REG - Yu Group PLC - Yü Group appointed as SOLR for Ampower’s customers

YuAnnouncement

08/11/2021 07:05

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RNS Number : 5747R  Yu Group PLC  08 November 2021

Yü Group PLC

 

("Yü Group" or the "Group")

 

Yü Group appointed as Supplier of Last Resort for Ampower's customers by
Ofgem

 

·    Additional customer book will add scale and is immediately earnings
enhancing

·    Customers already seamlessly integrated to Yü Group platform

·    Testament to strength of Yü Group and the robust systems and
processes in place

 

Yü Group PLC (AIM; YU.), the independent supplier of gas, electricity and
water to the UK corporate sector, has been appointed by Ofgem as Supplier of
Last Resort (SOLR) for Ampoweruk Ltd ("Ampower") and agreed to take on their
electricity and gas customer book from Sunday 7 November.

 

Ampower supplied 8,158 predominantly electricity business sites, increasing
the Group's meter portfolio by 38%. Group revenues are forecasted to
immediately increase by over £7.5 million per month. Earnings will be
enhanced immediately.

 

Under Ofgem's SOLR process, business customers transfer to a new supplier on a
flexible, "deemed", basis with a variable tariff reflective of current market
conditions. The Group is confident in its ability to retain a significant
proportion of the Ampower business customer book, leading to substantial
increase in forward contracted revenue.

 

Yü Group has already integrated the new customers on to the Group's scalable
platform; and certain industry processes will continue in the coming days to
complete the transfer. The Group is in the process of contacting the customers
impacted and will ensure they continue to receive an uninterrupted supply
after Ampower ceased trading on 6 November 2021.

 

In line with the SOLR process, certain costs incurred by Yü Group will be
recovered through the established industry levy.

 

Whilst Yü Group's focus will remain on serving the UK corporate sector, the
Group has the necessary capability and experience to serve Ampower's very
small number of domestic customers.

 

The Group has already taken steps to hedge the increased customer demand
forecasted in accordance with its robust trading risk mandate.

 

Underlying trading remains strong as reported at the half year results with
the Group continuing to drive profitable growth.

 

Bobby Kalar, Group Chief Executive Officer, Commented:

 

"I'm very pleased to have been awarded the Ampower customer book. In
recognition of our strong systems and experienced team these customers have
already been migrated onto our scalable operating platform seamlessly over the
weekend with negligible impact on resource or capacity. Our experience and
track record means we are confident the customer transition will be seamless,
quick and well communicated.

 

Our robust hedging strategy and strength of balance sheet are underpinned by a
proven business model and a solid and scalable platform. This gives the Board
confidence that we are well positioned to deliver a good blended mix of both
organic and inorganic growth and we are proud to be in a strong position to
allow us to play a part in supporting the industry.

 

We remain well disciplined, selective and focussed on achieving good
profitable growth. I would like to thank my team for their phenomenal
performance and unwavering support."

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.  Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

For further information, please contact:

 

 Yü Group PLC                    +44 (0) 115 975 8258

 Bobby Kalar

 Paul Rawson

 SP Angel Corporate Finance LLP  +44 (0) 20 3470 0470

 Jeff Keating

 Bruce Fraser

 Caroline Rowe

 Tulchan Group                   +44 (0) 20 7353 4200

 Giles Kernick

 Olivia Peters

 Oliver Norgate

 

 

 

 

 

 

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