Yü Group said good momentum has continued into FY22

Francesca Morgan
Vox Newswire
10:38, 26th May 2022

In a trading update released today, Yü Group (YU. Follow | YU.) said the good momentum experienced in FY21 has continued intoFY22 trading which it expects to be in line with market expectations.

Yü Group, which supplies gas, electricity and water to the UK corporate sector, said the four months to 30 April 2022 had seen significant revenue growth at improved profit margins.

This trading performance, particularly when compared to the same 2021 period, provides Yu Group’s management with “high confidence” for the remainder of FY22, it informed investors.

In fact, the company reported that average monthly bookings for the four months to 30 April 2022 stood at £13m - that’s up 81% when compared to the same period in 2021, it detailed.

Yu said it remains focused on delivering profitable and controlled growth, based on a strong forward contract book as well as unlocking the benefits of its ‘Digital by Default’ strategy.

Yü recently created its Metering Services Division providing the ability to control a larger part of the value chain and drive significant value enhancement over the medium term. It said it will provide a further update in its July trading update, covering the period to 30 June 2022.

Commenting on Yü’s recent trading, Chief Executive, Bobby Kalar said: “Despite commodity market volatility, we have delivered record revenues for the four months to 30th April 2022, with continued strong momentum.I’m delighted that

Yü has acquired the management capability of a smart metering business, which I truly believe to be a game-changer.

He added: “I look forward to scaling this new capability, combined with the efficiencies from our Digital by Default strategy, to further enhance our growth and profitability.”

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Earlier this month, Yü Group announced the creation of a new metering services division as part of its efforts to accelerate the installation of SMETS2 metres across its future portfolio.

The move follows the integration of the management and support team and Intellectual Property of Magnum Utilities, which are specialists in smart meter installation and services.

Magnum Utilities, which instals smart metres and EV charging points across the UK, also provides complementary services such as smart meter maintenance and revenue protection.
The firm recently entered administration as a result of its clients entering the SOLR process.

Following the integration, a team of 28 will join Yü Group bringing “extensive expertise and experience” and will trade under ‘Yü Smart’ a new wholly owned subsidiary of the business.

The new metering services division is expected to see the development of the group’s field engineering capabilities to accelerate the installation of SMETS2 metres across its portfolio.

Yü Group highlighted to investors that this will provide the business with “greater control and accuracy of metering data” which as a result, will improve operational efficiencies and the reduction of Yü’s current maintenance spend with third party metering service providers.

It said the division will also support its Digital by Default strategy by driving enhanced data insight to enable better hedging performance and understanding of customer consumption.

It added that it will support future growth by unlocking new market opportunities to develop field services across existing customers as well as developing its own customer base.

The installation of SMETS2 will also ensure better outcomes for Yü Group’s customers through more accurate billing and meter readings and energy efficiency insight, it noted.

Yü Group will launch its new metering division in early Q3 2022 under the Yü Smart brand.

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