Lakehouse has announced the acquisition of energy services firm Orchard (Holdings) UK for an initial £7 million.

A further £3 million will be paid depending on Orchard's financial performance over the next two years.

The energy broker provides advice to corporate clients in relation to managing their energy costs, particularly energy procurement and usage.

The company also provides energy management services to commercial and industrial customers, including brokering supply with utilities firms, managing contracts and advising on energy consumption.

The business employs 78 staff and is based in Elland, West Yorkshire with additional offices in Glasgow, Bristol, Newcastle and Northampton.

Orchard was founded in 2004 and, prior to its acquisition by Lakehouse, was principally owned by Gareth and Rachel Henderson.

Gareth Henderson and the management team will stay with the business following the agreement.


Lakehouse said the deal represents a 'further step' in the company's growth strategy as the Group continues to expand and develop through 'targeted, complementary acquisitions' which 'broaden its service offering and geographical reach.'

The company added: "Bringing Orchard into the Group provides further opportunities for the cross-selling of services, opening up Lakehouse’s existing offering to Orchard’s commercial customers and enabling the introduction of energy brokerage services to Lakehouse’s large housing association and local authority customers."

In the financial year ended 31 August 2014, Orchard reported a turnover from continuing activities of £4.99 million and profit before tax of £880,000.

Stuart Black, Executive Chairman of Lakehouse, said: "Following our successful initial public offering earlier this year, this acquisition further endorses our strategy of acquiring and integrating businesses which expand our service offering and geographical reach. Orchard’s strong client base, excellent relationships with utilities firms and market-leading customer service open up new opportunities for growth in the energy services market.

"Bringing together energy efficiency, water management and smart metering expertise alongside Orchard’s brokering service, the Group’s Energy Services division offers an increasingly broad, national proposition to clients looking to manage their energy usage and meet challenging carbon savings targets."

Gareth Henderson, founder and Managing Director of Orchard, said: "We are delighted to be joining the Group and supporting the continued growth of the businesses."

(LM)