Yü Group anticipates sharp rise in revenues as it prepares smart meter rollout
Yü Group has posted a bullish trading update, with the challenger supplier expecting a 90 per cent boost to half-year revenues – which could exceed £125m.
Full year revenues are forecast to climb well above £200m – over 50 per cent growth against the prior year.
This has been powered by a 49 per cent spike in average monthly bookings for its services – which have risen £14.3m, with cash generation climbing to £15.7m, up 36.5 per cent from the previous year.
The energy firm is an independent provider of gas, electricity and water to the UK’s corporate sector.
It is now responsible for around 26.1k meter points, following a 25.5 per cent rise in meter numbers last year.
The group has also established its online portal where existing customers can handle billings and meter submissions, reducing the group’s cost to serve.
It also plans to launch Yü Smart – a smart metering business – in the second half of the year, having received the required licences.
Yü Group now expects to be installing its first smart meters in the fourth quarter of this year
The business will also benefit from plans to bring in EV charging installation for customers.
Its medium-term goal is £500m revenues with an EBITDA margin of four per cent – and while the firm remains some way below that milestone, its latest results have encouraged chief executive Bobby Kalar.
Bobby Kalar, the group’s chief executive , said: “The period delivered a continued strong financial performance with significant revenue growth, margin expansion and consequently much improved profitability and cash generation. The first half of 2022 will represent our fourth consecutive period of revenue growth and margin improvement and I am confident we will continue to deliver over the course of the year.”
The energy firm has appointed Liberum Capital as nominated adviser and broker to support the group with increasing shareholder engagement in the next chapter of growth
Meanwhile, the management says its remains mindful of wider macroeconomic conditions and energy market volatility.
The energy market has been wracked with instability over the past nine months, with 30 suppliers exposed by soaring wholesale costs, insufficient hedging strategies and the constraints of the price cap.
However, Yü Group is a business supplier – unconstrained by the consumer price cap – and has not only survived the crisis but has taken on energy users from fallen firms.
This includes customers from Ampower, Whoop Energy and Xcel Power Limited.
Following the results, the company’s shares were up 5.33 per cent to the FTSE AIM All-Share.