Yu Energy Share News (YU.)

(Sharecast News) - Yu Group said on Tuesday that it was on course to beat market expectations for the year, as it hailed a "record-breaking" performance.

The company, which provides energy and utility solutions to UK businesses, said it had enjoyed "extremely strong" organic growth, with full-year revenue expected to exceed £275m, up 76% on FY21.

The adjusted EBITDA margin for the year is set to be "significantly" ahead of current market expectations, it said, as it pointed to record-breaking annualised contracts, with average monthly bookings up 78% at £24.5m and a particularly strong performance in the fourth quarter of the year.

Chief executive Bobby Kalar said: "I'm thrilled to report a fantastic, record-breaking performance for FY22. While the board modelled a strong outcome for FY22 we may have underestimated the accelerated contribution our strengthened business would have on the group's FY financial metrics.

"Record breaking organic revenues, profitability and forward contracted revenues have all exceeded management expectations. We are now in the fast lane of growth and expect to exceed current guidance that had already been upgraded in March, July, September and November 2022."

As a result of strong cash generation, management plans to make a "modest" shareholder distribution in respect of the financial performance achieved in FY22, details of which will be announced alongside the audited results for FY22.