Centrica’s smart home brand, Hive, continues to face financial losses despite notable revenue growth in the past year.
- Hive reported a pre-tax loss of £28.2 million for 2023, following a loss of £25.6 million in 2022, accumulating nearly £600 million in losses since its launch.
- The brand’s revenue increased significantly from £49.8 million in 2022 to £62.3 million in 2023, the highest since 2019.
- Centrica’s overarching net zero strategy remains a key driver for Hive, focusing on green energy solutions.
- British Gas, another Centrica business, posted substantial profits, offsetting losses in other divisions.
In 2023, Hive, a division under Centrica known for its smart home devices, reported a pre-tax loss of £28.2 million, slightly up from a loss of £25.6 million in the previous year. Despite never having turned a pre-tax profit since its inception over ten years ago, Hive’s revenue climbed from £49.8 million to £62.3 million, marking the highest revenue since 2019, though still short of the £66.3 million achieved that year when the company faced a much larger loss of £127.1 million.
According to documents submitted to Companies House, Hive’s financial trajectory reflects a persistent struggle to achieve profitability. However, the company continues to pursue its strategic objectives, contributing to Centrica’s vision of leading the transition to a greener, net-zero economy. Hive places significant emphasis on offering residential customers solutions that aim to manage and reduce energy consumption effectively through advanced heating solutions and energy insights.
The company maintains its stronghold in the market by offering subscriptions that enhance energy insight and automation. These offerings remain aligned with Centrica’s broader ambitions within the home energy management sector, as they explore alternative technologies intended to optimise energy consumption and cost for their customers.
Despite the challenges faced by Hive, Centrica as a whole recorded a robust financial performance in 2023, although its operating profit decreased from £3.3 billion in 2022 to £2.8 billion. Notably, British Gas Energy, another Centrica entity, significantly exceeded market expectations with its profit rising from £72 million to £751 million. This upturn in British Gas’s fortunes has ameliorated the negative financial impact experienced in other sectors of the company, most notably in energy trading and asset management, where there was a precipitous fall in profits.
Despite ongoing financial losses, Hive’s strategic alignment with Centrica’s green energy goals underscores its commitment to future growth.
