plan, with investment in new products which will complement its offer.

The group said it now employs more than 400 staff at offices in the Borders, Edinburgh and at Home Telecom in West Sussex.

In October, Spark appointed former 3i managing director Kevin Lyon as its new chairman. Mr Lyon has held a number of non-executive director positions and chairman roles in his career. He was described by Spark as a “corporate heavyweight [who will] guide us through our ambitious plans”.

Mr Gauld said: “Kevin is a vastly experienced company chairman and non-executive director and we’re delighted to have him on board here at Spark. He’s held positions with many leading public and private companies at various stages of their growth and so brings a wealth of experience to help guide the business through its next phase.”