Trading Update and Notice of Results

RNS Number : 1241D

Yu Group PLC

29 January 2018

 

29 January 2018

Yü Group PLC
("Yü Group" or the "Group")

Trading Update and Notice of Results

Yü Group PLC (AIM: YU.), the independent supplier of gas and electricity to the UK corporate and SME sectors, is pleased to provide a trading update in respect of the year ended 31 December 2017.

It is anticipated that Group revenues for the year will be significantly ahead of current market forecasts. Given the continued rapid growth opportunities available to the business, the Group has elected to make additional investment in headcount and fixed costs.  However, the Board is confident that the Group will report operating profits ahead of current market expectations.

The Group had net cash at the period end of £5.0 million (FY 2016: £5.2 million) excluding collateral deposits with energy market counterparties of £600,000.  These funds continue to be utilised to support the Group's hedging policy. Cash generation in the second half of the year was, as expected, lower than the first half due to the payment of certain industry levies during this period. The Group's balance sheet remains strong and the business continues to be cash positive going forward.

The Group continued its strong sales momentum in H2 2017 with contracted revenue for FY 2018 rising from £23.2 million at the time of the announcement of the interim results in September 2017, to more than £50 million at the year end (FY 2017: £20.0 million).

It has become increasingly apparent that the opportunity for the Group mainly rests within the medium sized corporate sector, while recognising that the small business and larger corporate sectors provide a firm foundation for the Group's activities. Our success in this middle market leads us once again to increase our expectations for growth in 2018 and thereafter. As such we anticipate that revenues for 2018 and 2019 will be substantially ahead of our previous expectations.

Bobby Kalar, Chief Executive of Yü Group, said: "We are once again delighted with the Group's continued progress. The business is developing well and our focus on our long term sales growth is paying dividends. We are now in the process of opening a new office in central Leicester in order to accommodate the growing number of people within the business who will deliver and service this growth potential. Investment in our people, culture and procedures is important to accelerate our rapid growth while maintaining customer satisfaction. I look forward to the future with confidence."

Notice of Preliminary results

The Group intends to announce its results for the year ended 31 December 2017 on Tuesday 6 March 2018.

For further information, please contact:

Yü Group PLC Bobby Kalar Nick Parker	[phone]
Shore Capital Edward Mansfield Anita Ghanekar	[phone]
Alma PR John Coles Hilary Buchanan Robyn Fisher	[phone]

Notes to Editors

Information on the Group

Yü Energy is an independent supplier of gas and electricity focused on servicing corporate and SME businesses throughout the UK. It has no involvement in the domestic retail market. The Group was listed on the AIM market of the London Stock Exchange following a successful IPO in March 2016.

 

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