(Alliance News) - Yu Group PLC on Friday said it entered into a new trading agreement with Shell Energy Europe Ltd.
Yu is a Nottingham, England-based supplier of gas and electricity and installer of smart meters in the UK corporate sector.
Yu said its subsidiary Yu Energy Retail Ltd entered into the trading agreement with Shell Energy Europe Ltd for an initial five-year term.
"Entry into the hedging facility represents the conclusion of a twelve-month selection and due diligence process and is effective immediately. The hedging facility replaces the previous arrangement entered into in 2019 with SmartestEnergy Ltd," it explained.
Yu Chief Executive Officer Bobby Kalar said: "The new hedging facility unlocks over GBP50 million of cash currently posted as collateral and removes a material working capital constraint to the business lifting exposure to mark to market movements from future energy market fluctuations. This provides us with substantial strategic and financial benefits, enabling increased distributions whilst continuing to invest to deliver our ambitious growth agenda."
Yu shares rose 11% to 1,290.00 pence each on Friday morning in London, while Shell PLC shares were 0.5% lower at 2,495.00p each.
By Tom Budszus, Alliance News slot editor
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Yu Energy (YU.)
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