Yu Group PLC Trading Update (0158H)
RNS Number : 0158H
Yu Group PLC
25 July 2023
25 July 2023
Yü Group PLC
(the "Group" or "Company")
CONTINUED STRONG FINANCIAL PERFORMANCE
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 six months ended 30 June 2023.
Bobby Kalar, Chief Executive Officer, said:
"We are delighted to have accelerated our strong trading
momentum and our growth continues to surpass expectations. We
continue to deliver strong financial performance as more customers
lock in the benefit of a softening commodity market. Alongside this
growth and underpinned by our "Digital by Default" platform and
Smart Meter installation business we see revenue and profitability
growth in FY 23 and beyond. We are as excited as ever about the
future of Yü Group and remain focussed on exceeding our previously
stated GBP500m revenue target and increased 5% EBITDA margin."
Financial and Operational highlights
-- Accelerating revenue growth in H1 23 with the Group expecting
to outperform revenue expectations for FY 23. The number of
supplied meter points grew 56% in the period to 39,700 (FY 22:
25,500, H1 22: 26,100).
-- Record average monthly bookings of GBP51.3m achieved for H1
23, up 109% on FY 22 (FY 22: GBP24.5m, H1 22: GBP14.3m) providing
clear revenue visibility for FY 23 and underpinning future
-- Expansion in EBITDA margin expected in H1 23 as the Group has
benefited from operational leverage brought about by the "Digital
by Default" strategy. This has been supplemented by selective new
business, good hedging, customer lifecycle performance and
improving bad debt metrics.
-- Exceptional cash generation, with 98% cash conversion from
billings. Closing H1 23 net cash (excluding leases) of GBP36.6m, up
GBP17.6m in the first six months and GBP20.9m year-on-year (FY 22:
GBP19.0m and H1 22: GBP15.7m).
-- Growing rollout of Yü Smart, with a current monthly smart
meter installation run rate of 700 and expected to scale
significantly. The Group is pleased to announce it is transitioning
from the use of third-party meters and has now commenced its own
Kensington Meter Asset Limited (KMAL) installation and funding
rollout creating a future recurring revenue annuity.
-- Record monthly bookings secures future revenue and provides
management with confidence in the Group's prospects for FY 23 and
-- Margin expansion achieved through "Digital by Default"
strategy coupled with smart meter roll out. As a result, the Group
has exceeded its stated mid-term EBITDA margin goal of 4%.
-- Medium to long term margin benefit expected from a modest yet
growing number of smart meter assets.
-- Management now target GBP500m revenue with 5%+ sustainable
EBITDA margin in the short to medium term.
-- Group net cash (excluding leases) expected to increase in H2
23 despite the annual ROC payment falling due in Q3 23.
-- As a result of the accelerating revenue profile of the Group
and significantly increased EBITDA margin expected to be achieved
in FY 23, the Group expects to report results substantially ahead
of current market expectations.
Notice of results
-- The Group will issue interim results on Tuesday 26 September 2023.
For further information, please contact:
Yü Group PLC
Paul Rawson +44 (0) 115 975 8258
Cara Murphy +44 (0) 20 3100 2000
Alec Tidbury +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 and value for all of our stakeholders, built on strong
foundations and with a robust hedging policy. In 2022 the Group
launched Yü Smart to support growth through new opportunities in
smart metering installation. With a significant opportunity in a
GBP50bn+ addressable market, Yü Group continues to deliver on the
medium-term goal of GBP500m of revenues with an adjusted EBITDA
margin in excess of 5%.
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(END) Dow Jones Newswires
July 25, 2023 02:00 ET (06:00 GMT)
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