21 January 2025
Yü Group
PLC
("Yü
Group" or the "Group")
Year End Trading Update and Notice of
Results
Strong performance with continued growth
in energy supply and smart metering
Yü Group PLC (AIM: YU.), the independent
supplier of gas, electricity, meter asset owner and installer of
smart meters to the UK corporate sector, is pleased to provide an
update on trading for the financial year ended 31 December 2024
("FY24").
Financial & Operational
Highlights
Strong financial performance
·
FY24 revenues grew c.40% and are expected to be approaching
£650m (FY23: £460m).
·
Delivery of FY24 EBITDA margin forecasted above expectations
driven by strong contract profitability in H2 24, robust hedging
policy and tightly managed bad debt.
· Net
cash position of £80.2m (FY23: £32.1m).
Strategy delivering results
·
Continued growth in Yü Energy:
o Meter points
supplied increased 65% in year, to 88.0k (2023: 53.4k).
o Volume of
energy supplied (EQVS1) increased organically by
c.78%.
o Average monthly
new bookings of £42.6m (2023: £55.5m), reflecting a softer
commodity pricing environment.
o Trading facility with Shell continues to provide efficient,
and scalable, access to commodity markets.
·
Further progress and investment in Yü
Smart:
o Continued
scaling up of meter installs growing 169% in the year to 22.9k
(FY23: 8.5k, H1 24: 9.0k).
o National
coverage of engineers providing efficiency benefits.
Outlook
· Yü Energy organic growth reflecting more normalised market
prices:
o Revenue
contracted for the next financial year increased 9% to £566m (FY23:
£520m) providing confidence in delivering FY25
expectations.
· Yü Smart delivering a growing annuity income
stream:
o £1.3m
ILARR2 secured at 31 December 2024 (2023: £0.2m) from
27.2k meters owned.
· Continued strong
cash generation provides confidence in our progressive dividend
policy, with target dividend cover of c.3x over the short to
medium-term.
Bobby Kalar,
CEO of Yü Group commented:
"The Group
has delivered a strong 2024 and I'm delighted, once again, to
update shareholders on our progress.
Yü Energy,
our supply business, has seen a c.40% increase in revenue despite
lower commodity pricing, and we enter 2025 with 88,000 meter
points, up 65%.
Yü Smart
continues to deliver incredible advantages to our customers and the
Group, and we now have national coverage of skilled engineers. We
have financed 27,200 smart meter assets which provide a growing
index-linked annuity income stream alongside other significant
benefits to our customers and our own operation.
I look back
with pride on our journey and the hard yards invested, which have
seen a quadrupling of revenue in the last four years. While our
increased scale suggests a lower organic growth rate in the future,
our Group is well placed to continue to take market share with a
significant opportunity remaining.
Our business
is in good shape across Yü Energy and Yü Smart to continue to
deliver. We have a fantastic and dedicated team in place, and I'd
like to thank them for all the work done in delivering yet-another
record year."
Notice of
Results
The Group expects to publish its annual report
for FY24 on Tuesday 18 March 2025.
Definition:
1 EQVS - Equivalent volume of energy supplied, where gas is
converted to a proxy value of electricity.
2 ILARR - Index-linked annualised recurring revenue.
|
Yü Group
PLC
Bobby Kalar
Paul Rawson
|
+44 (0) 115 975 8258
|
|
Panmure
Liberum
Bidhi Bhoma
Edward Mansfield
Satbir Kler
Gaya Bhatt
|
+44 (0) 20 3100 2000
|
|
Teneo
Giles Kernick
|
+44 (0) 20 7353 4200
|
Notes to Editors
Information on the Group
Yü Group PLC
is a leading supplier of gas and electricity focused on servicing
the corporate sector throughout the UK. We drive innovation through
a combination of user-friendly digital solutions and personalised,
high quality customer service. The Group plays a key role
supporting businesses in their transition to lower carbon
technologies with a commitment to providing sustainable energy
solutions.
Yü Group has
a clear strategy to deliver sustainable profitable growth (in a
£50bn+ addressable market) and value for all of our stakeholders,
built on strong foundations and with a robust hedging policy. The
Group has achieved a compound annual growth rate of over 60% over
the last four years, and has significantly improved margin and
profitability performance. In 2023 the Group launched Yü Smart to
support growth through new opportunities in smart metering
installation.
