Yu Share Discussion Threads

[sparky333] 08/11/2021 16:24

Smartest business energy got MA energy and Pozitive energy CNG.Pozitive not well like on trustpilot so a few could come YUs way

[sparky333] 08/11/2021 12:47

Larger buys coming through now, nice 9.9k just popped up

[sparky333] 08/11/2021 10:34

Do not be surprised to see another well respected II come onboard soon

[kaka47] 08/11/2021 10:26

I'm fed up with constant placing rumours put out by likes of TW and co

[kaka47] 08/11/2021 10:24

True agree but Imo last 12 months or so the only thing that's really held and holding the share price down is placing rumours. If YU is not planning to do a placing then BK really needs to come out strongly and put out a clear statement and put these placing rumours to bed.

[sparky333] 08/11/2021 10:05

Is TW sticking the knives in yet again ? been doing it for 4 years and I am still awaiting this fabled placing he started spouting in 2018 The guy has no clue and totally blinkered in his view , takes a big man to admit he was wrong, TW isn't a big man as he is an arrogant narcissist.

[sparky333] 08/11/2021 10:02

Hi kaka47It's an odd one for sure but I am expecting YU to become a hot stock of 2022/23 Next year YU will turnover in excess of 200m and with the digital drive kicking in Q1 22 net margins will increase significantly Profit for 2022 will be insane if this growth continues and why shouldn't it YU are only scratching the surface.BK was asked by myself in questions on AJ bell in March , where do you see YU in 5 years time. He didn't even hesitate and stated 500m + turnover Obviously a vision is playing out and the recent industry reset will accelerate this.When the PE ration is under 5 and the company is growing at 40% per annum with the industry average of 30 it cannot be ignored.

[kaka47] 08/11/2021 09:53

All this good news after good news and share price hasn't reacted. share price should be well over 500p TW is not a nice guy he should be honest and give credit where it's due

[sparky333] 08/11/2021 09:16

I agree powerslave very sweet deal Yet again the market is not fully digesting this, small mark up but personally we should be at least double this Sp Turnover is going to rocket next year and yet we still have CNG and MA energy to comeYU are awesome at hedging as can be clearly seen to date, I am 100% confident they will nail this the hedging guy is very experienced

[powerslave1] 08/11/2021 09:07

Excellent news. They are decent size customers too at £10k average, no micro business here. A much better portfolio that CNG, didn’t realise AM had so much volume.

I agree with the assessment that they will retain the majority of the new customers. A SOLR supplier has the advantage of charging a deemed rate (approx double normal market rate) from the date of acquisition. They can backdate a contract start, eliminating the deemed cost, any alternative supplier can only start once registration is complete.

Also, in the current market not too many competitors looking to win this business.

Hedging will be interesting,with the market up sharply this morning, with the additional gas that Putin promised not arriving yet. The sensible strategy would be to hedge only a couple of weeks against the deemed portfolio, and then back to back each customer as they move from deemed to contract. Deemed prices are so high that a further spike in wholesale costs wouldn’t be too problematic

[sparky333] 08/11/2021 09:06

Early buys coming through now and looking like sells , naughty MMs

[sparky333] 08/11/2021 08:09

IIs are going to have to wake up to YU soonTurnover next year will be way over 200m now , profitable this year and here on in with profits rising very fast as turnover increases

[cocker] 08/11/2021 07:18

I think the technical term for that one is "A FREE MEAL".

[sparky333] 08/11/2021 07:04

Fantastic news

[sparky333] 05/11/2021 10:13

I suppose a lot has to do with risk appetite, YU are very risk averse following 2018 and now have a very strong and experienced management team and the results are clearly bearing fruit.As BK keep saying along with this management board now is the time for explosive growth phase. But there are caveats on this 1. It must fit YUs model 2. Must not be a loss leader 3. Sector balance and diversity with clients who pass YUs credit checks The problem with SOLR is you get what you get but then I suppose you would with an acquisition at least SOLR not capital out lay Interesting things happening either way as it shows the intent of YU but the problem is we will never know if YU bid. An opportunity like this will not come around again other tha through acquisition and alas most of the other SME focussed players are far larger than YU and I can only think of Smartest Business who are similar in size What ever happens I have faith in YU MB to make the right decision but we are at a juncture in the future of the energy supply space as the landscape is changing forever and YU must ensure they are front and centre because the opportunities for the next 3 to 5 years are Huge

[powerslave1] 05/11/2021 09:56

Hey Sparky

When I mentioned kWh used above, I was referring to more kWh used, due to organic customer acquisition. This should be viewed as good growth in turnover, assuming acquisition is at positive margin. As you say it will contribute to fixed overheads.
Growth due to increase in the wholesale cost of energy should be viewed as bad growth, as it adds working capital cost, and reduces percent margin.

You are right, the third type of growth is where there is a forecast error. This is a risk to any retailer and can be positive or negative, through time depending upon the delta between fixed selling price and market value of the under/over use. Many larger contracts have a take or pay clause that allows the supplier to reopen pricing if consumption falls outside +- 20%

[sparky333] 05/11/2021 09:13

Well ofgem normally take 3 days to allocate a supplier so we will find out today possible for Ampower, MA energy and other who's name escapes me and Monday for CNG That's is a lot of business clients who need new homes. I would hope in this case the SOLR isn't the normal big 6 and SME specialists are higher up the PECKING order.We shall see shortly

[sparky333] 05/11/2021 09:02

Hmm very useful never though about it that way I have been more focussed on the following 1. Margins YU spend xxx on overheads and regardless of number of clients this number is fixed so every £1 of extra revenue above that point is vastly improved net margin. We have now passed that stage and now need to ramp up revenue organically and/ or via Aquisitions or SOLR2. Revenue as this links into number 1 like a hand to glove So does increase in kW used or KW cost matter ? As YU hedge back to back ? The only time the used becomes an issue is if the client under or over uses ? So if clients currently under use YU is laughing compared to the COVID hit in 2020.Need to think about this some more but good points

[powerslave1] 05/11/2021 08:52

Couple of things sparky.

There are 2 kinds of turnover growth for energy suppliers;

1/ increase in kWh supplied
2/ increase in price per kWh

Increasing the volume supplied (assuming margin is positive), drives profitability and/or contribution margin to fixed overheads.

Increasing the price per unit, due to increased costs does not. In the 25 years I have been involved in B2B energy procurement I have never seen a situation where % margins have been maintained in a rising cost market. The reality is that if costs of supply double the £ margin remains stable and the % margin halves. This is because margin is normally a £/MWh uplift on cost.

Therefore, high prices mean more working capital is required in order to generate the same profit number.

I think largely, YU’s growth is in the second category. There is some organic growth in kWh supplied, but not a great amount.

For this reason I think we need to see some SOLR activity, and hopefully prices coming off.

The market will undoubtedly be less competitive next year, meaning that YU will hopefully be able to increase margins a little and/or organic growth rates

[cocker] 03/11/2021 18:48

That they are happy to cherry pick the staff from those that have failed. Well who can blame them, better to have those on board who don't need wet nursing from the off and who can bring with them the experience that YU need.

[sparky333] 03/11/2021 17:03

Now we wait that's nearly 45,000 businesses over the 24 hrs up for grabs