Member Info for MKS123

Manufacturing is well diversified so covid impact was minimal relatively speaking. Volex is still in growth mode. The recent investor meeting was very positive. The recent uptick is largely because of Board buys.

I'm hoping Yu buy more B2B business and/or there is a new fund joining in. Anyone got a clue as to Go Effortless Energy's B2B book or RHE's?

£825k... not loose change. In the recent investor presentation, we were told Volex proved to be very resilient and is operating in growth markets with medical sales to be H2 skewed...

yep slow and steady does it.... well diversified company that is generating cash

I hope so. It'll be best for a buyer all round

why would the lse care about bristol energy's b2b book and who buys it? Covid 19 and its impact on all businesses is still a current issue albeit many feel the main part of lockdown is now gone. Yu identified their own problem, cooperated, fixed the problem and that's the end of it

What has been bought is the B2B book and not residential customers. Economies of scale and cross selling alongside utilising the smartest energy deal make this a positive acquisition IMHO. It's all there in the RNS. This also ties in with the new shareholder who is based in the South West. I'd like to see Robin Hood B2B next come to Yu

Fantastic news and what happens naturally in the markets. There will be fewer suppliers taking on larger market share and with Yu now all about scaling up in a controlled fashion, this is brilliant for Yu's profit ambitions. Yu really have set the foundations to do more of these acquisitions since end of 2018

Latest statistics available from OFGEM on their website with lots of detail and charts about wholesale costs and renewable generation. The trend is wholesale costs are going down and renewable generation is increasing, which has been the trend throughout 2019 as well. This feeds into *potential* profits for energy suppliers...

Lots of talk about margins etc recently. A few points:

1. Wholesale elec cost takes up 43% of elec bills (taken from a 2018 article guide on Yu's website)
2. Wholesale gas cost takes up 49% of gas bills (again taken from a 2018 article guide on Yu's website)
3. 1st March 20 elec wholesale price 33.22 £/MWh (taken from Ofgem's website) versus 56.79 £/MWh in 1st March 2018 (again taken from Ofgem's website)
4. The equivalent gas prices are 22.92 p/therm versus 64.3 p/therm in 2018
5. Q1 2020 total GB energy was made up of 45% renewables
6. Wind energy projects are coming online aplenty in 2020 and coming years (see BEIS or other gov sites)

A lot has changed from when low margin contracts were entered by Yu versus new contracts or renewals done throughout 2019 amd 2020

Okay? If hvivo finds your analysis useful then fine. I just thinks its off even based on some guess work. £17.9m down to £6m whilst RO payments net to only about 1.something million in recent years and cash with counterparts were getting transferred out as soon as smartest came along and ROC issuance and renewables have only gone up... I just think that is way off. But that's my tske on what Yu's cash situation is like

"fixed daily standing charge revenue would remain constant - this equates to up to 20% of a customers invoice and sometimes more."

I just don't think you/I have enough info to make estimates along these lines. If you use 0 energy, then the fixed is 100% of your bill. But this is hardly ever the case. Anyway, have a read of Yu's last annual report. They have 8724 meter points. They say they have 0.2% market share with 129 staff. This is for FY2019.

Where do you get 20% as the fixed daily charge? That seems way to high.

Interesting analysis ontheup. FY 2019 gross margin was 4.9% with 6.7% for H2 2019 (see past RNSs). I'm not clear on which collateral and trading counterparts you refer to now. That's what the smartest energy deal was about. Cash as of 30th June 2020 was £17.9m with avaerage monthly sales of £6.2m in H1 2020. There are 16.2m shares in issue. All these numbers are easy to get. There is no need to guess everything

Volume is much high than normal and we have a new major shareholder who owns over 4% as of end of July

Good spot. Not a name on the shareholder page before 28th July...

Moneyspider, a few inaccuracies in your post, which are easy for you verify by going through Yu's website and RNSs, ofgem's website and that of BEIS. Yu have never paid anywhere close to £9m in RO contributions. RO payments have been discussed at length. Each director is not paid £250k. Since Drax etc have a ton more customers than Yu, for them to get 99.5% collection is a lot harder than for Yu. If you provide a ROC, then there is no cash sum to pay for the same unit of energy.

Yu is doing remarkably well considering the climate. Do I suspect many PIs are chasing profits in IAG, RR, LLOY and other established names that are taking a hit right now? Yes. Do I think Yu will survive and thrive? Yes. Yu flagged their own shortcomings in 2018 and dealt with it.

You could argue that since they deliberately became more selective on customers during 2019, this has helped their credit risk and that is coming through in the numbers now. The point you're trying to make I presume goes back to 2018 when FCA investigated at the behest of Yu and levied a fine of 0

Very robust update with the worst behind us in terms of UK economic lockdown. 99.5% collection was the highlight for me and with enough cash to pay their dues, no need to raise more cash or take on debt, this has been a very well traversed H1 for Yu. The processes put in place in 2019 are proving to be priceless. COVID looks to have just temporarily delayed Yu's ambitions.

They've given themselves until end of July to cover Year to end June. So not delayed as of now. Looking at previous updates, it would be the final week anyway

I was hoping to see the update today as well but given the state of play right now in the world I'm not suprised. Centrica's update gives an insight into the energy usage pattern in the UK. I expect Yu to say energy usage is picking up but forward guidance is not as predictable like other companies are right now...