Sumo, an Australian energy and internet provider based in South Melbourne, is pleased to announce the successful completion of a recapitalisation and restructure, positioning the business for a period of stability and growth going forward.
Dominic Drenen, previously Managing Director at Click Energy, has restructured the capital base, which is now underpinned by a large, reputable private Sydney family. He has stepped in as Managing Director and has also secured Paul Forsyth, previously Chief Financial Officer at Click Energy, to join the team.
‘The Sumo business reminds me of Click three years ago’ said Drenen. ‘It has over 70,000 customer accounts, in excess of $100m revenue, and importantly is the market leader in triple play utility sales in the home’ (electricity, gas and broadband internet).
In 2019, Sumo embarked on a sale process that ultimately did not secure any offers that would have delivered an acceptable return for shareholders.
The business restructuring has resulted in a near halving of employee numbers and a leaner, focused and disciplined operating model.
Today, Sumo offers broadband nationally, electricity and gas in Victoria and electricity in NSW. It is about to enter the NSW gas market and has the licence and systems in place to retail electricity in South East Queensland.
Importantly, the entire operation is based onshore in South Melbourne, delivering a strong positive customer experience evidenced by its very high NPS.
‘The new capital structure provides us with the flexibility and time to execute on our growth plans’ Drenen said.
Shareholders will be hoping Drenen can replicate what he did at Click Energy, where shareholders including Los Angeles-based Angeleno Group, specialist sustainability investor RobecoSAM in Zurich, and CleanTech Ventures in Melbourne generated an 11-fold increase from their $11m investment in Click Energy in 2013 when the business was sold to amaysim for $120m in 2017.
Sumo is the market leader in triple play utility sales of electricity, gas and broadband internet. Based in South Melbourne, it's prouldy Australian owned and operated. Sumo offers great rates and no lock in contracts for broadband nationally, electricity and gas in Victoria and electricity in NSW. It is about to enter the NSW gas market and has the licence to retail electricity in South East Queensland.