23 July 2024
Yü Group
PLC
("Yü
Group", the "Company" or the "Group")
Trading Update and notice of
results
Yü Group (AIM: YU.), the independent
supplier of gas and electricity, meter asset owner, and installer
of smart meters to the UK corporate sector, is pleased to provide
an update on trading for the six months ended 30 June
2024.
Financial and Operational highlights
· Strong
organic growth continues underpinning outturn for the current year,
with H1 24 revenue of approximately £310m, up c.60% (H1 23: £195m),
despite mild Spring temperatures reducing consumption.
· Monthly average bookings at £46.9m (H1 23: £51.3m and FY23:
£55.5m) reflecting reduced commodity market prices. This was offset
by the Group's strong market positioning and leading customer offer
enabling the Group to deliver a 35% increase in supplied meter
points in H1 24, and 82% from June 2023, to close at 72,300 (H1 23:
39,700; FY23: 53,400) driving volumetric consumption.
· Yü
Smart continues to scale, with meter installations in the period up
125% on the same period in 2023 (H1 24: 9,000; H1 23:
4,000), leading to 13,100 cumulative
meters financed, providing a £0.6m
forward annualised, indexed annuity income. Engineering field force
headcount increased to 101 (FY23: 50).
· £86.8m
of net cash at 30 June (H1 23: £53.8m) from strong operational cash
inflow and after £10.2m of dividend and share buy-back payments,
£1.8m of cap-ex in metering assets, and corporation tax payments on
account. Operational cash flow benefits from consistent customer
collections and the return of cash collateral related to commodity
hedging activities.
· Share
premium account cancellation formally in effect July 2024,
providing £12.3m additional distributable reserves.
· Successful implementation of a new five-year commodity hedging
agreement with Shell Energy, providing capital and cost-efficient
access to electricity and gas commodity markets and positioning the
Group for significant scale.
· Strong
business foundations maintained. Improved customer service rating
to 'Excellent' on Trustpilot, with a Trustpilot score of 4.3 and
recognition for the second consecutive year in 'The Times' 100 Best
Places to Work' list.
Outlook
· On
track to deliver EBITDA and EBIT margins and therefore
profitability for FY24 in-line with current market expectations,
against a backdrop of lower commodity pricing and the impact of the
mild temperatures in H1 24.
·
Strong growth in meter points supplied by
Yü Energy, and
meters installed by Yü Smart, is set to continue, leveraging our Digital by Default capability and
building revenue and margin opportunity for FY25 and
beyond.
· Significant net cash balance expected at end of 2024, after
£33.2m annual ROC liability due in August 2024.
· Share
premium cancellation, increased profitability and continued strong
cash generation underpinning progressive dividend policy to provide
increased distributions to shareholders.
Bobby Kalar, Chief Executive Officer, said:
"I'm proud to report a continued set of strong results; with
revenue, meter points supplied energy, and meters installed
increasing by c.60%, 82% and 125% respectively on the same period
in 2023.
We
continue to focus on delivery of our strategy, increasing market
share through our unique Digital by Default offering and supported
by our new agreement with Shell, and to deliver sustainable margins
as we scale.
Cash generation is very strong and provides a good basis to
support our progressive dividend policy and to invest in strategic
initiatives.
I
remain excited by the future and am fully committed to delivering
shareholder value. I would like to thank my fantastic team for
continuing to deliver our growth trajectory and enabling the Group
to benefit from its position as a key challenger brand in a £50
billion market."
Notice of results
The Group will issue interim results
on Tuesday 24th September 2024.
For
further information, please contact:
Yü
Group PLC
Bobby Kalar
Paul Rawson
|
+44 (0) 115 975 8258
|
Panmure Liberum
Edward Mansfield
Satbir Kler
Anake Singh
|
+44 (0) 20 3100 2000
|
Teneo
Giles Kernick
Tom Davies
|
+44 (0) 20 7353
4200
|
Notes to Editors
Information on the Group
Yü Group PLC is a leading supplier
of gas and electricity focused on servicing the corporate sector
throughout the UK. We drive innovation through a combination of
user-friendly digital solutions and personalised, high quality
customer service. The Group plays a key role supporting businesses
in their transition to lower carbon technologies with a commitment
to providing sustainable energy solutions.
Yü Group has a clear strategy to
deliver sustainable profitable growth (in a £50bn+ addressable
market) and value for all of our stakeholders, built on strong
foundations and with a robust hedging policy. The Group has
achieved a compound annual growth rate of over 60% over the last
four years and has consistently improved margin and profitability
performance. In 2023 the Group launched Yü Smart and Yü Charge to
support growth through new opportunities in smart metering
installation.