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Told you they would buy Bristol Energy’s book. That’s a 50% increase in customers.
Sorry 40% so that proves they had 10000 meter points prior and not declining as suggested by one posted last week. So now 14,000 SMEs
Acquisition...easy to miss out the 'c'
Well,Gareth you can wait for the 50's....
The market is not....clearly give today news the thumb up....
GLA.
Second RNS this morning....and again it's further positive news by the company....looking even better ahead....
GLA.
Fantastic news and what happens naturally in the markets. There will be fewer suppliers taking on larger market share and with Yu now all about scaling up in a controlled fashion, this is brilliant for Yu's profit ambitions. Yu really have set the foundations to do more of these acquisitions since end of 2018
2nd RNS PUBLIC CENSURE AND FINE –YÜ GROUP PLC
this how the Stock Exchange see it - fine waived because potential financial challenges:
"Given the seriousness of these breaches, the Exchange considers a public censure and a fine is an appropriate sanction. The fine level of £300,000 reflects the Company’s approach inpromptly updating the marketwhen the matter had been identified, its full co-operation withthe Exchange’s investigation and the subsequent remedial action undertaken by the Company. Noting theuncertainties and potential financial challengesfromtheimpactof the COVID-19 pandemic,as set out in the Company’s notification of its final results on 6 April 2020, the Exchange hasdetermined towaive the fine in this case".
And now we hear that Yu have made an aquisition in the face of potential financial challenges - was this part of the settlement terms with the Exchange ie taking on Bristol Energy's BtB business and debt in liu of the fine?
why would the lse care about bristol energy's b2b book and who buys it? Covid 19 and its impact on all businesses is still a current issue albeit many feel the main part of lockdown is now gone. Yu identified their own problem, cooperated, fixed the problem and that's the end of it
Just wondering what were the settlement terms that Bobby says draws a line under the past.
nice to see rise
may be back up to 120
I'm preparing myself to be gutted if this goes back up to 190p this year and three quarters gutted if it goes to £1.20. GLA long term holders.
You could ease your gutting feeling by buying now....still cheap enough...
Not an advice just saying....
GL whatever.
Thanks but I sold at 62p and 85p and have just a few shares left. Unlikely to buy again before next update.
Lets first reach and sustain 100p. :) :)
Bought a few more today to celebrate the good news ...
Long term holding for me as it seems a great swing :-)
Everyone to their own as usual
Treven
It's the 120-125p zone that needs to be reached and breached :-)
On the face of it this looks like a great deal for Yu
Deal analysis as follows:
£1.24M cash on completion.
£580k of liabilities assumed.
£100k deferred payment.
Total paid = £1.91M
Yu have also got their hands on £1M of debt, assume 95% of this is collected = £950k received from customers
So total net cash paid will be around £960k
4000 meters = a cost per meter of £240.00
Revenue in last year was £15.4M now lets assume over the next 12 months 20% drops off until the new customers get used to being served by Yu.
That will mean Yu should have an extra £12.8M of revenue.
At todays wholesale prices and based on prices Bristol sold these contracts at I'm going to be bold and predict Yu can make 15% margin on these contracts based on hedging at todays wholesale prices.
15% of £12.8M revenue = an extra £1.92M gross margin per year. (Note YU will have managed to do this without increasing overhead apart from taking on Bristols energy specialist team which could be £100k in salaries per year.)
Future forecast updated as follows:
2020 FY loss of £4M assuming this purchase is put through as cost of sales.
2021 £0.5 - 1M profit
Re the number of meters I wouldn't give to much weight to the actual number of meters, more important is the volume of kWh associated with each meter.
ie when Yu lost Bolton FC that was a massive consumption meter that could equal 500 high street shops consumption - trust that makes sense.
I will be more then happy to overcome 120p . And we will get there. Not sure if it happens in one go though. If we have another three days like today will be brilliant. :) :)
Can I query your statement on Bolton wanderers as it is incorrect the contact was not lost
See below
Bolton Wanderers Football Club and business utility supplier Yü Energy have announced a new wide-ranging partnership agreement.
The Nottingham based business energy and water supplier will provide utilities until mid-2021 and will also be partnering on a range of energy related initiatives including the provision of electric vehicle charging points for the University of Bolton Stadium.
Yü Energy will be the club’s designated back of shirt sponsor until the end of the 2020/21 playing season.
The new partnership builds on the existing relationship, with Yü Energy having supplied energy to Bolton since 2017. After the club fell into administration and following the subsequent takeover by FVWL Football Limited, Yü Energy worked closely with the Club to find a viable solution that could help to establish an ongoing mutually beneficial partnership and support the Club in regaining a sound commercial footing.
Yü Energy CEO Bobby Kalar welcomed the deal.
“We are absolutely delighted to announce this new partnership with Bolton Wanderers FC,” said Bobby.
“It’s an honour for Yü Energy to be powering the University of Bolton Stadium and continuing our partnership with such a historic football club.
“We recognise the vital role the Club plays in the local community. We have worked hard with the team at Bolton and utilised our robust internal financial controls to find a win-win commercial solution that would allow the club to rebuild and continue to flourish.
“Our partnership will allow Bolton to continue to benefit from our unique multi-utility offering, with the convenience of bringing together the gas, electricity and water supply all in one place as well as enhancing the stadium facilities with the addition of EV charge points.
Bolton Wanderers CEO, Emma Beaugeard, commented on the partnership.
“We were impressed with how Yü Energy worked with us to quickly find a positive commercial solution to our utility needs.
“We’re looking forward to the enhancement of our stadium and hotel facilities with the addition of electric vehicle charging that will boost our sustainability.
Rather surprising they've renewed a contract with a company that went into administration.
Given Covid and football crowds not returning to stadiums anytime soon Yu could be looking at taking a double hit on this customer as many football clubs hit the wall over the next year.
Note the point was made to illustrate the consumption of a meter being more relevant than the volume of meters being supplied.
The way things are going not much point to anything. All sports, restaurants, cinemas, theatres, etc will not exists. Good job the buyers are cash rich billionaires so no fear for Bolton wanderers
Recessions come and go and more importantly big assumptions are made on YU clients which is incorrect
The point I was making is you made out the contract was lost, no it wasn’t.
Thats fair enough ;-)