Yu Group says FY21 performance is ‘significantly’ ahead of expectations
In a trading update for the year to 31 December 2021, (YU. ) said a “very strong” performance has resulted in the group performing significantly ahead of market expectations.
Yu Group, which supplies gas, electricity and water to the UK SME and corporate business sector, acknowledged that it had been “a tough year” for the global energy supply industry.
Despite this backdrop, the group has experienced strong trading, with Bobby Kalar, Chief Executive Officer of Yu Group commenting that “the breadth of strength, experience and discipline” in the business “has again produced results that have surpassed expectations.”
All FY21 revenues and profitability have “all extensively exceeded management forecasts.”
Yu Group said full year revenues are expected to be in excess of £150m, an expected rise of around 50% on FY20 driven by continued organic growth and the integration of Ampower.
Ampower ceased trading in 2021, which it attributed to the energy crisis in the UK and surging gas prices. In November 2021, Yu was appointed by a UK regulator, Ofgem, as supplier of last resort for Ampoweruk, with the group undertaking its electricity and gas customer book.
With the integration of Ampower increasing Yu’s own meter portfolio by 38%, it told investors that its revenue was expected to immediately increase by more than £7.5 million a month.
In this morning’s trading update, Yu Group reported a significant increase in the number of meter points, rising to around 31,900 at 31 December 2021, up from around 17,400 on FY20.
Over FY21, Yu recorded an average monthly bookings of £13.8m, an increase of 66.3% on FY20. It cited a particularly strong 4Q performance with average monthly bookings of £24m.
Yu said it remains well capitalised with net cash of £7m as at 31 December 2021 and that it continues to invest in its ‘digital as default’ transformation which it says is driving ‘improved customer acquisition, reduced cost of serve and a better understanding of customers.’
The company has forecasted strong forward visibility for FY22 with £156.5m of contracted revenue, up from £93m for FY21, adding that it continues to assess further value add opportunities ‘while remaining disciplined and continuing to execute organic growth strategy.’
Kalar said Yu Group’s growth objective for 2021 “was very clear” and that, having positioned the business for significant and profitable growth, these goals have now been delivered.
Commenting, he added: “2022 is set to enable the Group to continue to scale rapidly and benefit from the associated economies of scale. I’m particularly pleased the business has achieved this objective despite a period of high market volatility. I would like to thank all my team members for playing such a vital part in delivering and exceeding our objectives.”
Follow News & Updates from:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.