REG - Yu Group PLC - Final results for the year ended 31 December 2025
Today 07:00
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RNS Number : 8540W Yu Group PLC 17 March 2026
17 March 2026
Yü Group PLC
("Yü Group" or the "Group")
Final results for the year ended 31 December 2025
DELIVERING GROWTH AND SUSTAINABLE VALUE
Yü Group PLC (AIM; YU.), the independent supplier of gas and electricity, and
meter asset owner and installer of smart meters, to the UK corporate sector
announces its final audited results for the year to 31 December 2025.
The Group reports another year of increased revenue, adjusted EBITDA, earnings
per share, cash generation and forward contracted customer book. The Board
announces significant investment to support the launch of a new three-year
plan to double the market share and revenues of the Company. The investment of
an incremental c.£9m will be entirely self-funded from existing cash
generation, tempering profit growth in 2026.
Financial & operational highlights
31 December 2025 2024 Change
£'m unless stated
Financial:
Revenue 700 646 +8%
Adjusted EBITDA1 51 49 +4%
Profit before tax 49 45 +9%
Earnings per share:
Adjusted, fully diluted 216p 210p +6p
Statutory, basic 214p 200p +14p
Dividend per share (interim & final) 67p 60p +7p
Operating cash inflow 36 72 -36
Cash 106 85 +21
Overdue customer receivables (days)(2) 4 3 +1 day
Operational:
Meter points supplied (#'k) 131 88 +49%
Equivalent volume of energy supplied 2.5 TWh 2.2 TWh +14%
Market share(3) 3.5% 2.7% +0.8%
Average monthly bookings 46 43 +7%
Contracted revenue:
For next FY 668 566 +18%
In aggregate 1.4bn 1.0bn +40%
Trustpilot score (#) 3.9 4.2 -0.3
Smart meter:
Installations in year (#'k) 16.4 22.9 -6.5
Index-linked annualised recurring revenue from asset ownership ("ILARR") 2.2 1.3 +0.9
Financial performance
· Revenue of £700m, up 8% in year (2024: £646m), with organic meter
point growth of 49% to 131k (2024: 88k) and equivalent volume of energy
supplied growth of 14% to 2.5 TWh (2024: 2.2 TWh).
· Adjusted EBITDA¹ at £51m (2024: £49m), with a normalising gross
margin of 14.3% (2024: 14.5%), highly effective customer collection rates
despite declining economic conditions and continuing leverage of operational
overheads through Digital by Default.
· Profit before tax increased 9% to £49m (2024: £45m).
· Cash balance of £106m at 31 December 2025 (2024: £85m).
· Smart meter rollout continues to deliver benefits to the Group with a
long-term index-linked annuity income ("ILARR"), of £2.2m at 31 December 2025
(2024: £1.3m).
· Adjusted earnings per share, fully diluted, increased to 216p (2024:
210p).
· Final recommended dividend of 45p per share (2024: 41p), providing a
total 2025 dividend of 67p per share (2024: 60p) and continuing our
progressive dividend policy whilst retaining cover of >3.0x on adjusted
diluted EPS.
Operational delivery
· The Group has delivered record-breaking meter growth, delivering 43k
net additions (2024: 35k) and growing market share to 3.5% (2024: 2.7%).
Market opportunity remains with 3.6m meter points and a £50bn B2B addressable
market.
· Yü Group continues to significantly over-index in acquisition of
available switchers, acquiring 11% of market switchers in the B2B market in
2025 (2024: 7%).
· Yü Smart has had a transformational year, with significant
investment in systems and processes as well as engineer training through our
technical training and development centre to streamline the meter install
process and deliver a seamless customer experience.
· During 2025, the Group entered a new strategic partnership with HSBC
to provide banking arrangements to the Group, offering enhanced capabilities
and commercial terms, as well as a clear route to flexible competitive
financing arrangements where required.
· Yü Energy was recognised for a third year in a row in the Sunday
Times Top 100 Places to Work.
Current trading and outlook
· Strong momentum from 2025 has continued into 2026 with record
revenue, EBITDA and record cash balance in Q1, despite market uncertainty.
· Strong contract book as we enter 2026. £668m contracted revenue at
end of 2025 for 2026 delivery, with commodity prices expected to fluctuate
dependent on geopolitical and macroeconomic factors with some planned growth
in non-commodity prices as a result of UK policy. Total contract book of
£1.4bn (2024: £1.0bn).
· 2026 kicks off the three-year plan to deliver at least 7% market
share, with a self-funded incremental £9m+ planned opex investment to grasp
the market opportunity planned in year.
· Management targets growth in 2026:
o Over 175k meter points under contract and over 60k smart meter assets
owned.
o Contract book growth to over £1.75bn by 31 December 2026.
o Revenue to be in a range of £850m - £875m.
o Adjusted EBITDA and PBT in line with 2025, with growth of underlying
profitability tempered by overhead investment to support future growth
opportunity.
o Cash expected to decline marginally due to early ROC payment and further
investment in sales acquisition costs.
· Progressive dividend policy expected to remain, trending towards the
3x dividend cover on adjusted diluted EPS.
Bobby Kalar, Chief Executive Officer, stated:
"2025 has been another successful year with growth in revenues, profits and
cash whilst being disciplined in our approach. The market opportunity remains
substantial for Yü Group and we are focussed on continuing to scale in the
markets we serve as a customer-centric business with a growth-minded
challenger ethos.
As commodity markets normalised during 2025, we continued to expand our market
share growing our meter base by 49% to supply 131,00 meters at year end. This
could not have been achieved without the hard work and dedication of our
staff. Our ambitious and entrepreneurial DNA are key to the success of the
group where we encourage and empower our employees. I am delighted that his
been recognised again by The Sunday Times "Best Places to Work" list.
In 2024 Yü Group secured a transformational hedging facility with Shell
Energy Limited, we have continued to build out this relationship and in 2025
we were delighted to secure the services of HSBC as our preferred corporate
banking partner. This marked a further milestone to support our ambitions to
become the largest and fastest-growing independent energy supplier in the UK.
We are now commencing an ambitious three-year plan to double our current
market share.
Our strong cash generation will finance the investment required to deliver
against these goals whilst also enabling us to support our progressive
dividend policy as we seek to deliver even better shareholder returns."
Analyst presentation and publication of annual report
An analyst presentation will be held at the offices of Osbourne Clark, One
London Wall, London EC2Y 5EB at 9am today.
An electronic version of the full annual report will be published on the
Group's website, www.yugroupplc.com (http://www.yugroupplc.com) , later today
(17 March 2026).
1 Adjusted EBITDA is earnings before interest, tax, depreciation and
amortisation, non-recurring costs and share based payments. See reconciliation
in note 7 to the financial statements below.
(2) Overdue customer receivables is expressed in days of sales, and relates to
the total balance, net of provisions, of accrued income which is outside of
the normal billing cycle, plus overdue trade receivables (net of VAT and CCL).
(3) Analysis based on Cornwall Insight market share report, October 2025.
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
Gaya Bhatt
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 c.47% over the last five 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, including through the ownership of smart meter assets
to generate a recurring index-linked annuity income over a 15+year period.
Chairman's Statement
CONSISTENT DELIVERY SUPPORTING SUSTAINABLE VALUE
A seasoned and committed team sharing the determination to scale organic
growth within a framework of robust corporate governance and effective risk
management.
Dear Shareholders,
It is my pleasure to again report success to you in the meeting of our
targeted financial and operational results.
The new performance records achieved this year evidence the ongoing roll out
of ambitious strategic initiatives devised, and now being delivered upon, by
our teams.
As we continue to scale in the markets we serve, customer-centric innovation
and a growth-minded challenger ethos remain the core traits of Yü Group.
Our approach is designed to make robust and intelligent corporate governance a
guarantor of long-term value and an engine of growth in pursuit of the Group's
high organic growth objectives.
Significant and ambitious short, medium and long-term growth plans are well
developed, and I have great confidence in the teams' abilities to break
further records, across a broad range of key metrics, under the energetic and
vigilant leadership of our Chief Executive Officer, the indomitable Bobby
Kalar.
The Group continues to scale at pace. Revenue increased to £700m (2024:
£646m) and was delivered via organic growth despite the effects of lower
commodity markets.
Our UK market share is now 3.5%, up from 2.7% in 2024, and our forward
contract book increased 40% to £1.4bn (2024: £1.0bn).
Profit before tax increased 9% to £49m (2024: £45m) while earnings per share
(on a statutory reported basis) grew to 214p (2024: 200p).
Our cash increased to £106m (2024: £85m), and we have increased dividends
per share by 12% to 67p (2024: 60p).
Board composition, evolution and succession planning
During 2025, our succession plan for the role of Chief Financial Officer was
implemented. Andy Simpson, after an induction and hand-over period which began
in February 2025, was welcomed to the Board in September. Andy brings with him
deep experience in the financial management of fast-scaling B2B businesses and
is delivering significant added value as a valuable member of our executive
management team.
Concomitantly and as planned, Paul Rawson was appointed to the role of
non-executive director, thereby enabling the Group to continue to benefit from
his clarity of insight and his deep experience. Paul also continues to serve
as Board and Company Secretary.
Two independent non-executive directors, John Glasgow and Tony Perkins, raised
their intention in 2025, after a suitable transitional period, to retire from
the Group during the course of 2026.
Over the previous decade and since the Group was listed in 2016, John Glasgow
has made a truly invaluable contribution, through thick and thin, to getting
the Group to where it is today. Tony Perkins has contributed to a significant
and positive evolutionary development of the Group's audit and risk management
over the past six years. I wish them both all the best for the future and
sincerely thank them for the exceptionally fine work that they have done in
furthering the Group's success. Our succession and selection plans will ensure
that incoming Directors bring key evolutionary skills and depth of experience
to the Board.
The executive management and wider senior leadership teams have continued to
grow in number, in depth, and in maturity of experience. They continue to
deliver controlled yet significant growth as the Group enthusiastically builds
out new capabilities.
I am proud to note the exemplary and continued evolution of the Group's
management team: its strength in depth is one of our key strategic enablers.
Delivering for our shareholders and stakeholders
Your Company has again been recognised by The Sunday Times "Best Places to
Work" list, and the Group's ethos and pace of growth continues to allow us to
attract first-rate talent into our ranks. Navaz Dean, our HR Director,
continues to make a notable contribution to our ongoing success and to
maintaining and developing the foundations of future success, viz; our people.
Our shareholders now include a greater number of institutional investors with
increasing levels of holdings. We continue to maintain our stakeholder
engagement programme, which is carefully designed to benefit existing, future
and long-term shareholders.
Summary
Your Board will continue to ensure an appropriate environment within which to
deliver growth and innovation whilst maintaining high standards of governance
and risk management.
I look forward to the Group continuing to break this year's newly set records
as the benefits from various strategic plans and innovative projects flow
through to an increase in your company's value.
Robin Paynter Bryant
Chairman
Chief Executive Officer's Statement
DELIVERING GROWTH AND SUSTAINABLE VALUE
A new record performance for the Group as we continue to take market share.
I am pleased to report another year of strong growth and profitability. This
marks our fifth consecutive year of profitable growth, reinforcing my
confidence that our strategy continues to deliver value to our growing
investor base.
Yü Energy
Our gas and electricity supply business has performed strongly, delivering
year on year organic meter point growth of 49% and combined volume growth
("EQVS") of 14%, increasing our market share to 3.5%.
Whilst I'm pleased with our full year performance and confident in the
strength and predictability of our forward-facing business model, supported by
our Digital by Default strategy, I believe we can grow even faster and deliver
even better shareholder returns. To this end, my team and I have secured a
Board-approved mandate to invest a further £9m to deliver our next three year
business plan.
I have been clear in my ambition to significantly scale the Group and showcase
the business as a standout success story. Achieving our stated target of 7%
market share is firmly within our control. In 2025 alone, we successfully
contracted 11% of all market switching activity. Additional routes to market
are now in motion with increased technology integration across the business, I
believe 7% represents a prudent and achievable target. Further validation of
this trajectory comes from the recent independent leading consultancy for the
industry, The Cornwall Report, which confirms that Yü Energy is the
fastest-growing B2B supplier in the UK.
It is important to recognise that the demand for supplying and distributing
business gas and electricity to the end user will not diminish with the
introduction of technology or predatory pricing but instead will become more
competitive. Suppliers who are not agile or entrepreneurial will over the
course of the next few years struggle to maintain market share as
underinvestment and creaking systems begin to take their toll. While our focus
remains to "stick to our knitting" through strategic and sustainable organic
growth, we remain wide awake and attentive for book purchasing opportunities.
Yü Smart and meter ownership
Our Smart business, which primarily focuses on the installation and
maintenance of smart meters to help customers better manage their energy usage
and payment behaviour, continues to complement our supply business. That
said, I am disappointed that we did not meet our installation targets this
year.
During the year, we implemented automated booking and engineering scheduling
capabilities to support future demand. However, we were slow to adapt to these
changes, and the transition from manual spreadsheets to automation created
temporary delays. We also underestimated the level of resourcing required to
support the increasing installation demand generated by our retail business.
I am confident that these short-term growing pains are now behind us and that
we are well positioned to deliver our 2026 installation targets.
Growing strategic partnerships
I'm pleased to welcome HSBC as the Group's preferred corporate banking
partner, following a significant and robust RFI tender process involving a
number of top-tier corporate finance institutions.
HSBC has demonstrated a particularly strong appetite for, and understanding
of, our business operations and is well aligned with the Group's corporate
banking requirements as we pursue our ambition to become the largest and
fastest-growing independent energy supplier in the UK.
Additionally, our partnership with Shell Energy remains strong. Our
significant volume growth over the past few years has been applauded by Shell
and corroborates our strong alignment for market growth within our respective
businesses. Our collaborative alliance and strong working relationship will
continue to bear fruit.
It should also be noted that a significant factor in selecting the
counterparty that best aligned with and supported our needs did not hinder our
growth. We will not again be beholden to, or have our strategy dictated by,
trading or banking counterparties who are not aligned with the Group's
interests.
Three year business plan
As Chief Executive of this exceptional business, I have carefully reflected on
the Group's long-term trajectory, the pace of growth we can responsibly
achieve, and the sustainable value that growth can create for our
shareholders, customers and communities.
Being mindful that over the past five years we have delivered a consistent,
disciplined performance. Our focus on operational excellence, service quality,
prudent financial management and robust risk controls have positioned the
Group as a reliable, predictive operator and a value creating investment for
long-term shareholders. Importantly, this growth has been underpinned by
strong governance and a clear commitment to regulatory compliance. Whilst my
team has remained rightly focused on delivering cyclical results, we have also
been preparing deliberately for the next phase of our growth. Behind the
scenes, we have strengthened our operational capabilities, enhanced systems
resilience, invested in leadership capacity and refined our capital allocation
framework, positioning us in 2026 to further invest in additional value
creating opportunities.
Our three year business plan, SS2B, maintains the same disciplined approach
that has characterised our success to date. We will continue to prioritise
high standards of service, operational efficiency, prudent debt management and
strict adherence to trading and risk mandates.
SS2B, reflects a step-change in our ambition. I am confident in our ability to
deliver against our three year business plan and take advantage of the
opportunity to expand our market presence within the UK.
Our approach to capital allocation will remain disciplined, with all projects
self-funded via in-year earnings. We will prioritise projects that enhance
resilience, improve efficiency, strengthen the long-term value of our asset
base and underpin a stable and predictable earnings profile.
This approach enables sustainable cash generation and prudent leverage to
support reinvestment in sales and technology, maintain a robust balance sheet,
strengthening liquidity, and deliver attractive long-term shareholder returns.
Sustainable growth is not a separate initiative, it's embedded within our
operating model and long-term planning.
Our business has been built for durability. The investments we are making this
year are designed to enhance resilience, scale and sustainability over the
coming years, not simply reporting cycles. With strong foundations,
disciplined execution and a clear strategic roadmap, we are confident in our
ability to deliver consistent performance, and long-term value for all
stakeholders. Central to our medium-term success is the Group's ability to
pivot towards value creating opportunities and while we have achieved success
domestically, I am pleased to have established a subsidiary 'hub of talent'
and office presence in the UAE.
Our UAE office represents an exciting new opportunity for us to deliver
operational improvements and efficiencies through the development of robotic
technology and AI automation that will accelerate our growth ambitions while
positioning ourselves as the tech outlier and disruptor in the B2B energy
space.
I am personally leading this strategy and, as such, I am spending more time in
the UAE supported by my fantastic UK team, and I look forward to updating you
on progress in due course.
We have made a great start to 2026, and with a strong forward‑contracted
order book already locked in and a focused and capable workforce to help
deliver the full year targets, I am confident the Group will enjoy continued
growth in our key performance indicators, and I look forward to the year ahead
with confidence.
Summary
Finally, it takes a special kind of individual to thrive in a fast-paced,
entrepreneurial environment with high expectations and slim margins for error.
I am proud to lead an entire workforce of such people, all of whom are
dedicated to my quest and ambition for this Group. To my team, thank you for
your extraordinary efforts in helping the business achieve its 2025 targets.
Bobby Kalar
Chief Executive Officer
Finance Review
STRONG AND SUSTAINABLE EARNINGS ALONGSIDE SIGNIFICANT GROWTH
Providing sustainable, profitable growth, with strong momentum into 2026.
In overview
· Revenue increased 8% to £700m (2024: £646m)
· Adjusted EBITDA increased 4% to £51m (2024: £49m)
· Profit before tax increased 9% to £49m (2024: £45m)
· Net cash inflow of £21m (2024: £53m, including one-off £50m return
of cash collateral)
· Closing cash of £106m, representing 631p per share (2024: 508p)
· Adjusted fully diluted EPS of 216p, up 3% (2024: 210p)
· Delivering on progressive dividend policy, with return increased by
12%
· Final dividend of 45p per share recommended, following 22p interim
payment
· Forward contracted revenue of £1.4bn (2024: £1.0bn)
· Investment in smart meters providing ILARR(3) of £2.2m (2024:
£1.3m)
Financial metrics
£'m unless stated 2025 2024 Change
(* % of revenue)
Revenue 700.4 645.5 +8.5%
Gross margin* % 14.3% 14.5% -0.2%
Net customer contribution(1)* % 11.7% 12.5% -0.8%
General overheads* % (4.4%) (4.9%) +0.5%
Adjusted EBITDA* % 7.2% 7.6% -0.4%
Adjusted EBITDA(2) 50.6 48.8 +1.8
Profit before tax 48.7 44.5 +4.2
Net cash flow 20.7 52.7 -32.0
Cash 105.9 85.2 +20.7
Earnings per share (adjusted, fully diluted) 216p 210p +6p
Dividend per share (interim and final) 67p 60p +7p
Other metrics
£'m unless stated 2025 2024 Change
One year forward contracted revenue(4) 668 566 +18%
Aggregate contracted revenue(4) 1.4bn 1.0bn +40%
Equivalent volume of energy supplied(5) 2.5 TWh 2.2 TWh +14%
Smart meter assets, ILARR(3) 2.2 1.3 +0.9
Overdue customer receivables(6) 4 days 3 days +1 day
Results summary
I am pleased to report the Group has continued to deliver sustained profitable
growth, as well as significant growth in both market share and cash
generation. The energy market had continued to normalise through 2025 after
significant market turmoil over the previous five years, with the Group
delivering ongoing revenue growth despite declining market prices. Recent
global events have created renewed uncertainty to commodity prices. Continued
growth in EPS and cash generation, the dividend for 2025 of 67p (including a
45p recommended final dividend) per share is up 12% from 2024.
Delivering organic volume and meter growth
Revenue of £700m (2024: £646m) is an increase of 8%, with revenue achieving
a compound annual growth rate ("CAGR") of 47% since 2020.
Meter points contracted grew by 49% to 131k at the end of 2025, with the
average number of meter points supplied during the year up 29%. Average
consumption per meter fell by 12% during 2025 from 31.2 MWh ("megawatt hours")
to 27.6 MWh, as a result of which EQVS to customers increased by 14% to 2.5
TWh. Revenue per MWh of EQVS has decreased 6% from £292 in 2024 to £275 in
2025 as a result of lower global commodity prices.
The Group's forward contract book provides ongoing visibility and security of
future revenues which underpin 2026 and 2027 revenues. As the energy market
normalised, customer demand for increased contract length is growing with 8%
growth from 2024, increasing certainty but reducing the annualised bookings
with reduced customer renewal opportunities as they hold longer contracts.
The aggregate contract book grew 40% to £1.4bn of secured future revenue, of
which £668m will be delivered in 2026.
We have seen H2 2025 bookings and forward contracted revenue converging at a
price around 5% below that delivered in 2025, demonstrating that the
historical high prices have now largely washed through. Based on current
market conditions, it is expected that commodity prices will fluctuate
dependent on geopolitical and macroeconomic factors with some planned growth
in non-commodity prices as a result of UK government policy.
Sustainable profitability as we scale
Adjusted EBITDA has increased by 4%, with net profit increasing by 7%. This
has led to growth in earnings per share of 7% on a basic, reported basis and
3% (to 216p) on an adjusted, diluted basis.
Profitability met management expectations, with adjusted EBITDA of £51m
(2024: £49m), representing a 7.2% margin (2024: 7.6%); and 7.0% profit before
tax margin (2024: 6.9%).
Gross margin decreased, as expected, to 14.3% (2024: 14.5%) as industry and
commodity costs continued to stabilise with resultant less volatile commodity
prices increasing competition and therefore squeezing margins. Gross margin on
the over £1.4bn of contracted revenue continues to be underpinned by the
Group's closely managed commodity hedging strategy, which locks in contract
margin on signing of new contracts.
With changes to National Insurance and ongoing economic uncertainty, we have
taken a cautious view of the bad debt charge, increasing from 2.1% of revenue
in 2024 to 2.6% in 2025. While the bad debt percentage has increased for the
Group as a result of the impact of wider market challenges on our customers,
we remain confident that our internal approaches and strategies continue to
mitigate the risk and help deliver the right customer outcome.
General overheads decreased to 4.4% of revenue (2024: 4.9%) from the leverage
benefit of the Group's digital strategy, with cost to serve, systems and
certain fixed costs not increasing with revenue growth as tight control of
costs ensures the business scales appropriately.
Adjusted EBITDA reconciliation
£'m 2025 2024
Adjusted EBITDA 50.6 48.8
% of revenue 7.2% 7.6%
Adjusted items:
Non-recurring operational costs (0.6) (1.4)
Share-based payment charges (2.1) (4.0)
Depreciation and amortisation (2.9) (2.5)
Statutory operating profit 45.0 40.9
Net finance income 3.7 3.6
Profit before tax 48.7 44.5
As further disclosed in note 7 of the financial statements, adjusted EBITDA
provides management with a profitability measure based on business trading
performance. It excludes £0.6m of costs that have been incurred by the Group
diversifying and investing into operations that are outside of the normal
course of business and therefore excluded from adjusted EBITDA.
Adjusted EBITDA also excludes £2.1m (2024: £4.0m) of share-based payment
charges as they are not related to business operational trading which provides
clearer views of operating cash generation in the year.
Net finance income remained relatively flat at £3.7m (2024: £3.6m) with the
improvement in the Group's cash balance offset by the reducing Bank of England
base rate. Profit before tax increased £4m to £49m (2024: £45m).
Increasing cash, whilst investing for future returns
Cash has continued to grow, increasing from £85m to £106m. This significant
cash generation, supported via the commodity arrangement with Shell, allows
for strategic investments to unlock additional value without any requirement
for additional debt, whilst increasing shareholder distribution.
Movement in cash
Cash flow £'m 2025 2024
Adjusted EBITDA 50.6 48.8
Commodity trading cash collateral - 49.8
Early payment of industry ROC liability - (9.0)
ROC liability movement 17.4 13.5
Customer acquisition costs (19.1) (12.3)
Corporation tax payments (11.1) (11.3)
Other working capital movement (1.5) (7.4)
Operating cash flow 36.3 72.1
Investment in smart meter assets (3.3) (4.5)
Other investing activities (5.5) (5.2)
Share buy-back - (4.0)
Dividends paid (10.6) (9.4)
Other financing activities 3.8 3.7
Net cash movement in year 20.7 52.7
Closing cash balance 105.9 85.2
Opening cash balance 85.2 32.5
Corporation tax payments totalled £11m (2024: £11m), with tax losses now
utilised.
In total, operating cash flow of £36m (2024: £72m) provides a continued
strong base despite significant investments in operating costs to drive growth
and/or margin improvement.
Net current assets increased by £14m to £60m (2024: £46m), reflecting the
strength of the Group's cash position and balance sheet.
The Group continues to drive its investment in smart meter activities, with
£3.3m capital investment (2024: £4.5m). In addition to the clear customer
benefits of smart meters, they also provide the Group with increased hedging
and customer outcome benefits, as well as an index-linked annuity income
stream. The Group exited 2025 with an ILARR of £2.2m (2024: £1.3m),
providing a growing impact on forward EBITDA secured by a long-term
capital-based return. The Group continues to plan additional investment going
forward and is expected to significantly increase this income stream.
The cash balance of £106m (2024: £85m) includes £74m of future liabilities
(2024: £55m); annual ROC liability payment of £53m (2024: £35m) payable in
August 2026 and quarterly HMRC liabilities of £21m (2024: £20m).
The Group's Capital Allocation Strategy remains strong, with our focus
remaining to use our earnings to continue funding customer acquisition, smart
meters and system investment, as well as targeted investments to support the
long-term Digital by Default strategy and deliver improved products and
services to our customers. We continue to deliver a progressive dividend
strategy whilst funding ongoing organic growth.
Other financing activities include repayments of certain lease obligations in
respect of vehicles together with interest on borrowings wholly secured on the
investment in smart meters. 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.
Increased shareholder distributions and progressive dividend policy
The Group's cash performance enabled continued growth in dividend payments,
the total awarded rising by 13% to £10.6m (2024: £9.4m).
An interim dividend of 22p (2024: 19p) per share is to be supplemented by a
final recommended dividend of 45p (2024: 41p) per share. The Group has
previously announced a progressive dividend policy, increasing returns with
expected EPS growth, and maintaining dividend cover at 3x over the short to
medium term.
The final recommended dividend of 45p per share is payable on 18 June 2026.
The shares will go ex-dividend on 28 May 2026, and the record date is 29 May
2026.
Summary: continued financial progression
In summary, the Board is very pleased with the continued delivery of sustained
operational and financial growth, cash generation and again being the fastest
growing B2B supplier in the UK. We have increased our market share to 3.5% and
contract book by 40%, as we continue to deliver upon our Digital by Default
strategy and take market share from the Big 6 providers. The scale of
opportunity to the Group remains both exciting and deliverable. With the
foundations in place, the Board has agreed a new three year plan which will
see a step-change in our ambition to accelerate our growth to more than double
our market share and continue to deliver shareholder value.
As the Group continues to grow, our partners' support has grown with us. Shell
continues to provide a highly supportive commodity hedging agreement. We have
also invested in our banking arrangements in 2025, establishing a strategic
relationship with HSBC to support our growth plans as needed through our next
three year plan. It is pleasing to see the ongoing support and commitment of
our strategic partners.
The introduction of market-wide half hourly settlement combined with the
consultation from Ofgem to universally implement smart-contingency contracts
from 2027 underpins our investment and strategy in Yü Smart. Meter ownership
continues to provide a beneficial investment case with a valuable 15+ year
annuity income stream, already at £2.2m at the end of 2025. The ongoing
relationship with Siemens Finance, which was increased by £10m in 2025,
continues to support this growth.
The development of smart meters provides material benefits in risk management
and optimisation in our supply business, alongside customer benefits.
Dividends and shareholder distributions have continued to increase year on
year to £10.6m (2024: £9.4m), enabled by strong cash generation. The Board
is confident that the stated progressive dividend policy and strong
positioning of the Group provide substantial onward potential for dividend and
distribution growth in 2026 and beyond.
Andy Simpson
Chief Financial Officer
1. Net customer contribution represents gross margin less bad debt.
2. Adjusted EBITDA: Earnings before interest, tax, depreciation and
amortisation, non-recurring operating costs and share-based payment. See
reconciliation in note 7 to the financial statements below.
3. ILARR: Index-linked, annualised recurring revenue, estimated from
investment in smart meters.
4. The estimated revenue value from agreed contracts with customers.
5. Equivalent volume of energy supplied ("EQVS") based on electricity volume
equivalent where 1 MWh of electricity is worth approximately 4 times a MWh of
gas (in revenue terms) as per Ofgem analysis.
6. Overdue customer receivables is expressed in days of sales, and relates to
the total balance, net of provisions, of accrued income which is outside of
the normal billing cycle, plus overdue trade receivables (net of VAT and CCL).
Consolidated statement of profit and loss and other comprehensive income
For the year ended 31 December 2025
Notes 31 December 31 December
2025 2024
£'m £'m
Revenue 700.4 645.5
Cost of sales (600.3) (551.6)
Gross profit 100.1 93.9
Operating costs before non-recurring items and share-based payment charges (34.0) (34.1)
Operating costs - non-recurring items 7 (0.6) (1.4)
Operating costs - share-based payment charges 25 (2.1) (4.0)
Total operating costs (36.7) (39.5)
Net impairment losses on financial and contract assets 19 (18.4) (13.5)
Operating profit 4 45.0 40.9
Finance income 5 4.3 4.2
Finance costs 5 (0.6) (0.6)
Profit before tax 48.7 44.5
Taxation 9 (12.8) (11.0)
Profit and total comprehensive income for the year 35.9 33.5
Earnings per share
Basic 8 214p 200p
Diluted 8 201p 187p
Consolidated balance sheet
At 31 December 2025
Notes 31 December 31 December
2025 2024
£'m £'m
ASSETS
Non-current assets
Goodwill 12 2.0 0.2
Intangible assets 13 5.8 2.8
Property, plant and equipment 14 15.8 12.3
Right-of-use assets 15 1.0 1.8
Deferred tax assets 17 1.8 2.8
Trade and other receivables 19 24.5 11.8
Investment in subsidiaries 16 - -
50.9 31.7
Current assets
Inventory 18 0.4 0.4
Trade and other receivables 19 117.7 97.1
Cash and cash equivalents 20 105.9 85.2
224.0 182.7
Total assets 274.9 214.4
LIABILITIES
Current liabilities
Trade and other payables 21 (160.7) (133.7)
Corporation tax payable 9 (3.0) (2.5)
Borrowings 22 (0.5) (0.2)
(164.2) (136.4)
Non-current liabilities
Trade and other payables 21 (3.1) (2.9)
Borrowings 22 (9.8) (4.8)
(12.9) (7.7)
Total liabilities (177.1) (144.1)
Net assets 97.8 70.3
EQUITY
Share capital 24 0.1 0.1
Share premium 24 - -
Merger reserve 24 - -
Retained earnings 24 97.7 70.2
97.8 70.3
Consolidated statement of changes in equity
For the year ended 31 December 2025
Share Share Merger Retained Total
capital premium reserve earnings £'m
£'m £'m £'m £'m
Balance at 1 January 2025 0.1 - - 70.2 70.3
Total comprehensive income for the year
Profit for the year and other comprehensive income - - - 35.9 35.9
- - - 35.9 35.9
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payments - - - 1.9 1.9
Deferred tax on share-based payments - - - 0.3 0.3
Equity dividends paid in the year - - - (10.6) (10.6)
Total transactions with owners of the Company - - - (8.4) (8.4)
Balance at 31 December 2025 0.1 - - 97.7 97.8
Balance at 1 January 2024 0.1 11.9 (0.1) 34.9 46.8
Total comprehensive income for the year
Profit for the year and other comprehensive income - - - 33.5 33.5
- - - 33.5 33.5
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payments - - - 0.9 0.9
Deferred tax on share-based payments - - - 2.0 2.0
Proceeds from share issues - 0.4 - - 0.4
Buy-back of shares - - - (4.0) (4.0)
Share premium cancellation - (12.3) - 12.3 -
Transfer from reserve - - 0.1 - 0.1
Equity dividends paid in the year - - - (9.4) (9.4)
Total transactions with owners of the Company - (11.9) 0.1 1.8 (10.0)
Balance at 31 December 2024 0.1 - - 70.2 70.3
Consolidated statement of cash flows
For the year ended 31 December 2025
31 December 31 December
2025 2024
£'m £'m
Cash flows from operating activities
Profit for the financial year 35.9 33.5
Adjustments for:
Depreciation of property, plant and equipment 1.0 0.7
Depreciation of right-of-use assets 0.8 1.0
Amortisation of intangible assets 1.1 0.8
Decrease in inventory - 0.2
Increase in trade and other receivables (14.4) (11.2)
Increase in customer acquisition costs (19.1) (12.3)
Decrease / (increase) in industry related deposits 0.6 (2.6)
Decrease in cash collateral for commodity trading arrangements - 49.8
Increase / (decrease) in trade and other payables 8.8 (4.9)
Increase in renewable obligation liability 17.4 13.5
National Insurance on share options exercised - (0.6)
Finance income (4.3) (4.2)
Interest received 4.1 4.1
Finance costs 0.6 0.6
Taxation charge 12.8 11.0
Corporation tax paid (11.1) (11.3)
Share-based payment charge 2.1 4.0
Net cash from operating activities 36.3 72.1
Cash flows from investing activities
Purchase of property, plant and equipment (0.2) (2.2)
Smart meter asset capital expenditure (3.3) (4.5)
Smart meter assets under construction (1.0) (1.7)
Payment of software development costs (2.1) (1.3)
Payment for acquisition of subsidiary, net of cash acquired (2.2) -
Net cash used in investing activities (8.8) (9.7)
Cash flows from financing activities
Borrowings drawn down 5.6 4.6
Interest paid on borrowings (0.5) (0.2)
Interest paid on lease obligations (0.1) (0.2)
Repayment of principal element of borrowings (0.3) (0.1)
Repayment of principal element of lease obligations (0.9) (0.8)
Net proceeds from share option exercises - 0.4
Cash paid on repurchase of shares - (4.0)
Dividends paid (10.6) (9.4)
Net cash used in financing activities (6.8) (9.7)
Net increase in cash and cash equivalents 20.7 52.7
Cash and cash equivalents at the start of the year 85.2 32.5
Cash and cash equivalents at the end of the year 105.9 85.2
Notes to the 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. The Company is limited by
shares and the Company's ordinary shares are traded on AIM.
These condensed consolidated financial statements ("Financial Statements") as
at and for the year ended 31 December 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 small and medium sized
entities ("SMEs") and larger corporates in the UK, and the installation,
ownership and service of smart meters.
Basis of preparation
Whilst the financial information included in this preliminary announcement has
been prepared on the basis of the requirements of UK-adopted International
Accounting Standards in conformity with the requirements of the Companies Act
2006 and effective at 31 December 2025, this announcement does not itself
contain sufficient information to comply with International Accounting
Standards.
The financial information set out in this preliminary announcement does not
constitute the Company's statutory financial statements for the years ended 31
December 2025 or 2024 but is derived from those financial statements.
Statutory financial statements for 2024 have been delivered to the registrar
of companies and those for 2025 will be delivered in due course. The auditors
have reported on those financial statements; their reports were (i)
unqualified and (ii) did not contain a statement under section 498 (2) or (3)
of the Companies Act 2006.
The condensed consolidated Financial Statements are presented in British
pounds sterling (£), which is the presentation currency of the Group. All
values are rounded to the nearest million (£'m), except where otherwise
indicated.
Going concern
The financial statements are prepared on a going concern basis.
At 31 December 2025 the Group had net assets of £97.8m (2024: £70.3m), cash
of £105.9m (2024: £85.2m) and net current assets of £59.8m (2024: £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 7) in 2025 of £50.6m (2024: £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, with continued growth in cash reserves to
£105.9m at year end (2024: £85.2m). 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 the Group's cash reserves to further their
strategic operational aims, delivering the Group's strategic priorities
through investment in subscriber acquisition costs, Digital by Default and
other opportunities within the Capital Allocation Framework. 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 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 Group's effective hedging strategy against volatile 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. While the bad debt percentage has increased
for the Group as a result of the impact of wider market challenges on our
customers, our internal approaches and strategies have mitigated this risk
over the year and forecast to continue to do so going forward.
Hedging arrangements and Trading Agreement
A 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 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 liquidity or covenant
compliance scenario issues to be remote 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.
Basis of consolidation
The consolidated accounts of the Group include the assets, liabilities and
results of the Company and subsidiary undertakings in which Yü Group PLC has
a controlling interest. All intra-Group assets and liabilities, equity,
income, expenses and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation.
Revenue recognition
The Group enters into contracts to supply gas, electricity and water to its
customers, and provides availability of smart meter assets. Revenue represents
the fair value of the consideration received or receivable from the sale of
actual and estimated gas, electricity and water supplied during the year, net
of discounts, climate change levy and value-added tax. Revenue is recognised
on consumption, being the point at which the transfer of the goods or services
to the customer takes place and based on an assessment of the extent to which
performance obligations have been achieved.
Due to the nature of the energy supply industry and its reliance with some
traditional (non-smart) meter types upon estimated meter readings, gas,
electricity and water revenue includes the directors' best estimate of
differences between estimated sales and billed sales. The Board remain focused
upon the smart meter roll out through Yü Smart to mitigate this risk. The
Group makes estimates of customer consumption based on available industry
data, and also seasonal usage curves that have been estimated from industry
available historical actual usage data, as appropriate for each site supplied
by the Group.
Revenues for the supply of metering services or the installation of metering
assets are, where for Group companies, eliminated on consolidation.
Government support to customers
The Energy Bills Discount Scheme ("EBDS"), implemented by HM Government
through BEIS, was in place from 1 April 2023 to 31 March 2024 and resulted in
customers being provided financial support through a contribution to their
energy charges. The scheme has now closed.
Under the EBDS arrangement, amounts receivable from BEIS do not impact the
Group's contract with customers; therefore, the amounts contributed under the
schemes are treated as a cash payment towards customer bills. As such, revenue
recognised is based on the amount chargeable per the contract with customers
which is gross of the amount contributed through EBDS.
Costs to obtain a contract
Under IFRS 15 "Revenue from Contracts with Customers", the incremental costs
of obtaining a contract are recognised as an asset if they are expected to be
recovered. These costs include expenditures that would not have been incurred
if the contract had not been secured and include broker sales commissions
payable for energy contracts with customers.
Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise trade and other receivables,
cash and cash equivalents and trade and other payables.
Trade and other receivables
Trade and other receivables are recognised initially at fair value. Subsequent
to initial recognition they are measured at amortised cost using the effective
interest method, less any specific impairments and expected credit losses.
Impairment
The Group has elected to measure credit loss allowances for trade receivables
and accrued income at an amount equal to lifetime expected credit losses
("ECLs"). Specific impairments are made when there is a known impairment need
against trade receivables and accrued income. When estimating ECLs, the Group
assesses reasonable, relevant and supportable information, which does not
require undue cost or effort to produce. This includes quantitative and
qualitative information and analysis, incorporating historical experience,
informed credit assessments and forward-looking information. Loss allowances
are deducted from the gross carrying amount of the assets.
Trade and other payables
Trade and other payables are recognised initially at fair value. Subsequent to
initial recognition they are measured at amortised cost using the effective
interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and short-term deposits
(monies held on deposit are accessible with one month's written notice). Cash
and cash equivalents exclude any cash collateral posted with third parties and
bank accounts which are secured by the Group's bankers (or others).
Derivative financial instruments
The Group uses commodity purchase contracts to hedge its exposures to
fluctuations in gas and electricity commodity prices. The Group's main
commodity trading activities are expected to be delivered entirely to the
Group's customers and therefore the Group classifies them as "own use"
contracts and outside the scope of IFRS 9 "Financial Instruments". This is
achieved when:
• a physical delivery takes place under all such contracts;
• the volumes purchased or sold under the contracts correspond to the
Group's operating requirements; and
• no part of the contract is settled net in cash.
This classification as "own use" allows the Group not to recognise the
commodity purchase contracts, at fair value, on its balance sheet at the year
end.
To the extent that any commodity purchase contracts do not meet the criteria
listed above, then such contracts are recognised at fair value under IFRS 9.
The gain or loss on remeasurement to fair value is recognised immediately in
profit or loss.
Classification of financial instruments issued by the Group
Financial instruments issued by the Group are treated as equity only to the
extent that they meet the following two conditions:
(a) they include no contractual obligations upon the Group to deliver cash
or other financial assets or to exchange financial assets or financial
liabilities with another party under conditions that are potentially
unfavourable to the Group; and
(b) where the instrument will or may be settled in the Group's own equity
instruments, it is either a non-derivative that includes no obligation to
deliver a variable number of the Company's own equity instruments or is a
derivative that will be settled by the Company exchanging a fixed amount of
cash or other financial assets for a fixed number of its own equity
instruments.
To the extent that this definition is not met, the proceeds of issue are
classified as a financial liability. Where the instrument so classified takes
the legal form of the Company's own shares, the amounts presented in these
financial statements for called up share capital and share premium account
exclude amounts in relation to those shares.
Details of the sensitivity analysis performed in relation to the Group's
financial instruments are included in note 23.
Business Combinations
The Group applies the acquisition method in accounting for business
combinations. The consideration transferred by the Group to obtain control of
a subsidiary is calculated as the sum of the acquisition-date fair values of
assets transferred, liabilities incurred and the equity interests issued by
the Group, which includes the fair value of any asset or liability arising
from a contingent consideration arrangement. Acquisition costs are expensed as
incurred.
For business combinations, the Group recognises any non-controlling interest
in the acquiree at the non-controlling interest's proportionate share of the
acquiree's net assets. For business combinations where the Group has entered
into a put and call option arrangement over future equity interest, the
present obligation to acquire the equity interest is recognised as a financial
liability in accordance with IAS 32 and not recognised as non-controlling
interest.
If the Group acquires a controlling interest in a business in which it
previously held an equity interest, that equity interest is remeasured to fair
value at the acquisition date with any resulting gain or loss recognised in
profit or loss or other comprehensive income, as appropriate.
Consideration transferred as part of a business combination does not include
amounts related to the settlement of pre-existing relationships. The gain or
loss on the settlement of any pre-existing relationship is recognised in
profit or loss.
Assets acquired and liabilities assumed are measured at their acquisition-date
fair values.
Goodwill
Goodwill represents the excess of the cost of a business combination over the
Group's interest in the fair value of identifiable assets, liabilities and
contingent liabilities acquired.
Cost comprises the fair value of assets given, liabilities assumed and equity
instruments issued, plus the amount of any non-controlling interests in the
acquiree plus, if the business combination is achieved in stages, the fair
value of the existing equity interest in the acquiree. Contingent
consideration is included in cost at its acquisition date fair value and, in
the case of contingent consideration classified as a financial liability,
remeasured subsequently through profit or loss. Direct costs of acquisition
are recognised immediately as an expense.
Goodwill is capitalised as an intangible asset with any impairment in carrying
value being charged to the consolidated statement of comprehensive income.
Where the fair value of identifiable assets, liabilities and contingent
liabilities exceed the fair value of consideration paid, the excess is
credited in full to the consolidated statement of comprehensive income on the
acquisition date.
Goodwill is not amortised, as it is subject to impairment review.
Intangible assets
Intangible assets that are acquired separately by the Group are stated at cost
less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired in a business combination are initially recognised
at their fair value at the acquisition date. After initial recognition,
intangible assets acquired in a business combination are reported at their
initial fair value less amortisation and accumulated impairment losses.
Software and system assets are recognised at cost, including those internal
costs attributable to the development and implementation of the asset in order
to bring it into use. Cost comprises all directly attributable costs,
including costs of employee benefits arising directly from the development and
implementation of software and system assets.
Amortisation is charged to the statement of profit and loss on a straight-line
basis over the estimated useful lives of the intangible assets from the date
they are available for use. The estimated useful lives are as follows:
•
Licence
- 35 years
• Customer contract books
- Over the period of the contracts acquired
(typically 2-3 years)
• Software and systems
- 3 to 5 years
Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated
depreciation and accumulated impairment losses.
Depreciation is recognised in profit or loss on a straight-line basis over the
estimated useful lives of each part of an item of property, plant and
equipment. The estimated useful lives for the current and comparative periods
are as follows:
• Freehold land
- Not depreciated
• Freehold
property
- 30 years
• Plant and machinery
- 5 years
• Installed smart meter assets
- 15 years
• Assets under construction
- Not depreciated
• Computer equipment
- 3 years
• Fixtures and fittings
- 3 years
Smart meter assets
The Group's meter asset portfolio recorded within property, plant and
equipment comprises both installed and uninstalled meter assets.
Newly purchased meter units and other significant ancillary parts which are
critical for the meter unit to operate upon installation (such as regulators)
are initially recognised within property, plant and equipment at cost.
Upon installation, an installed meter asset comprises three key components
including the meter unit, the significant ancillary parts and the cost of
installation (comprising labour and consumables).
Newly purchased uninstalled meter units and ancillary parts are not subject to
depreciation as they are not yet available for use in the location and
condition necessary to be capable of operating in the manner intended by
management. Depreciation on newly purchased meter units and ancillary parts
commences once the asset has been fully installed.
The estimated useful economic life of installed smart meter assets is defined
above.
Upon removal of an installed meter asset, the meter unit condition is reviewed
to determine re-installation viability and classified as temporarily idle
until re-installed. The meter continues to be depreciated throughout. Meter
units that are not deemed fit for re-use are disposed of.
Leased assets
The Group as a lessee
For any new contract entered into the Group considers whether a contract is,
or contains, a lease. A lease is defined as "a contract, or part of a
contract, that conveys the right to use an asset (the underlying asset) for a
period of time in exchange for consideration". To apply this definition, the
Group assesses whether the contract meets three key evaluations, which are
whether:
• the contract contains an identified asset, which is either
explicitly identified in the contract or implicitly specified by being
identified at the time the asset is made available to the Group;
• the Group has the right to obtain substantially all of the economic
benefits from use of the identified asset throughout the period of use,
considering its rights within the defined scope of the contract; and
• the Group has the right to direct the use of the identified asset
throughout the period of use. The Group assesses whether it has the right to
direct "how and for what purpose" the asset is used throughout the period of
use.
Measurement and recognition of leases as a lessee
At the lease commencement date, the Group recognises a right-of-use asset and
a lease liability on the balance sheet. The right-of-use asset is measured at
cost, which is made up of the initial measurement of the lease liability, any
initial direct costs incurred by the Group, an estimate of any costs to
dismantle and remove the asset at the end of the lease, and any lease payments
made in advance of the lease commencement date (net of any incentives
received).
The Group depreciates the right-of-use assets on a straight-line basis from
the lease commencement date to the earlier of the end of the useful life of
the right-of-use asset or the end of the lease term. The Group also assesses
the right-of-use asset for impairment when such indicators exist.
At the commencement date, the Group measures the lease liability at the
present value of the lease payments unpaid at that date, discounted using the
interest rate implicit in the lease, if that rate is readily available, or the
Group's incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up
of fixed payments (including in-substance fixed), variable payments based on
an index or rate, amounts expected to be payable under a residual value
guarantee and payments arising from options reasonably certain to be
exercised.
Subsequent to initial measurement, the liability will be reduced for payments
made and increased for interest. It is remeasured to reflect any reassessment
or modification, or if there are changes in in-substance fixed payments.
When the lease liability is remeasured, the corresponding adjustment is
reflected in the right-of-use asset, or profit and loss if the right-of-use
asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low value
assets using the practical expedients. Instead of recognising a right-of-use
asset and lease liability, the payments in relation to these are recognised as
an expense in profit or loss on a straight-line basis over the lease term.
On the statement of financial position, right-of-use assets are separately
identified and lease liabilities have been included in trade and other
payables.
Impairment of goodwill, intangible assets and property, plant and equipment
Impairment tests on goodwill and other intangible assets with indefinite
useful economic lives are undertaken annually at the financial year end. Other
non-financial assets are subject to impairment tests whenever events or
changes in circumstances indicate that their carrying amount may not be
recoverable. Where the carrying value of an asset exceeds its recoverable
amount (i.e. the higher of value in use and fair value less costs to sell),
the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual
asset, the impairment test is carried out on the smallest group of assets to
which it belongs for which there are separately identifiable cash flows; its
cash generating units ('CGUs'). Goodwill is allocated on initial recognition
to each of the Group's CGUs that are expected to benefit from a business
combination that gives rise to the goodwill.
Impairment charges are included in profit or loss, except to the extent they
reverse gains previously recognised in other comprehensive income. Impairment
loss recognised for goodwill is not reversed.
Inventory
Inventory is held at the lower of cost, being all directly attributable costs,
and net realisable value.
Share-based payments
Share-based payment arrangements in which the Group receives goods or services
as consideration for its own equity instruments are accounted for as
equity-settled share-based payment transactions, regardless of how the equity
instruments are obtained by the Group.
The cost of equity-settled transactions with employees is measured by
reference to the fair value on the date they are granted. Where there are no
market conditions attaching to the exercise of the option, the fair value is
determined using a range of inputs into a Black-Scholes pricing model. Where
there are market conditions attaching to the exercise of the options a
Black-Scholes option pricing model is used to determine fair value based on a
range of inputs. The value of equity-settled transactions is charged to the
statement of comprehensive income over the period in which the service
conditions are fulfilled with a corresponding credit to a share-based payments
reserve in equity.
Cash-settled share-based awards are initially measured at fair value at the
date of grant. Subsequently the awards are fair valued at each reporting date
and a proportionate expense for the duration of the vesting period elapsed is
recognised in profit and loss together with a liability on the balance sheet.
Employer's National Insurance costs arising and settled in cash on exercise of
unapproved share options are included in the share-based payment charge in the
profit or loss, with no corresponding credit to reserves in equity.
Pension and post-retirement benefit
The Group operates a defined contribution scheme which is available to all
employees. The assets of the scheme are held separately from those of the
Group in independently administered funds. Payments are made by the Group to
this scheme and contributions are charged to the statement of comprehensive
income as they become payable.
Taxation
Tax on the profit or loss for the period comprises current and deferred tax.
Tax is recognised in the statement of profit and loss except to the extent
that it relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable or receivable on the taxable income or
loss for the period, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous
periods.
Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The following temporary differences are not
provided for: the initial recognition of goodwill; the initial recognition of
an asset or liability in a transaction which is not a business combination and
at the time of the transaction affects neither accounting or taxable profit;
and investments in subsidiaries where the Group is able to control the timing
of the reversal of the difference and it is probable that the difference will
not reverse in the foreseeable future. The amount of deferred tax provided is
based on the expected manner of realisation or settlement of the carrying
amount of assets and liabilities, using tax rates enacted or substantively
enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that
the temporary difference can be utilised against future available taxable
profits.
Deferred tax assets and liabilities are only offset when there is both a legal
right to set-off and an intention to settle on a net basis.
Treasury shares
Consideration paid/received for the purchase/sale of treasury shares is
recognised directly in equity. Shares held by and disclosed as treasury shares
are deducted from contributed equity.
Any excess of the consideration received on the sale of treasury shares over
the weighted average cost of the shares sold is credited to share premium.
Fair value measurement
A number of assets and liabilities included in the Group's financial
statements require measurement at, and/or disclosure of, fair value.
The fair value measurement of the Group's financial and non-financial assets
and liabilities utilises market observable inputs and data as far as possible.
Inputs used in determining fair value measurements are categorised into
different levels based on how observable the inputs used in the valuation
technique utilised are (the 'fair value hierarchy'):
· Level 1: Quoted prices in active markets for identical items
(unadjusted)
· Level 2: Observable direct or indirect inputs other than Level 1
inputs
· Level 3: Unobservable inputs (i.e. not derived from market data)
The classification of an item into the above levels is based on the lowest
level of the inputs used that has a significant effect on the fair value
measurement of the item. Transfers of items between levels are recognised in
the period they occur.
Management uses various valuation techniques to determine the fair value of
financial instruments (where active market quotes are not available) and
non-financial assets. This involves developing estimates and assumptions
consistent with how market participants would price the instrument. Management
bases its assumptions on observable data as far as possible, but this is not
always available. In that case, management uses the best information
available.
Segmental reporting
In accordance with IFRS 8 "Operating Segments", the Group has made the
following considerations to arrive at the disclosure made in this financial
information.
IFRS 8 requires consideration of the Chief Operating Decision Maker ("CODM")
within the Group. In line with the Group's internal reporting framework and
management structure, the key strategic and operating decisions are made by
the Executive Committee, which regularly reviews the Group's performance and
balance sheet position and receives financial information for the Group as a
whole and acts in accordance with the overall strategy as set by the Board of
directors. Accordingly, the Executive Committee is deemed to be the CODM.
The Group's revenue and profit were predominantly delivered from its principal
activity, which is the supply of utilities to business customers in the UK,
and with an increasing additional revenue stream from the supply and
installation of smart meters. The Group's operational segments are:
• Retail - being the supply of electricity, gas and water to business
customers in the UK;
• Smart - being the provision of engineering and related services to
install and maintain smart and other meters;
• Metering assets - being the ownership and rental of smart metering
assets; and
• Group - representing centrally managed Group functions, and other
items which are not directly attributable to the other operating segments.
Segmental profit is measured at two profit levels, being operating profit, as
shown on the face of the statement of profit and loss, and adjusted EBITDA, as
utilised by management to manage the business segment activity (and as
reconciled to operating profit in note 7).
Assets, liabilities and cash flows related to the various segments are managed
at the Group level and are therefore not allocated or disclosed for each
segment. The Group does disclose non-current assets and additions of such
assets, allocation of goodwill and trade and other receivables by segment in
line with its management of the Group's operations.
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 7 and note 8.
Standards and interpretations
The Group has adopted all of the new or amended accounting standards and
interpretations that are mandatory for the current reporting period.
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting
periods that the Group has decided not to adopt early.
The following amendments are effective for the annual reporting period
beginning 1 January 2026:
· Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures)
· Contracts Referencing Nature-dependent Electricity (Amendments to
IFRS 9 and IFRS 7)
The following standards and amendments are effective for the annual reporting
period beginning 1 January 2027:
· IFRS 18 "Presentation and Disclosure in Financial Statements"
· IFRS 19 "Subsidiaries without Public Accountability:
Disclosures".
The Group is currently assessing the effect of these new accounting standards
and amendments. IFRS 18 "Presentation and Disclosure in Financial Statements",
which was issued by the IASB in April 2024 supersedes IAS 1 and will result in
major consequential amendments to IFRS Accounting Standards including IAS 8
"Basis of Preparation of Financial Statements" (renamed from "Accounting
Policies, Changes in Accounting Estimates and Errors"). Even though IFRS 18
may not have any effect on the recognition and measurement of items in the
consolidated financial statements, it is expected to have a significant effect
on the presentation and disclosure of certain items. These changes include
categorisation and sub-totals in the statement of profit or loss,
aggregation/disaggregation and labelling of information, and disclosure of
management-defined performance measures.
The Group does not expect to apply IFRS 19.
Significant judgements and estimates
The Group makes certain estimates and assumptions regarding the future.
Estimates and judgements are continually evaluated based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future, actual
experience may differ from these estimates and assumptions. The estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year
are discussed below.
Judgements
• the assessment of forward energy commodity contracts as "own use"
under IFRS 9;
The Group enters into forward purchase contracts to hedge its
position to closely match customers' expected demand over the term of the
contract and does not engage in speculative trading. Factors such as the
shape/granularity of traded products available (which do not perfectly align
with customer demand) and variations in energy consumed by customers (as a
result of varying customer behaviour and activity, and (particularly for gas)
the weather impact) can influence the demand of customers and the extent to
which the Group's forward commodity hedged position matches such customer
demand.
The Board considers the extent to which forward contracts are
entered into and continue to be held for the purpose of delivery of energy
that is matched to customer expected volume. Factors considered in making this
judgement include recent trading experience; historical accuracy in demand
forecasting; and growth in volumes supplied to customers. Based on an
assessment of these factors during the years ended 31 December 2024 and 31
December 2025, the Board considers that the forward commodity trades
outstanding at the balance sheet date are intended to be fully utilised for
the Group's "own use" to meet expected customer demand in the normal course of
business. The judgement in relation to forward contracts being for "own use"
results in such contracts not being assessed at fair value and therefore with
no unrealised financial derivative asset or liability recognised at the
balance sheet date.
Estimates and assumptions
• the estimated consumption (in lieu of accurate meter readings) of
energy by customers;
Revenue includes some sales invoices raised which, where no actual
meter read has been available, are based on industry data and estimates or
other source information. Such invoices can therefore represent estimates
which are lower or higher than the actual out-turn of energy consumption once
accurate meter readings are obtained. The utilisation of smart or automatic
meters is significant and growing in the Group, which reduces the amount
estimated on invoiced sales. Estimates of meter readings utilised for billing
customers are also utilised for settlement of costs, and therefore an over or
under-estimated revenue is largely mitigated by an opposite amendment to cost
of sales.
A change in estimated meter consumption volumes of +/-10% would
impact revenue and accrued income by £6.0m (2024: £4.2m), with an
approximate £5.2m (2024: £3.6m) corresponding adjustment to cost of sales
and accruals. The impact on gross profit for each +/-10% of estimated
consumption is therefore £0.8m (2024: £0.6m).
• the accrual for certain energy and industry related costs;
Certain gas and electricity costs are based on industry or
management estimates based on knowledge of the market, historical norms and
estimates of the expected out-turn position which may be over or
underestimated. There are a number of specific cost areas that are material to
the Group and include elements of significant estimation and judgement to
determine the carrying amounts.
Industry settlement and impact on energy and industry costs
The energy industry involves settlement of industry costs to
balance each participant's position so that its purchased energy matches its
used energy. For the Group, as with other energy suppliers, this settlement of
industry to balance its position ("Settlement") occurs on the difference
between energy supplied to customers and energy purchased to settle such
liability. These costs can be reconciled over periods of several months and
years, though typically such costs have larger estimates over periods of up to
three months with Settlement adjustments reducing beyond that time period.
In addition to the cost of gas and electricity adjusted as part of
the Settlement process, other non-commodity related costs can also be subject
to adjustments based on the same or similar processes. Such costs include
those under the renewables obligation scheme, which requires the Group to
settle a liability based on its settled energy consumption; costs related to
the distribution and transmission of energy to end customers; and certain
green levies and other charges utilised in operating the energy network.
A change of +/-10% in settled volumes for the quarter preceding the
year end, being the directors' view of the most material months subject to
potential change (and which does not have a corresponding adjustment to
revenue), would impact costs and accruals by £7.8m (2024: £8.3m).
Unidentified Gas
Unidentified Gas ("UIG") is the shortfall between the volume of gas
that enters the National Grid and what is consumed by end users, which the
industry spreads across market participants. The Group's cost is determined by
estimating the extent to which UIG is expected to arise from historical
consumption across the industry using market data available, settled UIG costs
to date and determining the expected net position for further payment or
rebate of cost. Expected UIG allocations have been volatile in 2020 as a
result of the pandemic, and also in 2023 as a result of the out-turns of
unexpected low gas demand caused by the energy crisis. This led to industry
under allocating gas to energy suppliers, requiring an estimation of accruals
in the prior year for industry settlement to 'catch up'. Energy prices have
returned to more stable and expected levels in recent years, but continues to
require significant directors' judgement in its estimation at year end.
A change of +/-10% in estimated UIG rates that are expected to be
attributable to the Group for the month of December 2025 would impact costs
and accruals by £4.9m (2024: £4.1m).
• the recoverability of trade receivables and accrued income and
related expected credit loss provision;
The Group has continued to grow its revenue and customer base which
in turn increases the levels of billed and unbilled debt as part of the
customer collections cycle. The customer base of the Group changes over time
and the expected impact of macroeconomic factors on our client base around
increased costs, interest rates, inflation and pressures on businesses creates
increased uncertainty over the recoverability of debt. New customers increase
estimation uncertainty as the Group does not have specific historical
backwards-looking data for these customers, and therefore may have a more
delayed payment history, or that the Group provides extended payment terms to
customers to secure new business.
Trade receivables and accrued income recoverability is estimated based on
historical performance, forward-looking macroeconomic factors affecting the
customers' ability to settle the amounts outstanding based on available
information available at the reporting date about past events, current
conditions and a forward-looking view of future economic conditions to
determine the directors' estimate of losses over the Group's customer
receivable balances. Management also conducts a detailed review of significant
debtor balances at the year end, including exposure after recoverability of
VAT and Climate Change Levy ("CCL"), Given the growing customer portfolio,
estimation assumptions and factors noted above the carrying amount of trade
receivable and accrued income net of expected credit losses is considered to
be a significant estimate. Sensitivity analysis on expected credit loss
estimates is provided in note 23.
2. Segmental analysis
Operating segments
The directors consider there to be three operating segments, being the supply
of utilities to businesses ("Retail"), the installation and maintenance of
energy meters and other assets ("Smart") and the ownership and rental of smart
metering assets ("Metering assets"). In addition, the Group eliminates
intra-segment trading, where one segment trades with another, and has central
income, expenses, assets and liabilities ("Group") which are not directly
attributable to the operating segments.
2025 Retail Metering Intra-segment Group Total
£'m Smart assets trading £'m £'m
£'m £'m £'m
Revenue 700.0 10.9 1.8 (12.3) - 700.4
Cost of sales (603.4) (7.8) - 10.9 - (600.3)
Gross profit 96.6 3.1 1.8 (1.4) - 100.1
Operating costs, before non-recurring items, share-based payments and (28.4) (2.0) (0.1) - (0.6) (31.1)
depreciation
Non-recurring items - - - - (0.6) (0.6)
Share-based payments - - - - (2.1) (2.1)
Depreciation and amortisation (1.4) (0.9) (0.6) - - (2.9)
Net impairment losses on financial and contract assets (18.3) - (0.1) - - (18.4)
Operating profit / (loss) 48.5 0.2 1.0 (1.4) (3.3) 45.0
Adjusted EBITDA (note 7) 50.0 1.2 1.7 (1.9) (0.4) 50.6
Non-current assets 32.2 1.3 11.3 - 6.1 50.9
Non-current asset additions 2.0 0.2 4.6 - 3.6 10.4
Goodwill - 0.2 - - 1.8 2.0
Trade and other receivables 141.0 0.1 0.7 - 0.4 142.2
2024 Retail Metering Intra-segment Group Total
£'m Smart assets trading £'m £'m
£'m £'m £'m
Revenue 645.3 12.7 0.7 (13.2) - 645.5
Cost of sales (559.8) (8.8) - 17.0 - (551.6)
Gross profit 85.5 3.9 0.7 3.8 - 93.9
Operating costs, before non-recurring items, share-based payments and (29.0) (2.7) (0.1) 0.8 (0.6) (31.6)
depreciation
Non-recurring items (1.4) - - - - (1.4)
Share-based payments (4.0) - - - - (4.0)
Depreciation and amortisation (1.5) (0.9) (0.3) 0.3 (0.1) (2.5)
Net impairment losses on financial and contract assets (13.5) - - - - (13.5)
Operating profit / (loss) 36.1 0.3 0.3 4.9 (0.7) 40.9
Adjusted EBITDA (note 7) 42.9 1.2 0.6 4.7 (0.6) 48.8
Non-current assets 36.3 5.5 6.8 (34.3) 17.4 31.7
Non-current asset additions 3.4 5.4 4.9 (3.9) 1.8 11.6
Goodwill - 0.2 - - - 0.2
Trade and other receivables 134.3 3.7 0.8 (42.5) 12.6 108.9
Disaggregation of Revenue
The Group has disaggregated revenue into various categories in the following
table which is intended to:
· depict how the nature, amount, timing and uncertainty of revenue
and cash flows are affected by economic data; and
· enable users to understand the relationship with revenue segment
information
100% of Group revenue, for both financial years, is generated from sales to
customers in the United Kingdom (2024: 100%).
The Group's revenue disaggregated by pattern of revenue recognition is as
follows:
2025 Retail Metering Intra-segment Total
£'m Smart assets trading £'m
£'m £'m £'m
Product type
Energy supply 700.0 - - - 700.0
Meter installation - 10.9 - (10.9) -
Meter rental - - 1.8 (1.4) 0.4
Revenue from contracts with customers 700.0 10.9 1.8 (12.3) 700.4
Timing of transfer of goods and services
Goods transferred over time 686.0 - 1.8 (1.4) 686.4
Goods transferred at a point in time 14.0 10.9 - (10.9) 14.0
Revenue from contracts with customers 700.0 10.9 1.8 (12.3) 700.4
2024 Retail Metering Intra-segment Total
£'m Smart assets trading £'m
£'m £'m £'m
Product type
Energy supply 645.3 - - - 645.3
Meter installation - 12.7 - (12.7) -
Meter rental - - 0.7 (0.5) 0.2
Revenue from contracts with customers 645.3 12.7 0.7 (13.2) 645.5
Timing of transfer of goods and services
Goods transferred over time 631.2 - 0.7 (0.5) 631.4
Goods transferred at a point in time 14.1 12.7 - (12.7) 14.1
Revenue from contracts with customers 645.3 12.7 0.7 (13.2) 645.5
The Group has no individual customers representing over 10% of revenue (2024:
none).
The following aggregated amounts of transaction prices relate to the
performance obligations from existing contracts that are unsatisfied or
partially unsatisfied as at 31 December 2025:
Within 1 year 2-5 years After 5 years Total
£'m £'m £'m £'m
Revenue expected to be recognised 668.2 759.9 2.9 1,431.0
668.2 759.9 2.9 1,431.0
3. Auditor's remuneration
2025 2024
£'m £'m
Audit of these financial statements 0.1 0.1
Amounts receivable by auditor in respect of:
Audit of financial statements of subsidiaries pursuant to legislation 0.1 0.1
0.2 0.2
4. Operating profit
2025 2024
£'m £'m
Profit for the year has been arrived at after charging:
Staff costs (see note 6) 24.4 23.3
Costs to obtain customer contracts 33.8 24.9
Depreciation of property, plant and equipment 1.0 0.7
Depreciation of right-of-use assets 0.8 1.0
Amortisation of intangible assets 1.1 0.8
5. Net finance income/(expense)
2025 2024
£'m £'m
Bank interest receivable 4.1 3.4
Other interest received 0.2 0.8
Total finance income 4.3 4.2
Bank interest and other finance charges payable - (0.2)
Interest on borrowings (0.5) (0.2)
Interest on lease liabilities (0.1) (0.2)
Total finance costs (0.6) (0.6)
Net finance income 3.7 3.6
Other interest received consists of amounts due on collateral posted with the
Group's industry deposit arrangements.
6. Staff numbers and costs
The average number of persons employed by the Group (including directors)
during the period, analysed by category, was as follows:
2025 2024
Number Number
Engineering 88 84
Sales 39 41
Administration 353 347
480 472
The aggregate payroll costs of these persons were as follows:
2025 2024
£'m £'m
Wages and salaries 21.6 19.4
Social security costs 2.4 2.4
Pension costs 0.4 0.4
Share-based payments 2.1 4.0
26.5 26.2
Of which:
Amounts charged to operating profit 24.4 23.3
Amounts related to smart metering installation in property, plant and 2.1 2.9
engineering assets
There were four persons employed directly by the Company during the year ended
31 December 2025 (2024: three), being the non-executive directors. The Company
had three (2024: two) executive directors who served during the year, all of
which had service contracts with a wholly owned subsidiary of the Company
while in this role. In 2025, one executive director transitioned to the role
of non-executive director.
Key management personnel
The aggregate compensation made to directors and other members of key
management personnel (being members of the Group's Executive Committee
comprising the Chief Executive Officer, Chief Financial Officer and other
senior leaders) is set out below:
2025 2024
£'m £'m
Short-term employee benefits 2.8 2.2
Social security and pension costs 0.4 0.9
Share-based payments 2.0 3.9
5.2 7.0
Remuneration of the executive and non-executive directors is as follows:
2025 2024
£'m £'m
Short-term employee benefits 2.0 1.4
Social security and pension costs 0.2 0.5
Share-based payments 1.5 2.0
3.7 3.9
The total remuneration received by the highest paid director was £1.8m in the
year (2024: £2.8m).
7. Alternative Performance Measures
Adjusted EBITDA
Non-GAAP measure. Adjusted EBITDA represents profit before interest and tax,
depreciation, amortisation, non-recurring business expense and equity-related
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.
The reconciliation of operating profit and adjusted EBITDA is as follows:
2025 2024
Notes £'m £'m
Adjusted EBITDA reconciliation
Operating profit 45.0 40.9
Add back:
Non-recurring operational costs1 0.6 1.4
Share-based payments2 25 2.1 4.0
Depreciation of property, plant and equipment 14 1.0 0.7
Depreciation of right-of-use assets 15 0.8 1.0
Amortisation of intangibles 13 1.1 0.8
Adjusted EBITDA 50.6 48.8
1. The non-recurring operational costs excludes costs incurred in
connection with the establishment of new business units, including early-stage
development activities prior to the commencement of normal commercial
operations. These costs do not relate to the performance of the Group in the
year or the ongoing operating performance and are incurred as part of discrete
strategic initiatives intended to generate future growth. As they are outside
of the normal course of business are therefore considered exceptional to the
trading result.
In 2024, non-recurring fees were 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 not related to business operational trading which
provides clearer views of operating cash generation in the year. Further
details of the share-based payments are documented in note 25.
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 8 for a reconciliation between earnings per share and adjusted
earnings per share.
8. 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.
2025 2024
£'m £'m
Profit for the year attributable to ordinary shareholders 35.9 33.5
2025 2024
Weighted average number of ordinary shares
At the start of the year 16,784,337 16,741,195
Effect of shares issued in the year 5,621 175,825
Effect of purchase of treasury shares - (146,861)
Number of ordinary shares for basic earnings per share calculation 16,789,958 16,770,159
Dilutive effect of outstanding share options 1,071,836 1,170,383
Number of ordinary shares for diluted earnings per share calculation 17,861,794 17,940,542
2025 2024
p p
Basic earnings per share 214p 200p
Diluted earnings per share 201p 187p
Adjusted earnings per share
See note 7 for details on adjusted earnings per share.
2025 2024
£'m £'m
Adjusted earnings per share
Profit for the year attributable to ordinary shareholders 35.9 33.5
Add back operating profit adjusting items (per note 7):
Share-based payments after tax 2.1 3.2
Non-recurring operational cost after tax 0.5 1.0
Adjusted basic profit for the year 38.5 37.7
2025 2024
p p
Adjusted earnings per share 229p 225p
Diluted adjusted earnings per share 216p 210p
9. Taxation
2025 2024
£'m £'m
Current tax charge
Current year 12.9 9.9
Adjustment in respect of prior years (1.4) (0.1)
11.5 9.8
Deferred tax charge
Current year 0.6 1.1
Adjustment in respect of prior years 0.7 0.1
1.3 1.2
Total tax charge 12.8 11.0
Tax recognised directly in equity
Current tax recognised directly in equity - -
Deferred tax recognised directly in equity (0.3) (2.0)
Total tax recognised directly in equity (0.3) (2.0)
Reconciliation of effective tax rate
Profit before tax 48.7 44.5
Tax at UK corporate tax rate of 25% (2024: 25%) 12.2 11.1
Expenses not deductible for tax purposes 1.6 0.4
Tax relief on exercise of share options - (1.1)
Fixed asset differences (0.3) 0.6
Adjustments in respect of prior periods (0.7) -
Tax charge for the year 12.8 11.0
Deferred taxes at 31 December 2025 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. The tax rate effective from 1 April 2023 is 25%.
The corporation tax payable by the Group at 31 December 2025 was £3.0m (2024:
£2.5m).
10. Dividends
The Group paid the following dividends in the year ended 31 December 2025:
· An interim dividend of 22p per share totalling £3.7m
· Final dividend of 41p per share totalling £6.9m, proposed in the
year ended 31 December 2024
The Group paid the following dividends in the year ended 31 December 2024:
· An interim dividend of 19p per share totalling £3.2m
· Final dividend of 37p per share totalling £6.2m, proposed in the
year ended 31 December 2023
The directors propose a final dividend in relation to 2025 of 45p per share
(2024: 41p per share).
11. Business Combinations
ELX Solutions Ltd
On 17 December 2025, the Group acquired 51% of the voting equity instruments
and control of ELX Solutions Ltd ("ELX"), a company whose principal activity
is the provision of energy software and metering services. The principal
reason for the acquisition was to use the expertise and software to improve
product services delivered to customers.
The details of the business combination are as follows:
£'m
Fair value of consideration transferred
Amount settled in cash 2.2
Fair value of contingent consideration 1.8
4.0
Recognised amounts of identifiable net assets
Intangible assets 2.0
Property, plant and equipment -
Inventory -
Trade and other receivables 0.3
Cash and cash equivalents 0.2
Trade and other payables (0.1)
Borrowings -
Corporation tax payable -
2.4
Goodwill on acquisition (note 12) 1.6
Net cash outflow on acquisition
Consideration transferred settled in cash 2.2
Cash and cash equivalents acquired (0.2)
2.0
The total acquisition costs charged to expenses was £36,000. These have been
recognised as part of administrative expenses in the statement of
comprehensive income.
The purchase agreement includes a put and call option over the remaining 49%
of the remaining equity interest. The put option is exercisable by the
non-controlling interest from 1 April 2027 until 31 March 2028 and the
contingent consideration is determined based on a multiple of the revenue of
ELX for a set qualifying period based on exercise date. The call option is
exercisable by the Group from 1 April 2028 until lapse on 31 March 2029.
The £1.8m contingent consideration liability recognised represents the
present value of the Group's probability-weighted estimate of the cash
outflow. It reflects management's estimate of a 43% probability that the
targets will be achieved and is discounted using an interest rate of 8%. As at
31 December 2025, there have been no changes in the estimate of the probable
cash outflow or change in fair value. The effects on the fair value of risk
and uncertainty in the future cash flows are dealt with by adjusting the
estimated cash flows rather than adjusting the discount rate.
No non-controlling interest has been recognised in relation to ELX. The Group
has entered into a put and call option arrangement that gives rise to a
present obligation to acquire the remaining 49% equity interest, which is
accounted for as a financial liability in accordance with IAS 32.
The identifiable net assets on acquisition have a fair value equal to their
carrying value.
Goodwill reflects growth expectations, expected future profitability and the
substantial skill and expertise of ELX's workforce.
ELX has not generated significant disclosable results for the period from
acquisition from 17 December 2025 to the reporting date. If ELX had been
acquired on 1 January 2025, revenue of the Group for 2025 would have been
£701.5m, and profit for the year would be £36.2m.
Toucan Energy Limited
On 20 June 2025, the Group acquired 100% of the equity instruments of Toucan
Energy Limited ("Toucan"), thereby obtaining control. The acquisition was made
to support the Group's strategic market growth ambitions.
The business combination was settled for £0.2m in cash on the acquisition
date, for minimal identifiable net assets. The goodwill on acquisition was
£0.2m and the net cash outflow of consideration less cash and cash
equivalents acquired totalled £0.2m.
The total acquisition costs charged to expenses was £43,000.
12. Goodwill
The movements in the net carrying amount of goodwill are as follows:
2025 2024
Group £'m £'m
Cost
At 1 January 0.2 0.2
Acquired through business combination 1.8 -
At 31 December 2.0 0.2
Accumulated impairment
At 1 January - -
Impairment loss recognised - -
At 31 December - -
Net book value at 31 December 2.0 0.2
Impairment testing
The Group is required to test, on an annual basis, whether goodwill has
suffered any impairment. The recoverable amount is determined based on value
in use calculations. The use of this method requires the estimation of future
cash flows and the determination of a discount rate in order to calculate the
present value of the cash flows.
The carrying amount of goodwill is allocated to the cash-generating units
(CGUs) as follows:
2025 2024
£'m £'m
Goodwill allocated to cash-generating units
Retail 0.2 -
Smart 0.2 0.2
Software 1.6 -
2.0 0.2
Smart
Goodwill arose on the acquisition of the management and certain other assets
of Magnum Utilities Limited in May 2022, forming the foundations for the Yü
Smart business unit to deliver the Group's smart metering installation
activities. The recoverable amount of the CGU does not hold a significant
proportion of the Group's overall goodwill balance and management have
concluded no material impairment indicators exist.
Toucan
Goodwill arose on the acquisition of Toucan Energy Limited as disclosed in
note 11. The recoverable amount of the CGU does not hold a significant
proportion of the Group's overall goodwill balance and management have
concluded no material impairment indicators exist.
ELX
The recoverable amounts of all the above CGUs have been determined from value
in use calculations based on cash flow projections from budgets covering a
five-year forecast approved by management. The present value of the expected
cash flows of each cash generating unit is determined by applying a suitable
discount rate reflecting current market assessments of the time value of
money. Other major assumptions are as follows:
2025 2024
% %
2025
Discount rate 8 -
Operating margin 47 -
Growth rate 2 -
Discount rates are based on the Group's weighted average cost of capital to
reflect management's assessment of market and specific risks related to the
cash-generating unit.
Growth rates beyond the first five years are based on economic data pertaining
to the cash-generating unit concerned. At this stage and considering the
direct exposure of the Group to the climate changes, management has considered
growth rates were not significantly affected and were still consistent with
long-term perspectives of its industry and expectations from market
participants.
Operating margins have been based on past experience and future expectations
in the light of anticipated economic and market conditions.
The recoverable amount of the CGU is assessed to be £7.6m which exceeds its
carrying amount by £3.9m.
If any one of the above key assumptions were to change by +/- 1%, no
impairment would be recognised, and the recoverable amount would exceed the
carrying amount by:
2025 2024
£'m £'m
2025
Discount rate 2.8 -
Operating margin 3.8 -
Growth rate 3.0 -
13. Intangible assets
Group Electricity Customer Software and
licence books systems Total
£'m £'m £'m £'m
Cost
At 1 January 2025 0.1 0.7 4.7 5.5
Additions - - 2.1 2.1
Acquired through business combinations - - 2.0 2.0
At 31 December 2025 0.1 0.7 8.8 9.6
Amortisation
At 1 January 2025 - 0.7 2.0 2.7
Charge for the year - - 1.1 1.1
At 31 December 2025 - 0.7 3.1 3.8
Net book value at 31 December 2025 0.1 - 5.7 5.8
Cost
At 1 January 2024 0.1 0.7 3.4 4.2
Additions - - 1.3 1.3
At 31 December 2024 0.1 0.7 4.7 5.5
Amortisation
At 1 January 2024 - 0.7 1.2 1.9
Charge for the year - - 0.8 0.8
At 31 December 2024 - 0.7 2.0 2.7
Net book value at 31 December 2024 0.1 - 2.7 2.8
The useful economic life of the acquired electricity licence is 35 years,
which represents the fact that the licence can be revoked by giving 25 years'
written notice but that this notice cannot be given any sooner than 10 years
after the licence came into force in January 2013.
The customer book intangibles relate to acquisitions that took place in 2020.
They represent the fair value of the customer contracts purchased in those
acquisitions. The intangible assets were amortised over a useful economic life
of two years, representing the average contract length of the customer books
acquired.
Software and systems assets relate to investments made in third-party software
packages, and directly attributable internal personnel costs in implementing
those platforms, as part of the Group's Digital by Default strategy.
The amortisation charge is recognised in operating costs in the income
statement.
14. Property, plant and equipment
Group Freehold land Freehold Fixtures and Plant and Assets under Computer Total
£'m property fittings machinery construction equipment £'m
£'m £'m £'m £'m £'m
Cost
At 1 January 2025 0.2 5.1 0.9 5.4 1.7 0.8 14.1
Additions - - - 2.1 2.3 0.1 4.5
Reclassification - - - 1.3 (1.3) - -
At 31 December 2025 0.2 5.1 0.9 8.8 2.7 0.9 18.6
Depreciation
At 1 January 2025 - 0.4 0.6 0.2 - 0.6 1.8
Charge for the year - 0.2 0.2 0.4 - 0.2 1.0
At 31 December 2025 - 0.6 0.8 0.6 - 0.8 2.8
Net book value at 31 December 2025 0.2 4.5 0.1 8.2 2.7 0.1 15.8
Cost
At 1 January 2024 0.2 3.3 0.7 0.9 - 0.7 5.8
Additions - 1.8 0.2 2.9 3.3 0.1 8.3
Reclassification - - - 1.6 (1.6) - -
At 31 December 2024 0.2 5.1 0.9 5.4 1.7 0.8 14.1
Depreciation
At 1 January 2024 - 0.3 0.4 - - 0.4 1.1
Charge for the year - 0.1 0.2 0.2 - 0.2 0.7
At 31 December 2024 - 0.4 0.6 0.2 - 0.6 1.8
Net book value at 31 December 2024 0.2 4.7 0.3 5.2 1.7 0.2 12.3
15. Right-of-use assets
Group Buildings Motor vehicles Total
£'m £'m £'m
Cost
At 1 January 2025 0.2 2.8 3.0
Additions - - -
Disposals - (0.5) (0.5)
Lease modifications - 0.2 0.2
At 31 December 2025 0.2 2.5 2.7
Depreciation
At 1 January 2025 - 1.2 1.2
Charge for the year 0.1 0.7 0.8
Disposals - (0.3) (0.3)
At 31 December 2025 0.1 1.6 1.7
Net book value at 31 December 2025 0.1 0.9 1.0
Cost
At 1 January 2024 2.0 0.8 2.8
Additions - 2.0 2.0
Disposals (1.8) - (1.8)
At 31 December 2024 0.2 2.8 3.0
Depreciation
At 1 January 2024 0.8 0.3 1.1
Charge for the year 0.1 0.9 1.0
Disposals (0.9) - (0.9)
At 31 December 2024 - 1.2 1.2
Net book value at 31 December 2024 0.2 1.6 1.8
Other assets relate to lease arrangements for motor vehicles to undertake
engineering activities.
16. Investments in subsidiaries
The Company has the following direct and indirect investments in subsidiaries,
all of which are incorporated in the United Kingdom:
Company name Holding Proportion of Nature of business
shares held
Yü Energy Holding Limited Ordinary shares 100% Gas shipping services and holding company
Yü Energy Retail Limited1 Ordinary shares 100% 1 Supply of energy to businesses
Yu Water Limited Ordinary shares 100% Supply of water to businesses
KAL Portfolio Trading Limited Ordinary shares 100% Dormant/holding company
Yü PropCo Leicester Ltd2 Ordinary shares 100% 2 Property ownership
Yü PropCo Nottingham Ltd2 Ordinary shares 100% 2 Property ownership
Yü-Smart Ltd Ordinary shares 100% Smart metering installation and maintenance
Yü Services Limited Ordinary shares 100% Holding company
Kensington Meter Assets Ltd3 Ordinary shares 100% 3 Ownership of energy meter assets
Yü Innovate Limited Ordinary shares 100% Holding company
Toucan Energy Limited Ordinary shares 100% Dormant energy licensed company
ELX Solutions Ltd4 Ordinary shares 51% 4 Energy software and metering services provider
Adaptive Robotic Information Consultants LLC 5 Ordinary shares 100%5 Software systems research and development
All of the above entities are included in the consolidated financial
statements and are direct holdings of the Company except:
1. Yü Energy Retail Limited is a subsidiary of Yü Energy Holding
Limited.
2. Yü PropCo Leicester Ltd and Yü PropCo Nottingham Ltd are
subsidiaries of KAL Portfolio Trading Limited.
3. Kensington Meter Assets Ltd is a subsidiary of Yü Services
Limited.
4. ELX Solutions Ltd is a subsidiary of Yü Innovate Limited. Its
registered address is Suite 15 Highfield House, 185 Chorley New Road, Bolton,
BL1 4QZ. See note 11 for details of acquisition.
5. Adaptive Robotic Information Consultants LLC is incorporated in
the UAE with registered address Al Fattan Business Hub, Level 9 / 903 &
904, Marsa Dubai, Dubai, U.A.E.
All entities excluding ELX Solutions Ltd and Adaptive Robotic Information
Consultants LLC have the same registered address as Yü Group PLC; CPK House,
2 Horizon Place, Nottingham Business Park, Mellors Way, Nottingham, NG8 6PY.
17. Deferred tax assets
Deferred tax assets are attributable to the following:
2025 2024
£'m £'m
Property, plant and equipment (2.1) (0.8)
Share-based payments 3.9 3.6
1.8 2.8
Movement in deferred tax in the period:
At Recognised At
1 January Recognised directly 31 December
2025 in income in equity 2025
£'m £'m £'m £'m
Property, plant and equipment (0.8) (1.3) - (2.1)
Share-based payments 3.6 - 0.3 3.9
2.8 (1.3) 0.3 1.8
At Recognised Recognised At
1 January in income directly 31 December
2024 £'m in equity 2024
£'m £'m £'m
Property, plant and equipment (0.3) (0.5) - (0.8)
Tax value of loss carry-forwards 0.8 (0.8) - -
Share-based payments 1.6 - 2.0 3.6
2.1 (1.3) 2.0 2.8
The deferred tax asset is expected to be utilised by the Group in the coming
years and there is no time limit to utilisation of such losses. The Board
forecasts sufficient taxable income as a result of the growth in the customer
base and increased profitability against which it will utilise these deferred
tax assets.
18. Inventory
The Group has the following inventory balances in relation to its engineering
activities:
2025 2024
£'m £'m
Stock of goods for resale 0.4 0.4
0.4 0.4
19. Trade and other receivables
2025 2024
£'m £'m
Current
Net trade receivables 21.5 16.0
Net accrued income 65.1 57.8
Prepayments 1.3 1.3
Costs to obtain customer contracts 16.1 9.7
Industry collateral deposits 6.4 7.0
Other receivables 7.3 5.3
117.7 97.1
Non-current
Costs to obtain customer contracts 24.5 11.8
24.5 11.8
The reconciliation of gross trade receivables and accrued income and expected
credit loss provision for the Group is as follows:
2025 2024
Trade Accrued Trade Accrued
receivables income receivables income
£'m £'m £'m £'m
Gross carrying amount 53.3 67.6 50.4 60.0
Provision for doubtful debts and expected credit loss (31.8) (2.5) (34.4) (2.2)
Net carrying amount 21.5 65.1 16.0 57.8
The movement in accrued income reflects the transfer from accrued income to
trade receivables in the period plus the unbilled estimate of customer
performance obligations satisfied. There are no other movements in accrued
income balances.
The Group applies the simplified IFRS 9 approach in measuring expected credit
losses which uses a lifetime expected credit loss allowance for all trade
receivables and accrued income. To measure expected credit losses on a
collective basis, trade receivables and accrued income are grouped based on
similar credit risk and ageing. The expected credit loss of trade receivables
and accrued income are allocated between two credit risk groups made up of
active customer accounts ("Active"), which represent customers that remain on
supply at the balance sheet date, and those customers which have left the
supply ("Terminated") of the Group.
Provision rates for customer balances are determined based on the age of the
balance outstanding, whether the customer remains being supplied energy by the
Group, an assessment of historical debt and recovery on a customer basis and
the extent and position of the balance in the Group's credit control process.
Credit losses are adjusted to reflect current and forward-looking
macroeconomic factors affecting the customers' ability to settle the amounts
outstanding based on information available at the reporting date about past
events, current conditions and a forward-looking view of future economic
conditions. There have been no significant changes in the estimation
techniques or significant assumptions made during the reporting period.
The gross amount of trade receivables and accrued income is stated inclusive
of VAT and CCL of approximately 17% which,
on the write-off of debt, would typically be recoverable and is therefore not
provided for.
Expected credit losses and the recognition, where appropriate, of previous
customer credit balances are recognised in the income statement as net
impairment losses on financial and contract assets.
The lifetime expected loss provision for trade receivables and accrued income
is as follows:
Active Current More than More than More than Total
£'m 30 days past due 60 days past due 90 days past due £'m
£'m £'m £'m
31 December 2025
Gross trade receivables 5.6 4.7 2.2 11.9 24.4
Gross accrued income 67.6 - - - 67.6
Expected credit loss rate 5% 42% 51% 67% 16%
Expected credit loss allowance (3.6) (2.0) (1.1) (8.0) (14.7)
31 December 2024
Gross trade receivables 4.7 1.8 1.3 5.1 12.9
Gross accrued income 60.0 - - - 60.0
Expected credit loss rate 5% 36% 41% 66% 11%
Expected credit loss allowance (3.4) (0.6) (0.5) (3.3) (7.8)
Terminated Current More than More than More than Total
£'m 30 days past due 60 days past due 90 days past due £'m
£'m £'m £'m
31 December 2025
Gross trade receivables 5.1 1.7 1.7 20.4 28.9
Gross accrued income - - - - -
Expected credit loss rate 30% 68% 70% 77% 68%
Expected credit loss allowance (1.5) (1.2) (1.2) (15.7) (19.6)
31 December 2024
Gross trade receivables 2.4 1.6 1.5 32.0 37.5
Gross accrued income - - - - -
Expected credit loss rate 43% 68% 66% 80% 77%
Expected credit loss allowance (1.0) (1.1) (1.0) (25.7) (28.8)
Movements in the provision for doubtful debts and expected credit loss in
gross trade receivables are as follows:
2025 2024
£'m £'m
Opening balance 34.4 27.7
Provisions recognised less unused amounts reversed 18.1 13.0
Provision utilised in the year (20.7) (6.3)
Closing balance - provision for doubtful debts and expected credit losses 31.8 34.4
The provision utilised in 2025 relates to a write off of legacy debt balances
historically fully provided for. There has been no significant impact to
profit and loss in the year.
Movements in the provision for doubtful debts and expected credit loss in
accrued income are as follows:
2025 2024
£'m £'m
Opening balance 2.2 1.7
Provisions recognised less unused amounts reversed 0.3 0.5
Provision utilised in the year - -
Closing balance - provision for doubtful debts and expected credit losses 2.5 2.2
The directors consider that the cash amount of trade and other receivables
approximates to their fair value due to their maturities being short term.
The Group other receivables balance contains £0.6m (2024: £0.7m) relating to
bank cash deposits and restricted funds. These funds do not fulfil the
criteria of being classified as cash and cash equivalents in view of the
balance being secured for operational activities of the Group.
20. Cash and cash equivalents
2025 2024
£'m £'m
Cash at bank and in hand 105.9 85.2
105.9 85.2
As disclosed in note 19, the cash and cash equivalents amounts exclude £0.6m
(2024: £0.7m) of cash which is included in other receivables.
21. Trade and other payables
2025 2024
£'m £'m
Current
Trade payables 12.0 10.2
Energy and industry cost accruals 50.8 47.3
Renewable obligation liability 52.8 35.4
Operating and other accruals 9.7 7.8
Lease liabilities 0.7 0.9
Tax and social security 18.2 17.2
Other payables 16.5 14.9
160.7 133.7
Non-current
Accrued expenses 1.1 2.0
Contingent consideration 1.8 -
Lease liabilities 0.2 0.9
3.1 2.9
Lease liabilities
Group Buildings Motor vehicles Total
£'m £'m £'m
At 1 January 2025 0.1 1.7 1.8
Additions - - -
Interest expense - 0.1 0.1
Disposals - - -
Payments (0.1) (0.9) (1.0)
At 31 December 2025 - 0.9 0.9
Current - 0.7 0.7
Non-current - 0.2 0.2
At 1 January 2024 1.1 0.5 1.6
Additions - 1.9 1.9
Interest expense 0.1 0.1 0.2
Disposals (0.9) - (0.9)
Payments (0.2) (0.8) (1.0)
At 31 December 2024 0.1 1.7 1.8
Current - 0.9 0.9
Non-current 0.1 0.8 0.9
The incremental borrowing rate used to measure lease liabilities was 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 23.
The total cash outflow for Group leases in 2025 was £1.0m (2024: £1.0m).
22. Borrowings
2025 2024
£'m £'m
Current
Bank loan 0.5 0.2
Non-current
Bank loan 9.8 4.8
Total borrowings 10.3 5.0
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 £0.2m (2024:
£0.2m) 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 23.
23. Financial instruments and risk management
The Group's principal financial instruments are cash, trade and other
receivables, trade and other payables and derivative financial assets.
The categories of financial instruments, including contract assets and
liabilities, held by the Group are as follows:
2025 2024
£'m £'m
Financial assets
Cash and cash equivalents 105.9 85.2
Financial assets recorded at amortised cost 100.3 86.1
Financial liabilities
Financial liabilities recorded at amortised cost (151.1) (120.8)
Fair value through profit or loss (1.8) -
Lease liabilities (0.9) (1.8)
Management considers that the book value of financial assets and liabilities
recorded at amortised cost and their fair value are approximately equal.
Derivative instruments, related to the Group's hedging of forward gas and
electricity demand, are level 1 financial instruments and, should they not be
treated as for "own use" under IFRS 9, would be measured at fair value through
the statement of profit or loss. Such fair value would be measured by
reference to quoted prices in active markets for identical assets or
liabilities. All derivatives are held at a carrying amount equal to their fair
value at the period end.
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, market price volatility and counterparty credit risk);
b) customer, industry participants and financial institution credit
risk; and
c) liquidity risk.
(a) Commodity hedging and derivative instruments
The Group is exposed to market risk in that changes in the price of
electricity and gas may affect the Group's income or liquidity position. The
use of derivative financial instruments to hedge customer demand also results
in the Group being exposed to risks from significant changes in customer
demand (beyond that priced into the contracts), and counterparty credit risk
with the trading counterparty.
Commodity, energy prices and customer demand
The Group uses commodity purchase contracts to manage its exposures to
fluctuations in gas and electricity commodity prices. The Group's objective is
to reduce risk in energy price volatility by entering into back-to-back (to
the extent practical) energy contracts with its suppliers and customers, in
accordance with a Board-approved risk mandate. Commodity purchase contracts
are entered into as part of the Group's normal business activities.
Commodity purchase contracts are expected to be delivered entirely to the
Group's customers and are therefore classified as "own use" contracts. These
instruments do not fall into the scope of IFRS 9 and therefore are not
recognised in the financial statements.
If any of the contracts in the Group's portfolio are expected to be settled
net in cash and are not entered into so as to hedge, in the normal course of
business, the demand of customers, then such trades are measured at fair
value. The gain or loss on remeasurement to fair value is recognised
immediately in profit and loss. All forward trades were considered to meet the
criteria for "own use" at 31 December 2025.
As far as practical, in accordance with the risk mandate, the Group attempts
to match new sales contracts (based on estimated energy consumption, assuming
normal weather patterns, over the contract term) with corresponding commodity
purchase contracts. There is a risk that at any point in time the Group is
over or under-hedged. Holding an over or under-hedged position opens the Group
up to market risk which may result in either a positive or negative impact on
the Group's margin and cash flow, depending on the movement in commodity
prices. In view of the Group's commodity hedging position and available
mitigation, any major deviation in customer demand is not considered to
deliver a material impact on the Group's financial performance.
Increased volatility of global gas and electricity commodity prices had
increased the potential gain or loss for an over or under-hedged portfolio
over the 2024 and 2025 periods, and the Group continues to closely monitor its
customer demand forecast to manage volatility. The Group also applies premia
in its pricing of contracts to cover some market volatility (which has proven
to be robust despite the market context), and contracts with customers also
contain the ability to pass through costs which are incurred as a result of
customer demand being materially different to the estimated volume contracted.
As contracts are expected to be outside of IFRS 9, there is no sensitivity
analysis provided on such contracts.
Liquidity risk from commodity trading
The Group's trading arrangements can, in the absence of suitable credit lines
or other arrangements being in place, result in the need to post cash or other
collateral to trading counterparties when commodity markets are below the
Group's average weighted price contracted forward. A significant reduction in
electricity and gas markets could, therefore, lead to a material exposure
arising for any trading counterparty which, in the absence of a suitable
credit arrangement, could result in credit support such as cash being required
as collateral.
As part of the Group's Trading Agreement with Shell, signed in February 2024,
there is no requirement in the normal course to provide any such credit
support and, as such, no impact on liquidity risk in the normal course of
business.
Trading counterparty credit risk
In mirror opposite to the liquidity risk noted above, the Group carries credit
risk to trading counterparties where market prices are above the average
weighted price contracted forward. This risk is mitigated by energy delivered
and not yet paid for, and no credit risk is therefore assessed as held at 31
December 2025.
The Board monitors the position in respect of credit exposure with its trading
counterparties, and contracts only with major organisations which the Board
considers to be robust and of appropriate financial standing. The Group's
agreement with a group of Shell's standing has significantly reduced the
exposure to counterparty risk, in view of the robust standing and contractual
protections.
(b) Customer and financial institution or other counterparty credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group's receivables from
customers, the Group's bankers where cash deposits are held, and the Group's
trading counterparties as noted in section (a) above. These operational
exposures are monitored and managed at Group level.
Credit risk related to customer trade receivables
All customers operate in the UK and turnover is made up of a large number of
customers each owing relatively small amounts. New customers have their credit
checked using an external credit reference agency prior to being accepted as a
customer. The provision of a smart meter is also mandatory for some sales
channels.
Credit risk is further managed through the Group's standard business terms,
which require all customers to make a monthly payment predominantly by direct
debit and requires security deposits in advance where appropriate. At 31
December 2025 there were no significant concentrations of credit risk. The
carrying amount of the financial assets (less the element of VAT and CCL
included in the invoiced balance, which is recoverable in the event of
non-payment by the customer) represents the maximum credit exposure at any
point in time.
The Board considers the exposure to debtors based on the status of customers
in its internal debt journey, the level of customer engagement in finding an
appropriate solution, the customer's creditworthiness, the provision for
doubtful debts and expected credit loss held, the level of reclaimable VAT and
CCL on the balances and cash received after the period end.
At 31 December 2025 the Group held a provision against doubtful debts and
expected credit loss of £34.3m (2024: £36.6m). This is a combined provision
against both trade receivables at £31.8m (2024: £34.4m) and accrued income
at £2.5m (2024: £2.2m). The increase reflects the growth in the Group's
activities.
In relation to trade receivables, after provision and accounting for VAT and
CCL reclaimable the maximum exposure assessed by directors is less than 12% of
the gross balance, being £6.7m, pre the consideration of any cash received
from customers post the balance sheet date. If expected customer credit loss
rate on trade receivables was +/-1% of that assessed, the gain or loss arising
recognised in the income statement and impacting net assets would be
+/-£0.5m.
If the expected customer credit loss rate on accrued income was +/-1%, the
gain or loss arising would be +/-£0.7m.
Credit risk related to industry participants
The Group holds exposure to certain industry participants which, under Ofgem
licence and market regulatory conditions, require payments in advance or other
credit support. The total paid and outstanding to such industry participants
at 31 December 2025 of £6.4m (2024: £7.0m) represents the maximum credit
exposure.
Such amounts due are considered by management and refunds are requested, or
alternative security provided by non-cash means, to the extent practicable. In
view of the quasi-regulated nature of such counterparties, the directors
consider the credit exposure to be low risk.
Credit risk with financial institutions
Cash balances are held in current and deposit accounts with the Group's bank,
and short-term deposit accounts (which are either interest or non-interest
accounts) with other major financial institutions.
At 31 December 2025 the Group had £105.9m (2024: £85.2m) of cash and bank
balances (as per note 20). This balance can also fluctuate materially during
the normal working capital cycle of the Group, reaching significantly above
the reported balance through each monthly cycle, and increasing to a typical
high point on 31 August of each year.
The Group only holds cash deposits with highly rated financial institutions,
with significant credit rating, and diversified from the Group's main banker
to at least one further institution.
(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due. The Board is responsible for ensuring
that the Group has sufficient liquidity to meet its financial liabilities as
they fall due and does so by monitoring cash flow forecasts and budgets.
The Board also monitors the position in respect of the Group's performance
against covenants as part of its trading arrangements, and any requirements
under its licence to operate including its Ofgem energy supply licence.
As part of assessing the Group's liquidity, the Board considers: low
profitability; delays in customer receivable payments; major risks and
uncertainties; and the ability to comply with its Trading Agreement.
A deemed low cash collection scenario of +/-1% of billed cash in a month being
delayed, in which customers delay or default on payment, would result in cash
flow timing adjustments to management expectations of £0.7m.
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:
Group Carrying Within 1 year 2-5 years After 5 years Contractual cash
amounts £'m £'m £'m flows
£'m £'m
Trade and other payables 142.6 139.8 3.5 - 143.3
Borrowings 10.3 1.3 5.2 9.3 15.8
Lease liabilities 0.9 0.8 0.2 - 1.0
At 31 December 2025 153.8 141.9 8.9 9.3 160.1
Trade and other payables 115.8 114.9 1.0 - 115.9
Borrowings 5.0 0.6 2.5 4.3 7.4
Lease liabilities 1.8 1.0 0.9 - 1.9
At 31 December 2024 122.6 116.5 4.4 4.3 125.2
(d) Financial instruments measured as fair value
Financial assets and financial liabilities measured at fair value in the
consolidated statement of financial position are grouped into three levels of
a fair value hierarchy. The three levels are defined based on the
observability of significant inputs to the measurement, as follows:
· Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities
· Level 2: inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly or indirectly
· Level 3: unobservable inputs for the asset or liability.
The fair value hierarchy of financial instruments measured at fair value is
provided below:
Group 2025 2025 2025 2024 2024 2024
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
£'m £'m £'m £'m £'m £'m
Financial liabilities
Contingent consideration - - 1.8 - - -
At 31 December 2025 - - 1.8 - - -
There were no transfers between levels during the period. The valuation
techniques and significant unobservable inputs used in determining the fair
value measurement of level 2 and level 3 financial instruments, as well as the
inter-relationship between key unobservable inputs and fair value, are as
follows:
· Contingent consideration (level 3) - The fair value of contingent
consideration related to the acquisition of ELX (see note 11) is estimated
using a present value technique. The £1.8m fair value is estimated by
probability-weighting the estimated future cash outflows, adjusting for risk
and discounting at 8%. The probability-weighted cash outflows before
discounting are £2.5m and reflect management's estimate of a 43% probability
that the contract's target level will be achieved. The discount rate used is
8%, based on the Group's estimated incremental borrowing rate, and therefore
reflects the Group's credit position. The effects on the fair value of risk
and uncertainty in the future cash flows are dealt with by adjusting the
estimated cash flows rather than adjusting the discount rate. There were no
changes to the valuation techniques during the period.
There has been no movement in the opening and closing fair value balance of
level 3 financial instruments outside of the fair value acquired through
business combination disclosed above.
24. Share capital and reserves
Share capital 2025 2025 2024 2024
Number £'m Number £'m
Allotted and fully paid ordinary shares of £0.005 each 17,019,315 0.1 17,019,315 0.1
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 224,628 shares in treasury
and as at 31 December 2025 (2024: 234,978), the total number of shares in
issue with voting rights was 16,794,687 (2024: 16,784,337).
Share capital represents the value of all called up, allotted and fully paid
shares of the Company.
The share premium movement in 2024 for the Group and the Company relates to:
• the excess of the price at which share options were exercised during
the year, over the £0.005 nominal value of those shares, being £0.4m 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 £12.3m 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 £4.0m to hold in treasury. It is intended that these
ordinary shares held in treasury will be utilised to satisfy future option
exercises.
In 2025 the Group transferred 10,350 ordinary shares from treasury to settle
exercise of employee share options.
Other equity 2025 2025 2024 2024
Number £'m Number £'m
Treasury shares (224,628) (3.8) (234,978) (4.0)
Merger reserve
The merger reserve was previously created as part of the 2016 Group
reorganisation prior to listing and has been reclassified in 2024.
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.
25. 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.
Equity-Settled Share-based payments
The terms and conditions of the outstanding grants made under the Group's
schemes are as follows:
Exercisable between
Date of grant Expected Commencement Lapse Exercise Vesting Amount Amount
term price schedule outstanding at outstanding at
31 December 31 December
2025 2024
6 April 2017 3 6 April 2020 6 April 2027 £0.005 1 43,950 43,950
6 April 2017 6.5 6 April 2020 6 April 2027 £2.844 1 87,900 87,900
28 September 2017 6.5 28 September 2020 28 September 2027 £5.825 1 13,500 13,500
9 April 2018 6.5 9 April 2021 9 April 2028 £10.38 1 38,084 38,084
4 October 2020 3 30 April 2023 4 October 2030 £0.005 2 76,617 76,617
4 October 2020 3 30 April 2024 4 October 2030 £0.005 2 76,617 76,617
1 December 2022 3 1 January 2026 1 July 2026 £2.28 3 120,227 141,715
19 December 2022 3.3 31 March 2026 19 December 2032 £0.005 4 662,000 662,000
17 May 2024 2 31 March 2026 17 May 2034 £0.005 5 30,000 30,000
18 March 2025 3 31 March 2028 18 March 2035 £15.03 6 342,222 -
22 July 2025 2.7 31 March 2028 22 July 2035 £15.03 6 78,000 -
22 July 2025 3.7 31 March 2029 22 July 2035 £13.60 7 160,000 -
20 October 2025 2.4 31 March 2028 20 October 2035 £15.03 6 70,000 -
20 October 2025 3.4 31 March 2029 20 October 2035 £13.60 7 100,000 -
1,899,117 1,170,383
Weighted average remaining contractual life of options outstanding 7.0 years 6.1 years
The following vesting schedules apply to the options:
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.
7. The level of vesting will be based on Group earnings per share secured
over the four financial years from FY25 to FY28.
The number and weighted average exercise price of equity-settled share options
were as follows:
2025 2024
Shares Shares
Balance at the start of the period 1,170,383 1,533,324
Granted 828,000 30,000
Forfeited (88,916) (114,821)
Lapsed - -
Exercised (10,350) (278,120)
Balance at the end of the period 1,899,117 1,170,383
Vested at the end of the period 336,668 336,668
Exercisable at the end of the period 336,668 336,668
Weighted average exercise price for:
Options granted in the period £14.58 £0.005
Options forfeited in the period £13.43 £0.299
Options exercised in the period £2.28 £1.353
Weighted average share price of exercised shares £15.84 £17.03
Exercise price in the range:
From £0.005 £0.005
To £15.03 £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:
2025 2024
Dividend yield 3.3% 2.4%
Risk-free rate 3.9% 4.3%
Share price volatility 57% 66%
Weighted average contractual life (years) 3 years 2 years
Weighted average fair value of options granted during the period £6.11 £16.40
Cash-Settled Share-based payments
For the cash-settled share scheme, the following information is relevant:
Date of grant Expected Commencement Lapse Exercise Vesting Amount Amount
term price schedule outstanding at outstanding at
31 December 31 December
2025 2024
1 January 2024 3.3 30 April 2027 30 May 2027 £10.00 1 149,000 174,500
1 January 2025 3.3 30 April 2028 30 May 2028 £10.00 1 47,000 -
196,000 174,500
Weighted average remaining contractual life of options outstanding 1.7 years 2.4 years
The following vesting schedules apply to the options:
1. 100% of options vest on the vesting date.
2025 2024
Options Options
Balance at the start of the period 174,500 -
Granted 47,000 240,000
Forfeited (25,500) (65,500)
Lapsed - -
Exercised - -
Balance at the end of the period 196,000 174,500
Weighted average exercise price for:
Options granted in the period £10.00 £10.00
Options forfeited in the period £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 the
Black-Scholes option pricing model. The following fair value assumptions were
assumed in the year:
2025 2024
Risk-free rate 4.19% 3.5%
Share price volatility 59% 60%
Weighted average contractual life (years) 3.25 years 3.25 years
Weighted average fair value of options granted during the period £11.21 £13.03
The carrying value of the cash settled share-based payments included within
accruals is £0.6m (2024: £0.6m).
The share price volatility assumption in 2025 was based on the actual
historical share price of the Group since January 2023.
The total expenses recognised for the year arising from share-based payments
are as follows:
2025 2024
£'m £'m
Equity-settled share-based payment expense 1.9 0.9
Cash-settled share-based payment expense - 0.6
National Insurance costs related to share options 0.2 2.5
Total share-based payment charge 2.1 4.0
Employer's National Insurance contributions are accrued, where applicable on
unapproved (for tax purposes) share options, at the rate of 15% (2024: 13.8%
or 15.0%) which management expects to be the prevailing rate at the time the
options are exercised.
26. Commitments
Commodity purchase commitments
As disclosed in note 23, the Group has entered into commodity purchase
contracts to hedge its exposures to fluctuations in gas and electricity
commodity prices which meet the criteria for "own use" and are classified as
off-balance sheet arrangements. Such contracts to purchase gas and electricity
are set so as to match, to the extent possible, the demand from customers;
therefore, they play a significant role in securing the forward expected gross
margin on customer contracts which are set at the point of contracting new
customers.
As part of the Group's risk mandate, the total commodity purchase contracts at
31 December 2025 amount to £395.6m (2024: £315.0m). Such purchase contracts
carry inherent risk to the Group through the value of such contracts, being
significant commitment costs, and the potential exposure should customer
contracts not cover commitment costs. The Group, however, has a significant
contract book in excess of the purchase commitments, which limits the exposure
risk, which is considered to be low, given they are underpinned by customer
contracts. The benefits to the Group of the commodity purchase contract
commitments arises through fixing future commodity costs against contracted
revenue where a pre-determined margin and profit are realised.
Capital commitments
The Group has entered into contracts to develop its digital platform as part
of the Digital by Default strategy. Such contracts may be terminated with a
limited timescale and as such are not disclosed as a capital commitment.
The Group has no other capital commitments at 31 December 2025 (2024: £nil).
Security
The Group has entered into Trading Agreements with the Shell group in February
2024 to provide access to commodity markets. As part of this arrangement, as
is common for such structures, there is a requirement to meet certain
covenants, a fixed and floating charge (including mandate over certain banking
arrangements in the event of default) over the main trading subsidiaries of
the Group, being Yü Energy Holding Limited and Yü Energy Retail Limited, and
a parent company guarantee from the Company.
As part of the Group's activities in financing smart meters, a Group entity
has provided security over smart meter assets in relation to bank debt
provided by Siemens Finance.
Yü Group PLC provides parent company guarantees on behalf of its wholly owned
subsidiaries to a small number of industry counterparties as is commonplace
for the utilities sector.
Contingent liabilities
The Group has no contingent liabilities at 31 December 2025 (2024: £nil)
other than those disclosed in note 23.
27. Related parties and related party transactions
Other than remuneration of key management personnel (note 6), the only related
party transactions in the period have been between the Company and its
subsidiaries, which have been eliminated on consolidation.
In the prior year, the Group has transacted with CPK Investments Limited (an
entity owned by Bobby Kalar). The Nottingham office property was sold by CPK
Investments Limited to the Group to provide additional flexibility for the
Group's property strategy. The consideration paid of £1,709,000 was largely
based on an independent valuation of the building, together with an assessment
of value of fixtures and fittings acquired. The lease agreement between Yü
Energy Retail Limited and CPK Investments Limited was transferred between
Group entities and disposed of for the purposes of the consolidated Group
accounts. During 2024 the Group paid £92,000 in lease rental and service
charges to CPK Investments Limited. There was a net balance of £35,000 owed
to the Group from CPK Investments Limited at 31 December 2024, which was
settled in full in January 2025.
In 2024 the Company acquired 234,978 ordinary shares, at the then-market rate
of £17 per share, via its broker Liberum Wealth Limited. These shares remain
in treasury on 31 December 2024. On the same date as the Company's purchase,
Paul Rawson (Chief Financial Officer during the period) and a person closely
related to him, and two employees of the Group, sold shares through Liberum
Capital Limited, of which some such shares were sold at the same market price
(less commission).
28. Reconciliation of liabilities arising from financing activities
The changes in the Group's liabilities arising from financing activities can
be classified as follows:
Borrowings Lease liabilities Total
£'m £'m £'m
Balance as at 1 January 2024 0.5 1.6 2.1
Cash flows:
Drawdown of new borrowings 4.6 - 4.6
Repayment (0.3) (1.0) (1.3)
Non-cash:
Recognition of new leases - 1.9 1.9
Interest 0.2 0.2 0.4
Disposal of lease liabilities - (0.9) (0.9)
Balance as at 31 December 2024 5.0 1.8 6.8
Cash flows:
Drawdown of new borrowings 5.6 - 5.6
Repayment (0.8) (1.0) (1.8)
Non-cash:
Interest 0.5 0.1 0.6
Disposal of lease liabilities - - -
Balance as at 31 December 2025 10.3 0.9 11.2
29. Subsidiary audit exemption
The following UK subsidiary undertakings are exempt from the requirements of
an audit for the year ended 31 December 2025, under section 479A of the
Companies Act 2006.
Company name Company Number
Yu Water Limited 09918643
Yü PropCo Leicester Ltd 14307346
Yü PropCo Nottingham Ltd 15994888
Yü-Smart Ltd 12311416
Yü Services Limited 11440201
Yü Innovate Limited 16742823
Toucan Energy Limited 09688876
ELX Solutions Ltd 12269209
30. Post-balance sheet events
On 13 February 2026:
· the Company has issued 195,926 Ordinary Shares with nominal value
of £0.005 per share;
· the Company transferred 113,242 ordinary shares from treasury to
settle an exercise of employee share options; and
· the Company acquired 309,168 ordinary shares, at the then-market
rate of £19.06 per share via its broker Panmure Liberum Capital Limited and
were held in treasury. On the same date, Bobby Kalar (Chief Executive
Officer), exercised and agreed to sell options over 309,168 ordinary shares in
the Company.
There are no other significant post-balance sheet events.
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