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Great presentation today from Bobby and Paul. You could feel how excited Bobby was about how the company had performed and continues to perform. The Shell deal is a massive deal. Shell as a producer of gas and energy wants to have a known market to sell into. Octopus Energy provide this for B2C and now Yu do the B2B side. Shell knows what they are producing and they can know now what price they will be selling it at years in the future. It works for Shell and works for Yu! They did want to do a JV and buy part of the company, but it is too early for BK to consider this yet. Too much growing to do in the short to medium term!! The agreement is very capital light, requiring very little capital indeed to be held on the balance sheet.
Smart is now beginning to get the engineers they need, partly to do with the training school Yu Group have set up. 50 people at the year end, already up to 77 at the 19/03/24 and hoping for 200 by the end of the year.
The 100,000 target was reconfirmed (or there abouts,) if it's in the 90's I don't think he will get a hard time, but the main reason for it is to have something to aim at. They do however think they will manage to get there!
The EBITDA margin of 10.9% may have been because one or two things assisted the figure, and can't be relied upon to happen again, 6.5% to 8% is what they want people to work with. With the sound that it will be at the top end, rather than where Liberum are, but that is for prudence and we are still early in the year.
There don't appear to be anything to buy with the cash, the smaller companies will fall by the wayside and the likes of Yu will get bigger. They will continue to take share from the big 6. So, with nothing in the largest 17 looking attractive, and the smaller suppliers gradually failing. The cash will benefit the shareholders either in special dividends or share buybacks. They want the £11.9m from the share premium account, available to distribute.
The TPI's encourage businesses to move at the end of the contract, so they justify there fee's, so churn is around 55%. The aim is to get the retention around 70%. Again an internal target that they want to try and achieve.
There were around 15 people on the call, and I don't think anyone will have gone away failing to be utterly impressed with what has been achieved so far. And if I got £1 each time someone said but why is the company so cheap, I would have been able to get a nice bottle of wine!!!
There was nothing not to like about the presentation to analysists today, I will be very surprised if we don't get some more Institutional involvement over the next few months/quarters as they build stakes. It may also mean that BK needs to let a few go. This would not be a negative, and should not be viewed as BK wanting to cash in. There is still too much to do, and the team seem totally focused on delivering it for us shareholders.
There is nowhere better in the market to have your cash IMHO, but DYOR!!
Definitely in breakout mode PE is just insane could double and still only 15 ish
Under 10 is for behemoths with limited growth but pays good dividends
We are high growth and good dividends
For what it's worth, I reckon this is looking at a break-out from here. The results have cemented that all is 100% going to plan and the graph now shows that it is ready to push on to its next high. Those were seriously good results today and more big players will want in, on the back of them. . . ATB
His motives were fairly obvious from yesterday morning...
Let's keep away from the bad smell guys and enjoy the great results. Just ignore him/her.
Slow and steady is best. Someone mentioned that income funds will start to sit up and take notice. That’s not an instant process. Team meetings, further analysis and buying in tranches. I’m hoping for more steady growth in the days ahead. MMs may try and panic us, but I think we have all seen what a diamond this one is on AIM!
JWBellamy - here is what you said at the start of play:- "There we go… barely a reaction. Traders will be looking to get out now given minimal rise"
I did say that you were being a bit quick to de-ramp this share at 08:09am!!
Thanks NG always appreciated
The capital reduction is going to be £11.9m, which more than covers the next dividend in itself. There is 3x cover in any case so hoping 40p is a floor
Just been reading the deck that SNN posted prior to having a chat. These targets are great to read. Ambitious and if hit should mean that eps for the current year will be over 300p. Fantastic net EBITDA margin of 10.9% in the second half of 2023. I just don't see this falling back to 6.5% like Liberum think. The digital by default quote has the margin built into it, and this has been steadily building due to the lack of competition. I know they are spending money recruiting staff for Yu Smart, but this is not falling to 6.5% for 2024.
I will post after meeting Sparky.
Need to wait now for NG,s feed back on the II roadshow
Some big ambition in there UK top 10 supplier wow
100,000 meter points in 2024
25k smart meters
2024 is going to be one hell of busy year for YU group
Good work YU keep it up your a credit to UK PLC
Https://www.yugroupplc.com/wp-content/uploads/2024/03/Yu-Group-PLC-2023-FY-Results-Presentation.pdf
Presentation slides now up.
SP Angel's upgraded figure out now on Yu website. It'll probably be revised up again.
Per the accounts - bad debt is provided at 3.1% revenue.
I too got a newsletter as a small business owner today. Was surprised to see it, marketing drive is clearly on
There doesn't seem to be any real bad debt.
Overdue customer receivable reduced from five days to four . Reduced by one day.
Thanks. I think that the increase in margins is significant. Higher margins give the company more support and flexibility in case of any weakness within the market. The stronger the balance sheet the more likely to grow as other companies have issues.
Was there any mention of the bad debt levels ? The brokers had, in the past, always overstated those. Have they now been reduced in there current reports ?
Anyone else received the Newsletter from YU this morning? Must admit I have never received one before and it isn't because I am shareholder. It is a newsletter aimed at new and existing customers. Shows that they are still driving the marketing forward.
Great read meter points was 53.5k
Smart meter engineers now at 50
Page on future rev possibilities £3b in 6 years at current trajectory of 55m a month new business
All this for for a PE of 7 and MC of £230m
Right - can't say much as still going through it all. Annual report up on investor relations site, presentation will be uploaded soon.
Standout points so far noted
Adjusted eps, not diluted, of 199p - call it two quid!
ROC monies were accrued at £21.8m at balance sheet date (£11.3m 2022).
EBITDA margin was 7% in H1 and 10.9% in H2. Yes, 10.9% and these strong margins are expected to continue, not fall as per past broker notes! (They may fall back a tad, imo, but I reckon will still be 9% plus).
Capital allocation is being set at approx. 1/3 payout going forwards, with the proviso that the balance is for acquisitions, but if no acquisitions made, additional distributions of surplus will be made (ie special dividends). Cancelling the share premium account and adding this to distributable reserves is part of this process in giving them full flexibility over the use of excess cash. There is a hint in the Annual Report that a special dividend will be paid at some time in 2024 (see page 32). As Yu is now much bigger, there are very few targets left, which are do-able ie they're too big, or basically not for sale.
Next target is £1bn revenue, but they show a new model based on £50m a month bookings (was £20m) with revenue increasing to £3bn - is this a hint of a medium term target?
IR have told me that this morning's analyst presentation may be made available on their website in the following days. A bit vague - could mean just the slides, or may mean video playback?
My caution over the speculated £20m special dividend was justified, however, given the above points, from the company itself, has prevented a drop in the share price. More importantly, previous highs from 2018 are now cleared, so freeing up the chart to hopefully re-rate this some what. In time I think the dividend policy will be increased (a bigger % payout) as it becomes less likely acquisitions will be made.
We should get more coments from the anylists after the presentation is over.
"A presentation for analysts will be held at 9am GMT today"
NG I hope the meeting with YU management and other IIs goes well today.
As always some feedback very much appreciated