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Yup and the impact of people working from homes so usage of gas, electricity water will go down for businesses.
I very much doubt yu will be able to beat 2019 revenues this year (2020).
Reason for drop is same as market: covid19
Probably explains the reason of the drop!!
During the current climate, many businesses are seeing a change in demand, and many employees being asked to work from home.
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Its amazing some of the Pi's are back here again when news is due to urge you to sell your shares and everything going down the drain, closing business's etc complete BS . the average bill from Yu is north of £9000 p/a hardly SME or the local cafe round the corner . With 97% smart meters and 9 days invoicing delay or better the correct systems in place and the ability to literally turn the lights of to any commercial customer i think non-payment will be the last thing they will do before they close. if I was invested in e-on then maybe .
Yu. have come along way since the accounting misfortune and now stand on the start line for being one of the top 10 suppliers in the country its only a question of time, and with the new office already factored into the growth plan, and this situation we are in now only holds well for YU. WITH ALL THAT CASH sooner more than later ME THINKS, yes there will be casualties but not YU?. CEO with 55% skin in the game only 16mil shares 12 mil in the bank no dept As to are regular doom and gloom bunch if its that bad go invest some where else and leave it to the LTH and stop playing that obvious game you lot play .
When fear is at it’s greatest time to dig deep and get more if you believe. Any stock coming out with positive news is flying up.
YU. Need to make a COVID statement either soon or with the FY. Not looking to healthy at the moment. 150k sell hasn’t helped, at this rate will be 50p by results and all time low was only 42p and that’s when people thought YU. Was finished due to the FCA and accounting issue, since then revenue is flying , and a whole raft of business process changes, debt recovering reduced and new facility with smartest.
The company has never been better placed
Not sure how many SMEs have gone bust in your area but I'll wait to see how long the lockdown is first. I've not seen any boards in my neighbourhood. Usage will go down but credit risk has been a focus since end of 2018. If I was an owner, I'd be looking to borrow with the government helping and interest rates down to 0.1%. I do know the local restaurants are much quieter and thats been the case for weeks now but other businesses are very busy.
Fair call - I will email and see if they can clarify.
Cheers
Well, I have resigned myself that I will probably not get my money back in my lifetime on this.
I went all in at £2.50 (Too long ago to remember), and now this can ONLY go down further - for the obvious reasons being:
a) We supply BUSINESS
b) Most businesses will be CLOSING
c) We are heading into a work recession
d) Businesses will be unable to pay bills (So many more businesses will close)
I believed in this - and if this global tragedy had not happened I believe we would have been ok
But sadly this ship has sailed and taken my money with it.
Good luck to all - stay safe, and God Bless to all
Bitbuybit, best to email whoever you want yourself.
From 28th Jan update and thenext update will have more details. More details in the smartest RNS also. Yu had been adding £500k pm over 2019
Group cash and trading counterparty deposits as at 31 December 2019 were £12.6m (2018: £14.6m), consisting of £2.1m in cash (2018: £14.6m) supplemented by £10.5m (2018: £nil) of trading counterparty deposits. The trading cash calls have been made due to the significant decrease in forward energy commodity markets experienced in the year.
The new hedging facility ("Facility") arranged with SmartestEnergy will materially reduce volatility in the Group's cashflow and cash balances caused by advanced deposits. The c.£13m Facility, which scales with the business, is anticipated to impact cashflow favourably in H1 2020 as the Group transfers its trades from its legacy arrangements to SmartestEnergy.
You shouldn't have to wait long. 1 week until the results RNS so that should give a good indication of the cash position. I'm confident profitability will be back in order within the year but we can only wait and see at this stage.
Great buy in price at the moment. Top ups ahoy!
What cash pile? All I see from the last RNS is a massive decrease in YU's actual cash but a hedging/overdraft facility.
I have raised this point several times and no-one has emailed investor relations for clarification.
As it stands then still loss making and too many unknowns for me.
BK needs to talk specifics in the next update.
Matt
Just under 2 weeks left to update and on a day like this, it won't matter for the short term SP tbh. Covid has taken over the agenda for all shares now. I half suspect many LTHs have sold out just to pick up household name "bargains" elsewhere to make a quick buck.
Good thing with Yu is their cash pile, smartest deal, no bank debt of its own.
The current climate is what it is. Very tough and many companies hitting new 52 week lows multiple times in recent weeks. Too early to say with confidence there will be widespread SME bankruptices. SME owners won't roll over straight away and the government are trying to help before thats the case. If there are large scale closures, then thats a downturn all around. Yu, banks with bad debt, property with unpaid rent. If the UK lockdown is to last even four months, is that enough for the average bistro to go bust? I'm not sure. With circa 8k customers, I hope there is the economic diversity amongst the clients for Yu to continue with their growth.
I'm beginning to fell more, however, that the work done at Yu since end of 2018 will prove useful now including the smartest deal.
Unless we all want to walk away from devastating losses - there is only one way to look at this and to hold (Or average down if b***s) with a hope that in two years we will look back on this and have recovered.
Companies wont be trading, wont pay energy bills, further drop therefore only option.
Keep safe all
I suspect it won't matter what the update states - we are going down. Anyone remember what the all time low was?
Someone sold 150,000 shares
18 Mar 12:17:40 68.00 150,000 Sell 75.00 80.00
indeed and Mr 10K picked up another 2 lots so far today
The support to SMEs with all the free loans will help yu customers. That's about it but that is big
Wonder how the chancellors spending spree will affect YU group ?
Bar the rats scurrying at the open and selling at any price we have done very well today, nearly 50/50 buys to sells.
Utter carnage elsewhere
Large uptick in UK planning applications for clean energy projects in 2019. Bodes well. Reported today on the Guardian.
High spider buying again good sign? As for bad dept they are or going to be right on top of that with bills down to 9 days invoicing and smart metering near the 97% . Profits should be coming throughout 2020 with gross profit 27% plus up from 2017/2018 all looking very good.
Low energy wholesale prices has been going on for a while now and Yu have spent most of 2019 working on customer debt collection and streamlining costs etc. The smartenergy deal couldn't have been timed better for this reason. Whilst down, compared with other stocks Yu has done relatively well. They're taking on customers so I don't agree with most of what you said below moneyspider. Issue is if SMEs customers go bust, which the UK budget has already addressed. Othereise, Yu doesn't supply big airlines the last time I checked. Yu has no bank debt of its own
First point , they no longer have to stump up huge amount for forward engery contracts
This was why they went with Smartest.
Frees up £12m in cash and also de risks forward hedging so actually YU will benefit from reduced engery costs.
Yes some business will suffer no doubt about that and the risk profile on default will increase, yep get that, bit taki n into account YU have just spent 18 months getting rid of the crap on the books.
Therefore heavily de risked.
This shut down and carnage will be short lived 2 month pain max.
If you are trying to run down a stock there are many hundreds far easier to pick on than YU especially the ones with huge debt mountains.
Oh yeah YU has no debt just a huge cash pile
Yu are weathering the storm well given the carnage elsewhere. A few moderate ups and downs are expected until results later this month but on the whole a solid defensive play.
I will certainly keep buying on the dips.