REG - Yu Group PLC - Results for the Six Months to 30 June 2025
Tue 07:00
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RNS Number : 3265A Yu Group PLC 23 September 2025
23 September 2025
Yü Group PLC
("Yü Group", the "Company" or the "Group")
Results for the Six Months to 30 June 2025
CONTINUED STRONG PERFORMANCE DRIVING PROFITABLE GROWTH INLINE WITH MARKET
EXPECTATIONS
Yü Group (AIM: YU.), the independent supplier of gas and electricity, meter
asset owner, and installer of smart meters to the UK SME sector, is pleased to
announce its unaudited half-year results for the six months to 30 June 2025.
Financial & Operational Highlights
£m unless stated Six months to 30 June Twelve months to 31 December
H1 25 H1 24 Change FY 24
Financial
Revenue 341.0 312.7 +9% 645.5
Adjusted EBITDA(1) 22.9 22.1 +4% 48.8
Profit before tax 22.6 19.8 +14% 44.5
Net cash inflow 33.0 56.9 (42%) 52.7
Net cash(2) 109.9 86.8 +27% 80.2
Earnings per share (pence) 96p 94p +2% 210p
(adjusted, fully diluted)
Dividend per share (pence) 22p 19p +16% 60p
Operational
Average monthly bookings 41.4 46.9 (12%) 42.6
Meter points supplied (#'000) 106.9 72.3 +48% 88.0
Contracted revenue:
· for the next financial year 481 417 +15% 566
· in aggregate 1,168 945 +24% 1,034
TrustPilot Score (#) 3.8 4.3 (12%) 4.2
Smart meter installations (#'000) 9.4 9.0 +4% 22.9
Smart meter assets ILARR(3) 1.8 0.6 +200% 1.3
Financial performance
· Revenue increased 9% to £341m (H1 24: £312.7m), with strong
organic meter growth partially offset by the expected normalisation of the
commodity market.
· Adjusted EBITDA increased 4% to £22.9m (H1 24: £22.1m) with
EBITDA margin decreasing to 6.7% (H1 24: 7.1%).
· Net cash of £109.9m (H1 24: £86.8m) with strong operational
cash inflows combined with tight control of bad debt offset by £6.9m in
dividend payments and £1.9m of capex investment to grow the Group's metering
asset base.
· H1 25 adjusted earnings per share of 96p (H1 24: 94p), an
increase of 2% year on year.
· The Board has declared an interim dividend of 22p per ordinary
share (H1 24: 19p), an increase of 16%; covered 4.7 times by adjusted
earnings.
Operational highlights
· Recognised for the third consecutive year as a 'Top 100 Best
Places to Work' by the Sunday Times.
· Very strong meter point growth for the fifth consecutive period
in line with the Group's strategy to scale sustainably using its Digital by
Default platform. The Group delivered a c48% increase in meter points versus
the prior year, to close at 107,000 (H1 24: 72,300; FY 24: 88,000). The Group
continues to grow volumetric consumption and leverages off the successful
implementation of the commodity hedging agreement with Shell Energy, enabling
continued scaling.
· Yü Smart delivering value and volume as scale becomes material,
with meters owned in the period up 179% on the same period in 2024 (H1 25:
36,600; H1 24: 13,100), providing 200% increase in forward annualised, indexed
annuity income (H1 25: £1.8m; H1 24: £0.6m).
· Average monthly bookings at £41.4m, down 12% on H1 24 (H1 24:
£46.9m, FY 24: £42.6m) reflecting the wholesale commodity market
normalising, as expected. Strong trading partnership with Shell Energy and a
strategic alignment of scale opportunities continues to bear fruit.
Outlook
· The Group is on target to deliver EBITDA and adjusted EPS for
FY25 in-line with current market expectations against a backdrop of
normalising energy wholesale prices and a more competitive pricing
environment.
· We continue to see strong growth in both meter points supplied by
Yü Energy and meters owned by Yü Smart, as the Group has successfully
navigated the challenges of starting up a new division within an established
business. Meters installed by Yü Smart are delivering positive outcomes in
customer usage habits and cost controls.
· Our strong cash generation and disciplined approach to our
balance sheet provides the Group with confidence and credibility when looking
for opportunistic inorganic growth and value-added opportunities. This will
underpin our progressive dividend policy and enable increased distributions to
shareholders.
Bobby Kalar, Chief Executive Officer, said:
The Group has delivered a resilient first half with performance in line with
management expectations, against the backdrop of a normalising commodity
market. Meter point growth has remained strong, supporting our operational
momentum and strengthening our position in the market.
Strong cash generation during the period has enabled further material dividend
growth whilst retaining ample earnings coverage, reinforcing our confidence in
delivering against our targets. Our forward contract book continues to expand
despite recent declines in wholesale energy prices, providing a solid platform
for the remainder of the year and beyond.
We remain focused on disciplined execution of our strategy, maintaining
financial strength while delivering long-term shareholder value.
I would like to thank my team for their continued commitment and contribution,
which have been central to the progress achieved in the first half.
Analyst presentation
A presentation for analysts will be held at 9.00am today, 23 September 2025,
at the offices of Panmure Liberum, Ropemaker Place, Level 12, 25 Ropemaker
Street, London EC2Y 9LY.
(1) Adjusted EBITDA is reconciled to operating profit in the finance review
and note 2 to the interim financial statements.
(2) Net cash refers to cash and cash equivalents less the debt in the Group,
excluding any lease liabilities.
(3) ILARR represented Index-linked annualised recurring revenue from
investment in Smart Meters.
For further information, please contact:
Yü Group PLC +44 (0) 115 975 8258
Bobby Kalar
Andy Simpson
Panmure Liberum +44 (0) 20 3100 2000
Bidhi Bhoma
Edward Mansfield
Satbir Kler
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.
Chief Executive Officer's Statement
Strong and pleasing performance
I'm very pleased to again report these half year results which show the
strong, consistent development of the Group's performance. Our strategic
priorities continue to be delivered, executed through our strong team and
leading Digital by Default capability.
Driving sustainable growth and profitability
Further demonstrating the continued and consistent benefits of our strategy,
revenue is up 9% to £341.0m, whilst profit before tax increased 14% to
£22.6m. Our net cash increased £23.1m from June 2024, standing at £109.9m,
and our dividend has increased 16% to 22p per share.
In our energy supply business, our aggregate forward contract book of £1.2Bn
has increased by 24% from June 2024, despite the lower and more normalised
commodity market environment.
In our smart metering business, we have had a slower H1 25 than I'd hoped,
delivering 9,400 new installations, an increase of 4% on H1 24. We continue to
evolve our operational expertise and have invested in digital systems to
optimise and automate our engineering capability. That said, the index-linked
annualised recurring revenue from smart meters has increased 200% to £1.8m.
Ambitious plans to deliver
I am pleased our strategy is working well and that this strategy will continue
to deliver business growth and shareholder returns.
Working with my executive team and supported by our strong Board, we have
continued to invest in strengthening our management team. I'm very proud we
have again been recognised in the Times' 100 Best Places to Work, this is
testament again to the strong and positive culture we have built within the
organisation.
The organic scaling of the energy supply and smart meter business remains a
priority, though I also am keen to explore other strategic options available
to the Group to further accelerate our growth. I am developing these plans,
supported by my team, and these should add significant value over the medium
term.
Outlook
The Board are pleased to report broad inline performance and guidance across
financial metrics.
We maintain an ambitious stretch target of achieving over 6% of the B2B SME
supply market, with significantly increased ILARR from smart meter ownership.
The Group maintains its progressive dividend policy supported by growing its
EPS whilst maintaining dividend cover to +3x over the short to medium term.
Finance review
Delivering consistent positive financial metrics
The Group results reflect ongoing consistent growth in the financial metrics
despite market condition headwinds, delivering strong growth in meters
combined with reducing cost to serve, enabling increased dividend
distributions to shareholders.
In overview:
· Revenue increased 9% to £341m
· Aggregate forward contracted revenue up 24% to £1,168m
· EPS, adjusted and fully diluted, up 2% to 96p
· Profit before tax increased 14% to £22.6m
· Net cash increased 27% to £109.9m
· £1.9m investment in smart meters in FY25. ILARR(8) from smart
metering assets of £1.8m
· Interim dividend of 22p, up 16% from 19p H1 24
Financial metrics Six months to 30 June Twelve months to 31 December
£m unless stated H1 25 H1 24 Change FY 24
Revenue 341.0 312.7 +9% 645.5
Gross margin % 13.6% 13.7% (0.1%) 14.5%
Net customer contribution(1) % 10.8% 11.7% (0.9%) 12.4%
General overheads(2) % (4.1%) (4.6%) +0.5% (4.9%)
Adjusted EBITDA % 6.7% 7.1% (0.4%) 7.6%
Adjusted EBITDA 22.9 22.1 +4% 48.8
Profit before tax 22.6 19.8 +14% 44.5
Net cash inflow 33.0 56.9 (42%) 52.7
Net cash(3) 109.9 86.8 +27% 80.2
Earnings per share (adjusted, fully diluted) 96p 94p +2% 210p
Dividend per share 22p 19p +16% 60p
1 year forward contracted revenue(4) 481 417 +15% 566
Aggregate contracted revenue(5) 1,168 945 +24% 1,034
Non-contracted annualised revenue(6) 54 30 80% 39
Equiv. volume of energy supplied(7) 1.2TWh 1.0TWh +20% 2.2TWh
Smart meter assets ILARR(8) 1.8 0.6 +200% 1.3
Overdue customer receivables(9) 4 days 3 days -1 day 3 days
Substantial revenue progression
Revenue of £341.0m represents growth of 9% on H1 24.
The growth is as a result of a 48% growth in meter points supplied to 106.9k
(H1 24: 72.3k) and a 20% growth in EQVS to 1.2TWh (H1 24: 1.0TWh). The energy
market has continued to normalise through 2024 and 2025 with reducing
wholesale costs leading to reducing market prices.
The aggregate contract revenue has growth by 24% to £1,168m (H1 24: £945m)
with £481m of 2026 revenue already secured and contracted, a growth of 15%
(H1 24: £417m).
Meters installed and owned has continued to grow, with resulting ILARR of
£1.8m, up 200% (H1 24: £0.6m) and 40% since the end of 2024 (FY24: £1.3m).
Yü Group is pleased to have delivered ongoing revenue growth despite this
reducing price in the market, which reflects the strong market proposition and
service delivered.
Increased adjusted EBITDA, PBT and EPS
Group adjusted EBITDA of £22.9m is 4% up on H1 24 and is 6.7% of revenue (H1
24: 7.1%).
Gross margin of 13.6% is broadly flat to the previous year (H1 24: 13.7%)
reflecting the ongoing normalisation of the market combined with increased
industry costs and the successful introduction of longer-term customer
products.
Net customer contribution margin of 10.8% (H1 24: 11.7%) is after a cautious
2.7% bad debt charge (H1 24: 2.0%). Cash collection remains strong at 97.8%
(H1 24: 97.3%) combined with the benefit of our smart meter programme. A
cautious position has been taken upon bad debt charge to reflect the risk of
worsening economic conditions and the impact upon cash collection.
General overheads at 4.1% of revenue, down 21% from prior year (H1 24: 4.6%)
as the Company continues to focus generating economies of scale by investment
in systems and Digital by Default to reduce cost to serve, combined with tight
control of costs as the business scales.
Profit before tax for the period increased 14% to £22.6m (H1 24: £19.8m)
with strong net finance income of £2.0m (H1 24: £1.8m) offset by share based
payment charges.
Adjusted EBITDA reconciliation H1 25 H1 24 FY 24
£m
Adjusted EBITDA 22.9 22.1 48.8
Adjusted items:
Depreciation and amortisation (1.4) (1.0) (2.5)
Non-recurring operational costs - (1.4) (1.4)
Share-based payment charges (0.9) (1.7) (4.0)
Statutory operating profit 20.6 18.0 40.9
Net finance income 2.0 1.8 3.6
Profit before tax 22.6 19.8 44.5
Strong cash generation and cash position
Cashflow summary(10) H1 25 H1 24 FY 24
£m
Adjusted EBITDA(11) 22.9 22.1 48.8
Operating cashflow items:
Commodity trading cash collateral - 49.8 49.8
Early payment of industry ROC - - (9.0)
liability
ROC liability movement 33.2 24.5 13.5
Customer acquisition costs (3.8) (9.9) (12.3)
Corporation tax paid (8.3) (6.6) (11.3)
Other working capital movements (4.4) (11.6) (7.4)
Operating cash flow 39.6 68.3 72.1
Investing activities (2.4) (3.1) (9.7)
Financing activities: Debt, leases and interest 2.7 1.9 3.7
Financing activities: Dividends and buy-back (6.9) (10.2) (13.4)
Net cash movement in year 33.0 56.9 52.7
Closing cash balance 118.2 89.4 85.2
Net cash 109.9 86.8 80.2
The Group continues to benefit from a strong net cash position of £109.9m (H1
24: £86.8m) which is net of £8.3m of borrowings related to a specific £15m
facility ringfenced for smart meters. The Group has settled in August 2025 its
c£53.1m liability to Renewable Obligation Certificates ("ROCs") for the year
to 31 March 2025.
As a result of ongoing profitability, the Group has made corporate tax
payments of £8.3m on account of FY24 and FY25 liabilities.
Other movements to operating cash flow include the benefit of delayed ROCs
payments (collected from customers) and the outflow from investment in
customer acquisition costs to support sales growth.
The Board currently forecast a strong cash position building for the remainder
of FY25 and beyond. This considers continued capital investment (including in
smart metering and digital investment), and reflects a forecast for total
dividends of £10.6m paid in the full year (2024: £9.4m).
Capital and Dividend
In line with its progressive dividend policy, the Board declare an interim
dividend of 22p per share (H1 24: 19p per share), resulting in a forecasted
payment of £3.7m on the payment date of 19 December 2025. The shares will go
ex-dividend on 20 November 2025, with a record date of 21 November 2025.
Notes to finance review:
(1) Net Customer Contribution is adjusted gross margin less bad debt.
(2) General overheads are overhead expenses, excluding bad debt, charged to
adjusted EBITDA.
(3) Net Cash is cash held less borrowings, excluding lease liabilities.
(4 & 5) 1year forward contract revenue represents contracted revenue under
energy supply contracts for the following annual financial year. Aggregate
contract revenue includes all revenue contracted from the reporting date.
(6) Non-contracted annualised revenue reflects the estimated value of
non-contracted energy supply to customers at the period end date, based on the
annualised volume of energy supplied and relevant prices on that date.
(7) Equivalent volume of energy supplied (EQVS) represents volume of energy
delivered to customers, where gas is converted to a proxy value of electricity
(utilising Ofgem benchmark's being 4MWh's of gas to 1MWh of electricity).
(8) ILARR represented Index-linked annualised recurring revenue from
investment in Smart Meters.
(9) Overdue customer receivables represent the amount outstanding and overdue,
net of provisions and deferrals, to customer receivable balances compared with
the revenue recognised.
(10) The statutory format cashflow statement is presented in the condensed
financial statements.
(11) Share-based payment charges on share options are excluded from adjusted
EBITDA and adjusted earnings per share as they are variable based on the
Group's share price performance and are not related to business operational
trading. As the H1 24 comparative previously charged such costs against
adjusted EBITDA and adjusted earnings per share, the H1 24 comparative has
been restated.
Condensed consolidated statement of profit and loss and other comprehensive
income
For the six months ended 30 June 2025
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
Notes £'000 £'000 £'000
Revenue 341,038 312,678 645,456
Cost of sales (294,775) (269,799) (551,571)
Gross profit 46,263 42,879 93,885
Operating costs before non-recurring items and share based payment charges (15,473) (15,456) (34,088)
Operating costs - non-recurring items 2 - (1,359) (1,359)
Operating costs - share based payment charges (869) (1,705) (3,987)
Total operating costs (16,342) (18,520) (39,434)
Net impairment losses on financial and contract assets (9,350) (6,349) (13,527)
Operating profit 20,571 18,010 40,924
Finance income 2,278 2,177 4,194
Finance costs (228) (349) (641)
Profit before tax 22,621 19,838 44,477
Taxation 4 (6,097) (5,151) (10,978)
Profit and total comprehensive income for the year 16,524 14,687 33,499
Earnings per share
Basic 3 98p 88p 200p
Diluted 3 90p 82p 187p
Condensed consolidated balance sheet
At 30 June 2025
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
Notes £'000 £'000 £'000
ASSETS
Non-current assets
Intangible assets 6 2,888 3,165 2,993
Property, plant and equipment 7 13,855 6,405 12,318
Right-of-use assets 8 1,136 2,736 1,844
Deferred tax assets 3,100 1,277 2,842
Trade and other receivables 9 14,111 9,109 11,786
35,090 22,692 31,783
Current assets
Inventory 366 1,838 369
Trade and other receivables 9 91,720 75,448 97,115
Cash and cash equivalents 118,234 89,426 85,204
210,320 166,712 182,688
Total assets 245,410 189,404 214,471
LIABILITIES
Current liabilities
Trade and other payables 10 (138,796) (117,321) (133,664)
Corporation tax payable (299) (1,832) (2,546)
Borrowings 11 (350) (102) (222)
(139,445) (119,255) (136,432)
Non-current liabilities
Trade and other payables 10 (17,001) (15,450) (2,970)
Borrowings 11 (8,005) (2,515) (4,745)
(25,006) (17,965) (7,715)
Total liabilities (164,451) (137,220) (144,147)
Net assets 80,959 52,184 70,324
EQUITY
Share capital 13 85 85 85
Share premium 13 - 12,284 -
Merger reserve - (50) -
Retained earnings 80,874 39,865 70,239
80,959 52,184 70,324
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2025
Share Share Merger Retained
capital premium reserve earnings Total
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2025 85 - - 70,239 70,324
Total comprehensive income for the period
Profit for the period - - - 16,524 16,524
Other comprehensive income - - - - -
- - - 16,524 16,524
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payments - - - 637 637
Deferred tax on share-based payments - - - 345 345
Proceeds from share issues - - - 13 13
Equity dividend paid in the period - - - (6,884) (6,884)
Total transactions with owners of the Company - - - (5,889) (5,889)
Balance at 30 June 2025 85 - - 80,874 80,959
Balance at 1 January 2024 84 11,909 (50) 34,855 46,798
Total comprehensive income for the period
Profit for the period - - - 14,687 14,687
Other comprehensive income - - - - -
- - - 14,687 14,687
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payments - - - 528 528
Deferred tax on share-based payments - - - - -
Proceeds from share issues 1 375 - - 376
Buy-back of shares - - - (3,995) (3,995)
Equity dividend paid in the period - - - (6,210) (6,210)
Total transactions with owners of the Company 1 375 - (9,677) (9,301)
Balance at 30 June 2024 85 12,284 (50) 39,865 52,184
Condensed consolidated statement of cash flows
For the six months ended 30 June 2025
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
Notes £'000 £'000 £'000
Cash flows from operating activities
Profit for the financial period 16,524 14,687 33,499
Adjustments for:
Depreciation of property, plant and equipment 7 482 320 704
Depreciation of right-of-use assets 8 452 334 994
Amortisation of intangible assets 6 495 408 848
Loss / (profit) on disposal - 1 (39)
(Increase) / decrease in inventory 3 (1,292) 177
(Increase) / decrease in trade and other receivables 7,175 7,292 (11,174)
Increase in customer acquisition costs (3,845) (9,931) (12,335)
(Increase) / decrease in industry related deposits (147) 713 (2,586)
Decrease in cash collateral for commodity trading arrangements - 49,822 49,820
Decrease in trade and other payables (13,574) (19,155) (4,921)
Increase in renewable obligation liability 33,239 24,494 13,457
National insurance on share options exercised - - (570)
Finance income (2,278) (2,177) (4,194)
Interest received 2,165 2,177 4,071
Finance costs 228 349 641
Taxation charge 6,097 5,151 10,978
Corporation tax paid (8,257) (6,641) (11,282)
Share based payment charge 869 1,705 3,987
Net cash from operating activities 39,628 68,257 72,075
Cash flows from investing activities
Proceeds from disposal of assets - - 1
Purchase of property, plant and equipment (41) (347) (2,152)
Smart meter asset capital expenditure (1,901) (1,766) (4,571)
Smart meter assets under construction (77) - (1,690)
Payment of software development costs (390) (1,012) (1,280)
Net cash used in investing activities (2,409) (3,125) (9,692)
Cash flows from financing activities
Borrowings drawn down 3,498 2,250 4,647
Interest paid on borrowings (199) (20) (185)
Interest paid on lease obligations (45) (63) (167)
Other interest paid - (225) -
Repayment of principal element of borrowings (117) (29) (89)
Repayment of principal element of lease obligations (455) (267) (844)
Net proceeds from share option exercises 13 376 376
Cash paid on repurchase of shares - (3,995) (3,995)
Dividends paid (6,884) (6,210) (9,399)
Net cash used in financing activities (4,189) (8,183) (9,656)
Net increase in cash and cash equivalents 33,030 56,949 52,727
Cash and cash equivalents at the start of the period 85,204 32,477 32,477
Cash and cash equivalents at the end of the period 118,234 89,426 85,204
Notes to the condensed consolidated financial statements
1. Significant accounting policies
Yü Group PLC (the "Company") is a public limited company incorporated in the
United Kingdom, with company number 10004236. The Company is limited by shares
and the Company's ordinary shares are traded on AIM.
These condensed consolidated half yearly financial statements as at and for
the six months ended 30 June 2025 comprise the Company and its subsidiaries
(together referred to as the "Group"). The Group is primarily involved in the
supply of electricity, gas and water to SMEs and larger corporates in the UK.
Basis of preparation
The condensed consolidated interim financial information for the six months
ended 30 June 2025 has been prepared in accordance with UK-adopted
International Accounting Standards.
The unaudited condensed consolidated interim financial report for the six
months ended 30 June 2025 does not include all of the information required for
full annual financial statements and does not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006. This report
should therefore be read in conjunction with the Group annual report for the
year ended 31 December 2024, which is available on the Group's investor
website (yugroupplc.com). The comparative figures for the year ended 31
December 2024 have been audited. The comparative figures for the half year
ended 30 June 2024, and the actual figures for the half year to 30 June 2025,
are unaudited.
The accounting policies adopted in these condensed consolidated half yearly
financial statements are consistent with the policies applied in the 2024
Group financial statements.
The consolidated financial statements are presented in British pounds sterling
(£), which is the functional and presentational currency of the Group. All
values are rounded to the nearest thousand (£'000), except where otherwise
indicated.
Going concern
The financial statements are prepared on a going concern basis.
At 30 June 2025 the Group had net assets of £81.0m (H1 24: £52.2m, FY24:
£70.3m), cash of £118.2m (H1 24: £89.4m, FY24: £85.2m) and net current
assets of £70.9m (H1 24: £47.5m, FY24: £46.3m).
Management prepares detailed budgets and forecasts of financial performance
and cash flow (including capital commitments) over the coming 14 months. The
Board has confidence in achieving such targets and forecasts and has performed
comprehensive analysis of various risks (including those set out in the
Strategic Report) and sensitivities in relation to performance, the energy
market and the wider economy.
The Group continues to demonstrate significant progress in its results. This
has led to adjusted EBITDA (note 3) in 2025 of £22.9m (H1 24: £22.1m, FY24:
£48.8m), which continues the momentum in the Group's results occurring since
2018. Management is confident in continuing this improvement in profitability
based on its business model.
Profitability metrics remain strong in 2025, and the Group continues to drive
sustainable, profitable growth. The Group's hedging strategy, approach to bad
debt, and investment in digital technologies all contribute to achieving
acceptable levels of profitability over the medium term.
Group cash liquidity is strong. The Group has cash of £118.2m (H1 24:
£89.4m, FY24: £85.2m), and net cash (net of borrowings, but before leases)
of £109.9m (H1 24: £86.8m, FY24: £80.2m). The five-year commodity trading
agreement entered into in February 2024 with the Shell Energy Europe Limited
("Shell") provides significant access to commodity markets whilst preserving
Group liquidity, and the contract is performing well.
The Board actively seeks to utilise its strong cash reserves to further its
strategic operational aims and continued investment in relationships with
brokers requiring customer acquisition costs in advance of contract
commencement. Significant capital investment continues in smart meter assets
to provide a long-term annuity income.
The Board has assessed risks and sensitivities and potential mitigation steps
available to it in detail and continues to monitor risk and mitigation
strategies in the normal course of business. These considerations include the
following:
Customer receivables and bad debt
The Board considers customer receivable risks in view of the wider market, the
energy price environment and the Group's ability to contract and protect its
position in respect of late or non-payment. The performance for 2025 has
continued the improvement from 2024, and benefits continue to be provided
through new approaches and strategies to debt management.
The Board performed sensitivities on material changes to customer payment
behaviour including the timing of payments or if bad debt levels were to
increase.
The Group has extensive mitigating actions in place. These include credit
checks at point of sale and throughout the customer lifecycle, the requirement
for some customers to pay reasonable security deposits at the point of sale,
and the offering (ensuring compliance with regulation and good industry
practice) of pay as you go products which enable certain customers to access
more favourable tariffs. The Group also supports customers with payment plan
arrangements, for those customers who will, when able, provide payment, and
will ultimately (for some customers, as appropriate based on the
circumstances) progress legal and/or disconnection proceedings to mitigate
further bad debt.
In view of the reduced market prices, and the Group's ability to manage debt
through various mitigating actions, the Board is confident that there will be
no material impact relevant to the going concern assumption.
Hedging arrangements and Trading Agreement
A new five-year commodity trading arrangement between Shell and the main
entities of the Group (including Yü Group PLC, Yü Energy Holding Limited and
Yü Energy Retail Limited), signed February 2024 ("the Trading Agreement"),
enables the Group to purchase electricity and gas on forward commodity
markets. The Trading Agreement enables forecasted customer demand to be hedged
in accordance with an agreed risk mandate (further detailed in the Group's
risks and uncertainties reporting in the Strategic Report). This hedging
position and the Board-defined risk strategy has mitigated, and is expected to
continue to mitigate, the impact on the Group from underlying movements in
global commodity markets.
As part of the Trading Agreement, and is customary for such arrangements,
Shell provides access to commodity products and holds security over the main
trading assets of the Group which could, ultimately and in extreme and limited
circumstances, lead to a claim on some or all of the assets of the Group. In
return, Shell provides market access without the need to post cash collateral
in the normal course of operation.
The Board carefully modelled in detail, and continues to monitor, certain
covenants related to profitability, net worth and liquidity associated with
the new Trading Agreement to assess the likelihood of any breach of such
agreement and the impact any such breach would likely have. Such scenarios
include reduced gross margin and increased bad debt, and the impact these
might have on the ability to maintain compliance with covenants.
After a detailed review, the Board has concluded that there are no liquidity
or covenant compliance issues likely to arise based on worst‑case scenario
modelling that would impact the going concern status of the Group.
Summary
Following an extensive review of the Group's forward business plan and
associated risks and sensitivities to these base forecasts (and available
mitigation strategies), the Board concludes that it is appropriate to prepare
the financial statements on a going concern basis. The Board also considers
that there is sufficient headroom to ensure the Group meets covenants based on
various downside scenarios assessed.
Accounting policies, interpretations and amendments adopted by the Group
The accounting policies applied in these interim statements are the same as
those applied in the Group's annual report for the year ended 31 December
2024, with the exception of certain new interpretations and amendments adopted
in the current period which had no significant effect on the Group's results.
Alternative Performance Measures ("APMs")
The Group discloses Alternative Performance Measures ("APMs") that are not
defined by IFRS. The directors believe that the presentation of APMs provides
stakeholders with additional helpful information on the performance of the
business but does not consider them to be a substitute for or superior to IFRS
measures.
The Group's APMs are used to assist in measuring the performance of the
business. The APMs are determined to offer valuable insights to users of the
Group's financial statements by highlighting key value drivers and the effects
of certain events and transactions on the entity's performance, financial
position and cash flows. Adjusted results exclude certain items, because if
included, these could distort the understanding of the Group's performance.
The definition, purpose and how the measures are reconciled to statutory
measures are set out in note 2 and note 3.
Significant judgements and estimates
The Group's significant accounting judgements and key sources of estimation
uncertainty are consistent with those described in the Group's annual report
for the year ended 31 December 2024.
2. Reconciliation to adjusted EBITDA
Non-GAAP measure. Adjusted EBITDA represents profit before interest and tax,
depreciation, amortisation, non-recurring business expense and share-based
payment charges.
The directors utilise adjusted EBITDA to make Group financial, strategic and
operating decisions. The measure separates out certain items from defined IFRS
measures because these are determined to assist users of these financial
statements to evaluate business performance from recurring and normalised
profitability that better align to operational cash flow (before the impact of
working capital movements) and to obtain profitability margins as a percentage
of revenue. This measure is frequently used by external stakeholders to
evaluate financial performance and compare performance of other industry
competitors, and will assist users to understand and evaluate, in the same
manner as management, the movement in Group's operational performance on a
comparable basis.
As adjusted EBITDA can exclude significant costs or gains, it should not be
regarded as a complete picture of the Group's financial performance, which is
presented in its total results.
Restated(2)
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Adjusted EBITDA reconciliation
Operating profit 20,571 18,010 40,924
Add back:
Non-recurring operational costs(1) - 1,359 1,359
Share-based payments(2) 869 1,705 3,987
Depreciation of property, plant and equipment 7 482 320 704
Depreciation of right-of-use assets 8 452 334 994
Amortisation of intangibles 6 495 408 848
Adjusted EBITDA 22,869 22,136 48,816
1. The non-recurring operational costs for FY24 relate to fees incurred
in the termination of the Group's previous commodity trading agreement. The
five-year commodity trading arrangement between Shell Energy Europe Limited
("Shell") and the main entities of the Group (including Yü Group PLC, Yü
Energy Holding Limited and Yü Energy Retail Limited) was signed February
2024. Given the non-recurring nature of these costs and basis for reporting
the APM measure, these costs have not been charged to adjusted EBITDA.
2. Share-based payment charges on share options are excluded from
adjusted EBITDA as they are variable based on the Group's share price
performance and are not related to business operational trading. Further
details of the share-based payments are documented in note 14. As the H1 24
comparative previously charged such costs against adjusted EBITDA, the H1 24
comparative has been restated (H1 24 as previously reported: £20.4m).
Adjusted earnings per share
Adjusted earnings per share is defined as earnings per share excluding
adjusted items. The measure is determined by dividing profit after tax,
adjusted for post-tax adjusted items (relating to non-recurring operational
costs and share-based payment charges by the weighted average number of
ordinary shares in issue during the financial period, excluding treasury
shares held, and on a basic and fully diluted basis. This APM is a measure of
management's view of the Group's underlying earnings per share.
Refer to note 3 for a reconciliation between earnings per share and adjusted
earnings per share.
Net cash / (debt)
Net cash / (debt) is defined as unrestricted cash and cash equivalents
available for the Group less external borrowings (but before IFRS 16 lease
liabilities). The APM is utilised by the Group to reflect available capital
and liquidity reserves for the purposes of future operational activities. A
reconciliation of the measure is presented in note 16.
3. Earnings per share
Basic earnings per share
Basic earnings per share is based on the profit attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding
and excluding treasury shares.
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Profit for the year attributable to ordinary shareholders 16,524 14,687 33,499
30 June 30 June 31 December
2025 2024 2024
Weighted average number of ordinary shares
At the start of the period 16,784,337 16,741,195 16,741,195
Effect of shares issued in the period - 50,353 175,825
Effect of treasury shares 4,568 (39,163) (146,861)
Number of ordinary shares for basic earnings per share calculation 16,788,905 16,752,385 16,770,159
Dilutive effect of outstanding share options 1,485,383 1,157,837 1,170,383
Number of ordinary shares for diluted earnings per share calculation 18,274,288 17,910,222 17,940,542
30 June 30 June 31 December
2025 2024 2024
Basic earnings per share 98p 88p 200p
Diluted earnings per share 90p 82p 187p
Adjusted earnings per share
See note 2 for details on adjusted earnings per share
Restated(1)
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Adjusted earnings per share
Profit for the year attributable to ordinary shareholders 16,654 14,687 33,499
Add back operating profit adjusting items (per note 2):
Share-based payments after tax (gross cost, before tax, of £869,000) 811 1,211 3,230
Non-recurring operational costs after tax 2 - 1,019 1,019
Adjusted basic profit for the period 17,465 16,917 37,748
Adjusted earnings per share 104p 101p 225p
Diluted adjusted earnings per share 96p 94p 210p
1. Adjusted earnings per share has been reassessed for the 2024
financial year in relation to the effects of share-based payment charges on
the various schemes within the Group. As non-cash elements of the business
operational result that effect the purpose of the APM metric, these charges
have been excluded from adjusted basic profit. For consistency of the metric,
the H1 24 prior period comparative has been restated to reflect such approach
(H1 24 as previously reported: 94p adjusted, and 88p adjusted and fully
diluted).
4. Taxation
The tax charge for the period has been estimated using a rate of 25% for the
period, considering certain allowances and adjustments in calculating the
Group's taxable profits.
Deferred taxes as at 30 June 2025, 30 June 2024 and 31 December 2024 have been
measured using the enacted tax rates at that date and are reflected in these
financial statements on that basis.
5. Dividends
The directors proposed a final dividend for the year ended 31 December 2024 of
41p per share totalling £6,884,000 which was paid in the period to 30 June
2025.
The directors propose an interim dividend for the period to 30 June 2025 of
22p per share (2024: 19p share). The interim dividend is payable 19 December
2025.
6. Intangible assets
Electricity Customer Software and
licence Goodwill books systems Total
£'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2025 62 216 686 4,699 5,663
Additions - - - 390 390
At 30 June 2025 62 216 686 5,089 6,053
Amortisation
At 1 January 2025 20 - 686 1,964 2,670
Charge for the period 1 - - 494 495
At 30 June 2025 21 - 686 2,458 3,165
Net book value at 30 June 2025 41 216 - 2,631 2,888
Cost
At 1 January 2024 62 216 686 3,419 4,383
Additions - - - 1,012 1,012
At 30 June 2024 62 216 686 4,431 5,395
Amortisation
At 1 January 2024 18 - 686 1,118 1,822
Charge for the period 1 - - 407 408
At 30 June 2024 19 - 686 1,525 2,230
Net book value at 30 June 2024 43 216 - 2,906 3,165
7. Property, plant and equipment
Freehold Freehold Fixtures and Plant and Assets under construction Computer
land property fittings machinery £'000 equipment Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2025 150 5,058 961 5,439 1,690 812 14,110
Additions - - - 1,181 805 33 2,019
Reclassification - - - 728 (728) - -
At 30 June 2025 150 5,058 961 7,348 1,767 845 16,129
Depreciation
At 1 January 2025 - 399 588 226 - 579 1,792
Charge for the period - 84 105 214 - 79 482
At 30 June 2025 - 483 693 440 - 658 2,274
Net book value at 30 June 2025 150 4,575 268 6,908 1,767 187 13,855
Cost
At 1 January 2024 150 3,274 738 869 - 670 5,701
Additions - - 223 1,766 - 124 2,113
Disposals - - - (1) - - (1)
At 30 June 2024 150 3,274 961 2,634 - 794 7,813
Depreciation
At 1 January 2024 - 291 355 24 - 418 1,088
Charge for the period - 54 124 61 - 81 320
At 30 June 2024 - 345 479 85 - 499 1,408
Net book value at 30 June 2024 150 2,929 482 2,549 - 295 6,405
8. Right-of-use assets and lease liabilities
Buildings Motor Vehicles Total
£'000 £'000 £'000
Cost
At 1 January 2025 134 2,850 2,984
Disposals - (474) (474)
Lease modifications (2) - (2)
At 30 June 2025 132 2,376 2,508
Depreciation
At 1 January 2025 27 1,113 1,140
Charge for the period 13 439 452
Disposals - (220) (220)
At 30 June 2025 40 1,332 1,372
Net book value at 30 June 2025 92 1,044 1,136
Cost
At 1 January 2024 1,966 804 2,770
Additions - 1,394 1,394
Disposals (65) - (65)
At 30 June 2024 1,901 2,198 4,099
Depreciation
At 1 January 2024 835 259 1,094
Charge for the period 83 251 334
Disposals (65) - (65)
At 30 June 2024 853 510 1,363
Net book value at 30 June 2024 1,048 1,688 2,736
9. Trade and other receivables
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Current
Net trade receivables 19,718 17,093 16,065
Net accrued income 44,246 41,839 57,769
Prepayments 722 950 1,260
Costs to obtain customer contracts 11,190 9,942 9,670
Industry collateral deposits 7,176 4,298 7,029
Other receivables 8,668 1,326 5,322
91,720 75,448 97,115
Non-current
Costs to obtain customer contracts 14,111 9,109 11,786
14,111 9,109 11,786
The reconciliation of gross trade receivables and accrued income and expected
credit loss provision for the Group is as follows:
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Trade receivables
Gross carrying amount 67,558 48,829 50,432
Provision for doubtful debts and expected credit loss (47,840) (31,736) (34,367)
Net carrying amount 19,718 17,093 16,065
Accrued income
Gross carrying amount 45,962 42,795 60,002
Provision for doubtful debts and expected credit loss (1,716) (956) (2,233)
Net carrying amount 44,246 41,839 57,769
10. Trade and other payables
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Current
Trade payables 10,537 10,531 10,237
Energy and industry cost accruals 32,474 41,697 47,337
Renewable obligation liability 53,108 32,873 35,374
Operating and other accruals 6,213 5,189 7,791
Lease liabilities 599 845 894
Tax and social security 16,539 12,858 17,172
Other payables 19,326 13,328 14,859
138,796 117,321 133,664
Non-current
Renewable obligation liability 15,505 13,538 -
Operating and other accruals 984 - 2,064
Lease liabilities 512 1,912 906
17,001 15,450 2,970
Lease liabilities
Buildings Motor Vehicles Total
£'000 £'000 £'000
At 1 January 2025 80 1,720 1,800
Additions - - -
Interest expense 3 42 45
Disposals - (254) (254)
Lease modifications 20 - 20
Payments (15) (485) (500)
At 30 June 2025 88 1,023 1,111
Current 25 574 599
Non-current 63 449 512
At 1 January 2024 1,081 554 1,635
Additions - 1,393 1,393
Interest expense 33 30 63
Disposals (4) - (4)
Payments (48) (282) (330)
At 30 June 2024 1,062 1,695 2,757
Current 110 735 845
Non-current 952 960 1,912
The incremental borrowing rate determined for leases is 6%. The same rate was
applicable for both the leased buildings and motor vehicles.
The contractual maturities (representing undiscounted contractual cash flows)
of the lease liabilities are disclosed in note 12.
The remaining trade and other payables have undiscounted contractual cash
flows equal to their fair value and are payable within a year.
11. Borrowings
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Current
Bank loan 350 102 222
Non-current
Bank loan 8,005 2,515 4,745
Total borrowings 8,355 2,617 4,967
Borrowings solely relate to the Group's investment in smart meters which
return an index-linked, recurring annuity over a 15+ year term, with Siemens
Finance.
The Group entered into an additional £10m loan facility agreement in June
2025, in addition to an existing £5.2m facility agreed during 2023 with
Siemens Finance in relation to the finance of such meters. The amounts
outstanding relate to the amounts drawn down on the total £15.2m facilities.
Repayments are over a 10-year period with a bullet repayment, and with an
interest rate fixed at the date of drawdown. The borrowings are fully secured
on the assets of the wholly owned subsidiary entity, Kensington Meter Assets
Limited.
The bank loan is shown net of unamortised arrangement fees of £204,000 (2024:
£190,000) which are being amortised over the life of the loan.
The contractual maturities (representing undiscounted contractual cash flows)
of the bank loans are disclosed in note 12.
12. Financial instruments and risk management
The Group's principal financial instruments are cash, trade and other
receivables and trade and other payables.
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Financial assets
Cash and cash equivalents 118,234 89,426 85,204
Financial assets recorded at amortised cost 79,808 64,556 86,185
Financial liabilities
Financial liabilities recorded at amortised cost (144,356) (119,773) (120,760)
Lease liabilities (1,111) (2,757) (1,800)
Management considers that the book value of financial assets and liabilities
recorded at amortised cost and their fair value are approximately equal.
The Group trades entirely in pounds sterling and therefore it has no foreign
currency risk.
The Group has exposure to the following risks from its use of financial
instruments:
a) commodity hedging and derivative instruments (related to customer
demand and market price volatility, and counterparty credit risk);
b) customer, industry participants and financial institution credit
risk; and
c) liquidity risk.
The condensed consolidated interim financial statements do not include all
financial risk management information and disclosures as required in the
annual financial statements; they should be read in conjunction with the
information included in Note 21 of the 2024 Group financial statements. There
have been no changes in any risk management policies since the year end.
Undiscounted contractual cash flows
The tables below have been drawn up based on the undiscounted contractual
maturities of the Group's financial liabilities, including interest that will
be unwound on those liabilities:
Carrying Within After Contractual
amounts 1 year 2-5 years 5 years cash flows
£'000 £'000 £'000 £'000 £'000
Trade and other payables 136,001 119,599 16,436 - 136,035
Borrowings 8,355 1,019 4,216 7,795 13,030
Lease liabilities 1,111 648 531 - 1,179
At 30 June 2025 145,467 121,266 21,183 7,795 150,244
Trade and other payables 117,156 103,618 13,538 - 117,156
Borrowings 2,617 337 1,365 2,268 3,970
Lease liabilities 2,757 986 1,629 525 3,140
At 30 June 2024 122,530 104,941 16,532 2,793 124,266
13. Share capital and reserves
30 June 30 June 30 June 30 June 31 December 31 December
2025 2025 2024 2024 2024 2024
Share capital Number £'000 Number £'000 Number £'000
Allotted and fully paid ordinary shares of £0.005 each 17,019,315 85 17,019,315 85 17,019,315 85
The Company has one class of ordinary share with nominal value of £0.005
each, which carries no right to fixed income. The holders of ordinary shares
are entitled to receive dividends as declared and are entitled to one vote per
share at meetings of the Company. The Company holds 229,496 shares in treasury
(2024: 234,978) and as at 30 June 2025, the total number of shares in issue
with voting rights was 16,789,819 (2024: 16,784,337).
The Group movement in reserves is as per the statement of changes in equity.
Share capital represents the value of all called up, allotted and fully paid
shares of the Company.
The share premium movement in the year for the Group and the Company relates
to:
• The excess of the price at which share options were exercised
during H1 2024, over the £0.005 nominal value of those shares,
being £375,000 during the year; and
• The cancellation of the share premium account on 3 July 2024,
when such cancellation was approved and certified under the Companies Act
2006. The share premium account of £12,284,000 was credited to distributable
reserves on that date.
Treasury shares
On 22 May 2024 the Company purchased 234,978 ordinary shares at a price of
£17 a share totalling £3,995,000 to hold in treasury. It is intended that
these ordinary shares held in treasury will be utilised to satisfy future
option exercises. On 29 January 2025 the Group transferred 5,482 ordinary
shares from treasury to settle an exercise of employee share options.
30 June 30 June 30 June 30 June 31 December 31 December
2025 2025 2024 2024 2024 2024
Other equity Number £'000 Number £'000 Number £'000
Treasury shares (229,496) (3,901) (234,978) (3,995) (234,978) (3,995)
Merger reserve
The merger reserve was previously created as part of the 2016 Group
reorganisation prior to listing and has been reclassified in the 2024
financial year.
Retained earnings
Retained earnings comprises the Group's cumulative annual profits and losses,
including adjustments for equity-settled share-based payments (and related
tax), the purchase of shares to be held in treasury, and the credit as a
result of the cancellation of the share premium account.
14. Share based payments
The Group operates a number of share option plans for qualifying employees,
both as equity and cash-settled share-based remuneration schemes.
Equity-settled options in the plans are settled in equity in the Company.
The terms and conditions of the outstanding grants made under the Group's
share options schemes are as follows:
Exercisable between
Amount Amount Amount
outstanding at outstanding at outstanding at
Expected Exercise Vesting 30 June 30 June 31 December
Date of grant term Commencement Lapse price schedule 2025 2024 2024
6 April 2017 3 6 April 2020 6 April 2027 £0.005 1 43,950 43,950 43,950
6 April 2017 6.5 6 April 2020 6 April 2027 £2.844 1 87,900 87,900 87,900
28 September 2017 6.5 28 September 2020 28 September 2027 £5.825 1 13,500 13,500 13,500
9 April 2018 6.5 9 April 2021 9 April 2028 £10.38 1 38,084 38,084 38,084
4 October 2020 3 30 April 2023 4 October 2030 £0.005 2 76,617 76,617 76,617
4 October 2020 3 30 April 2024 4 October 2030 £0.005 2 76,617 76,617 76,617
1 December 2022 3 1 January 2026 1 July 2026 £2.28 3 141,715 154,169 141,715
19 December 2022 3.3 31 March 2026 19 December 2032 £0.005 4 662,000 662,000 662,000
17 May 2024 2 31 March 2026 17 May 2034 £0.005 5 30,000 30,000 30,000
18 March 2025 3 31 March 2028 18 March 2035 £15.03 6 420,000 - -
1,590,383 1,182,837 1,170,383
Weighted average remaining contractual life of options outstanding 5.0 years 6.7 years 6.1 years
The following vesting schedules apply:
1. 100% of options vest on the third anniversary of date of grant.
2. 100% of options have vested on the achievement of a performance
condition related to the Group's share price at a pre‑determined date.
3. 100% of options vest on the third anniversary of the Save As You
Earn ("SAYE") savings contract start date.
4. The level of vesting is dependent on a performance condition,
being the Group's EBITDA over a qualifying period. Shares are expected to vest
in full.
5. The level of vesting is dependent on a performance condition,
being the number of meters owned over a qualifying period.
6. The level of vesting is dependent on performance conditions,
being a combination of the Group's EBITDA, the number of meters owned and
forward contracted revenue all over a qualifying period.
The number and weighted average exercise price of share options were as
follows:
30 June 30 June 31 December
2025 2024 2024
Equity-settled shares shares shares
Balance at the start of the period 1,170,383 1,533,324 1,533,324
Granted 420,000 30,000 30,000
Forfeited - (102,367) (114,821)
Lapsed - - -
Exercised - (278,120) (278,120)
Balance at the end of the period 1,590,383 1,182,837 1,170,383
Vested at the end of the period 336,668 336,668 336,668
Exercisable at the end of the period 336,668 336,668 336,668
Weighted average exercise price for:
Options granted in the period £15.03 - £0.005
Options forfeited in the period - £0.058 £0.299
Options exercised in the period - £1.353 £1.353
Weighted average share price of exercised shares - £17.03 £17.03
Exercise price in the range:
From £0.005 £0.005 £0.005
To £15.03 £10.38 £10.38
The fair value of each option grant is estimated on the grant date using an
appropriate option pricing model. The following fair value assumptions were
assumed in the year:
30 June 30 June 31 December
Equity-settled 2025 2024 2024
Dividend yield 3.4% 2.4% 2.4%
Risk-free rate 4.2% 4.3% 4.3%
Share price volatility 58% 66% 66%
Expected life (years) 3 years 2 years 2 years
Weighted average fair value of options granted during the period £5.70 £16.40 £16.40
For the cash-settled share schemes, the following information is relevant:
30 June 30 June 31 December
2025 2024 2024
Cash-settled shares shares shares
Balance at the start of the period 174,500 - -
Granted 47,000 240,000 240,000
Forfeited (16,500) - (65,500)
Lapsed - - -
Exercised - - -
Balance at the end of the period 205,000 240,000 174,500
Vested at the end of the period - - -
Exercisable at the end of the period - - -
Weighted average exercise price for:
Options granted in the period £10.00 £10.00 £10.00
Options forfeited in the period £10.00 £10.00 £10.00
Options exercised in the period - - -
Weighted average share price of exercised shares - - -
The fair value of each option grant is estimated on the grant date using an
appropriate option pricing model. The following fair value assumptions were
assumed in the year:
30 June 30 June 31 December
Cash-settled 2025 2024 2024
Risk-free rate 4.2% 3.5% 3.5%
Share price volatility 59% 60% 60%
Expected life (years) 3.25 years 3.25 years 3.25 years
Weighted average fair value of options granted during the period £11.17 £13.03 £13.03
Share price volatility assumption is based on the actual historical share
price of the Group since January 2023.
15. Related parties and related party transactions
The only related party transactions in the period have been between the
Company and its subsidiaries, which have been eliminated on consolidation.
16. Net cash / (net debt) reconciliation
The net cash / (net debt) and movement in the period were as follows:
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Cash and cash equivalents 118,234 89,426 85,204
Borrowings (8,355) (2,617) (4,967)
Net cash 109,879 86,809 80,237
The movements in net cash/ (net debt) and lease liabilities were as follows:
Sub-total
Cash Borrowings Net Cash Leases Total
£'000 £'000 £'000 £'000 £'000
Balance as at 1 January 2025 85,204 (4,967) 80,237 (1,800) 78,437
Cash flows:
Movement in cash and cash equivalents 33,030 - 33,030 - 33,030
Drawdown of new borrowings - (3,498) (3,498) - (3,498)
Interest - (206) (206) (45) (251)
Repayment - 316 316 500 816
Modification and disposal of lease liabilities - - - 234 234
Balance as at 30 June 2025 118,234 (8,355) 109,879 (1,111) 108,768
Sub-total
Cash Borrowings Net Cash Leases Total
£'000 £'000 £'000 £'000 £'000
Balance as at 1 January 2024 32,477 (355) 32,122 (1,635) 30,487
Cash flows:
Movement in cash and cash equivalents 56,949 - 56,949 - 56,949
Drawdown of new borrowings - (2,250) (2,250) - (2,250)
Interest - (61) (61) (63) (124)
Repayment - 49 49 330 379
Recognition of leases acquired on right-of-use assets - - - (1,394) (1,394)
Modification of lease liabilities - - - 5 5
Balance as at 30 June 2024 89,426 (2,617) 86,809 (2,757) 84,052
17. Post-balance sheet events
On the 22 July 2025, it was announced that Andy Simpson would be appointed as
Chief Financial Officer designate and will be appointed to the Board as Chief
Financial Officer effective 1 September 2025. Paul Rawson will be standing
down from his role as Chief Financial Officer on 1 September 2025 and
transition to the role of non-executive director.
On 22 July 2025, Andy Simpson was granted 238,000 share options under the
Group's Long-Term Performance Share Plan. The level of vesting is dependent on
performance conditions, being a combination of the Group's EBITDA, the number
of meters owned, forward contracted revenue and Group earnings per share all
over a qualifying period.
In view of Paul Rawson's transfer to a non-executive director position Paul
Rawson has agreed to waive a portion of his share options granted and
announced on 18 March 2025 which vest on 31 March 2028. The number of options
shall be reduced from 100,000 to 22,222.
There are no other significant post-balance sheet events.
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