Core Insights - Ovo Energy paid £27 million to Imagination Industries, owned by founder Stephen Fitzpatrick, despite facing financial uncertainties [1][2] - The company admitted to "material uncertainty" regarding its future due to failing financial stress tests mandated by Ofgem [2] - Ovo is struggling to secure £300 million in new investments, with previous talks for investment and mergers falling through [3] Financial Performance - Ovo reported a loss of £135 million last year, a significant decline from a profit of £817 million the previous year [6] - The company has made substantial payments to Fitzpatrick, including £27 million in 2024 and £43 million in the prior year, as part of a licensing agreement [3][4] Business Structure and Ownership - Fitzpatrick retains ownership of both Ovo and Imagination Industries, which he uses to fund other ventures [4] - The brand was purchased from Fitzpatrick for £150 million, with an outstanding payment of £30 million still owed [4] Investment Challenges - Ovo's attempts to raise £300 million in new investment have faced setbacks, including the abandonment of a potential investment by Verdane [3] - The company previously engaged in merger discussions with Scottish Power, indicating ongoing strategic challenges [3] Broader Implications - The recent financial struggles and payments to Fitzpatrick may attract scrutiny regarding the management of Ovo's finances and its complex corporate structure [8] - Fitzpatrick has faced previous inquiries from MPs concerning intercompany loans, highlighting potential governance issues within his business empire [9]