deffo worth buying27 Aug 2019 12:24
Yü Group PLC, the independent supplier of gas, electricity and water to the UK business sector, today provides an update on trading for the six months ended 30 June 2019.
Group revenues for the period are expected to be in excess of £55m (H1 2018, as reported: £35.8m). As at 30 June 2019, the Group had c.£45m of contracted revenue which is expected to be recognised over the remaining six months of FY2019. The Group expects revenue in excess of £100m for the full year to 31 December 2019 as a result of the existing contract book, combined with incremental bookings growth from new accounts and additional revenue, beyond that contracted, from existing customers.
Yü Group remains wholly focused on restoring the Group to profitability and continuing to accelerate its growth. The initiatives implemented around sales acquisition and customer lifecycle strategy will take time to deliver results. The Group has focussed on a sales strategy to target new contracts with an increased margin and lower credit risk than historically realised, which has resulted in a reduced level of monthly bookings than previously achieved. The Group also continues to wash through a book of existing lower margin contracts, entered into in the prior year, that continue to dampen Group margins for this year. As a result, the Board anticipates reporting an Adjusted EBITDA loss of between £2.5m and £3m for the six months to 30 June 2019. The Board remains confident that actions undertaken will translate into improved results.
As at 30 June 2019, the Group had a cash balance of £17.4m (£14.6m at 31 December 2018 and £16.5m at 30 April 2019).
The Board, led by the audit committee, has conducted a thorough and extensive review of the internal control environment in operation throughout the Group, together with an assessment of the status of the previously identified improvement actions. This review has been supplemented by a second health-check report from PwC, following its independent forensic review conducted in Q4 2018. The Board is pleased to confirm that these key control and process improvements have been made and are operating routinely, providing good visibility on contracted revenues and facilitating greater financial control.
The Board is focused on the Group's future growth and development, and continues to invest in the business to build the Group's infrastructure in line with the market opportunity. The Group recently announced the expansion of its Leicester sales operations to drive sales and customer retention. The Board will provide further guidance on the Group's strategy and long term outlook in September 2019 when reporting its half year results to 30 June 2019.
Notice of interim results
The Group intends to publish its interim results for the six months ended 30 June 2019 on Wednesday 18 September 2019.
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