Trading Update

RNS Number : 1871Z

Yu Group PLC

13 September 2022

 

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

13 September 2022

Yü Group PLC

("Yü Group" or the "Group")

Trading Update

Strong financial performance ahead of expectations

Yü Group PLC, the independent challenger supplier of gas, electricity and water to the UK SME and corporate business sector, today provides an update on trading.

Adjusted EBITDA, operational cashflow and net profitability has significantly exceeded management expectations, and the Board expects the strong performance to continue for the remainder of the financial year. As such the Board expects to deliver adjusted EBITDA in excess of £4.7m. Strong cash generation has continued with cash balances ahead of management expectations even after the payment of the annual ROC obligations in August. These results continue the rapid progression of the Group's financial indicators since its restructuring in 2019.

The Group's strong performance has been driven by its robust commodity hedging position, margin enhancement through improved customer value propositions and the positive impact of the Digital by Default strategy.

The Board continue to closely monitor the ability for customers to meet increased prices; especially as we enter a period where customers traditionally renew contracts and could see a significant price increase due to the exceptionally high global commodity market prices. The Group will continue to assist its customers and has begun engaging with BEIS to implement the Government's business support package.

Further information will be provided as part of the Group's scheduled announcement of interim results for the six months ended 30 June 2022 on Tuesday 27 September 2022.

Yü Group PLC Bobby Kalar Paul Rawson	[phone]
Liberum - Nominated Adviser and Broker  Edward Mansfield William Hall Cara Murphy	[phone]
Tulchan Group Giles Kernick Olivia Peters	[phone]

Notes to Editors

Information on the Group

Yü Group PLC, trading as Yü Energy, 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 and value for all of our stakeholders built on strong foundations and with a robust hedging policy. In 2022 the Group launched Yü Smart to support growth through new opportunities in smart metering and EV charge installation. With a significant opportunity in a £50bn addressable market Yü Group continues to deliver on the medium term goal of £500m of revenues with an adjusted EBITDA margin in excess of 4%.

 

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