Yu Group PLC Year End Trading Update and Notice of Results

RNS Number : 0315U

Yu Group PLC

21 January 2025

 

21 January 2025

Yü Group PLC 

("Yü Group" or the "Group") 

 

Year End Trading Update and Notice of Results

Strong performance with continued growth in energy supply and smart metering

 

 

Yü Group PLC (AIM: YU.), the independent supplier of gas, electricity, meter asset owner and installer of smart meters to the UK corporate sector, is pleased to provide an update on trading for the financial year ended 31 December 2024 ("FY24"). 

 

Financial & Operational Highlights 

 

Strong financial performance

·    FY24 revenues grew c.40% and are expected to be approaching £650m (FY23: £460m).

·    Delivery of FY24 EBITDA margin forecasted above expectations driven by strong contract profitability in H2 24, robust hedging policy and tightly managed bad debt.

·    Net cash position of £80.2m (FY23: £32.1m).

 

Strategy delivering results

·    Continued growth in Yü Energy:

o  Meter points supplied increased 65% in year, to 88.0k (2023: 53.4k).

o  Volume of energy supplied (EQVS¹) increased organically by c.78%.

o  Average monthly new bookings of £42.6m (2023: £55.5m), reflecting a softer commodity pricing environment.

o  Trading facility with Shell continues to provide efficient, and scalable, access to commodity markets.

·    Further progress and investment in Yü Smart:

o  Continued scaling up of meter installs growing 169% in the year to 22.9k (FY23: 8.5k, H1 24: 9.0k).

o  National coverage of engineers providing efficiency benefits.

 

Outlook

 

·      Yü Energy organic growth reflecting more normalised market prices:

o  Revenue contracted for the next financial year increased 9% to £566m (FY23: £520m) providing confidence in delivering FY25 expectations.

·      Yü Smart delivering a growing annuity income stream:

o  £1.3m ILARR² secured at 31 December 2024 (2023: £0.2m) from 27.2k meters owned.

·      Continued strong cash generation provides confidence in our progressive dividend policy, with target dividend cover of c.3x over the short to medium-term.

 

 

Bobby Kalar, CEO of Yü Group commented:

 

"The Group has delivered a strong 2024 and I'm delighted, once again, to update shareholders on our progress.

 

Yü Energy, our supply business, has seen a c.40% increase in revenue despite lower commodity pricing, and we enter 2025 with 88,000 meter points, up 65%.

 

Yü Smart continues to deliver incredible advantages to our customers and the Group, and we now have national coverage of skilled engineers. We have financed 27,200 smart meter assets which provide a growing index-linked annuity income stream alongside other significant benefits to our customers and our own operation.

 

I look back with pride on our journey and the hard yards invested, which have seen a quadrupling of revenue in the last four years. While our increased scale suggests a lower organic growth rate in the future, our Group is well placed to continue to take market share with a significant opportunity remaining.

 

Our business is in good shape across Yü Energy and Yü Smart to continue to deliver. We have a fantastic and dedicated team in place, and I'd like to thank them for all the work done in delivering yet-another record year."

 

 

Notice of Results

 

The Group expects to publish its annual report for FY24 on Tuesday 18 March 2025.

 

 

 

Definition:

¹ EQVS - Equivalent volume of energy supplied, where gas is converted to a proxy value of electricity.

² ILARR - Index-linked annualised recurring revenue.

 

 

Yü Group PLC Bobby Kalar Paul Rawson	[phone]
Panmure Liberum Bidhi Bhoma Edward Mansfield Satbir Kler Gaya Bhatt	[phone]
Teneo Giles Kernick	[phone]

 

 

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 significantly improved margin and profitability performance. In 2023 the Group launched Yü Smart to support growth through new opportunities in smart metering installation.

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END

 

 

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