(Sharecast News) - Corporate gas and electricity provider Yu Group reported a 65% increase in revenue in its final results on Tuesday, to £460m in 2023, up from £278.6m in the prior year.
The AIM-traded firm said the surge in revenue was accompanied by a substantial rise in adjusted EBITDA, which soared to £42.6m from £7.9m in 2022.
Profit before tax also saw a significant jump to £39.7m from £5.8m, while Yu Group increased its final dividend to 37p per share, from 3p a year earlier.
On the operational front, the board noted the establishment of a new five-year trading agreement with Shell Energy Europe, enhancing its access to commodity markets and improving its working capital profile.
The company also noted its improved Trustpilot score of 4.1, and its investment in UK contact centre capabilities and digital-led customer interactions.
Looking ahead, Yu Group said it was optimistic about its continued growth trajectory into 2024, expecting around a 50% increase in organic growth despite lower commodity prices.
With contracted revenue of £520m for 2024 and a target to own more than 25,000 smart meters by the end of the year, the group said it was well-positioned for further expansion and profitability.
The board said that strategy was supported by a strong hedging position, digital investments, and a service-led market approach.
Yu Group's directors confirmed their intent to progressively increase dividend distributions in a sustainable manner.
"It's been an extraordinary year and I'm very pleased with our strong performance, delivering another record breaking set of results," said chief executive officer Bobby Kalar.
"We have a strong forward order book which continues to build into 2024, and with this high degree of predictability, I remain confident in delivering another strong performance and continuing to deliver further shareholder value in 2024 and beyond.
"We've made significant strategic and operational progress - I'm very excited by the capability of Yü Smart and the value it creates for the group."
Kalar said the company had a "transformational" new commodity trading agreement with Shell, along with the foundations and digital-led systems in place to ensure continued growth.
"We are increasing our dividend payment to reward our loyal investors and we look forward to providing further growth in shareholder distributions."
At 1113 GMT, shares in Yu Group were up 3.98% at 1,419.3p.
Reporting by Josh White for Sharecast.com.
Yu Energy (YU.)