(Alliance News) - Yu Group PLC on Tuesday said it expects to post "record breaking" annual results as it estimates a 60% revenue increase, with earnings set to beat market expectations as a result.
Shares in Yu were up 13% to 1,260.00 pence each in London on Tuesday morning.
Yu is a Nottingham, England-based supplier of gas and electricity and installer of smart meters in the UK corporate sector.
Yu said revenue for 2023 is expected to exceed GBP450 million, which is a 61% increase from GBP279 million a year ago. This was driven by average monthly bookings more than doubling year-on-year to GBP55.0 million, the firm said.
Yu expects earnings before interest, tax, depreciation and amortisation to be "significantly ahead" of current market expectations. Ebitda in 2022 was GBP7.9 million.
It also estimates an expansion of adjusted Ebitda margin in the recent year, driven by "strict controls and operating leverage." Adjusted Ebitda margin in 2022 was 2.8%
Looking ahead, Yu said it has secured contracted revenue of GBP519.7 million, all of which it expects will be delivered in 2024.
Chief Executive Officer Bobby Kalar said: "Once again, the group has delivered a fantastic all-round performance, and I am delighted to report another set of record-breaking results. We have a clear strategy and the processes in place to deliver exceptional profitable growth whilst navigating a turbulent commodity market. The contracted revenue and bookings momentum provides the board with confidence in delivering continued significant organic growth for FY24 and beyond."
By Sabrina Penty, Alliance News reporter
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Yu Energy (YU.)