(Sharecast News) - Business energy supplier and meter asset owner Yu Group lifted its full-year expectations in an update on Wednesday, after recent growth in revenue, profitability, and cash generation.
The AIM-traded company said the positive trend it observed in the fourth quarter of last year had carried over into 2023, with average monthly bookings experiencing sustained growth.
It put the growth down to pent-up demand resulting from softening commodity markets.
As a result, Yu said it had seen an increase in customers contracting with the company, providing additional revenue visibility not only for the current fiscal year but also for the future.
Yu Group said the strategic investment in its 'digital by default' strategy, combined with its ongoing smart metering roll-out, had established a scalable platform, enabling it to achieve significant cost-efficiency benefits.
Additionally, the implementation of the strategies had a tangible impact on its financials, leading to a reduction in bad debt levels and facilitating strong cash collection from its customer base.
After a comprehensive review, Yu said it expected revenue, margins, and cash flow for the year ending 31 December to significantly surpass current market expectations.
"I'm delighted to report a further increase in our expectation of revenue, profit and cash, and I'm looking forward to presenting a ninth consecutive half year improvement in our interim results," said chief executive officer Bobby Kalar.
"I look forward to updating shareholders as the group continues to deliver and set new records."
Yu Group said it would provide a further scheduled trading update on its first-half performance in late July.
Reporting by Josh White for Sharecast.com.
Yu Energy (YU.)