Yu Group PLC Trading Update and Notice of Results (1090H)
July 30 2019 - 1:00AM
UK Regulatory
TIDMYU.
RNS Number : 1090H
Yu Group PLC
30 July 2019
30 July 2019
Yü Group PLC
("Yü Group" or the "Group")
Trading Update and Notice of Results
Yü Group PLC, the independent supplier of gas, electricity and
water to the UK business sector, today provides an update on
trading for the six months ended 30 June 2019.
Group revenues for the period are expected to be in excess of
GBP55m (H1 2018, as reported: GBP35.8m). As at 30 June 2019, the
Group had c.GBP45m of contracted revenue which is expected to be
recognised over the remaining six months of FY2019. The Group
expects revenue in excess of GBP100m for the full year to 31
December 2019 as a result of the existing contract book, combined
with incremental bookings growth from new accounts and additional
revenue, beyond that contracted, from existing customers.
Yü Group remains wholly focused on restoring the Group to
profitability and continuing to accelerate its growth. The
initiatives implemented around sales acquisition and customer
lifecycle strategy will take time to deliver results. The Group has
focussed on a sales strategy to target new contracts with an
increased margin and lower credit risk than historically realised,
which has resulted in a reduced level of monthly bookings than
previously achieved. The Group also continues to wash through a
book of existing lower margin contracts, entered into in the prior
year, that continue to dampen Group margins for this year. As a
result, the Board anticipates reporting an Adjusted EBITDA loss of
between GBP2.5m and GBP3m for the six months to 30 June 2019. The
Board remains confident that actions undertaken will translate into
improved results.
As at 30 June 2019, the Group had a cash balance of GBP17.4m
(GBP14.6m at 31 December 2018 and GBP16.5m at 30 April 2019).
The Board, led by the audit committee, has conducted a thorough
and extensive review of the internal control environment in
operation throughout the Group, together with an assessment of the
status of the previously identified improvement actions. This
review has been supplemented by a second health-check report from
PwC, following its independent forensic review conducted in Q4
2018. The Board is pleased to confirm that these key control and
process improvements have been made and are operating routinely,
providing good visibility on contracted revenues and facilitating
greater financial control.
The Board is focused on the Group's future growth and
development, and continues to invest in the business to build the
Group's infrastructure in line with the market opportunity. The
Group recently announced the expansion of its Leicester sales
operations to drive sales and customer retention. The Board will
provide further guidance on the Group's strategy and long term
outlook in September 2019 when reporting its half year results to
30 June 2019.
Notice of interim results
The Group intends to publish its interim results for the six
months ended 30 June 2019 on Wednesday 18 September 2019.
Bobby Kalar, Chief Executive of Yü Group, commented:
"Significant progress has been made over the first half of this
year and I feel my team has performed well in what can only be
described as testing times. Whilst realigning and resetting
business controls and processes has been absolutely necessary,
investing in the future and ensuring long term growth remains a key
focus of mine. The planned investment we have made in Leicester
further positions us to secure new business at higher margins and
to capitalise on the significant market opportunity available,
whilst continuing to deliver market leading customer service."
For further information, please contact:
Yü Group PLC
Bobby Kalar
Paul Rawson +44 (0) 115 975 8258
Shore Capital
Edward Mansfield
Anita Ghanekar
James Thomas +44 (0) 20 7408 4090
Alma PR
John Coles
Hilary Buchanan
Helena Bogle +44 (0) 20 3405 0205
Notes to Editors
Information on the Group
Yü Group PLC, trading as Yü Energy, is an independent supplier
of gas, electricity and water focused on servicing the business
sector throughout the UK. It has no involvement in the retail
supply of energy to the domestic sector. The Group was listed on
the AIM market of the London Stock Exchange in March 2016.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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