(Alliance News) - Yu Group PLC on Tuesday expressed confidence for the year ahead after 2019 revenue rose ahead of market forecasts.
The stock was trading 29% higher in London on Tuesday at 136.01 pence a share.
The independent supplier of gas, electricity and water to the UK business sector said it expects to report revenue for 2019 of GBP110 million, up 35% from GBP80.6 million a year earlier and ahead of market forecasts.
Adjusted earnings before interest, tax, depreciation and amortization, meanwhile, is anticipated to be in line with market expectations. Yu Group said its Ebitda has "significantly" improved in the second half compared with the first half, and it expects further "material" improvement in 2020 amid strategic actions.
"Significant controls implemented across the organisation have now been embedded by the business and are showing a positive contribution towards areas such as cash collections, revenue protection and gross margin optimisation," said Chief Executive Bobby Kalar.
The company said bookings, representing the annualised value of new or renewed contracts entered into with customers during 2019, averaged GBP4.2 million per month versus GBP8.4 million a year ago, as processes and systems were redesigned.
Contracted revenue for 2020 stood at GBP79.5 million as at December 31. Yu Group said it is confident that the revenue contracted, plus the future business that it will book, will deliver a higher forward gross margin and Ebitda contribution than that contracted in 2018.
"I look forward to a successful year ahead," added Kalar.
The company will announce its 2019 results on March 31, it said.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Yu Energy (YU.)