REG - Yu Group PLC - Year End Trading Update and Notice of Results

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21/01/2025 07:00

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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 (EQVS(1)) 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 ILARR(2) 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       +44 (0) 115 975 8258

 Bobby Kalar

 Paul Rawson

 Panmure Liberum    +44 (0) 20 3100 2000

 Bidhi Bhoma

 Edward Mansfield

 Satbir Kler

 Gaya Bhatt

 Teneo               +44 (0) 20 7353 4200

 Giles Kernick

 

 

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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