First Day of Dealings

RNS Number : 3353S

Yu Group PLC

17 March 2016

 

17 March 2016

Yü Group PLC

("Yü Energy" or "the Group")

First Day of Dealings on AIM

Dealings commence at 8am, on 17 March 2016

Yü Energy, an independent supplier of gas and electricity focused on servicing small and medium enterprises ("SMEs") throughout the UK, announces that admission and dealings in its Ordinary Shares will commence today at 08:00am  on the AIM market of the London Stock Exchange under the ticker symbol ("YU.") with ISIN GB00BYQDPD80 . The Group's Admission Document is available to view at its website www.yugroupplc.com.  Shore Capital is acting as Nominated Adviser and sole Broker.

Placing Statistics

Placing Price per Placing Share	185p
Number of Ordinary Shares in issue immediately prior to the Placing	10,000,000
Number of Placing Shares being offered pursuant to the Placing	5,405,406
- New Placing Shares	4,054,055
- Sale Shares	1,351,351
Number of Ordinary Shares in issue at Admission	14,054,055
Gross proceeds of the Placing receivable by the Company	£7,500,000
Market capitalisation of the Company at the Placing Price following Admission	£26,000,000
Placing Shares expressed as a percentage of the Enlarged Share Capital	38.46%

The net proceeds of the Placing to be received by the Group will be used to invest in the Group's development and expansion, including provision of collateral for letters of credit with trading counterparties in the wholesale markets to satisfy the Group's hedging policy as the Group continues to grow its customer base.

Bobby Kalar, Chief Executive Officer of Yü Energy commented:

"We have been delighted with the level of support from institutional investors and look to welcome them as shareholders. The Placing was significantly over-subscribed which speaks volumes about the quality of business we have built, especially given current market conditions.

"The funds being raised will enable us to accelerate our growth and provide an increasing number of SMEs the energy they need at the right price and with the level of service that they deserve.

"I would like to thank all of our employees whose hard work has enabled us to reach this point and the success of this IPO does them all great credit."

For further information, please contact:

Yü Group PLC Bobby Kalar Nick Parker	[phone]
Shore Capital Bidhi Bhoma Edward Mansfield Anita Ghanekar	[phone]
Alma PR Josh Royston Hilary Buchanan John Coles	[phone] [phone] [phone]

Unless the context otherwise requires, defined terms shall have the meaning ascribed to them in the Admission Document, available on the Company's website.

Notes to Editors

Information on the Group

Yü Energy is an independent supplier of gas and electricity focused on servicing SME businesses throughout the UK. It has no involvement in the domestic retail market. The Group was founded by Bobby Kalar and has obtained the necessary Ofgem licences to supply gas and electricity in the UK market. In addition to the supply of gas and electricity, the Group offers certain ancillary services.

Key strengths

·     A fast growing highly scalable business, currently growing the number of meter points supplied by approximately 10 per cent. per month.

·     Clear visibility of revenues; as at 31 December 2015, Yü Energy had £8.4 million of contracted annual revenues for the financial year ending 31 December 2016.

·     A historical record of high cash conversion.

·     Benefits from a number of barriers to entry including regulatory, industry and Controlled Market Entry ("CME").

Board of Directors

Ralph Cohen (aged 67), Independent Non-executive Chairman 

Ralph was for 10 years, until April 2015 the CFO and is now a non-executive director of Judges Scientific plc. He held various senior executive positions within the energy and water divisions of the Paris based Vivendi group between 1981 and 2001. This included ten years as managing director of Associated Electricity Supplies Limited and ten years as Finance Director and subsequently Managing Director of Associated Heat Services Plc, a listed subsidiary for part of this period. In total he has spent 25 years working in the energy sector in roles covering energy services, importation of electricity and electricity supply. He previously spent nine years at Ernst & Young. Latterly he was the founding partner of MC Consultancy Services where he was closely associated with major projects, including electricity supply opportunities in Europe and M&A projects.

Bobby Kalar (aged 40), Chief Executive Officer 

Bobby has a degree in Electrical and Electronics Engineering having started his career working as an electronics engineer at Marconi PLC. In 2000, having moved to London to work for COLT Telecommunications, he headed a team of engineers involved with the bid and installation of the congestion charge scheme in London on behalf of the Mayor of London's Transport for London initiative. Following this major project Bobby invested in the care home sector eventually owning and running a group of four care homes. In 2013 he sold the care homes so that he could focus on the market opportunity presented by the deregulation of the energy sector. He is the sole founder of the Group.

Nick Parker (aged 55), Chief Financial Officer

Nick has over 25 years of experience in financial positions and, in particular, London Stock Exchange listed companies. Before joining the Group Nick was the CFO of WANdisco PLC prior to and immediately following its admission to AIM, CFO of Volex PLC and, for over eight years, CFO of Dyson Group PLC. He also served as the Chief Executive of Sheffield Wednesday Football Club and Vice President of Corporate Development at Carclo PLC, where he oversaw numerous acquisitions and disposals in both the UK and overseas. Nick holds a BA in Accountancy and Economics and is a member of the ICAEW.

Garry Pickering (aged 41), Chief Operating Officer 

Garry has a degree in Economics from Nottingham Trent University. He commenced work with East Midlands Electricity PLC in February 1997, which was ultimately acquired by E.ON. He has close to 20 years' experience in electricity and gas markets, the vast majority spent managing the financial risks associated with a supply and generation portfolio. He has worked on projects including the deregulation of the UK Electricity supply businesses and the implementation of the New Electricity Trading Arrangements that underpin the operation of the current UK electricity industry. His final role at E.ON, based in Dusseldorf, Germany, was as Head of UK Power Portfolio Optimisation. He left E.ON and returned to the UK in January 2015 in order to join the Group and oversee its operational requirements including energy purchasing and risk management.

John Glasgow (aged 53), Independent Non-executive Director 

John has over 35 years' experience in engineering, operations, trading and IT across the energy industry. Senior roles have included Head of Powergen Technical Audit and Head of Powergen Energy Management Centre, covering energy trading and power plant portfolio optimisation, and General Manager of Powergen Energy Solutions. Latterly he was in Board roles including Head of Strategy at the establishment of the new E.ON Energy Services business, E.ON Director of New Connections & Metering and Director of Operations and Asset Management at E.ON Central Networks. During this time John was also a Board member of the Energy Networks Association and a member of the DECC Energy Emergencies Executive Committee (E3C). Upon leaving E.ON John became Managing Director of Sterling Power Utilities Ltd until Autumn 2013. John is also a board member of the St Modwens Environmental Trust.

DISCLAIMERS

The distribution of this announcement and other information in connection with Admission may be restricted by law in certain jurisdictions and persons into whose possession this announcement or any document or other information referred to herein should inform themselves about, and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. 

In particular, this announcement is not for distribution directly or indirectly, in or into the Republic of Ireland, Canada, Australia, Japan, the Republic of South Africa or the United States of America or to any national resident or citizen of the Republic of Ireland, Canada, Australia, Japan, the Republic of South Africa or the United States of America. The distribution of this announcement in other jurisdictions including (without limitation) the Republic of Ireland, Canada, Australia, Japan, the Republic of South Africa, or the United States of America (or to any resident thereof) may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves of and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

The Ordinary Shares have not been nor will be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or under the securities legislation of any state of the United States of America, nor under the relevant securities laws of the Republic of Ireland, Canada, Australia, Japan, or the Republic of South Africa, and may not be offered or sold in the United States of America, Canada, Australia, the Republic of Ireland, the Republic of South Africa or Japan or to, or for the account or benefit of, US persons (as such term is defined in Regulation S) under the Securities Act, or to any national, resident or citizen of Canada, Australia, the Republic of Ireland, the Republic of South Africa or Japan.  This announcement (or any part of it) is not to be reproduced, distributed, passed on, or the contents otherwise divulged, directly or indirectly, in or the Republic of Ireland , Canada, Australia, Japan, New Zealand, South Africa or the United States of America, or in any country, territory or possession where to do so may contravene local securities laws or regulations.

London Stock Exchange plc ("London Stock Exchange") has not examined or approved the contents of this announcement. This announcement is not an admission document or a prospectus. It does not constitute or form part of, and should not be construed as, an offer to sell or issue, or a solicitation of any offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information in the admission document (the "Admission Document") published on 11 March 2016 by Yü Group PLC ("Yü Energy" or the "Company" and, together with its subsidiaries, the "Group") in connection with the application for admission of the Ordinary Shares in the capital of the Company ("Ordinary Shares") to trading on AIM, a market operated by the London Stock Exchange. Copies of the Admission Document will, following publication, be available during normal business hours on any day (except Saturdays, Sundays and public holidays) from the registered office of the Company and on the Company's website at www.yugroupplc.com.

This announcement is directed only at persons having professional experience in matters relating to investments who fall within the definition of investment professionals in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or who are high net worth entities falling within Article 49 of the Order, and to other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). The contents of this announcement must not be acted on or relied upon by persons who are not relevant persons.

This announcement does not constitute or form part of, and should not be construed as, an offer for sale or subscription or solicitation of or invitation to make any offer to buy or subscribe for any Ordinary Shares, and neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever. No reliance may or should be placed by any person for any purposes whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness. The information in this announcement is subject to change.

Shore Capital and Corporate Limited and Shore Capital Stockbrokers Limited make no representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from this announcement) or of any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents, or otherwise arising in connection herewith.

The Company, Shore Capital and Corporate Limited and Shore Capital Stockbrokers Limited expressly disclaim any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement (other than as required by the AIM Rules) whether as a result of new information, future developments or otherwise.

Shore Capital and Corporate Limited and Shore Capital Stockbrokers Limited, which are authorised and regulated in the United Kingdom by the Financial Conduct Authority, are acting as the Company's nominated adviser and broker respectively and for no-one else in connection with this announcement, the proposed placing and Admission and will not be responsible to any person other than the Company.

 FORWARD-LOOKING STATEMENTS

This announcement includes forward-looking statements relating to the Group's future prospects, developments and strategies and are based on the Directors' current expectations projections, and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements are sometimes identified by the use of terms and phrases such as "believe", "expects", "envisage", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned", "targets" or "anticipates" or the negative thereof, variations or comparable expressions, including reference to assumptions.  These forward-looking statements include all matters that are not historical facts.  They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Directors or the Group relating to the Group's future prospects, developments and strategies and are based on assumptions and estimates and involve risks, uncertainties and other factors that may cause the actual results, financial condition, performance or achievements of the Group or industry results to be materially different from any future results, performance or achievement expressed or implied by such forward looking statements.  No assurance can be given that such future results will be achieved.  New factors may emerge from time to time that could cause the Group's business not to develop as it expects and it is not possible for the Group to predict all such factors.  Each forward-looking statement contained in this announcement speaks only as of the date of the particular statement.  The Company, the Directors, Shore Capital and Corporate Limited and Shore Capital Stockbrokers Limited each expressly disclaim any obligation to update these forward-looking statements contained in this announcement to reflect any change in their expectations or any change in future events or developments on which such statements are based unless required to do so by applicable law or regulation, the AIM Rules for Companies or the AIM Rules for Nominated Advisers.

 

END

 

 

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